Unit 1 The Real Estate Business

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  1. absentee owner
    an owner who does not personally manage or reside at property owned. Example: Abel, living in New York, purchases an apartment building in Houston. Abel is an absentee owner.
  2. Dedication
    the gift of land by its owner for a public use and the acceptance of it by a unit of government. Example: A DEVELOPER of a large SUBDIVISION makes to the local government a dedication of the streets, the flood-prone areas and one ACRE of land for a public school. This obligates the government to MAINTENANCE of these areas and relieves the developer of a property tax liability on the dedicated lands.
  3. What is a real estate broker?
    provide specialized service for others in return for compensation in the form of a commission, fee, or other valuable consideration. Today a real estate licensee is paid to handle other people's properties because the licensee is a professional who provides specialized service and expertise in at least five areas:
  4. Details of property transfer
    A competent real estate practitioner must know the economic and legal intricacies associated with transfers of title, property taxes, financing, and local zoning ordinances. Real estate practitioners must be intimately familiar with the real estate purchase and sale contract used in their locale, and they must be able to complete the form competently.
  5. What affects market conditions?
    Changes in market conditions are due to changes in income tax laws, building moratoriums, and fluctuations in supply and demand.
  6. What type of knowledge do you need to know on how to market real estate or businesses?
    The sale presentation is most effective when pitching the prospect and what they want. ie a physician who is relocating to a new city may be completely different from the approach used to assist the owner of an expanding gourmet coffee bar in choosing an additional location.
  7. What is an Real estate brokerage?
    Real estate brokerage the business of bringing together buyers and sellers, owners and renters, and completing real estate transactions. Real estate licensees are paid a fee or a commission for their services.
  8. Successful real estate professionals know how to______________?
    analyze a buyer's needs, wants, and financial capabilities in order to help meet their goals.
  9. Name three real estate laws?
    Real Estate Settlement Procedures Act (RESPA), Equal Credit Opportunity Act, and the Truth in Lending Act (TILA) are important.
  10. What does RESPA stand for?
    Real Estate Settlement Procedures Act (RESPA)
  11. What are the five specializations of Real Estate?
    includes property management, subdivision and development, appraisal, financing, and counseling.
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Unit 1 The Real Estate Business
chapter one for real estate exam
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