Real Estate Chapter 1
Terms
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- the real estate business consists of these three major activities
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real estate brokerage
development and construction
investment - Real estate licensees work as...(three ways)
-
transaction broker
nonrepresentatives
agents - a real estate licensee provides expertise in at least these three areas...
-
Property transfer
market conditions
marketing of real estate or businesses - List the ten steps in the real estate sales process
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Prospecting and listing
prospecting for buyers
buyer qualification, negotiation
sale closing (sign contract)
Loan application
credit eval and property appraisal
loan approval and title search
title closing
recording of instruments
follow-up - term used when one specific portion of a city is the expertise of a licensee
- farm area
- the five major specialties involved in real estate sales
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Residential
Commercial
Industrial
Agricultural
Businesses - when an owner does not personally manage or reside on the premises
- absentee owner
- this person is the local representative of the owner and has a primary task to produce the greatest possible net income over the longest possible time
- the property manager
- the process of estimating the value of real property
- appraisal
- regulates state-certified, licensed, and registered appraisers
- Florida Real Estate Appraisal Board
- can real estate licensees appraise property for compensation?
- yes. once they do not represent themselves as state-certified, registered or licensed appriasers.
- real estate licensees must abide by this when appraising property
- (USPAP) Uniform Standards of Professional Appraisal Practice
- FIRREA
- Financial Institutions Reform Recovery and Enforcement Act
- these transactions require a state-certified or licensed appraiser
- federally related transactions
- this may be used to help a seller determine an asking price
- (CMA) comparative market analysis
- what percentage of real estate purchases are financed?
- over 90 %
- these people provide advice to individuals and firms regarding the purchase and use of real estate investments
- Real estate counselors
- what are the three general phases of development and construction?
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1. land acquistion
2. subdividing and development
3. construction - this is a map of the subdivision that indicates the size and location of individual lots, streets and utilities...
- plat map
- this is the gift of land by an owner to a government body for public use
- dedication
- developers use this to ensure that no homes will be built that might decrease the value of neighboring properties
- restrictive covenants
- the three general categories of residential construction
-
spec homes
custom homes
tract homes - this level of government impacts real estate through property taxation, permits and zoning
- local government
- this level of government owns and manages a large amount of property and identifies coastal regions and areas protected from development
- State government
- this level of government impacts real estate through its fiscal and monetary policies
- the federal government
- the largest trade organization in the world
- (NAR) National Association of Realtors
- can associates join a local NAR is their employer is not a member?
- no
- if an associate's office is a member of NAR must that associate join?
- yes