TREC Exam Questions and answers, graded A+. latest update

TREC Exam Questions and answers, graded A+. latest update CHAPTER 1 - -INTRODUCTION TO MODERN REAL ESTATE Difference between a real estate broker and a real estate salesperson - -A broker acts as agent of buyer/seller negotiating sale/purchase rental of real property Salesperson conducts brokerage, acts on behalf of broker for fee Differences between value, price, cost - -Value- present use of future benefitis Price-Amount a purchaser agrees to pay a seller under a transactions circumstances Cost-total dollar expenditure for labor, materials, and other items related to construction Define/distinguish difference between a principal, agent, and customer - -Principal- employer of an agent Agent- authorized person to act on behalf of another Customer- party agents bring to the principal as the buyer/seller of property Brokerage - -Business of bringing buyers and sellers together and assisting in negotiations for terms of the sale of real estate Real estate broker - -A person or an organization acting as the agent for others in negotiating the purchase and sale of real estate property or other commodities for a fee Real estate salesperson - -A person performing any of the acts included in the definition of a real estate broker but while associated with and supervised by a broker Residential property - -a type of property that includes one to four dwelling units Commercial property - -Property that produces rental income or that is used in business. Properties with five or more dwelling units are considered commercial properties Industrial property - -Property that is used by companies or persons for manufacturing, warehousing, or the assemblage of components Special purpose property - -A category of real property created as the result of combining the land and its improvements for a single highest and best use Mixed use property - -Any urban, suburban, or village development or even a single building that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated and that provides pedestrian connections Improvements - -Changes or additions made to a property such as walls or roads. Typically increase the value of a property, except in some cases of over improvement Non-homogeneity - -A physical characteristic of land describing that land as a unique commodity Value - -Present worth of future benefits Price - -amount a purchaser agrees to pay and a seller agrees to acct under the circumstances surrounding a transaction Cost - -Total dollar expenditure for labor, materials, and other items related to construction Supply - -Amount of goods offered for sale within a given market at a given price during a given time period Demand - -Amount of goods consumers are willing and able to buy at any given price during any given time period Demography - -study of the social and economic statistics of a community Agent - -Person authorized to act on behalf of another Principal - -Employer of an agent Customer - -The party the agents bring to principal as seller/buyer of the property General agent - -An agent with full authority over one property of the principal, such as a property manager Special agent - -An agent with limited authority to act on behalf of the principal, such as created by a listing