Principles of Real Estate Exam 1 Questions With Correct Answers

Career Opportunities - Answer residential brokerage, commercial brokerage, industrial brokerage, farm brokerage, property management, rental listing service, real estate appraising, government service, land development, urban planning, mortgage financing, securities and syndications, consulting, title insurance, research and education, full time investor. Residential Brokerage - Answer Commercial Brokerage - Answer -specialize in income producing properties such as apartment and office buildings, retail stores and warehouses. primarily selling the monetary benefits; income, appreciation, mortgage reduction, and tax shelter that a property can reasonably be expected to produce. -competency in mathematics, finance transactions and tax laws is very important. less frequent but larger commissions than residential brokerage. working hours much closer to regular business hours. networking important. Industrial Brokerage - Answer specialize in finding suitable land and buildings for industrial concerns. includes leasing and developing industrial property as well as listing and selling it. must be familiar with industry requirements such as proximity to raw materials, water and power, labor supplies and transportation. must also know about local building, zoning, and tax laws as they pertain to possible sites and about the schools, housing, cultural and recreational facilities that would be used by future employees of the plant. commissions are irregular but substantial. Farm Brokerage - Answer -must be equally capable of handing the 160 acre spread of farmer jones and the 10,000 acre operation owned by an agribusiness corporation. knowledge of soils, seeds, plants, fertilizers, production methods, net machinery, government subsidies, and tax laws is vital to success. offers as many opportunities to earn commissions and fees from leasing and property management as from listing and selling property. Property Management - Answer job is to supervise every aspect of a property's operation so as to produce the highest possible financial return over the longest period of time. tasks include: renting, tenant relations, building repair and maintenance, accounting, advertising, and supervision of personnel and tradesmen. growing demand for this position. usually paid in salary and if the property is a rental, a bonus for keeping the building fully occupied. should not only be a public relations expert and a good book keeper, but also at ease with tenants, handy with tools, and knowledgable about laws applicable to rental units Rental Listing services - Answer -services that help tenants find rental units and landlords find tenants. most compile lists of available rentals and sell this information to persons looking for rentals. a few also charge the landlord for listing the property. objective is to save a person time and gas by providing pertinent information about the rental. info included: location, size, rent, security deposit, pet policy, etc. also include roommate profile services. Real Estate Appraising - Answer -job of the real estate appraiser is to gather and evaluate all available facts affecting a property's value. does not require property selling. requires practical experience, technical education, and good judgement. appraisers must be licensed in all 50 states including DC. appraisers also must have a college degree. Government Service - Answer -one third of the land in the US is government owned. includes vacant and forested land, office buildings, museums, parks, zoos, schools, hospitals, public housing, libraries, fire and police stations, roads and highways, subways, airports, and courthouses. all of these require government employees who can negotiate purchases and sales, appraise, finance, and manage and plan and develop. Forest service, park service, dept of agriculture, army corps of engineers, bureau of land management, and general services admin are all major landholders on the federal level. in addition to outright ownership, the federal housing administration, VA and federal home loan bank employ real estate specialists to operate their real estate lending programs. Land Development - Answer -most new homes in the US are built by developers who in turn sell them to homeowners and investors. equal opportunity as a large or small scale developer. Urban Planning - Answer -work with local governments and civic groups for the purpose of anticipating future growth and land use changes. they make recommendations for new streets, highways, sewer and water lines, schools, parks, and libraries. emphasis on environmental protection and controlled growth has made urban planning one of real estates most rapidly expanding specialties. usually a salaried position and does not emphasize sales ability. Mortgage financing - Answer -have a dual role 1) find economically sound properties for lenders 2)to locate money for borrowers. some specialists offer real estate loan consulting for a fee. help a borrower choose from among the numerous mortgage loan formats available today, find the best loan for the client, and assist in filling out and processing the loan application. Securities and Syndications - Answer -limited partnerships and other forms of real estate syndications that combine the investment capital of number of investors to buy large properties number in the thousands. opportunities are eagerly sought after by people with money to invest in real estate, as a result there are job opportunities in creating, promoting, and manging real estate syndications. Consulting - Answer -involves giving others real estate advice for a fee. must have a very broad knowledge about real estate including financing, appraising, brokerage, management, development, construction, investing, leasing, zoning, taxes, title, economics, and law. one must develop a good track record of successful suggestions and advice. title insurance - Answer -offers an abundance of job opportunities and a wide range or varieties, very good at simple accounting, prepping closing statements, and has an outgoing personality would be an excellent escrow officer. one who is more inclined to the tech side, research, or document review could be a title examiner. Research and education - Answer - Full time investor - Answer license requirements - Answer what is real estate or real property? - Answer -land and the improvements made to land, and the rights to use them. Land - Answer -land starts at the center of the earth, passes through the earth's surface, and continues on into space. it is possible for one person to own the rights to use its surface (surface rights), and still another to own the rights to use the airspace above it (air rights.) Improvements - Answer -any form of land development, such as buildings, roads, fences, and pipelines. anything affixed to land with the intent of being permanent is considered to be part of the land and therefore real estate. houses, schools, factories, barns, fences, roads, pipelines, and landscaping are referred to as improvements because they improve the land or develop land. Personal Property - Answer -a right or interest in things of a temporary or movable nature; not classified as real property. Items that are not a part of the land, such as tables, chairs, beds, desks, automobiles, and farm machinery are classified as personal property or personalty. if the right to use them is to be transferred to the buyer, the seller should sign a separate bull of sale in addition to the deed. Fixtures - Answer -an object that has been attached to land so as to become real estate. an object that was once personal property is attached to land, or a building) and becomes part of the real estate----fixture. a fixture is the property of the landowner and when the land is conveyed to a new owner, it is automatically included with the land. the question of whether an object becomes real estate depends on if the object was affixed with permanent intention. intention is evidenced by four tests 1-the manner of attachment 2-the adaption of the object 3-the existence of an agreement 4-the relationship of the parties involved Ownership of Plants, Trees, and Crops - Answer -trees, cultivated perennial plants, and uncultivated vegetation of any sort of considered part of the land. -plants and trees in movable pots are personal property -annual cultivated crops are called emblements and most courts of law regard them as personal property even though they are attached to the soil. -a tenant farmer is entitled to the fruits of his labor even though the landlord terminates the lease part way through the growing season. good practice when land with trees or crops is offered for sale/lease, make clear who will have the right to harvest the crop that season. Appurtenances - Answer -a right or privilege or improvement that belongs to and passes with the land but is not necessarily a part of the land. ex. easements, condominium parking stalls, shares of stock in a mutual water company that services the land. Water Rights - Answer -Riparian right: land that boarders a river or stream has the right to use that water in common with the other landowners whose land boarders the same body of water. does not have absolute ownership, but can use it in a reasonable manner. -Doctrine of prior appropriation: the first owner to divert water for his own use may continue to do so; even though it is not equitable to the other landowners along the water. -Littoral rights:where land borders on a lake or sea allowing a landowner to use and enjoy the water touching his land provided he does not alter the water's position by artificial means. a lakefront owner would be an example of this. Land Descriptions - Answer -six commonly used methods of describing the loacation of land 1-metes and bounds 2-rectangular survey system 3-recorded plat 4-reference to documents other than maps 5-informal reference 6-assessor's parcel number methods 1-4----considered legal descriptions. 5&6 are informal. Metes and Bounds - Answer -early land descriptions relied heavily on convenient natural or man made objects called monuments. a stream might serve to mark one side of a parcel, an old oak tree to mark a corner, a road on the other side, a pile of rocks a second corner, a fence, etc. drawbacks: there might not be a convenient corner or boundary marker, and unused roads became overgrown with vegetation. -Permanent Monuments: Datum - Answer -a point, line, or surface from which a vertical height or depth is measured. most commonly used datum plane in the US is mean sea level, although a number of cities have established other data surfaces for use in local surveys. Contour Maps - Answer -topographic maps, indicate elevations. Contour lines connect all points having the same elevation. the purpose is to show hills and valleys, slopes, and water runoff. If the land is to be developed the map shows where soil will have to be moved to provide level building lots. Eminent Domain - Answer -the right of government to take privately held land for public use, provided fair compensation is paid. land for schools, freeways, streets, parks, urban renew, public housing and parking and other social and public purposes is obtained this way. can also utilize this for utility lines, pipes, and tracks.