Unit 1: Introduction to Modern Real Estate Practice ||
WITH COMPLETE ANSWERS!!
Brokerage correct answers The business of bringing together people who are interested in
making a real estate transaction
Broker correct answers Typically acts as an agent of the buyer or seller (or both) in
negotiating the sale, purchase, or rental of a property
Sales agent correct answers A license holder employed by or associated with a broker who
conducts brokerage activities on behalf of the broker for a fee or commission
Uses of real property correct answers (1) Residential, (2) Commercial, (3) Industrial, (4)
Agricultural, (5) Special Purpose, (6) Mixed Use
The Texas Legislature created the __________________ by amending the Texas Real Estate
License Act (TRELA) in 2011. correct answers Education Standards Advisory Committee
(ESAC)
The mission of the ESAC is to__________________________. correct answers review and
revise curriculum standards, course content requirements, and instructor certification
requirements.
ESAC _____________________, while TREC adopts and makes ___________________.
correct answers recommends; rules
The Education Standards Advisory Committee (ESAC) consists of ______ members who
have been actively participating in real estate for at least five years before appointment.
correct answers 7
_______ memebers of the ESAC are either owners of TREC-accredited real estate schools, or
approved instructors; and _____ is a public memeber. correct answers 4; 1
Realists correct answers Members of the National Association of Real Estate Brokers
(NAREB)
The largest real estate professional organization in the world, representing all branches of the
real estate industry. Active members are allowed to use the trademark REALTOR. correct
answers National Association of REALTORS (NAR)
REALTORS correct answers Members of the NAR
Real estate possesses seven basic characteristics that determine its _______________ and
affect its ____________. correct answers value; use
Economic characteristics of real estate correct answers 1. Relative scarcity
2. Improvements
3. Permanence of investment
4. Area preference
, Physical characteristics of real estate correct answers 1. Immobility
2. Indestructibility
3. Nonhomogeneity
Relative scarcity correct answers Total supply of land is fixed
Improvements correct answers can affect the calue and use of a particular parcel as well as
neighboring tracts and whole communities
Permanence of investment correct answers The capital and labor used to build an
improvement represent a large fixed investment
Area preference correct answers Also known as situs - this economic characteristic refers not
only to geography but also to the preference for a specific area.
MOST IMPORTANT economic characteristic of land
Immobility correct answers Location is fixed
Indestructibility correct answers Land is indestructible. This characteristic tends to have a
stabilizing effect on real estate investments.
Nonhomogeneity correct answers uniqueness - no two parcels of land are ever the exact same
(aka heterogeneity)
The various characteristics of a parcel of real estate affect its desirability for a specific
___________. correct answers use
Value is based on ___________ and _________ factors. correct answers Objective;
subjective
Objective value correct answers The actual value measured in dollars of an aspect of
construction or location
Subjective value correct answers affected by the relative worth an individual places on a
specific item
Price correct answers the amount of money paid for an item
Cost correct answers the capital outlay for land, labor, materials, and profits necessary to
bring a property into existence
Market correct answers a place where goods can be bought and sold and a market value can
be established
When both supply and demand increase, real estate prices tend to _________________.
correct answers remain stable
WITH COMPLETE ANSWERS!!
Brokerage correct answers The business of bringing together people who are interested in
making a real estate transaction
Broker correct answers Typically acts as an agent of the buyer or seller (or both) in
negotiating the sale, purchase, or rental of a property
Sales agent correct answers A license holder employed by or associated with a broker who
conducts brokerage activities on behalf of the broker for a fee or commission
Uses of real property correct answers (1) Residential, (2) Commercial, (3) Industrial, (4)
Agricultural, (5) Special Purpose, (6) Mixed Use
The Texas Legislature created the __________________ by amending the Texas Real Estate
License Act (TRELA) in 2011. correct answers Education Standards Advisory Committee
(ESAC)
The mission of the ESAC is to__________________________. correct answers review and
revise curriculum standards, course content requirements, and instructor certification
requirements.
ESAC _____________________, while TREC adopts and makes ___________________.
correct answers recommends; rules
The Education Standards Advisory Committee (ESAC) consists of ______ members who
have been actively participating in real estate for at least five years before appointment.
correct answers 7
_______ memebers of the ESAC are either owners of TREC-accredited real estate schools, or
approved instructors; and _____ is a public memeber. correct answers 4; 1
Realists correct answers Members of the National Association of Real Estate Brokers
(NAREB)
The largest real estate professional organization in the world, representing all branches of the
real estate industry. Active members are allowed to use the trademark REALTOR. correct
answers National Association of REALTORS (NAR)
REALTORS correct answers Members of the NAR
Real estate possesses seven basic characteristics that determine its _______________ and
affect its ____________. correct answers value; use
Economic characteristics of real estate correct answers 1. Relative scarcity
2. Improvements
3. Permanence of investment
4. Area preference
, Physical characteristics of real estate correct answers 1. Immobility
2. Indestructibility
3. Nonhomogeneity
Relative scarcity correct answers Total supply of land is fixed
Improvements correct answers can affect the calue and use of a particular parcel as well as
neighboring tracts and whole communities
Permanence of investment correct answers The capital and labor used to build an
improvement represent a large fixed investment
Area preference correct answers Also known as situs - this economic characteristic refers not
only to geography but also to the preference for a specific area.
MOST IMPORTANT economic characteristic of land
Immobility correct answers Location is fixed
Indestructibility correct answers Land is indestructible. This characteristic tends to have a
stabilizing effect on real estate investments.
Nonhomogeneity correct answers uniqueness - no two parcels of land are ever the exact same
(aka heterogeneity)
The various characteristics of a parcel of real estate affect its desirability for a specific
___________. correct answers use
Value is based on ___________ and _________ factors. correct answers Objective;
subjective
Objective value correct answers The actual value measured in dollars of an aspect of
construction or location
Subjective value correct answers affected by the relative worth an individual places on a
specific item
Price correct answers the amount of money paid for an item
Cost correct answers the capital outlay for land, labor, materials, and profits necessary to
bring a property into existence
Market correct answers a place where goods can be bought and sold and a market value can
be established
When both supply and demand increase, real estate prices tend to _________________.
correct answers remain stable
