Real Estate Operations Quiz

Study Notes

Real Estate Professions

Brokerage: Oversees the needs of parties in a real estate transaction and ensures its completion.
Appraisal: Providing a professional opinion of the value of real property.
Appraiser: A licensed or certified individual who provides informed decisions on the value of real property.
Mortgage Lending: Providing money to individuals or corporations for the conditional transfer or pledge of real estate as security for the payment of a debt.
Property Management: Managing residential and commercial property on behalf of the investor-owner, including day-to-day operations, maintenance, tenant relations, and accounting.
Apartment Locator: Specializes in locating units for tenants in multifamily complexes.
Home Inspection: Providing a limited visual and general inspection of a property by an inspector.
Real Estate Development: Acquiring land for development into residential subdivisions, retail centers, and other commercial uses.
Petroleum Landman: Employed by oil and gas companies to determine mineral ownership.

Benefits of Homeownership

Security
Investment
Occupancy
Tax Benefits

Physical Characteristics of Land

Indestructibility: Land does not wear out or get destroyed.
Immobility: Land does not move; you must go to the land.
Nonhomogeneity: No two pieces of land are exactly alike and do not occupy the same place.

Economic Characteristics of Land

Scarcity: Derived from the theory of supply and demand.
Modification: Value is affected by man-made changes to the land.
Fixity: Land and additions to the land take a long time to pay for themselves.
Situs: Refers to the location of the property or land from an economic, not geographic, viewpoint.

Supply and Demand

An economic relationship between the quantity of a commodity a person wants to sell at certain prices and the quantity a consumer wants to buy at various prices.
Demand is affected by availability of credit, personal preference, and growth in employment.

Laws and Regulations

Common Law: Developed in England, based on "common sense" and local custom.
Statutory Law: Enacted by federal and state legislative bodies.
Texas Real Estate License Act: Passed in 1939 to protect the public against unscrupulous brokers and sales agents.
Texas Real Estate Commission: A nine-member commission created in 1949 to carry out the provisions of the License Act.

Real and Personal Property

Land: Defined as the surface of the earth, extending downward to the center of the earth and upward above the surface to infinity.
Real Estate: Everything that is encompassed with land, including man-made additions (improvements) such as roads, houses, and commercial buildings.
Real Property: Physical real estate plus the rights an individual has in the land.
Improvement: Any permanent man-made addition to the land, becoming part of the land.
Emblems: Annual crops produced with labor, attached to the land, and belong to the person who planted them.

Subsurface Rights

The rights to oil, gas, and other minerals, commonly conveyed through separate transactions.

Description

Test your knowledge of real estate operations, including brokerage, appraisal, mortgage lending, and property management. Understand the roles and responsibilities of professionals in the real estate industry.