1-Introduction to real estate Flashcards

1-Introduction to real estate Flashcards

topographycontour of landex: hilly land not good to build on

condominiuma property developed for co ownership, with each co owner having a separate interest in an individual unit combined with undivided interest in common areas physical factors can beon a property or externalnatural or man man right to regulate lawsdeal with the police power that governments reserve for themselves co-opbuilding that is owned by non profit corporation formed for that purpose struggles of specializationspecial terminology and finding a broker willingt o mentor you revenue generating laws deal withdeal with taxes requiremnt of brokersupervise his or her licensees is imperative and your employing broker is responsible for you no matter how long your in the business. CANNOT make contract to avoid responsibility for actions of licensee escheatWhen property reverts to the state after a person dies without leaving a valid will and without heirs.largest/oldest local real estate assoc.real estate board of ny industrial propertiesland and structures involved in production, distribution, and storage of tangible economic goods

t/f:one adv of real estate sales is that you can double

commssion % during slow months false, doubling during slow months not likely so to adv why do you need interest ratesbank or lender must pay high enough interest rate to potential depositors, so the bank will have enough money to lend to others and make money for itself and shareholders cooperatorsshareholders in corporation that have proprietary lease for a specific unit in the building and the right to use common elements of building and can vote sales person cannotwork independently of his or her licensed broker and everything must be done in name of broker 100% commissionyou need to pay your broker a monthly fee for using the name economic basearea is the main business or industry that a community uses to support itself if someone puts an ad in newspaper seeking investors to help him purchase property and pay for renovation do they need a securitis broker-dealer license? explain yes bc they would be making a public offering of securities most important factor in determining supply economic base of area, positive correlation

• types of police power1. escheat2. eminent domain3. environmental protection4.

land use control/zoning high interest rate on real estatehinder buyers bc morgage more expensive factors separating housing from other market 1. lag time needed for the contruction industry to respond to changes in supply/demand2. limit to supply of land in area mlsservice whereby local member brokers agree to share listing and further agree to share commissionon property sold jointly as economic base expandssupply expands why do real estate cycles take longer to recover housing decision are dependent on job security and stability of other business cycle factors broker/salesperson relationship as employee 1. broker pays salary or hourly wages2. broker contribues to unemployment, social secu3.w-2 form required high inflation on real estate cycle v. business cycleHigh inflation hits a real estate cycle harder than a business cycle primarily because the actual costs are larger. A person will think twice about buying a $100,000 house that has increased in price by $10,000 but is much more likely to shrug off a $5 rise in a $50 pair of shoes - even though both prices rose by the same percentage.eminent domainThe government's constitutional power to take (appropriate or condemn) private property for public use, as long as the owner is paid just compensation.most important factor in determining demand interest rate demand inflationtoo much money chasing too few goods

• tasks of property manager1. collect rent2. lease unit3. maintenence and repair4.

tenant relationship why w-2income of salesperson subject to earning withholdings t/f: many careers in local gov but not federal govfalse, available at all levels economic factorfactory moving in law of supply and demandsupply>demand price fallssupply

• types of residential real estatesingle fammulti famcondo/co-opgroup home

immobility effect in market cycleshelps value in good market since other land cannot be moved in to take away customers but hurts in bad market as land cannot be moved to better position to attract

• common areas of specializationcommercial propindustrial propfarm propcemeteries

condemnation.(Government taking of private land is called condemnation.Condemnation is the action; eminent domain is the right.)

inflation on real estateeffects new home prices can someone refuse to sell home if country want to use land for something else no bc gov constitutional athority to appropriot property for public use via eminent domain

NAR members agree to:follow code of ethics

manufactured housingnot mobile homes, trailers but are attatched to foundation real estate cycles result fromincreasing or decreasing property value at different parts of cycle

• benefits of NARS1. MLS (multiple listing service)2. able to use title

REALTOR3. political and legislative advocacy4. training to recieve professional designations inflationincrease in the cost of g/s co-op residents akacooperators uniqueness in real estate refers tothe fact that each piece of land and each building and each ouse is said to be different piece of real estate counterofferrepresents a change. It is a response to an offer to enter into a contract, changing some of the terms of the original offer. A counteroffer is a rejection of the original offer (not a form of acceptance), and does not create a binding contract unless the new counteroffer is accepted by the original offeror (the counterofferee).real estate license and securitieslicense does not allow you to sell securities but anyone who brokers land contracts or sells morgages to public investors is acting as broker-dealer within securities laws and must be licensed as such common split50/50 salesperson akaassociate broker timesharepurchase of undivided interest for fixed or varibale time period high commisson slpits80/20, 90/10 but often require you pay for your own costs civil litigationA lawsuit in which one person sues another for compensation.how are real estate laws applieduniformly to all types of real esate associate broker v salespersonassociate broker is qualified broker that works for another broker and salesperson msut do everything through broker social factoraging pop

• advantages of real estate sales1. compensation based on commission2. control your

time3. minimum office time4. self ownership of brokerage possible joining NARnot mandatory unless sponsoring broker is member salesperson/associate broker definitionindividual licensee employed by a broker who may preform most of the acts of a broker supply of homes in area rises, what is effect in short term?home prices will fall slightly from high points gov factortaxes low inflation good (2)1. keeps cost down on new homes2. low interest rates*outweigh bad

• ways cycles ride themselves our1. interest rates or other costs become so high that no one

can afford to buy and prices fall2. rates and costs are so low that even people reluctant to spend cannot pass up opportunity so they begin to spend again cost inflation result ofmanufaturers and other apssing along increases in their costs along to consumer

• broker/salesperson relationships1. employee2. independent contractor`

real estate cycles depend on what? why?business cycles bc when cycles good people feel secure to invest

• types of specialized residentialconverted use propertymanufactured housingtimeshare
• state and local gov laws that influence real estate1. revenue generating laws3. right to regulate laws

commission and feesthe higher percentage of commission you get more likely the more fees you will pay NYSARNY state association of realtors listingwritten agency contract between a seller and a real estate broker, stating that the broker will be paid a commission for finding (or attempting to find) a buyer for the seller's real property. A listing is a personal services contract. Can also be called a listing agreement or a service provision contract buyer market results from (3)1. demographic shift in area2. overbuilding3. bad ecnomy real estate lincenseea person licensed to practive real estate. State law requires that any person or porporation that for a fee does the acts of broker but be licensed cost of money is ..the interest rate people or business must pay to use another's money for their own purpose locationproperty's exact position environmentsoil composition, lakes

• disadv of real estate sales1. unsteady income2. sales effects by seasonal/cyclical

swings3. work evenings and weekends demand inflation in real estateeffects existing home prices, people want to live in area w low supply of homes national association of realtorsmain organization that lincesees join, and only those in the organization can use the term realtor bc trademarked seller market result from1. little construction2. people move to specific area3. high construction costs4. good econ conditions economic base in real estatemandatory bc land cannot be moved, every commnity needs healthy economic base to maintain market vvalues business cyclegeneral swings in business activity resulting in expanding and contracting acctivity during different phases of cycle multi fam home buyerinvestor normally WCRwomen council of realtors uniqueness/scarcityland is unique and there are not a lot of substitues brokerone who is licensed to represent another persona in a real estate transaction with the intent to revive compensation or valuble consideration