Principles of Real Estate Champions School of Real Estate 1 Exam with Correct Solutions 2024 3 Physical Characteristics of Land - Answer -Indestructibility or durability Immobility Non homogeneity Mortgage Lending - Answer -business of providing money to individuals or corporations for the conditional transfer or pledge of real estate as security for payment of a debt RMLO - Answer -Residential Mortgage Lenders Originator Property Management - Answer -Management of residential and commercial properties on behalf of owner/investor Apartment Locators - Answer -Locates rentals of tenants in multi -family complexes. Has knowledge of amenities of all complexes in the market area. Paid a fee by apartment complex for referals Home Inspectors - Answer -Inspects properties for habitability including HVAC, Plumbing, electrical and construction methods Real Estate Development - Answer -Involves the acquisition of land for development into residential subdivisions, retail center and commercial uses Oil and Gas Landman - Answer -Negotiates oil and gas leases with mineral owners. Title work to determine mineral ownership TREC - Answer -Texas Real Estate Commision Education Standards Advisory Cmte - Answer -12 members -7 brokers, 4 education board members, 1 public member. Reviews and revises curriculum standards, course requirements. NAR -National Association of Realtors - Answer -Largest professional organization for RE profs. Divided into State and Local boards. Operates the MLS IREM -Institute of RE Mgmt - Answer -Intl cmte of RE managers. CCIM -Certified Commercial Investment Memeber - Answer -Est 1954. Furthers business practices through education and networking SIOR -Society of Industrial and office realtors - Answer -Professional affiliate of the NAR. Specializes in industrial, office, sales managers, executive manager or advisory service ICSC -International Council of Shopping Centers - Answer -Purpose is to advance the shopping center industry. Promotes commercial distribution of consumer goods and service BOMA -Building Owners and Managers Assoc - Answer -Member are building owners, managers, developers, leasing professionals, corporate facility managers, asset managers, and providers of products and services to operate commercial properties Land is developed... - Answer -by appearance, location and scenic value Land is described... - Answer -by utility and suitability for a specific use Land and Real Estate property - Answer -must be described in a distinguishable manner from personal property. 4 Economic Characteristics of Land - Answer -Scarcity Modification Fixity Situs Indestructibility or durability - Answer -Land cannot be destroyed Immobility - Answer -land cannot be moved, owner must go to the land Non -homogeneity - Answer -no 2 parcels of land is the same. Scarcity - Answer -supply and demand. Shortage of what people want price goes up; less land price increases, more land price decreases Modification - Answer -value is affected by man -made changes to the land itself or offsite improvements Fixity - Answer -land and addition to land take a long time to pay for themselves. Situs - Answer -Location of property or land from and economic not geographic viewpoint value - Answer -fair return in goods, services or money for something exchanged. The monetary worth of something. Real Estate Value - Answer -determined by personal preference which is subjective Supply and demand - Answer -high demand=low inventory, price increases Low Demand=high inventory, price decreases Supply is restricted by - Answer -Land costs construction taxation economics building and zoning ordinances Growth policies of cities Demand is affected by - Answer -Growth in employment transportation systems personal preference availability in credit Federal Govt policy Value is affected by - Answer -Federal income Tax policy supply of money monetary policy of fed reserve interest rates Local economic cycles and RE values are affected by - Answer -Availability of employment population trends availability of trained workforce local govt policy Agency Law - Answer -Relationship between parties to a transaction -salesperson, brokers and others. Level of service provided by presence or lack of agency agreement with broker Contract Law - Answer -License holder understands elements of a contract Assist in creation of a valid and enforceable agreement Understand different forms of property ownership Common Law - Answer -Law based on common sense and local custom Statutory law - Answer -Law and regulation enacted by federal and state legislation TRELA -Texas Real Estate Licencing Act - Answer -Protects public against unscrupulous broker and agents TREC Texas Real Estate Commission - Answer -created in 1949 9 member commission, appointed by governor, serves 6 year term, 6 members are RE brokers, 3 Members are public Appraisal - Answer -Providing a professional opinion of the value of real propery RMLO's in TX are licensed through the - Answer -Texas Dept of Savings and Mortgage Lending Land - Answer -Surface of the earth extending to the center and upward above the surface to infinity, includes natural things -trees, crops and water Real Estate - Answer -all that is encompassed in land, with the addition of all man -made additions to the land, such as roads, houses and commercial buildings Real Property - Answer -includes the rights that a person has in the land, goes beyond physical real estate Severable - Answer -common for different individuals to own different rights of the same piece of land; surface owners do not own the subsurface rights to their property. Surface rights - Answer -owner has right to improve or develop the surface and use resources extracted from or near the surface, including stone, gravel, water and limestone subsurface rights - Answer -include the rights to oil, gas and other minerals, commonly conveyed through a lease, mineral deed or by reservation Air rights - Answer -extend above the surface without limitation, can be leased, sold or mortgaged. prohibit any activity that blocks the view of a building, cell phone transmitter tower or billboard Solar access - Answer -property owners have a right to reasonable amount of sunlight for heating. roman law dating back 2000 years Surface rights - Answer -transferred to new owners in total Royalty rights - Answer -right to collect a royalty for oil and gas production Executive Rights - Answer -right to execute a contract or lease for the exploration of oil and gas Bundle of Rights - Answer -Rights that are associated with the ownership of real property are often referred to as the owners. homeowner's costs of ownership includes - Answer -Mortgage, taxes, repairs and maintenance, interest, insurance, utlilites
