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Flashcards in Specializations Deck (33)
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1
Q

Define Lease Agreement

A

A legal document outlining the terms under which one party agrees to rent property from another party. A lease guarantees the lessee (the renter) use of an asset and guarantees the lessor (the property owner) regular payments from the lessee for a specified number of months or years.

2
Q

Name three types of land real estate licensees must have knowledge in to specialize in land brokerage?

A

Farms, ranches, recreational, timberland, and other specialty land properties
Undeveloped tracts of land
Transitional and development land

3
Q

What are two reasons investor clients are different from regular customer/clients?

A

They do most of the research on their own.

They make offers on many different properties.

4
Q

What are a property manager’s four main areas of responsibility?

A

Financial and Marketing
Facility
Administration and Risk Management
Tenant and Occupancy

5
Q

The foreclosure process can end in one of four ways:

A

The borrower pays off the default amount to reinstate the loan during a grace period known as pre-foreclosure.
The borrower sells the property to a third party during pre-foreclosure, allowing the borrower to pay off the loan and avoid having a foreclosure on his or her credit history.
A third party buys the property at a public auction at the end of the pre-foreclosure period.
The lender takes ownership of the property. The lender can take ownership through an agreement with the borrower/owner during pre-foreclosure or by buying back the property at the public auction.

6
Q

REO or Real Estate Owned properties are generally a good deal for what two types of real estate buyers?

A

First Time Homebuyer

Investors

7
Q

What is the main reason a seller would be seek a short sale?

A

The seller is attempting to negotiate a deal with the lender and avoid foreclosure.

8
Q

What are the three types of real estate auctions?

A

Absolute Auction
Minimum Bid Auction
Reserve Auction

9
Q

What is foreclosure?

A

When the lien holder takes ownership in a property due to a variety of possible reasons, but most commonly for the lack of payment on a loan

10
Q

Lease

A

a legal document outlining the terms under which one party agrees to rent property from another party. A lease guarantees the lessee (the renter) use of an asset and guarantees the lessor (the property owner) regular payments from the lessee for a specified number of months or years.

11
Q

Leasing Consultant

A

works on behalf of landlords and property management companies to collect rent and provide customer service for renters and tenants. They also market the rental properties to prospective tenants by giving tours, answering questions and processing applications and lease agreements.

12
Q

Property Manager

A

the owner’s partner in maximizing the return on investment of the property. The property manager acts in the best interests of the owner and will oversee four major areas of responsibility

13
Q

PM Duties

A

Financial and marketing – performing regular financial reports.
Tenant and occupancy – responding to tenant requests, collecting rent, and continually assessing the tenants’ satisfaction.
Facility – physical management of the structures and outdoor areas as well as maintaining relationships with repair companies.
Administration and risk management – maintaining records for accounting and tax purposes. Recording tenant interactions.

14
Q

Specializing in resort properties

A

having greater for area information specific to real estate, market areas, local government, and building codes. Marketing, especially with a website, should be focused on the liberal sharing of this type of information.

15
Q

Real Estate Investors

A

Investor clients require various levels of skill and knowledge. Investors who do thorough research and locate properties on their own will likely need a real estate professional only for the offer process.

16
Q

Land Brokerage Specialization must know

A
Farms, ranches, recreational, timberland and other specialty properties
Undeveloped tracts of land
Transitional and developmental land
Subdivision and lot wholesaling
Site selection and assemblage of land parcels
Appraisals and land valuation
Auctions
Farm and land management
Market analysis
Land planning and zoning
Environmental issues
Water rights
Government regulations
Land title defects
Vacant land contracts
Land financing
Soil types
17
Q

Two basic types of farm sales exist in the United States:

A

Independently-owned, smaller family farms

Large scale food production on corporate farms

18
Q

Ranch

A

area of landscape, including various structures, for the practice of raising grazing livestock such as cattle or sheep for meat or wool. Ranches generally consist of large areas, but may be of nearly any size.

19
Q

REO or Real Estate Owned properties

A

generally a great deal, especially for first-time home buyers and investors. Real estate agents who deal with REO properties tend to be much more knowledgeable when it comes to negotiating with the bank and protecting the buyer’s interest.

20
Q

Short Sale

A

happens when a homeowner owes more on a mortgage than the home is worth in today’s fair market value. When this is the case, a homeowner’s real estate agent negotiates with the owner’s bank to accept less than the balance of the mortgage

To avoid foreclosure

21
Q

Short Sale Stages

A
Agent selection
Declaration and proof of hardship
Property valuation
Short sale application
Short sale agreement
Finding a buyer
Negotiation (with lender and buyer)
Closing
22
Q

real estate auction

A

an effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property through open, competitive bidding

23
Q

Absolute Auction (or auction without reserve)

A

The property is sold to the highest bidder, regardless of the price.

24
Q

Minimum Bid Auction

A

The auctioneer will accept bids at or above a published minimum price.

25
Q

Reserve Auction

A

The high bid is reduced to an offer, not a sale. A minimum bid is not published, and the seller reserves the right to accept or reject the highest bid within a specified time period – anywhere from immediately following the auction up to 72 hours after the auction concludes.

26
Q

Residential Property

A

a type of leased or owned property, either a single-family or multi-family structure, which is available for occupation of non-business purposes. There are five types of specializations within residential property

27
Q

5 Residential Specializations

A
FSBO
First Time Homebuyers
Vacation Properties
Investors
Buyer's Agents
28
Q

For Sale by Owners (FSBO)

A

These agents market their services to homeowners trying to sell their property on their own.

29
Q

First Time Home Buyers

A

Agents offer their expertise to help first time homebuyers through the entire buying process, from looking at properties, to financing, to closing.

30
Q

Vacation Properties

A

Depending on the locale, this market is very lucrative and has a high turn-over rate for more sales.

31
Q

Working for Investors

A

Opportunities for working with residential investors include those investors that buy homes to rent and those investors that buy homes to fix up and resell (flipping).

32
Q

Buyer’s Agent

A

Some agents specialize in working with buyers only. They are experts in locating the perfect property, financing, negotiating, and closing.

33
Q

Commercial Real Estate

A

a complex, multifaceted profession. Commercial property is used specifically for business purposes. Examples of commercial real estate include malls, office parks, restaurants, gas stations, convenience stores, and office towers.