Texas Principles of Real Estate 1 Vocabulary
Brokerage - answerthe business of bringing buyers and sellers together and assisting in
negotiations for the terms of sale of real estate.
Real Estate Broker - answerA person or an organization acting as the agent for others in
negotiating the purcha...
Brokerage - answer✔✔the business of bringing buyers and sellers together and assisting in
negotiations for the terms of sale of real estate.
Real Estate Broker - answer✔✔A person or an organization acting as the agent for others in
negotiating the purchase and sale of real property or other commodities for a fee.
Real Estate Salesperson - answer✔✔a person performing any of the acts included in the
definition of real estate broker but while associated with and supervised by a broker.
Residential Property - answer✔✔a type of property that includes one to four dwelling units
Commercial Property - answer✔✔property that produces rental income or that is used in a
business. Properties with five or more dwelling units are considered this.
Industrial Property - answer✔✔property that is used by companies or persons for manufacturing,
warehousing, or assemblage of components.
Special Purpose Property - answer✔✔a category of real property created as a result of combining
the land and its improvements for a single highest and best use.
Mixed-Use Property - answer✔✔Any urban, suburban or village development, or even a single
building, that blends a combination of residential, commercial, cultural, institutional, or
industrial uses, where those functions are physically and functionally integrated, and that
provides pedestrian connections.
Improvements - answer✔✔Changes or additional made to a property, such as walls and roads.
These typically increase the value of a property, except in some cases of over......
Non-homogeneity - answer✔✔A physical characteristic of land describing that land as a unique
commodity
Value - answer✔✔The present worth of future benefits.
Price - answer✔✔The amount a purchaser agrees to pay and a seller agrees to accept under the
circumstances surrounding a transaction.
Cost - answer✔✔The total dollar expenditure for labor, materials, and other items related to
construction.
Supply - answer✔✔The amount of goods offered for sale within a given market at a given price
during a given time period.
Demand - answer✔✔The amount of goods consumers are willing and able to buy at any given
price during any given time period.
Demography - answer✔✔the study of social and economic statistics of a community.
Agent - answer✔✔A person authorized to act on behalf of another.
Principal - answer✔✔The employer of an agent.
Customer - answer✔✔The party the agent brings to the principal as seller or buyer of the
property.
General Agent - answer✔✔An agent with full authority over one property of the principal,
suchas a property manager.
Special Agent - answer✔✔An agent with limited authority to act on behalf of the principal, such
as created by a listing.
Fiduciary Duty - answer✔✔That duty owed by an agent to act in the highest good faith toward
the principal and not to obtain any advantage over the latter by the slightest misrepresentation,
concealment, duress or pressures.
Caveat Emptor - answer✔✔Let the buyer beware. The buyer must examine the goods or
property and buy at his or her own risk.
Appraised Value - answer✔✔An evaluation of a property's value based on a given point in time
that is performed by a professional appraiser during the mortgage origination process.
Market Comparison Approach - answer✔✔A means of comparing similar type properties, which
have recently sold, to the subject property. Commonly used in comparing residential properties.
Cost Approach - answer✔✔An analysis in which a value estimate of a property is derived by
estimating the replacement cost of the improvements, deducting therefrom the estimated accrued
depreciation, then adding the market value of the land.
Income Approach - answer✔✔One of the three methods of the appraisal process generally
applied to income producing property, and involves a three-step process - (1) find net annual
income, (2) set an appropriate capitalization rate or "present worth" factor, and (3) capitalize the
income dividing the net income by the capitalization rate.
Assessed Value - answer✔✔A valuation placed on a piece of property by a public authority as a
basis for levying taxes on that property
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