Fiduciary Relationship correct answers fiduciary must be faithful to the principal, exhibit trust and honesty, and exercise good business judgement
Broker correct answers - a person licensed to act independently in conducting a real estate business
- can do it on their own
Salesperson correc...
FINC 3250 Final Exam || with Complete Solutions.
Fiduciary Relationship correct answers fiduciary must be faithful to the principal, exhibit trust
and honesty, and exercise good business judgement
Broker correct answers - a person licensed to act independently in conducting a real estate
business
- can do it on their own
Salesperson correct answers - a person employed by a real estate broker to list and negotiate the
sale, exchange, or lease of real property for others
- works under a broker
Listing Agreement correct answers agreement between an owner and a real estate agent/broker
that the real estate agent/broker and his sales staff will try to find a ready, willing, and able buyer
or tenant to satisfy the conditions contained in the listing
Types of Listing Agreements correct answers 1. Exclusive right to sell listing
2. Exclusive agency listing
3. Open Listing
4. Net Listing
5. Advance Fee listing
6. Advance cost listing
Exclusive right to sell listing correct answers no matter who sells the property during the listing
period, the listing BROKER gets its commission.
Exclusive Agency listing correct answers if the owner sells the property then the real estate
broker DOES NOT receive a commission.
Open Listing correct answers - owner can give an open listing to as many brokers has he/she
wants to
- the broker that sells the property earns commission
- the owner can sell the property and not owe any commission.
Net Listing correct answers - owner states how much he wants to receive for the property and
agrees to pay the broker any amount above that figure as commission.
Advance fee listing correct answers - broker is paid an hourly rate for amount of time he/she
works on the listing
- broker gets an advance deposit from seller to cover its state hourly fee plus out of pocket
expenses.
- uses deposit to pay himself
Advance Cost Listing correct answers - similar to advance fee listing, except, only out of pocket
expenses are charged against the up front deposit.
, - used in conjunction with a sales commission
- use that deposit to pay any costs.
Appraisal correct answers an independently and impartially prepared written statement
expressing an opinion of a defined value of an adequately described property as of a specific date
Appraisal Purpose correct answers used as the basis for loan decisions and insurance
reimbursements
Income Approach correct answers the appraiser forecasts net operating income and then
capitalizes that figure to arrive at an estimate of value
Cost Approach correct answers - obtain a value of all the parts of the property and then add those
together for its total value
- estimate the cost of the improvements, add in the value of the land, subtract out any
depreciation that has accrued, and you've got an estimate of the value.
cales comparison approach correct answers - would like to use this one more than the other
- locates 3-5 properties that are very similar to the subject property and then makes adjustments
to these properties, called comparables, until they are exactly like the subject property
- the average value of the comparables should estimate the value of the subject property
Property Manager correct answers a person who works for a property owner in order to manage,
operate, and handle most aspects of a property that is rented to someone else
Why have a property manager? correct answers - investor owns a large # of properties or if they
own a property type with which they are not very familiar with, the property manager finds
tenants, negotiates leases, provides assistance
Management Agreement correct answers - contract between the owner and the property manager
that outlines the duties of the property manager and how the property manager gets paid
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