Real Estate 306 Exam 1
Commission - A fee that a real estate broker is paid on the sale of an asset or the lease of a space.
Typically calculated as a percentage of the sales price or percentage of the total rental income over the
life of the lease.
Architect Contract Phases - Schematic design, design development, bid negotiation, construction
documents, and construction administration.
Architecture - The work of developing concepts and converting those concepts into images and
plans that are used to construct buildings.
Asset - A useful or valuable thing such as real estate.
Asset Class - A grouping of a similar type of investment.
Brownfield - A site for redevelopment, which may be complicated by the presence of potential
presence of a hazardous substance, pollutant, or contaminant.
Building Code - A set of municipal ordinance or codes that focuses on occupancies, building loads,
materials, systems, and life safety.
Capital - Money, typically in the form of debt or equity.
Closing - The completion of the sale of a property, typically done through a title company.
Absorption - A measure of how long a particular product will take to fill with tenants. A metric
used in determining a product's feasibility and lease-up.
Commercial Real Estate - Refers to income-producing properties as opposed to single-family
homes, which is referred to as residential real estate.
, Credit Tenant - A term used to describe a tenant's financial strength and thus the likelihood that
they will make payments.
Debt - Borrowed money that must be returned with a predetermined interest rate that is typically
guaranteed by the developer.
Deed - The actual legal document that would transfer the ownership of property from one person
to another.
Deposit - Also referred to as Earnest Money, it is the money put in escrow by a buyer as a good
faith deposit when a purchase and sale agreement is signed. This money goes to the seller if the buyer
defaults, but is returned to the buyer if they terminate the contract at the completion of the due
diligence period.
Design - Problem-solving using primary elements and order to provide for the needs and desires
of the client.
Developer - A real estate professional that focuses on creating new assets.
Due Diligence - A predetermined time period negotiated in the Purchase and Sale Agreement,
when the buyer can complete third-party reports and their own studies to determine the feasibility of
the site.
Equity - Invested money that is typically not guaranteed, but results in more reward for the
investor. Also refers to the owner or group of owners in real estate.
Fee Simple - Describes a landowner's complete and total ownership of a piece of land and all the
structures on it.
Commission - A fee that a real estate broker is paid on the sale of an asset or the lease of a space.
Typically calculated as a percentage of the sales price or percentage of the total rental income over the
life of the lease.
Architect Contract Phases - Schematic design, design development, bid negotiation, construction
documents, and construction administration.
Architecture - The work of developing concepts and converting those concepts into images and
plans that are used to construct buildings.
Asset - A useful or valuable thing such as real estate.
Asset Class - A grouping of a similar type of investment.
Brownfield - A site for redevelopment, which may be complicated by the presence of potential
presence of a hazardous substance, pollutant, or contaminant.
Building Code - A set of municipal ordinance or codes that focuses on occupancies, building loads,
materials, systems, and life safety.
Capital - Money, typically in the form of debt or equity.
Closing - The completion of the sale of a property, typically done through a title company.
Absorption - A measure of how long a particular product will take to fill with tenants. A metric
used in determining a product's feasibility and lease-up.
Commercial Real Estate - Refers to income-producing properties as opposed to single-family
homes, which is referred to as residential real estate.
, Credit Tenant - A term used to describe a tenant's financial strength and thus the likelihood that
they will make payments.
Debt - Borrowed money that must be returned with a predetermined interest rate that is typically
guaranteed by the developer.
Deed - The actual legal document that would transfer the ownership of property from one person
to another.
Deposit - Also referred to as Earnest Money, it is the money put in escrow by a buyer as a good
faith deposit when a purchase and sale agreement is signed. This money goes to the seller if the buyer
defaults, but is returned to the buyer if they terminate the contract at the completion of the due
diligence period.
Design - Problem-solving using primary elements and order to provide for the needs and desires
of the client.
Developer - A real estate professional that focuses on creating new assets.
Due Diligence - A predetermined time period negotiated in the Purchase and Sale Agreement,
when the buyer can complete third-party reports and their own studies to determine the feasibility of
the site.
Equity - Invested money that is typically not guaranteed, but results in more reward for the
investor. Also refers to the owner or group of owners in real estate.
Fee Simple - Describes a landowner's complete and total ownership of a piece of land and all the
structures on it.
