Broker - answerPerson or company licensed to buy, sell, exchange, or lease real
property for others and to charge a fee for these services
(Managing broker employs other licensees and sets the commission fees for them)
Salesperson/Sales Associate/Associate Licensee - answerEmployed by or associated
with the broker to perform brokerage activities on behalf of or for the broker
Real Estate Licensee - answerA person who has satisfied the requirements of a
licensing agency, as authorized by state legislation.
A real estate licensee can be a broker
Appraisal - answerthe process of developing an opinion of a property's market value,
based on established methods and the appraiser's professional judgement
NMLS - answer(Nationwide Multistate Licensing System and registry)
Federal law requires mortgage loan originators to qualify for the NMLS
Subdivision - answerthe dividing of a single property into smaller parcels
Home inspection - answerIs a profession that combines a practitioner's interest in real
estate with skills and training in the construction trades.
6 categories of real estate property - answer1. Residential
2. Commercial
3. Mixed-use
4. Industrial
5. Agricultural
6. Special purpose
Residential property - answerall property used for single-family or multifamily housing,
whether in urban, suburban, or rural areas
Commercial property - answerBusiness property, including office space, shopping
centers, stores, theaters, hotels, and parking facilities
Mixed-use property - answerproperty that allows for two uses, commercial and
residential, in the same building
Industrial property - answerWarehouses, factories, land in industrial districts, and power
plants
Agricultural property - answerfarms, timberland, ranches, and orchards
Special purpose property - answerPrivately owned properties, such as places of
worship, schools, and cemeteries, as well as publicly held properties, such as schools,
municipal service buildings, and parks.
,Supply and demand - answerPrices for goods and services will be determined by the
supply (how many of a certain item are available) and demand (how much do people
want this item).
Balance of availability and desire
Demand - customer
Supply - market/product
Price is based on demand
Supply increases, demand remains stable - answerprices go down
Demand increases, supply remains stable - answerprices go up
Uniqueness - answerNo matter how identical they may appear, no two parcels of real
estate are ever exactly alike; each occupies its own unique geographic location.
Immobility - answerThe fact that property cannot be relocated to satisfy demand where
supply is low, nor can buyers always relocate to areas with greater supply.
Factors that affect real estate supply - answer*labor force, construction, and material
costs
*government controls and financial policies
*local government factors
Factors that affect real estate demand - answerPopulation (big businesses have huge
effect on this - demand)
Demographics (income levels, age groups, etc.)
Employment and wage levels
Rate of return - answerThe total return on an investment expressed as a percentage of
the amount of money saved
(In theory, this means that an investor can use borrowed money to finance a real estate
purchase and feel relatively sure that the asset, if held long enough, will return a profit,
even after accounting for the cost to finance the purchase)
Appreciation - answerAn increase in the value of a currency
Owner's Equity - answerThe amount invested in a property
(If property is financed, only equity at first is the amount paid as a down payment)
Equity Buildup - answerThat portion of the loan payment directed toward the principal
rather than the interest, plus any gain in property value due to appreciation.
(Appreciation will result in equity buildup)
, Leverage - answerthe use of borrowed money to supplement existing funds for
purposes of investment
Depreciation - answerAllows an investor to recover the cost of an income-producing
asset through tax deductions over the asset's useful life
(Also known as cost recovery)
Cost recovery - answerAllows an investor to recover the cost of an income-producing
asset through tax deductions over the asset's useful life
(Also known as depreciation)
Capital Gain - answerthe difference between the purchase price of property and its net
selling price
(A property's cost, or basis, determines the amount of gain to be taxed)
Liquidity - answerHow quickly and easily an asset can be converted into cash
*Statutory law - answerwritten law enacted by state or federal legislative bodies
*What are the disciplinary powers of the Montana Board of Realty Regulation? -
answerInvestigate
Initiate investigations
Disciplinary action
*What is minimum balance maintained by The Board's recovery account? -
answer$100,000
*What is the max payout of The Board's recovery fund for any one licensee? -
answer$25,000
*What is the real estate recovery fund for? - answerUsed to pay claims against
licensees that remain unsatisfied
Licensee will file an application with the Board for a payment
*What are the different types of agents (in MT)? - answer1. Seller agents
2. Buyer agents
3. Statutory brokers
4. Dual agents
*Seller agent - answeract solely in the best interests of the seller
*Buyer agent - answeract solely in the best interests of the buyer
*Statutory broker - answernot the agent of the buyer or the seller, but obligated to
disclose to a buyer/buyer agent/seller/seller agent any adverse material facts that
concern a property and are known to the statutory broker
property for others and to charge a fee for these services
(Managing broker employs other licensees and sets the commission fees for them)
Salesperson/Sales Associate/Associate Licensee - answerEmployed by or associated
with the broker to perform brokerage activities on behalf of or for the broker
Real Estate Licensee - answerA person who has satisfied the requirements of a
licensing agency, as authorized by state legislation.
A real estate licensee can be a broker
Appraisal - answerthe process of developing an opinion of a property's market value,
based on established methods and the appraiser's professional judgement
NMLS - answer(Nationwide Multistate Licensing System and registry)
Federal law requires mortgage loan originators to qualify for the NMLS
Subdivision - answerthe dividing of a single property into smaller parcels
Home inspection - answerIs a profession that combines a practitioner's interest in real
estate with skills and training in the construction trades.
6 categories of real estate property - answer1. Residential
2. Commercial
3. Mixed-use
4. Industrial
5. Agricultural
6. Special purpose
Residential property - answerall property used for single-family or multifamily housing,
whether in urban, suburban, or rural areas
Commercial property - answerBusiness property, including office space, shopping
centers, stores, theaters, hotels, and parking facilities
Mixed-use property - answerproperty that allows for two uses, commercial and
residential, in the same building
Industrial property - answerWarehouses, factories, land in industrial districts, and power
plants
Agricultural property - answerfarms, timberland, ranches, and orchards
Special purpose property - answerPrivately owned properties, such as places of
worship, schools, and cemeteries, as well as publicly held properties, such as schools,
municipal service buildings, and parks.
,Supply and demand - answerPrices for goods and services will be determined by the
supply (how many of a certain item are available) and demand (how much do people
want this item).
Balance of availability and desire
Demand - customer
Supply - market/product
Price is based on demand
Supply increases, demand remains stable - answerprices go down
Demand increases, supply remains stable - answerprices go up
Uniqueness - answerNo matter how identical they may appear, no two parcels of real
estate are ever exactly alike; each occupies its own unique geographic location.
Immobility - answerThe fact that property cannot be relocated to satisfy demand where
supply is low, nor can buyers always relocate to areas with greater supply.
Factors that affect real estate supply - answer*labor force, construction, and material
costs
*government controls and financial policies
*local government factors
Factors that affect real estate demand - answerPopulation (big businesses have huge
effect on this - demand)
Demographics (income levels, age groups, etc.)
Employment and wage levels
Rate of return - answerThe total return on an investment expressed as a percentage of
the amount of money saved
(In theory, this means that an investor can use borrowed money to finance a real estate
purchase and feel relatively sure that the asset, if held long enough, will return a profit,
even after accounting for the cost to finance the purchase)
Appreciation - answerAn increase in the value of a currency
Owner's Equity - answerThe amount invested in a property
(If property is financed, only equity at first is the amount paid as a down payment)
Equity Buildup - answerThat portion of the loan payment directed toward the principal
rather than the interest, plus any gain in property value due to appreciation.
(Appreciation will result in equity buildup)
, Leverage - answerthe use of borrowed money to supplement existing funds for
purposes of investment
Depreciation - answerAllows an investor to recover the cost of an income-producing
asset through tax deductions over the asset's useful life
(Also known as cost recovery)
Cost recovery - answerAllows an investor to recover the cost of an income-producing
asset through tax deductions over the asset's useful life
(Also known as depreciation)
Capital Gain - answerthe difference between the purchase price of property and its net
selling price
(A property's cost, or basis, determines the amount of gain to be taxed)
Liquidity - answerHow quickly and easily an asset can be converted into cash
*Statutory law - answerwritten law enacted by state or federal legislative bodies
*What are the disciplinary powers of the Montana Board of Realty Regulation? -
answerInvestigate
Initiate investigations
Disciplinary action
*What is minimum balance maintained by The Board's recovery account? -
answer$100,000
*What is the max payout of The Board's recovery fund for any one licensee? -
answer$25,000
*What is the real estate recovery fund for? - answerUsed to pay claims against
licensees that remain unsatisfied
Licensee will file an application with the Board for a payment
*What are the different types of agents (in MT)? - answer1. Seller agents
2. Buyer agents
3. Statutory brokers
4. Dual agents
*Seller agent - answeract solely in the best interests of the seller
*Buyer agent - answeract solely in the best interests of the buyer
*Statutory broker - answernot the agent of the buyer or the seller, but obligated to
disclose to a buyer/buyer agent/seller/seller agent any adverse material facts that
concern a property and are known to the statutory broker
