Texas Principles of Real Estate 2 QUESTIONS WITH DETAILED VERIFIED ANSWERS
/ALREADY GRADED A+
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 business.
Properties with five or more dwelling units are considered commercial property.
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. (libraries, cemeteries, recycling centers)
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 improvement.
Non-Homogeneity - (answer)A physical characteristic of land describing that land as a unique
commodity. One of the qualities land has which increases it's value along with indestructibility and
immobility.
Value - (answer)Present worth of future benefits
, Texas Principles of Real Estate 2 QUESTIONS WITH DETAILED VERIFIED ANSWERS
/ALREADY GRADED A+
Price - (answer)Amount a purchaser agrees to pay and seller agrees to sell for.
Cost - (answer)Total dollar expenditure for labor, materials, and other items related to construction.
Agent - (answer)A person authorized to act on behalf of another.
Principal - (answer)Employer of an agent. Ex. client employing a real estate agent.
Customer - (answer)Party the agent brings to the principal as a seller or buyer. Ex. the person the real
estate agent finds to buy the house they are listing for their client.
General Agent - (answer)An agent with full authority over one property of the principal, such as a
property manager.
Special Agent - (answer)An agent with limited authority to act on behalf of the principal, such as created
by a listing.
Listing Contract - (answer)A contract in which a property owner employs a real estate broker to market
the property described in the contract.
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 pressure.
Fiduciary - (answer)A person in a position of trust and confidence, as between principal and broker;
broker as fiduciary owes certain loyalty which cannot be breached under the rules of agency.
Caveat Emptor - (answer)Let the buyer beware. The buyer must examine the goods or property and buy
at his or her own risk
/ALREADY GRADED A+
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 business.
Properties with five or more dwelling units are considered commercial property.
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. (libraries, cemeteries, recycling centers)
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 improvement.
Non-Homogeneity - (answer)A physical characteristic of land describing that land as a unique
commodity. One of the qualities land has which increases it's value along with indestructibility and
immobility.
Value - (answer)Present worth of future benefits
, Texas Principles of Real Estate 2 QUESTIONS WITH DETAILED VERIFIED ANSWERS
/ALREADY GRADED A+
Price - (answer)Amount a purchaser agrees to pay and seller agrees to sell for.
Cost - (answer)Total dollar expenditure for labor, materials, and other items related to construction.
Agent - (answer)A person authorized to act on behalf of another.
Principal - (answer)Employer of an agent. Ex. client employing a real estate agent.
Customer - (answer)Party the agent brings to the principal as a seller or buyer. Ex. the person the real
estate agent finds to buy the house they are listing for their client.
General Agent - (answer)An agent with full authority over one property of the principal, such as a
property manager.
Special Agent - (answer)An agent with limited authority to act on behalf of the principal, such as created
by a listing.
Listing Contract - (answer)A contract in which a property owner employs a real estate broker to market
the property described in the contract.
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 pressure.
Fiduciary - (answer)A person in a position of trust and confidence, as between principal and broker;
broker as fiduciary owes certain loyalty which cannot be breached under the rules of agency.
Caveat Emptor - (answer)Let the buyer beware. The buyer must examine the goods or property and buy
at his or her own risk
