FINC 3250 Final Exam Questions and Answers 2023

FINC 3250 Final Exam Questions and Answers 2023 FINC 3250 Final Exam Questions and Answers 1. Fiduciary Relationship: fiduciary must be faithful to the principal, exhibit trust and honesty, and exercise good business judgement 2. Broker: - a person licensed to act independently in conducting a real estate business a. can do it on their own 3. Salesperson: - a person employed by a real estate broker to list and negotiate the sale, exchange, or lease of real property for others a. works under a broker 4. Listing Agreement: 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 5. Types of Listing Agreements: 1. Exclusive right to sell listing 6. Exclusive agency listing 7. Open Listing 8. Net Listing 9. Advance Fee listing 10. Advance cost listing 11. Exclusive right to sell listing: no matter who sells the property during the listing period, the listing BROKER gets its commission. 12. Exclusive Agency listing: if the owner sells the property then the real estate broker DOES NOT receive a commission. 13. Open Listing: - owner can give an open listing to as many brokers has he/she wants to 14. the broker that sells the property earns commission 15. the owner can sell the property and not owe any commission. 16. Net Listing: - owner states how much he wants to receive for the property and agrees to pay the broker any amount above that figure as commission. 17. Advance fee listing: - broker is paid an hourly rate for amount of time he/she works on the listing 18. broker gets an advance deposit from seller to cover its state hourly fee plus out of pocket expenses. 19. uses deposit to pay himself 20. Advance Cost Listing: - 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. 21. Appraisal: an independently and impartially prepared written statement expressing an opinion of a defined value of an adequately described property as of a specific date 22. Appraisal Purpose: used as the basis for loan decisions and insurance reimbursements 23. Income Approach: the appraiser forecasts net operating income and then capitalizes that figure to arrive at an estimate of value 24. Cost Approach: - obtain a value of all the parts of the property and then add those together for its total value 25. 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. 16. cales comparison approach: - 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 26. the average value of the comparables should estimate the value of the subject property 27. 17. Property Manager: 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 18. Why have a property manager?