Question

Paul Cohen has called his supervisors together to make an exciting company announcement. Paul's company, Midland Properties, has just been engaged by the property owner to completely renovate a 100-year-old apartment building. Paul believes that upon completion, the apartments will be the most prestigious in the city. What real estate professional role is Midland performing? Property manager Developer Contractor Real estate broker

Answer 1

Midland is performing role of contractor.

(a) Property manager - Since Midland Properties is only renovating the building and not engaged in managing the property, so it is not performing role of property manager.

(b) Developer - Developers buy land, finance real estate deals, build or have builders build projects, create, imagine, control, and orchestrate the process of development from the beginning to end. Developers usually take the greatest risk in the creation or renovation of real estate and receive the greatest rewards. Since, Midland Properties is only working as a contractor and not taking any risk, It can not be said as developer.

(c) Contractor - A contractor in Real Estate is exactly the same as a plumbing or electrical contractor - they are a person or entity that contracts themselves to someone else for a fee. Since, Midland Properties is engaged by property owner to completely renovate building, it is performing role of contractor

(d) Real estate broker - A person or company who buys or sells homes, lands or buildings for their owners in consideration of brokerage are called real estate broker. Midland is not performing any work like this, so it is not a real estate broker.