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207 Cards in this Set
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Brokerage, real estate brokerage. |
Real estate brokerage is bringing together parties in a real estate transaction. Buyer and seller or landlord and tenant. |
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Appraisal |
The process of estimating the market value of real estate. |
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National Association of realtors (NAR) |
The national Association of realtors is the largest and best known professional association in the real estate industry founded in 1908. |
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What are the five classes of real estate? |
Residential, commercial, industrial, agricultural, and special purpose. Special purpose real estate is any other type of property that does not fit the previous four classes, including churches, government land, hospitals and schools. |
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What are the three characteristics of real estate? |
Immobility, The geographical location of the property always remains the same. Indestructibility, also called durability. Land cannot be destroyed or worn out. Nonhonogeneity, no parcels of real estate are exactly alike. They are different because of their unique locations |
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What are the four economic characteristics of real estate? |
Scarcity, this means that the supply of real estate is limited. A term used by economists to describe a commodity with a fixed supply, such as real estate, is in elastic. Modification also called improvements. This states that changes in a partial land affect its value. The effect of this change may be either favorable or unfavorable. Permanence of investment also called fixity means that investment in real estate or long term. Area preference, also called Situs or location refer to people’s preference for certain areas. |
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How does demographics relate to Real Estate? |
The term demographics refers to the characteristics of the population: age distribution, family size and population movements. |
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What is an indication of the demand for property in an area, and there may be several rates based on the type of property. |
Vacancy levels |
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What is the allodial system? |
Real estate in the United States follows the allodial system, a legal system that recognizes full property ownership rights of individuals. Individual ownership includes the rights of possession control enjoyment and disposition. |
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What is a body of law developed through court decisions based on custom and usage? |
Common law |
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Property rights are the rights someone has in something, and they are often defined as a bundle of legal rights. What are these 5 rights. |
Possession- the right to occupy the property Enjoyment - the right to possess the property w/out interference Disposition- right to sell or give the property to someone else Control- The right to use the property the way the owner wishes within the limits of the law. Exclusion-the right to keep other people from using the property. |
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The term ______ refers not only to the surface of the earth but also to the area below it to the center of the earth and above it to infinity and to all natural things permanently attached. |
Land |
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___ ___ includes all the components in the definition of land plus artificial things permanently attached, for example buildings garages and fences. |
Real Estate |
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What includes everything in the definition of real estate and also the legal interest rates improved is associated with the ownership of real estate. |
Real Property |
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What is any type of land development to property including things Like buildings, Streets, fences and sewers. |
Improvements |
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What is land that is on improved called? |
Raw land |
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What are air rights |
Property ownership includes rights to the space above the surface of the earth the right to use control or occupy the space above the land. What is this called |
Air Rights |
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Property ownership includes rights to the ground below the surface of the earth including ownership of minerals in the ground. |
Subsurface rights or mineral rights |
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Can the terms real property and real estate be used interchangeably? |
Yes. |
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What is the term that includes any property that is not real property? What else does this term goal by ? |
Personal property also called chattel property what personality. |
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What two groups can personal property be classified as? |
Tangible property and intangible property. |
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What is it called when you change real property to personal property? Personal property maybe change to real property by what? |
Real property maybe change the personal property by severance. Personal property maybe change to real property by attachment. |
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Naturally growing plants and trees that did not require a cultivation are classified as real property and are called what? |
Fruits of nature or fructose naturales. |
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Cultivated annual crops are considered personal property. These are called what? |
Emblements or fructus industriales or fruits of Industry |
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What is an object that once was personal property but has been attached to the land or a building so that it now is real property? |
Fixture |
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What is an article attached by a tenant to the building for use in conducting a trade business? What happened to this when the tenant moves out? |
Trade fixture The tenant can remove the trade fixture but is responsible for any damage from this removal |
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How do you determine whether property is real or personal whether it is a fixture or not? |
Agreement of the parties. And agreement must exist between the parties going to find whether the item is a fixture or personal property. Intention of the parties. If there is no agreement then the courts must determine the intention of the parties. Method of attachment. Is this property permanently attached in nature or can it be removed without causing significant or permanent damage to the property? Adaptation of the item. If the item is custom built to fit the property it will be considered a fixture. |
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Under the governments ____ the state and local governments have the power to pass legislation to protect the public health and safety as well as to promote the general welfare.How did local governments get this authority? |
Police Powers enabling Legislation |
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Under the governments ___ ____ the state and local governments have the power to pass legislation to protect the public health and safety as well as to promote the general welfare.How did local governments get this authority? |
Police Powers enabling Legislation |
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_____Regulates and controls the use of land? |
Zoning ordinances |
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What is PUD? |
Planned unit development. This is an example of mixed use zoning. PUD, is developments of several acres that set aside areas for residences, commercial property public areas schools parks and even industrial property. |
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What is a strip of land that separates one land-use from another? |
Buffer zone |
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If A properties use existed before the current zoning rules, it generally will be allowed to continue as a what? |
Nonconforming use. In this situation to use is permitted in the zoning will not retro actively stop the pre-existing use. |
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What occurs when zoning is changed from higher density uses to lower density uses? When zoning is change from lower density used to higher density use it is called what? |
Downzoning Upzoning |
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A Zoning law can be changed by what? This change can be requested by either property owners or local government’s. |
Amendment |
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What is an exception to a zoning law requested by a property owner? |
Variance |
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Some uses of property may be Inconsistent with zoning but desirable for public convenience. To accommodate these situations, zoning codes allow a special permission called what? |
Conditional use permit or special use permit’s |
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Under the government police powers, this term was enacted to protect the public health and safety from Inferior construction practices. Through this, state and local government set minimum standards for construction methods and materials |
Building codes |
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Building inspectors issue ___ ___ For construction of new buildings or alteration of existing structures. Compliance with all zoning laws in building codes is checked before this is issued. |
Building permits |
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Before a new building may be occupied, A ____ _ ____ must be issued. The building is inspected and if it complies with building codes a this is issued. |
A certificate of occupancy |
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A ____ buys undeveloped land and divides it into smaller lots for sale. A _____ improves the land, constructs buildings on the lots and sells them. A person may act as both of these. |
A subdivider A developer |
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In preparing a _____ ___, the subdivider determines the size and location of the individual lots while taking into account local zoning controls. I surveyor is employed to determine the land contours to take advantage of natural drainage and other features . Easements for water, utilities and sewers must also be provided for in this. |
Subdivision plan |
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_____ is a charge on Real Estate to meet the financial needs of government. |
Taxation |
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Under this power____ ____, the government or its agencies may take title to privately held land for public use without the owners consent. The government must pay fair compensation to the property owners. The actual taking of title to the property is acquired through the process of ______? |
Eminent domain Condemnation |
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Under this power, ____ ____, the government or its agencies may take title to privately held land for public use without the owners consent. The government must pay fair compensation to the property owners. The actual taking of title to the property is acquired through the process of ______? |
Eminent domain Condemnation |
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What are the three requirements for condemnation? |
1. The proposed use must be declared by the court to be for the public good. 2. The property owner is entitled to fair compensation from the government. 3. The rights of the property owner must be protected by due process of law. |
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Property owners may force ____ _____ of their property and government action has forced to significant loss of value or inability to use the property. |
Inverse condemnation Ex. The city built a new airport runway that ends near a homeowners property, significantly diminishing it’s suitability as residential property. The homeowner may force the city to condemn and purchase the home. |
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If a person dies and leaves no will or heirs, title to the property will revert to the state or the county where the property is located through the government power of____? |
Escheat |
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If a person dies and leaves no will or heirs, title to the property will revert to the state or the county where the property is located through the government power of____? |
Escheat |
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What is the process of covering a landfill with 2 to 4 feet of soil and grass called? |
Capping |
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The _____ was established as an independent agency for administering and enforcing environmental protection laws? |
The US environmental protection agency (EPA) |
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Abandon hazardous waste sites are identified, action is taken to ensure that the sites are cleaned up, and reimbursement for cleanup expenses is sought from the parties responsible for creating the problem. A superfund was established to clean up a hazardous waste dumps and spills with this act. What is this called? |
Comprehensive environmental response, compensation, and liability act (CERCLA) |
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What is the residential lead-based paint hazards reduction at? |
Disclosure of any prior test results and any knowledge of lead-based paint hazards Landlords must disclose known information. Renovations must be certified by the EPA and provide property owners with the EPA pamphlet “protect your family from lead in your home” before starting work Real estate licensee’s must provide buyers and leasees the same pamphlet as above. Records should be kept a minimum of three years. Work performed must follow the EPA’s lead-based work practices. |
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What properties are exempt from the lead based paint act? |
Houses built in 1978 or later. Housing exclusively for the elderly. Units leased for fewer than 100 days with no lease renewal. Renewals of existing leases if disclosure was made at the initial lease. Units with no bedrooms are no separation between living and sleeping areas people. Rental units certified to be lead based paint free by certified inspector’s. |
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What is done to reveal any environmental concerns that would affect the value or use of the property? How many phases can this be done in? |
Environmental site assessment (ESA) Three phases. Phase 1 includes visual inspections. Phase 2 involves soil air and mineral testing. Phase 3 includes action taken based on reports from the previous basis. |
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A____ Is a charge, claim, or liability on real estate? How many types of these are there? |
Encumbrance. There are two types of Encumbrances. Encumbrances that affect title only such as liens and judgments. Encumbrances that affect both title and physical condition of the property such as easements encroachments in deed restrictions. |
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A/an ____ Is the right to use someone’s land? |
Easement |
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What are the two ways easements can be classified? |
1. Easements that are appurtenant or in gross. 2. Easements that are positive (allows someone to do something) or negative (prevents someone from doing something) |
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List the ways easements can be created |
1. Written agreement 2. Express grant in a deed. 3. Express reservation in a deed 3. Condemnation 4. By prescription 5. By necessity. |
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What are easement rights belonging to properties that are adjacent to one another and passed with the property to new owners. Include water rights and rights of way, most common form of easement. |
Appurtenant easement |
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The property over which an easement will run is called the what? |
The servient tenement |
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What is a privilege to use the land of another owner for specific purpose |
A license |
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What is an on authorized physical intrusions of a building or other form of real property on to a joining property? |
Encroachments |
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The parcel of land that benefits from the easement is called the _____? |
Dominant tenement |
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The parcel of land over which the easement runs is called the_____? |
Servient Tenement |
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What is the person right to use another’s land? |
Easement in gross |
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What is an easement acquired by open, the Toria’s, continuous, hostile and add first use of the property for the period of Tom prescribed by the law? |
Easement by prescription or prescriptive easement |
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What is a claim or charge against property to enforce payment of money |
a lien |
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What is the order of liens on the property |
Outstanding real estate taxes take priority over all other liens. The priority of the remaining liens is usually established by the date and time they were recorded in the public records. |
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If a holder of the lien wants to make it subordinate to another lien they must change their priorities by a written what? |
Subordination agreement. |
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What is the ad valorem tax? |
A Latin term meaning “according to value”. It is a real estate tax based on the value of the property |
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What is the difference between Equitable right of redemption and Statutory right of redemption’s? |
Equitable redemption rights allow the owner to redeem property anytime before the tax sale statutory right of redemption can be exercised after the tax sale. |
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What is a tax levied on specific parcels of real estate to pay for local improvements where their real estate will benefit? |
Special assessment |
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When a homeowner does not pay for services or material provided this type of lien can be taken out on the property? |
Mechanics lien |
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What is a notice in the public records of a pending lawsuit involving the real estate? |
LIs Pendens |
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What is the oldest method of developing legal descriptions of real estate? It refers to distance and direction. This description starts at a definite. Called the what? |
Metes and bounds. Metes and bounds description starts with a definite point called the point of beginning (POB) |
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What is a fixed object used in the meats and bounds description to establish boundaries? |
Monuments |
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What is the rectangular survey system? |
Also called the government survey system it was created by Congress in 1785 to create a faster, simpler and more accurate method of identifying land. This system describes the location of the property by using two sets of intersecting lines, which form a grid. |
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What are the four types of lines used in the rectangular survey system? Describe what they do. |
1. Principal meridians - These per set of intersecting lines run north and south. 2. Base lines - These lines run east and west. 3. Range lines - These lines run north and south and are parallel to principal meridians. 4. Township lines - These lines run east and west and are parallel to the baselines. |
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Describe a township. |
The square strips of land formed by Township lines and range lines or Called Township squares. The squares are 36 mi.² and each square is 6 miles apart. Each section or square is 640 acres. |
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What is the third method of describing real estate where the system used in urban areas when land is subdivided into numbered lots, blocks, and tracks and a recorded survey called a plat map is referenced? |
Plat of survey method. |
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What is a level surface from which elevations are measured? |
Datum. |
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What are usually embossed bronze marker’s place throughout the United States that serves as a permanent reference points and indicate the elevation above sea level? |
Benchmarks |
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A property owner may divide the space above the property’s surface into these? This is usually used for condominiums. |
Air Lots |
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How many square miles is the Township? |
36 square miles |
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What are the measurements of a section? |
One square mile or 640 acres |
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How many square feet is an acre? |
43560 Square feet |
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Estates can be divided into two general groups, what are these groups? |
Freehold estate and leasehold estate. |
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This term refers to the degree, quantity, nature, and extent of interest and ownership rights of person can have in real estate? |
Estate |
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What is the highest form of ownership interest recognized by law? It is complete ownership. This estate exist for unlimited time, sold and may be inherited or given away. |
Fee simple absolute or fee simple estate |
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What is a fee simple defeasible estate? |
A fee simple defeasible estate is subject to a condition to determine when it will begin or when it will end. When the fee simple estate ends, the title will pass either to the original grantor or the grantors heirs or to a specific third-party. |
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What is a fee simple conditional estate? |
The use of the estate includes a prohibited use of the property. |
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What is a fee simple determinable estate? |
The estate remains in effect as long as a specific condition is satisfied. The estate can be used as long as.... |
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What is an ownership interest in real estate for an indeterminable length of time? |
Freehold estate |
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What term refers to a tenets ownership rights and interest in real estate? This provides the right of possession but not title to the property. |
Leasehold estate |
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What is a life estate and what are the two types of life estate? |
Life estate or freehold estate based on someone’s life. The party who owns the life estate is called the life tenet. A conventional life estate are created by the actions of a grantor by means of deed, will, or trust. Legal life estate are created by statute of law. |
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What happens to a life estate when the interest in this? |
Because the life estate will not continue indefinitely, a future ownership is established after the death of the life estate owner. Under remainder interest ownership will pass to a third-party named in the deed. Under reversion interest the property reverts back to the original owner or their heirs. |
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What are Riparian Rights? |
Riparian rights were developed from common law and pertain to land bordering flowing water, such as streams or rivers. |
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What is the gradual addition of land by the forces of nature? |
Accretion |
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What is the gradual addition of land by the forces of nature? |
Accretion |
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What are new deposits of land as a result of accretion? |
Alluvion |
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What is an Estate for years? |
A type of leasehold estate that continues for a definite period of time. The leasee must vacate the premise is at the end of the lease, and no notice is acquired to terminate this type of estate. |
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What is a periodic estate |
This is also called the estates from period to period, they do not have an expiration date and continue for an indefinite period of time. Week to week, month to month, year to year tenancies. |
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What is a form of tenancy whereby the tenant possesses the property with the consent of the landlord. The term is for indefinite period of time and may be cancel without notice? |
Tenancy at will |
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What is it called when a tenet wrongfully remains in possession of the property after the right to possess has expired? |
Tenancy at sufferance or holdover tenancy |
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What type of lease does a tenant pay a set amount of rent each month, whereas the landlord pays all the building expenses |
Gross lease |
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What type of lease does a tenant pay a set amount of rent plus some or all of the building expenses? |
Net lease |
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What type of lease is determined by a percentage of the gross income of the tenet? |
Percentage Lease. May also be a gross or net lease at the same time. |
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What is a variable lease? What is a graduated lease? What is an index lease? |
A variable lease agreement allows for future changes in the amount of rent. A graduated lease agreement allows for rent changes at predetermined future dates. An Index lease, the rent changes are based on a common index. |
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What is a ground lease |
A ground lease is a long-term lease, usually for a period of 50 or more years. The tenant leases the land and often agrees to erect a building as part of the lease. |
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What is a lease purchase arrangement? |
In a lease purchase arrangement, a tenant leases the property for a period of time with the intention of purchasing the property at a later date. The terms of sale are determined before signing the lease. |
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What are the four requirements for a basic contract? |
Capacity to contract. Offer and acceptance. Legal objectives, the lease terms must be legal. Consideration for rent. |
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What is it when a tenant agrees not to hold the landlord liable for any loss or injury incurred on the property. This also is called a hold harmless clause. Such clauses were once common but are now unenforceable for residential property in many states. |
Exculpatory Clause |
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What is constructive eviction? |
Constructive eviction may occur if the premises become uninhabitable, forcing the tenant to leave. For example no heat, no utilities, no plumbing or structurally unsafe building. |
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What are the common methods of terminating a lease? |
Expiration of term. Surrender and acceptance. Bankruptcy. Destruction of premises. Eminent domain. Breach of the lease. Merger where the lessee becomes the owner. |
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What is ownership in severalty? |
Ownership in SEVERALTY is the same as sole owner. This is the easiest title transfer because only one party is needed to sign the deed |
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What is ownership by two or more people with right of survivorship? |
Joint tenancy |
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In real estate what is right of survivorship? |
Right of survivorship means that when one co-owner dies that co-owners share goes to the surviving co-owner. |
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What are tenants in common? |
Tenants in common hold an undivided interest in a property. And undivided interest is a share of the entire property.They all have an equal right to occupy the property. There is no right of survivorship, tenants share of the property pass to any heirs. |
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What is right of partition |
The right of partition is where one of the parties wants to end the tenancy but the other disagrees, the party can go to court and force it to be dissolved. |
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What is Tenancy by the entirety |
Tenancy by the entirety is a special form of joint tenancy that exists only between husband and wife. |
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What is a limited partnership |
A limited partnership includes at least one general partner and one or more limited partners. The limited partners do not run the business and have limited liability. Limited partners are liable only to the extent of their investment. |
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What is the condominium? |
The absolute ownership of the unit in a multiunit building based on a legal description of the air space the unit actually occupies, or a separate dwelling unit in a multi unit development, plus an undivided interest in the ownership of the common elements in the building or development, which are owned jointly with other condominium unit owners. |
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What is a form of property ownership in which a corporation owns the building and the tenants purchase shares in the corporation that give them a ride to occupy the unit in the building? |
Cooperatives |
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What is a land trust |
A land trust is a trust in which property is conveyed, and in which Real Estate is the only asset. |
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What is a document that legally establishes a condominium? Also known as a master deed or enabling declaration. |
Declaration. |
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What is the legal term for transferring title to Real Estate |
Alienation. |
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What are the two ways title to Real Estate can be transferred? |
Voluntary alienation, with the owners control and consent. Involuntary alienation, without the control or consent of the owner. |
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If a person dies leaving or will we refer to this as what? |
If a person dies leaving a will we refer to this as having died testate. The deceased is the testator if male or testatrix if female. |
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Disposition of a property under a will is called a _____ for real property? Personal property left through a will is called _____? The party receiving property under a will is called a ____ for real property and a ____ for personal property? |
Disposition of property under wills called a devise for real property and a bequest for personal property. The party receiving property under a will is called a devisee he for real property and a beneficiary for personal property. |
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Transferring privately owned property for public use without compensation is called what? |
Dedication |
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The government power to take private land for public good it’s called what? What must be given to the owner of the property for this to happen? |
Eminent domain is the government power to take private lands. Compensation must be given to the owner of the property. |
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If a person dies without a will and has no heirs , the property will pass to the ____ through the government power of _____? |
State Escheat |
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A person can obtain title to Real Estate that they don’t own by____? What are the provisions for this to happen? |
Adverse possession, also called title by prescription. For this to happen continuous use of the land for a number of years. Hostile possession without the owners consent or knowledge. Must be open invisible are well known to others. Possession must be exclusive and cannot be shared with the owner. |
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What is a written instrument the conveyors ownership interest in real estate from a grantor to a grantee? |
Deed |
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What is a general warranty deed |
A type of deed that provides the greatest protection to the grantee because the grand tour provides various covenants (guarantees) that the title being given is good. |
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What gives assurance that the grantor has the power and authority to convey title and has the type of ownership interest that is being conveyed by the deed? |
Covenant of Seisin |
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What is a covenant of quiet enjoyment |
A covenant of quiet enjoyment provides assurance that the title being given by the grantor is good against other parties. In other words the grantee may use the property without legal interference from others because no one else has a superior title or claim on the property. |
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What is a quick claim deed |
A quick claim deed conveys whatever interest, if any, is held by the grantor and does not provide the grantee with any guarantees. |
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What are some deed covenants? |
Covenants or guarantees given in deeda by the grantor. Covenants include, seisin, encumbrances, further assurance, quiet enjoyment, and warranty forever. |
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What is a special warranty deed? |
A special warranty deed limits the guarantee given by the grantor to encumbrances acquired while title was held by the grantor.Used by someone acting on behalf of the owner, such as an exec you tour or administrator. Best for foreclosure. |
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The party who gives an ownership interest in property is called_____? The party receiving title to the property is called____? |
Grantor Grantee |
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What defines or limits the ownership estate being granted to the grantee? |
Habendum Clause |
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The moment title actually passes is at the time of_____ _ _____? |
The moment title actually passes is at the time of delivery and acceptance: when the grantor delivers a valid deed that is excepted by the grantee. Silence by the grantee or recording of the deed is considered an acceptance. |
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What is information that has been made public? LOL presume the person knows all information made available to the public. |
Constructive notice |
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What is an examination of public records to determine who has rights to the property and the condition of the title? |
Title search |
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What is an abstract? What is a chain of title? What is marketable title? |
And abstract is a condensed history of all documents affecting title. The chain of title is a record of a property ownership. A marketable title is one that is free from major defects that would deter potential buyers for the property or threaten the buyers right to quiet enjoyment of the property. |
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What is title insurance? |
Title insurance ensures the existence of rights in real estate and pays for losses to the insured because of successful claims to the title by other parties. The policy is issued after a search of the public records. There are lender and owner policies. |
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Obtaining the legal rights of another party. Used by Tyler and Sharon’s companies to defend the insured title against lawsuits from other parties. This clause is the policy prevents the insured from collecting from both the insurance company in the party causing the loss. This is called |
Subrogation |
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What are the two most common closing processes? |
1. A single face-to-face closing meeting held by all parties or their representatives. 2. And escrow closing, in which an escrow agent it’s a pointed to handle all the clothes and activities without the parties present. |
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True or false? If The seller deposits a deed with the escrow agent and dies will title be passed to the buyer? |
Yes/True. Later all escrow conditions are met. The deed passes title to the buyer as of the date it was delivered to the escrow agent. |
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What is the truth in lending act? TRID? |
The truth in lending act is a federal law implemented by regulation Z that requires lenders to inform buyers of the true cost of obtaining a loan. |
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What transactions are not covered under the truth in lending act |
Home equity lines of credit, reverse mortgages, mortgages secured by an unattached mobile home, and loans made by a person or entity that makes five or fewer mortgages in a calendar year. |
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What is the real estate settlement procedures act, RESPA? |
The real estate settlement procedures act RESPA is a consumer protection law designed to provide consumers with information about the cost associated with their real estate transaction and prohibit kickbacks and referral fees that unnecessarily increase the costs for certain settlement services. |
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While most residential real estate transactions are covered by RESPA, there are a few exceptions, what are these exceptions? |
If they only financing in the transaction is by the seller Alone primarily for business, commercial or agricultural purposes. If the buyer pays all cash for the property. If short term financing, such as construction loan or bridge loan is used. |
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What are expenses that have been accumulated by the seller but not paid? The buyer should be reimbursed/credited for the expenses and the seller debited. |
Accrued expenses |
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Certain agency relationships involve great trust and confidence between the principal and agent the agent must acted with high a standard of care this is considered what? |
A fiduciary relationship |
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What is a universal agent |
Are universal agent represents the principal and all matters that can be legally delegated to others.They have unlimited power of attorney. |
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What is a general agent? |
A general agent represents the principle in a particular business or related range of activities. |
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What is a special agent |
A special agent is limited to representing the principal in a specific transaction or task. They have limited power of attorney. |
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What is a designated agent? |
A designated agent is one of the brokers license he’s authorized to act as the agent for one of the parties in a real estate transaction. This is not practiced in Alabama. |
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What are the two requirements for creating an agency. |
1. The capacity of the parties 2. A legal purpose. |
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What type of agency is created by an oral or written agreement? |
Expressed Agency |
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What are the two ways and agency can be terminated |
1. Termination by acts of the parties. 2.Termination by operation of law. |
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What are the five types of termination by Acts of the Parties? |
1. Performance – the agencies purpose is completed. 2. Mutual agreement – both parties can agree to end the agency. 3. Discharged by the principal. 4. Resignation 5. Abandonment Discharged by the principal, resignation, abandonment – all of these types of termination might result in breach of contract and be grounds for a law suite. |
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What are the six ways termination by operation of law can happen? |
1. Expiration of term 2. Death or incapacity of the parties. 3. Change in the law. 4. Destruction of the properties improvements or condemnation of the property by eminent domain. 5. Bankruptcy. 6. Loss of license – the Broker loses his real estate license. |
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What is COALD? |
These are the duties required by an agent to the principal Care, Obedience, accounting, loyalty, disclosure or notice |
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What are statements of opinion and exaggerating at properties benefits |
Puffing. |
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What are statements of opinion and exaggerating a properties benefits. |
Puffing. |
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What does errors and omissions insurance not cover? |
Intentional deception, misrepresentation, negligence, fair housing and anti-trust |
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To earn a commission the broker much do what? |
The broker must be licensed, be employed by the seller or buyer, BD procuring calls that results in completion of the transaction. |
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List the four antitrust violations. |
Price-fixing. Market allocation. Boycotting. Tie and agreements. |
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What is a legally enforceable agreement between two or more parties to do or not to do something? |
Contract |
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What are the words written into a contract that mean the dates and time limit in the contract must be mad? |
Time is of the essence |
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What is an expressed contract? |
Express contracts are those in which the parties show their intention by words either oral or written. |
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What is an implied contract |
In implied contracts, the parties’ intentions are shown by their acts and conduct |
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What is the difference between unilateral contracts and bilateral contract? |
Unilateral contract, one party makes a promise to persuade a second party to act. In bilateral contracts, both parties promised to do something. |
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What is the difference between an exectory contract and an executed contract? |
And executory contract has not been completed. An executed contract has been completed |
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_____ ______ Appears to be valid but is not legally enforceable by either party and a court of law |
Unenforceable contract |
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What Is a separate contract giving one party the right to do something within a certain time period. |
An option to purchase. This is an example of a unilateral contract. |
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What is conversion in real estate? |
The earnest money may not be used by the broker for personal or business expenses because it belongs to the buyer. This is called conversion. |
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What is equitable title |
When a buyer and seller have signed a real estate sales contract the buyer receives equitable title which means that the longer recognizes some ownership interest by the buyer |
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What type of sales contract where the seller receives a down payment and finance is the balance by the buyer? |
Installment sales contract. Also called a land contract or contract for deed. And important characteristic of installment sales contract is that the title remains with the seller but the buyer takes possession of the property |
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What are the five required elements of a contract |
Company parties. Offer and acceptance. Consent. Consideration. Legal objective. |
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An offer will be terminated under what circumstances |
Expiration of the time period stated in the offer or a reasonable period of time. With drawl of the offer at any time before it is excepted. Death or insanity of either party. Destruction of the property. Changing of the offer terms (create a counter offer and terminate the original offer). Rejection of the offer. |
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What is statue of frauds in real estate? |
Statue of frauds, which requires that certain types of contracts and be in writing and signed to be enforceable. Contracts that must be in writing to be enforceable include; contract for the sale of real estate, land contracts, options to purchase, deed, and mortgages,. |
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What is mutual rescission? |
To resend it is to cancel or a no the contract. The court orders the parties placed back in their original positions as if the contract had never existed. This relieves the parties from their obligations under the contract. |
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What is the substitution of a new contract for an old one between the same or new parties. Parties must attend to discharge the old contract. |
Novation |
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The seller employees only one broker. The broker is not entitled to a commission if the owner sells the property. |
Exclusive agency listing. |
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What is an open listing |
An open listing is also called a simple listing, non-exclusive listing, or general listing. With this type of listing the seller may employee any number of brokers at the same time but the seller owes a commission only to the broker who sells the property. |
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What is a exclusive right to sell listing? |
Under an exclusive right to sell listing, the seller employees one broker. If a broker other than the listing broker sales the property the listing broker still will be paid a commission. Even if the property is sold by the owner the brokers is still entitled to a commission. This is the most common form of listing agreement used by brokers.m |
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What is it called when a broker induces a homeowner to sell by making representations that members of a protected class or entering the area and will have a negative impact on the property values |
Blockbusting |
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What is it called when you direct home seekers or renters to particular areas to maintain the homogeneity of the areas, thus directing them away from other areas. |
Steering |
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What is it called when you direct home seekers or renters to particular areas to maintain the homogeneity of the areas, thus directing them away from other areas. |
Steering |
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What prohibits discrimination based on color, race, national origin, religion, sex, family status, and people with mental or physical disabilities when selling or renting residential property to these protected classes. |
Fair housing act of 1968 |
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What are the five characteristics of market value |
The most probable price that a property will bring. Payment in cash equivalent. Buyer and seller on related and acting without undue pressure. Buyer and seller well informed of the market conditions and the property use and defects. |
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What are the four characteristics of value |
Demand, the property must be needed or wanted. Utility, property must have a useful purpose or satisfy a need Scarcity, the type of property must have some degree of rareness. Transferability, this is the billet he to transfer title to the property to someone else |
D U S T |
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Combining lot to increase the value of the new larger lot of the sum of values of the smaller ones a principle of value used an appraisal. What is this called? |
Plottage |
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What is the process of merging adjoining lots. It is used to take a vantage of the principle of value called plottage |
Assemblage |
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What is FIRREA? |
Financial institutions reform, recovery and enforcement act. Title 11 is called the Real Estate Appraisal Reform Amendments & Was intended to upgrade the professionalism and competency of appraisers |
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During the appraisal process where our changes made and comparing two properties? |
One of the physical characteristics of real estate is non-homogeneity, that is no to process Real Estate are exactly alike. Because of the difference between the comparable properties and the subject properties adjustments must be made to which property? |
I just met must be made to the sales price of the comparables not the subject property. |
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What are the two approaches for estimating value in the real estate market? |
1. Sales comparison approach 2. The cost approach to estimated value of property |
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What is the loss of value caused by outdated features in the property? |
Functional obsolescence. This may be either curable or incurable. One of the three types of depreciation calculated in the cost approach to estimating value. |
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What is the loss of value caused by variables external to the property? |
Economic obsolescence. This may result from economic, social or environmental forces, such as zoning changes. One of the three types of depreciation calculated in the cost approach to estimating value. The property owners has little or no control over these forces; This type of depreciation is always considered incurable. |
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What is the income approach to estimated value |
Value equals net income divided by rate. Value = Income ➗Rate |
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What is the gross rent multiplier? GRM |
The gross rent multiplier is for single-family residence and smaller 1 to 4 unit apartments. GRM = sales price➗gross monthly rent (income) |
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What is the gross income multiplier? |
Gross income multiplier is for commercial and industrial properties as well as larger residential apartment buildings. GIM = sales price➗gross annual income |
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