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83 Cards in this Set
- Front
- Back
- 3rd side (hint)
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When working for an owner, the broker takes the role of a __________. |
Fiduciary |
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What are the 6 fiduciary duties of agency? |
Loyalty Obedience Full Disclosure Confidentiality Reasonable care & diligence Holding safe & accounting for Money/Property
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Loy Obe FD Con RC Mon & Prop |
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What are real estate licensees required to do when they sell their own property? |
Disclose to buyers & sellers they have a real estate license. |
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The seller's agent tells the buyer to offer less than the listed price, what relationship has the agent created? |
Agency by Implication or Undisclosed Dual Agency |
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What must the agent disclose to the principal? |
All material information about the customer and the transaction. |
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What must the agent disclose to the customer? |
All material information about the property and the client's ability to perform the transaction. |
Property Perform |
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What duties does an agent owe a customer? |
Treat them honestly, ethically, and competently. |
Hon Eth Com |
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A limited agent becomes neutral in which 3 regards? |
Loyalty Confidentiality Full Disclosure |
L C FD |
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What does 'caveat emptor' mean? |
Let the buyer beware. Parties w/o an an agent are responsible for protecting their own interests. |
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What is a specific or special agent hired to do? |
Perform in a specific or limited way. |
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What is a general agent hired to do? |
Use his/her expertise to fulfill the objectives set out by the principal. |
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What are the 4 essential parts of an Appraisal? |
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D PD EV SA |
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The ______ Form is a quick, easy way to report the estimate of value. Contains 4 parts of appraisal and less than a page. |
Letter Form *simple statement of value |
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The ______ Form is used primarily by institutional lenders since they standardize the effort of many appraisers who may work for the same institution. |
Short Form or Check List |
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The _______ Report provides an estimate of value and then gives everything reasonable to justify that declaration of value. |
Narrative *most comprehensive |
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What are the 4 essential elements of value? |
Demand Utility Scarcity Transferability |
DUST |
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Which appraisal principle states that no prudent person will pay more for something than he/she has to? |
Substitution |
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Which appraisal principle states that improvements must add their cost the the value of the property? |
Contribution |
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Which appraisal principle operates on the idea that value is created and maintained when a reasonable amount of similarity is maintained on properties in a given area? |
Conformity
Regression Progression |
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A property near a factory that emits smoke and odors suffers from _________ ______________? |
Economic or External Obsolescence |
Conformity appraisal principle of Regression |
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Which principle is represented by a cycle beginning with growth, progressing to equilibrium, going to disintegration, and perhaps starting over with growth? |
Neighborhood Cycle or Change |
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Which appraisal principle takes into consideration benefits that can be derived from future enjoyment or income from the property? |
Anticipation |
They anticipate being able to use property to make money... |
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Which appraisal principle states that when an excess of demand and profits exist, there will be an influx of new producers seeking to increase the supply? |
Competition |
The businesses will compete to sell the most goods. |
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Which principle of appraisal is based on an interrelationship between 4 dimensions of production: labor, capital, management, and land? |
Balance |
It's a balance of dimensions. |
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What are the 4 steps in the Neighborhood Cycle? |
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G E D G |
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What does RESPA stand for? |
Real Estate Settlement and Procedures Act |
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What is the document called that will replace the existing Good Faith Estimate (GFE) and Truth in Lending Disclosure (TIL)? |
The Loan Estimate |
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What is the document called that will replace the existing HUD-1 Settlement Statement? |
Closing Disclosure |
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What government entity is responsible for the enforcement of RESPA? |
The Consumer Financial Protection Bureau (CFPB) |
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When does the Loan Estimate need to be provided to the customer? |
No later than 3 days after loan application |
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How many days prior to settlement does a buyer need to be given the Closing Disclosure? |
3 business days prior |
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What is the purpose of the new disclosures? |
To provide greater consumer disclosure on the actual costs and details of their loan |
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Does RESPA apply to cash transactions? |
NO |
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What 3 things trigger the need to provide a new Closing Disclosure to the consumer and a new 3-day waiting period? |
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APR Penalty Product |
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What kind of contract is an option? |
Unilateral |
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An employment contract between the broker and the agent as an independent contractor is __________? |
Unilateral |
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What is a bilateral contract? |
The exchange of a promise for a promise |
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What is a unilateral contract? |
The exchange of a promise for a performance |
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How is a unilateral contract usually spotted? |
The use of a condition: "If, Then" language. |
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A person who signs or executes a document is known as a ___________. |
Signatory The executor settles the will |
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If the seller isn't sure he wants to sell during the next 5 years, what should he give a lessee who is interested in buying? |
Right of first refusal |
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What clause would allow a tenant to match any offer to purchase the property? |
Right of first refusal |
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What gives tenants the most flexibility if they are considering buying the property they are currently renting? |
Option |
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Under Statute of Frauds, what doesn't have to be in writing? |
A lease for less than a year |
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If a party to an agency agreement stops performing their contractual obligations, what has the party violated? |
The implied covenant of good faith |
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If a party to an agreement attempts to sabotage the other party in performing their duties, that has the sabotaging party violated? |
The implied covenant of fair dealing |
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After an agreement has been entered into and one party dies, what is the status of the contract? |
Unless it is an agency or some other personal service contract, the deceased party's estate will continue the contractual obligations of the deceased - a seller financing contract would continue post death. |
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Do all contracts need to be in writing? |
Only contracts governed by the Statute of Frauds need to be in writing. |
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The best way to correct errors on a deed, or clear clouds from the title would be to record a _____ _____ _____. |
Quit Claim Deed |
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If a grantor delivers a deed to escrow, then dies before delivery is made to the grantee, what is the condition of the deed? |
It is legal if all conditions have been met - third-party delivery. |
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If a seller conveys a deed to one buyer who doesn’t record, and then later conveys the same deed to another buyer who doesn’t record, who owns the property? |
The buyer who records their deed first—it’s a race to the recorder’s office. |
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Is a grantee’s signature required on the deed? |
No, only the grantors |
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What kind of loan is guaranteed? |
VA |
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What kind of loan is it when the mortgagee (lender) makes the payments? |
Reverse annuity |
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What must a veteran first get to obtain a VA loan? |
Certificate of Eligibility |
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Who are the vendor and vendee? |
Seller and buyer |
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When a developer obtains a construction loan on a subdivision, and then sells individual parcels, the loan should contain what clause? |
Partial release clause |
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What kind of mortgage would a business use if both real and personal property are collateral? |
Package |
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Who makes government insured loans? |
Approved lenders, not FHA, VA, FNMA, etc. |
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What clause in a mortgage allows the lender to adjust the interest rate? |
Escalation clause |
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Mortgage where payments increase the first years, then level off. |
Graduated |
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What is it called when the seller is the lender? |
Seller finance, also called “carryback" |
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When a buyer uses very little of his/her own money to purchase a home it’s called...? |
Leverage |
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A couple are selling and buying a home. However, they are going to close on the new home before closing on the sale of the old home. In this situation they might get what kind of loan? |
Swing, gap, or bridge loan |
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A person buys a property utilizing a wraparound mortgage. Which of the following conditions would benefit the buyer? |
Make payments to escrow, which in turn pays the underlying mortgage payments and the seller. |
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What is FNMA? |
A source of supplementary monies for the primary money market. |
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How is a certificate of estoppel used? |
To obtain the loan balance of the mortgage. |
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What market condition would most likely increase the demand for rental property? |
Increase in interest rates |
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What clause protects a lender’s investment? |
Alienation clause, also called a due on sale clause |
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What type of mortgage is the loan secured by the property being purchased with the loan money? |
Purchase money mortgage |
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What is blockbusting? |
Creating rumors of integration in a neighborhood to drive down prices. |
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Who is exempt from fair housing laws? |
Owner of three or fewer properties not using a brokerage and not discriminating in their own advertising. |
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On Fair Housing issues involving the handicapped, what’s the difference between the issues of “accessible” and “adapted?” |
Accessible means you can get to and in; adapted is environmental controls lowered, doorways wider. |
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What law requires a lender to reveal APR to the borrower? |
Truth in Lending |
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An agent represents the seller of a business which has a significant inventory. What law should the agent suggest that the buyer be concerned with? |
Bulk transfer under UCC |
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What is Radioactive, colorless, odorless, tasteless noble gas, occurring naturally in our environment as the decay of radium? |
Radon |
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What is the government classification for an environmentally hazardous site? |
Brownfield |
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What is a sure sign of ground contamination? |
Discolored soil |
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What is the proper way to remove asbestos? |
Encapsulation in sealed bags |
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Which law requires a housing provider to not discriminate against the handicapped? |
Fair Housing. The ADA covers employers and public services |
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The difference between the 1968 Fair Housing Act and the 1988 Amendment is? |
The ’88 Amendment added Familial Status and Handicap as protected classes |
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Is drug addiction a handicap under the Fair Housing Act? |
Drug addiction is a protected class when the person has completed a rehabilitation program. |
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Inappropriate discussions about commissions within the real estate industry could violate which law? |
Anti- trust laws |
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