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66 Cards in this Set

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Is not following the Code of Ethics grounds for suspension, etc?
No. Code of Ethics is set of VOLUNTARY rules established by National Association of Realtors.
Canons of Ethics
Are ethics laws of individual states and must be followed
ACOLD
FIDUCIARY RESPONSIBILITIES: Accountability, Care (reasonable,
obedience, loyalty, disclosure
1968 Federal Fair Housing Act
Race, Religion, color, sex, national origin, handicap and family status

Age - not protected class
Sherman Anti-Trust Act
Prohibits price and market fixing
Federal Fair Housing Act aka
Civil Rights Act of 1968
Family status is protected but marital status is only protected under Federal Fair Credit Act
Blockbusting
Illegal act whereby owners are encouraged to sell because minorities are moving into the neighborhood
Steering
Influencing buyers to a particular area based on race, religion or ethnicity
Red lining
Illegal practice of denying loans in certain areas based on race, religion
Discrimination Act 1866
Action must be brought within ONE year in Federal District Court
Truth in Lending Act - additional disclosures
Mention of monthly payment or interest rate requires additional disclosures such as interest rate, amount of down payment & terms
Truth in Lending Act
Regulates advertising disclosures
HUD 1 Statement
Required under RESPA - allows ONE day for review
Jones v. Mayer
Interpreted Civil Rights Act of 1866 -- NO exceptions to racial discrimination
Federal Fair Housing Act
File a complaint with HUD within ONE year or a lawsuit in federal court within TWO years
Radon
No federal law requiring mitigation -- it is only recommended over 4.0
Vicarious Liability
Client is held liable for actions of agent
Lead Based Paint Disclosure
Must be signed by buyer, seller and both agents as all are responsible for compliance
Estoppel (Apparent Agency)
Refers to apparent agency when a person allows that agent to be an agent of that person without actual authority
Implication
Used to create an agency's relationship by a party's conduct where no expressed agreement exists
Special Agent vs. General Agent
Has very limited authority (e.g. sale of house) -- general agent anything in particular area (e.g. manage property)
How can agency relationship be terminated?
Principal revokes agency
Agent renounces agency
Or by mutual agreement
Exclusive Agency Agreement
Broker will only get commission if it or other agency finds the buyer - if seller finds buyer - no commission to broker
Open listing
Seller not represented by any one broker -- any broker can sell and get commission
Patent vs. Latent defect
Patent defect - buyer can see
Latent defect - hidden defect
Rescission
Mutual agreement of parties to terminate contract
Seller or Broker dies
Listing is terminated
Agent DIRECT fiduciary duty
Is to its broker
Covenant of seizin
In a Warranty Deed - Seller states it is owner and has right to sell the property
COLAN
Common Law - agent's fiduciary obligations to client = Care, Obedience, Loyalty, Accountability and Notice
Government Rectangular System
Legal descriptions with townships and sections with longitude and latitude with divisions per 1/4, 1/2, 1/4 etc
Meets and Bounds
Legal Description with points of beginning and ending with degress
How many acres in a Section
Section has 640 acres - 1/4 of section has 160 acres, and 1/4 of 1/4 of section has 40 acres -- 1/4 of 1/4 of 1/4 would be 10 acres
Disintermediation
Transfer of funds from savings account into higher yield investment
Discount Points
Fees charged by lender to make up difference between current market interest rate and the rate the lender gives to the borrower
Ad varlorem
According to valuation
Abatement
Lowering of valuation for tax purposes
One Acre
43,560 square feet
640 acres in a Section
5,280 linear feet in a mile
Tenancy in common
Co-ownership with NO right of survivorship
Tenancy by the Entireties
Requires couple to be married and living on the property
Joint Tenancy Unities
Possession, interest, time and title
Accesssion
When something is added to real property
Emblements
Tenant's crops
Appropriate Rights
Given by government allowing owner to use water on property it does not own
Littoral or Riparian rights
Rights to use water on land that you own
Mortagor vs. Mortagee
Mortagor = borrower
Mortagee = lender
Constructive Annexation
Not actually affixed to real property but is so associated to make it a fixture (e.g. garage door opener)
Inverse Condemnation
Property owner sues government to pay compensation or loosen property use restrictions
Easement by Prescription
Open & nortorious use
Hostile & adverse use
Constant and regular use for 21 years
DUST
Demand, utility, scarcity and transferability are necessary ingredients for value
Life cycle
Growth, stability, decline, revitalization
Acre
43,560 square feet
Annual Depreciation
Cost divided by # of years for depreciation
CMA
Competitive Market Analysis
Appurtenat Easement vs. Easement in Gross
Appurtenant easements afford the most protection since they are generally a permanent feature of the property. Thus, in the case of sale, the lake access passes to any new owners. By contrast, an "easement in gross" is between two individuals, which would severely limit the attractiveness and value of the property if the original owner wished to sell.
System of Ownership of Real Property in US
"Allodial" is the modern form of ownership and is often contrasted with "feudal" in which land is held on the condition of rent or service due the government. For example, a medieval knight held property subject to coming to his baron's service when called. Similarly, the baron's land holdings were conditional on his raising an army and fighting for the king in times of conflict. Failure of any party to "perform as promised" was cause for holdings to be confiscated, often as a preliminary step to more extreme actions.
General, Voluntary, Statutory Equitable Liens
A "statutory lien" is one that arises out of specific law (otherwise known as statutes). By contrast, an "equitable lien" has its roots in common law or custom. A "voluntary lien" is one entered with the property owner's knowledge and consent, such as a mortgage. A "general lien" grants a creditor the right to file a claim against all of a debtor's assets, not just a particular property.
Covenant of Seisen
Another outgrowth of the feudal system, "seisen" derives from the French meaning to "sit upon or own" and gives owners the right to sell or transfer property at will.
Alienation
Acquisition means just what you think -- to acquire or receive something. The legal definition of "alienation," however, is to transfer. Thus, "alienation of affection" in divorce proceedings doesn't mean a person has caused one spouse to dislike the other (though often a result), but rather to transfer his or her affection away from their partner to another party.
Which act provides for punitive action against businesses accused of discrimination based on sex, color, religion, ancestry or national origin?
Unruh Act -- Named for Jesse Unruh, author of the 1959 act, it provides for specific remedies against hotels, restaurants, hospitals -- virtually any public business or organization -- for discriminating on the basis of sex, race, color or other personal characteristic.
Which act allows the California Department of Fair Employment and Housing to take action against public or private housing entities that discriminate?
Rumford Act - this act provides protection against discrimination in housing by landlords, apartment owners, housing developers, mortgage companies and real estate firms.
Subrogation
The substitution of a third person in place of a creditor to whose rights the third person succeeds in relation to the debt. (Title company)
Appurtenances
Rights and privileges that pass with the land
Ostensible Agency
Ostensible agency is the same as implied agency and means that the relationship is created by the actions of the parties rather than written contract
Types of Easements
easement by condemnation, property is acquired for PUBLIC purpose; an easement by prescription acquired by continuous, open and hostile use over a period of years; or an easement by necessity, necessary for another to enter and exit his own property.
Return on Investment
Net income is $73,500 minus $52,300 or $21,200. The value of the building is calculated by dividing net income ($21,200) by the rate of return (11%) which, in this case, is $192,727.27.