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111 Cards in this Set
- Front
- Back
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Comparative Market Analysis |
A Comparison of one property to similar recently sold properties is called |
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Geographical Farm is comprised of what |
The residents of a neighborhood A group of residents an agent "cultivates" for potential clients Residents an agent contacts on a regular basis |
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To expose your listing to potential buyers and agents To Demonstrate to your seller how you are working for them to obtain the best price for their home Also may meet potential buyers as well as prospects who may need to sell prior to purchasing |
The importance of open houses are |
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Peronnel managers Postal workers Union officials |
Which groups should be included in your sphere of influence? |
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FOR SALE BY OWNER |
FSBO is |
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Staging |
Giving Seller directions on the best way to show a home by maximizing first impressions and preparing for showing and open houses is referred to as |
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Check the phone call log book/ traffic sheet |
When evaluating the effectiveness of the advertising campaign, the broker/manager should |
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One |
How many brokers may a salesperson work for at one time |
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Employment contract |
The listing agreement can be best described as |
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Brokers Error and Omission Insurance is |
Insurance to protect the agent and broker against buyer's and seller's claims |
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Within 3 working days from acceptance of offer |
When should a deposit be placed in a broker's trust fund, given to the principal, or placed in a neutral escrow depository |
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Negotiating leaseholds Obtaining mortgage loans Purchasing business oppurtunities |
Agents may also be employed occassionally to represent buyers in what |
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Exclusive Right to Sell Listing |
A listing in which the owners would be held liable for a commission even if they themselves sold the property is called ? |
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Net Listing |
A listing that is most likely to give rise to charges of misrepresentation or fraud is called? |
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Someone who is prepared to buy a property before it is listed with a broker |
A Pocket buyer is |
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Safety Clause is usually found in what listing? |
Exclusive right to sell listing |
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What happens to your listings as an agent if you were to leave your employer and go work with someone else? |
Your listings would stay with your old employer |
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A commission is earned by the broker when all terms of the contract have been fulfilled and he or she has produced a buyer who is? |
Ready to buy Able to buy Willing to buy |
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Curb appeal |
How a house appears when compared to the rest of the neighborhood is called? |
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Handwritten instructions supersede preprinted instructions |
Pertaining to Listing agreements |
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At time the signature is obtained |
An agent is required to give a copy of the listing agreement to the principal when? |
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What forms are part of the sellers listing kit? |
Estimated Seller's Proceeds Residential Listing Agreement |
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Market Value |
The amount of cash or cash equivalent that is most likely to be paid for a property on a given date in a fair and reasonable open market transaction is referred to as? |
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Cost Approach |
What type of valuation approach Involves calculating the current cost of replacing or reproducing the improvement, less depreciation, and adding the value of the land |
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Comparative Market Analysis |
CMA - the most effective tool in determing a comparative market analysis over the complexity and cost of a full appraisal |
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Before 1978 |
Lead based paint disclosure is necessary for homes built ? |
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Economic Obsolescence and Incurable |
Loss of Value due to conditions outside of the property is? |
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Floortime |
The time assigned to a salesperson to answer company telephones is referred to? |
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3 C's of Credit |
Character Capacity Capital |
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The Specific provisions ordinarily qualify the meaning of the general provisions |
When there are inconsistencies between general provisions and specific provisions |
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Use words and full dates, like February 2, 2008 |
When filling out the date at the top of the Purchase Agreement it is important to |
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Liquidated Damages |
Stated in the contract, a sum of money that is paid for not fulfilling a clause or condition in the contract, and agreed in advance is called |
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CE+3 in Closing and occupancy section of the Purchase Contract means? |
Buyer will take possession 3 days after close of escro |
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Residential Listing Agreement Seller's proceeds |
What two documents does the buyer not get a copy of and are for sellers eyes only? |
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FIRPTA |
Foreign Investment in Real Property Act |
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When making an offer contingent on the sale of the buyer's home you should |
Always use the Contingency for Sale or Purchase of Other Property COP form, and make this an amendment to the purchase agreement |
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Regarding the Sale's persons commission |
Selling agent must abide by the commission details placed on the MLS by the listing agent |
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After a physical inspection has been made and the Request for Repair (buyers wish list for seller to make repairs) Is the seller required to do all listed repairs (contingencies)? |
Seller may or may not agree to repairs that need to be met. The buyer has the option to remove certain contingencies or opt to cancel the escrow |
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Contingency removal |
Signed by borrower to acknowledge whether contingencies have been removed |
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Home Warranty |
Can be paid by anyone. Protects the buyer (1year) from failure of built -ins like stoves, dishwashers, etc. Often paid for by seller. |
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Agency Relationship Disclosure |
Required for both parties prior to entering into any real estate contract |
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Wood Destroying Pest Inspection and Allocation of Cost Addendum WPA |
States whether the seller or the buyer will be responsible for the costs of the required work |
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Verification of Property Condition |
Signed at final walk through stating that all requested repairs have been met and the property is in the same condition as when the offer was made |
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APR (Annual percentage Rate) includes? |
Interest Rate Points Loan Fees |
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An institution lender who charges the lowest interest rates and requires repayment in 25 years or less is? |
Life Insurance Companies |
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Fixed Rate |
Type of loan that is repayed in equal monthly payments for the life of the loan |
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Negative amortization |
A drawback of the graduated payment mortgage is its |
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Who is involved in the secondary mortgage market |
Fannie Mae (FNMA) Ginnie Mae (GNMA) Freddie Mac |
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One |
Maximum number of orgination points which can be charged to buyers under either FHA or VA loans is |
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Land Contract |
What contract is involved when a seller retains legal title to a property until the buyer has paid off the loan |
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3 years |
Brokers are required to keep a Mortgage Loan Disclosure Statement on file for? |
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Escrow |
The processing of paperwork and money involved in a sale or other transaction is called |
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What are the requirements for a valid escrow? |
Signed instructions Neutral Third party Conditional delivery |
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Recording and issuing of title policy |
Last function of an escrow companies sequence of events |
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Must be a corporation Is governed by the Commissioner of Corporations |
California requirements for an independent escrow company |
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Mutual consent of both parties |
Only event in which escrow instructions can be changed once they have been drawn and signed by each party is? |
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CRPA (California Residential Purchase Agreement) and Joint escrow instructions |
Where does escrow get their information? |
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30 days |
The standard base period when calculating prorations is |
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ALTA |
What title policy covers most of the exclusions of a standard policy |
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Buyer and Seller |
Who selects escrow company? |
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Property tax fees |
An annual recurring charge |
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Real Property Taxes |
Determined by the value of the real property and are paid annually or semi annually |
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County officer who has the responsibility of determining the assessed valuation of land, improvements, and personal property used in business. |
County Assesor |
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County officer who collects the real property taxes. |
County Tax Collector |
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Only buildings and other improvements on income, trade, or business property can be depreciated, land does not depreciate |
Depreciaton of business property |
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A yearly tax deduction for wear and tear on improved investment property that is deducted from the taxpayer's income on his or her income tax form. |
Depreciation for tax purposes |
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Income, trade, or business real property, not on a residence |
A business owner can deduct depreciation on? |
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Municipal bonds issued to fund streets, sewers, and other infrastructure needs before a housing development is built |
Mello-Roos |
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Tax sheltering Appreciation potential Monthly Income |
Benefits of Real Estate Investment |
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Cash flow Negative or positive |
Differences between income generated from a property and the expenses associated with the property are? |
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Life Insurance Companies |
A Lender who most likely will finance the purchase of a large apartment complex |
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Net operating income |
What type of income is most commonly used in determining the capitalization of net income? |
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Maintenance Taxes Utilities |
MITUM - in reference to operating expenses include? |
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The higher the cap rate, the lower the price |
A fact about Cap rate is? |
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25-40 % |
Regarding characteristics of a rental market, the percentage of income a family can, or will, pay for shelter is? |
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Syndication |
Two or more people who combine their financial resources to acquire real estate is a? |
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REIT (Real Estate Investment Trust) |
Sells shares of equity Where the trust itself pays no income taxes |
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Covenant not to compete |
When a seller of a business agrees not to open a business similar to that of the business being sold. |
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90% or more of the court appraisal |
In a probate sale, the first acceptable offer must be |
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Property Management |
A person with a CPM designation would most likely be engaged professionally in the field of |
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Inventory of stock Trade name List of fixtures and equipment |
What would be included in a bill of sale transferring title to a retail merchandising business |
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Goodwill |
The expectation of continued public patronage is |
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10% of the first 10k plus 5% of the remaining portion of the original bid |
In a probate sale, the second bid must be |
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Money market |
Loan Brokers operate mainly in the |
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Real estate syndicate |
Corporation Partnership Trust |
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Main objective of professional property management is |
To minimize expenses and to maximize profits |
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Institutional manager |
Person hired to manage banks, firms, insurance companies, government agencies, trust, etc |
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Graduated lease |
Lease that is increased at specified intervals |
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Why should managers keep accurate records |
Compliance with statutory requirements Meeting the agent's fiduciary obligation to client Substantiating records for filing income tax returns |
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A balanced manager will |
Try to correct and relieve deterioration due to wear and tear, while trying to increase net income |
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Property owner/management will directly employ who to manage their on site apartment building? |
On site manager |
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Blockbusting |
The practice of panic selling of homes below market value, especially by exploiting the prejudices of property owners in neighborhoods in which the racial make up is changing, or appears to be on the verge of changing. |
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Violation of Fair Housing Laws |
What is it when a property manager is instructed to rent only to a married couple? |
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If a lanlord wants to get a month to month tenant out of his rental they must |
Give the tenant a 60-day notice |
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A mortgage assistant should |
Preferably hold a real estate license |
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Reasons for wanting to be a Real Estate assistant |
Having a mentor teach the ins and outs of the business Building knowledge and self confidence |
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Duties of a real estate assistant are? |
Assisting in holding open houses Preparing listing packages for agent Making appointments for agent |
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Ways an assistant may be paid are? |
Hourly Base pay Usually a salary plus a percentage of the commission earned |
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Closed transaction files should be |
Filed away in the office file cabinet |
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Licensed assistants can? |
Communicate with buyers and sellers quoting price Prospect for agent Monitor a listing progress |
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An assistants employment contract should? |
Spell out how the assistant will be paid Spell out if the assistant is licensed or not State who pays for the error and omissions insurance |
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District Attorney |
Who prosecutes for the Real Estate Commissioner |
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Minimum number or hours to renew your four year license? |
45 hours |
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Brokers license examination process consists of |
200 multiplication choice test Photo Id Two 2 1/2 hour exam periods |
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Real Estate Commissioner has the right to |
Revoke license Restrict license Suspend license |
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NAHREP |
National Association of Hispanic Real Estate Professionals |
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Lifetime ceiling the Recovery Fund will pay out for one licensee? |
250K |
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Every four years the National Association of Realtors requires members to take a course covering |
Code of Ethics |
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To call yourself a Realtor you must |
Belong to NAR (National Association of REALTORS) |
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CAR |
California Association of REALTORS |
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DRE |
Department of Real Estate |
