Chapter 7, Part 1 Contracts And Regs

Front 1

Acceptance

Back 1

Voluntarily agreeing to the price and terms of an offer. Offer and acceptance create a contract.

Front 2

Agency

Back 2

The relationship of trust in which one person (the agent) represents another (the principal) in dealing with third parties, as authorized by the principal.

Front 3

Appraisal

Back 3

An opinion of value based upon a factual analysis. Note: An appraisal is an estimate, not a determination of value.

Front 4

Attorney-in-Fact

Back 4

One who is authorized to perform certain acts for another under a power of attorney. Power of attorney may be limited to a specific act or acts, or be general.

Front 5

Buyer's Agent

Back 5

An agent representing a buyer in a home purchase, either as a single agent or as an exclusive buyer's broker.

Front 6

Closing Statement

Back 6

The statement which lists the financial settlement between buyer and seller, and also the costs each must pay. A separate statement for buyer and seller is sometimes prepared.

Front 7

Commission

Back 7

An amount, usually a percentage paid to a real estate broker (normally by seller), for services rendered in connection with the sale or exchange of real property.

Front 8

Contract

Back 8

A legally enforceable agreement between two or more competent parties or entities who agree to perform, or refrain from performing, certain acts for a consideration. A contract is an enforceable promise.

Front 9

Counter Offer

Back 9

An offer (instead of acceptance) in response to an offer. For example: A offers to buy Bs house for X dollars. B" in response offers to sell to A at a higher price. B""s offer to A is a counter offer. """

Front 10

Discount Points

Back 10

A loan fee charged by a lender when accepting an FHA or VA loan, to increase the yield on the investment (also known in the trade as Points), to offset the lower interest received in comparison with conventional loan interest rates.

Front 11

Dual Agency

Back 11

An agent, who by agreement, represents both parties in a real estate transaction. Each party gives up some loyalty and confidentiality they are owed by the agent. Illegal in many states.

Front 12

Earnest Money

Back 12

The cash deposit paid by a prospective buyer of real estate as evidence of intention to complete the transaction.

Front 13

Exclusive Agency Listing

Back 13

A written instrument giving one agent the right to sell property for a specified time, but reserving the right of the owner to sell the property himself without the payment of a commission.

Front 14

Fiar Housing Act

Back 14

Landmark federal law that makes it illegal to refuse to rent or sell to anyone based on race, color, religion, sex, or national origin. The 1988 amendments to the act expanded the protections to include family status and disability.

Front 15

Fiduciary

Back 15

person holding a position of trust for another. Agents, trustees, executors, administrators and attorneys-in-fact are fiduciaries.

Front 16

Forfeiture

Back 16

The relinquishing of property rights by a delinquent borrower.

Front 17

Fraud

Back 17

An intentional false representation or concealment of material fact, which is used to induce another person to act, which act causes a loss of property or legal rights.

Front 18

Granting Clause

Back 18

clause wherein the grantor(giver) transfers an interest in the property to the grantee(receiver) by deed

Front 19

Interpleader

Back 19

A legal proceeding that allows an escrow holder of funds to ask the court to decide who gets what, when ownership of said funds is in dispute.

Front 20

Legal Title

Back 20

Usually, title without ownership rights, such as the title placed in a trustee under a deed of trust, or the title of a vendor under a land contract.

Front 21

License

Back 21

An authorization, by law, to do some specific thing.

Front 22

Liquidate Damages

Back 22

A sum of money specified in the purchase contract to be paid by one party to the other in the event of a breach of contract.

Front 23

Offer

Back 23

A presentation or proposal for acceptance to form a contract. An offer must be definite as to price and terms.

Front 24

Offer Policy

Back 24

Written procedures for all office personnel to adhere to. Required for real estate ofices in many states.

Front 25

Open Listing

Back 25

A property given to a number of brokers to market at the same time.

Front 26

Origination Fee

Back 26

fee charged by a lender for making a loan. Usually, covers cost of document preparation. Generally, is between 1% and 2% of loan amount.

Front 27

Possession

Back 27

The actual possession of the property, either physically or constructively.

Front 28

Property Management

Back 28

The branch of the real estate business dealing with the management of property. The duties may range from merely collecting rents, to complete management of all maintenance, and may also include being leasing agent.

Front 29

Prorate

Back 29

To divide equally or proportionately, according to time or use.

Front 30

Quitclaim Deed

Back 30

A deed used to transfer any interest in real property which the grantor may have. It contains no warranties of any kind. Used for corrections, quiet title, etc.

Front 31

Real Estate Commission

Back 31

A state agency charged with the obligation of enforcing real estate license laws.

Front 32

Recovery Fund

Back 32

A special state fund to provide financial relief to persons who have suffered damages that are uncollectible, caused by the fraudulent practices of a licensee.

Front 33

Security Interest

Back 33

A term designating the interest of the creditor in the property of the debtor in all types of credit transactions. It thus replaces such terms as the following: chattel mortgage

Front 34

Statue of Frauds

Back 34

Law which requires certain contracts to be in writing to be enforceable.

Front 35

Sub-Agent

Back 35

An agent who assists another agent in representing a principal, or party, in a transaction. A seller's subagent who writes the buyer's offer owes loyalty to the seller, though many states presume any agent working with a buyer is the buyer's agent.

Front 36

Time is of the Essence

Back 36

One of the essential requirements to the formation of a binding contract

Front 37

Transaction Broker

Back 37

A licensee who assists the buyer or seller or both in a real estate transaction, without being an agent or advocate for either one of them, thereby relieving them of any liability they would have had for the acts of an agent (same as Facilitator).

Front 38

Trust Account

Back 38

A special account, where money is deposited by an agent for the account of a principal, and is to be kept. Also referred to as escrow or trustee account.

Front 39

Vacarious Liability

Back 39

To be responsible for the acts of another, such as a principal for the acts his agent.

Front 40

Limited Agent

Back 40

An agent whose duties and obligations to a principal are only those set forth in C.R.S. 12-61-804 or 12-61-805, with any additional duties and obligations agreed to pursuant to section 12-61-803(5).