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56 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Types of Real Estate Licenses |
Broker Associate Broker Salesperson |
There are 3 |
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Brokers License |
Employing broker Required to enter into contracts w/consumers Only 1 broker per company Can be person or legal entity Maximum 3 yrs experience & 90 hrs education - 9 of which is Fair Housing |
Qualifications for... |
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Associate Broker’s License Qualifications |
Only issued to a person 3 yrs experience & 90 hours education - 9 of which is Fair Housing |
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Principal Associate Broker License |
Owner, partner, officer or member of the entity License NOT transferable, however can be licensed with more than one at same time (must be principle in one.) |
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Non-Principle Associate Broker |
Not an owner, partner, officer or member of entity Can transfer to another broker |
Two answers |
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Salesperson License Requirements |
No experience required 18 or older 40 hours of education, 4 hrs. Fair Housing Only issued to person Must be employed by broker Can transfer Can only be held by 1 broker at a time |
7 answers |
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Two types of salesperson employment |
Independent Contractor Employee |
2 answers |
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Salesperson as Independent Contractor |
Must have employment contract with employing broker. Everything is done in the name of, and on behalf of, the employing broker. |
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What is silent fraud? |
Failure to disclose a latent defect. |
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What are material facts? |
Conditions that have a direct effect on the value of a property. Licensee is required to disclose. |
Two answers. |
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What are non-material facts? |
Information that has no effect on property value. Licensee has no requirement to disclose. |
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What are the requirements of a Seller’s Disclosure Statement? |
Sellers of residential of between 1-4 families must complete. Brokers must make statement available, even to non-clients. If buyer signs offer without SDS, offer becomes voidable. |
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What is a Patent Defect? |
An obvious defect that can be discovered through ordinary inspection. |
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What is Innocent Representation? |
An innocent misstatement of facts: Example: An assumption that a new water heater is functional. Later found to be improperly installed. |
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What is a Listing Agreement |
Any contract to provide services between broker and seller to ensure that broker gets paid IF broker supplies a buyer who is “ready, willing and able,” and exactly meets sellers terms and conditions. |
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What is a Full Service Listing Agreement? |
Broker is providing all seller services. |
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What is a Limited Service Listing Agreement? |
Broker agrees to provide fewer services and charges a la carte (per service.) |
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Define the 3 Year Experience Equivalent to qualify for a brokers license |
Six real estate transactions within 12 month period for three consecutive years |
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Meaning: Shall |
Must, by law |
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Salesperson as Employee |
Broker withholds for taxes and social security Receives a W-2 form from Broker |
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Salesperson as Independent Contractor Requirements |
Must agree to pay own income tax. Received a form 1099 from employing broker. 75% or more of salesperson’s income from broker must be from listing/sales activities for the broker. |
Relates to income & taxes |
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How many members sit on the Real Estate Board? |
Nine members: Six licensees & three who represent the public. |
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What is the Michigan Occupational Code? |
The law that establishes all rights and obligations of licensees. |
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What are the term limits for Real Estate Board members? |
Not more than two consecutive, 4-year terms. |
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For how long is a license valid? |
All Real Estate licenses expire on October 31st of a three-year term. |
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What is a latent defect? |
A property defect that is undisclosed but known to the seller. Cannot be revealed by ordinary inspection. |
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Which parties are involved in a Listing Agreement? |
Broker & Property Owner |
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What are the legal requirements of a Listing Agreement? |
A) Must identify parties B) Accurate description of the property C) Specific terms & conditions D) Must have a non-discrimination clause E) Must describe broker’s compensation F) Must have signatures of both parties G) Salesperson May sign on behalf of broker |
7 answers |
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Name the four types of Listing Agreement. |
1. Exclusive Right to Sell Listing 2. Exclusive Agency Listing 3. Open Listing 4. Net Listing |
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What is an Exclusive Right to Sell Listing? |
Property listed with just one broker Seller promises to pay commission, no matter who finds buyer during Listing period. |
Two answers. |
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What is an Exclusive Agency Listing? |
Property listed with just one broker, however; Seller reserves the right to find own buyer and not owe commission. |
Two parts |
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What is an Open Listing? |
Property listed with more than one broker Owner reserves right to find own buyer and not owe commission Often used in commercial listings |
Three-part answer |
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What is a Net Listing? |
ILLEGAL IN MICHIGAN Commission based upon the difference between what seller is willing to net, and what the property sells for above the net. |
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What is a Seller’s Disclosure Statement? |
A state law that requires sellers to disclose all known defects in a residential property. |
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What is Radon Gas? |
An invisible, colorless has that is naturally occurring in the Earth that seeps into house through foundation It is the second leading cause of lung cancer |
Two-part answer |
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In terms of real estate, where is lead contamination usually found? |
In pipes, paint & wells. |
Three places |
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When must seller disclose lead-based paint? |
If property was built before 1978 |
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What is Asbestos? |
Fire retardant Airborne particles can cause mesothelioma |
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What is a Township? |
The area representing the intersection of a range and a tier, consisting of 6 mile x 6 mile squares of land. |
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What are methods used to determine a property’s legal description? |
Metes & Bounds Rectangular Survey System or Government Survey Recorded Plat or Lot and Block |
Three, two-part answers |
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When is a legal description required? |
In a court of law When documents are recorded |
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Why is a legal description required? |
Sufficiently accurate Acceptable in court of law Facilitates transfers Avoids disputes Used in legal contracts |
Five answers |
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Metes and Bounds |
Describes property perimeter by landmarks, monuments, distances & angles |
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How is Metes & Bounds used? |
From point of beginning (POB), describes perimeter and returns to POB. Usable with Rectangular Survey System |
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What are Meridians? |
North-South lines, six miles apart |
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What are Parallels? |
East-West lines, six miles apart |
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What is a Range? |
North-South strips of area between meridians |
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What are Tiers? |
East-West strips of area between parallels |
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How many sections per township? |
36 sections, each 1-mile square |
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What is a Cooperative? |
Real estate that is owned by a corporation that sells shares of stock to its members. |
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What are members of a cooperative called? |
Cooperators |
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What are stockholders? |
Shareholders in a corporation |
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Freehold = |
Ownership |
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Leasehold = |
Possession |
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What is Amortization? |
A gradual paying off of a debt by periodic installments |
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Define “Arm’s Length Transaction” |
A transaction between non-related, objective, disinterested parties |
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