Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
283 Cards in this Set
- Front
- Back
|
Real estate licensee
|
148
|
|
|
Agent
|
148
|
|
|
Principal
|
148
|
|
|
General agents
|
149 |
|
|
Special agents
|
149
|
|
|
Universal agents
|
149
|
|
|
Express authority
|
149
given expressly from principal to agent. for real estate must be in writing |
|
|
Implied authority
|
Authority that is not expressly given (detail in the contract but is
acts incidental to carry out duties custom usage of trade implied by the conduct of the parties |
|
|
Apparent authority
|
Principal leads a 3rd party to believe their is a principal-agent relationship
|
|
|
Ratification
|
authority given after the fact
agent acts outside authority, but principal decides to be bound anyway. Principal has right to reject |
|
|
Partially disclosed principal
|
3rd party knows agent is an agent, but not who the principal is
liability: both principal and agent are liable?? check this 151 |
|
|
Undisclosed principal
|
3rd party unaware that there is an agency relationship.
Agent liable |
|
|
Real estate broker
|
153
all the power: can work for themselves all listings and contracts must be in the name of the agent |
|
|
Real estate salesperson
|
153
licensed agent must work for a broker |
|
|
Listing agreements
|
154
The way a broker is retained by a seller must be in writing must talk about price and terms compensation structure what broker has right to do to market, to list, must list duration of agreement cali max is 90 days after express authority expires, but apparent authority may remain |
|
|
Statute of frauds
|
requires real estate contracts / listing agreements etc are in writing |
|
|
Listing agents
|
154
Agent for the seller, but can rep the buyer too in same deal what's the diff between buyers agent? |
|
|
Buyer agents
|
155
rep buyer |
|
|
Dual agency
|
155
one agent reps both buyer and seller changes duties of loyalty both parties must be aware that you are representing them both. must have written agreement from both sides seller may get a discount on commission - seller has to give up some fiduciary duties that would normally be due from the agent if you find out after that this was happening you get all the commission back |
|
|
Subagency with regards to contracting with buyers agent for commission
|
155
buyers agent acts as a subagent of the sellers agent: split the deal with the agent who already has a deal with the seller |
|
|
Cooperating broker
|
156
|
|
|
Designated agency
|
156
|
|
|
Nonagent broker
|
156
|
|
|
Transaction broker
|
156
|
|
|
Intermediary
|
156
|
|
|
Open listing
|
Seller can list with as many brokers as they want
first agent to sell the property is entitled to commission seller retains right to sell property themselves and owes no commission used for expensive properties and rural land (50k+ acres) |
|
|
Exclusive agency
|
seller pays to the listing agent if the broker sells the property
seller can still sell their own property and owe no commission if seller sells property through another broker during the agreement period, sell will owe commission to both the exclusive agency listing broker and the selling broker |
|
|
Exclusive right to sell
|
Seller will owe commission to broker no matter who sells the property.
Required if you want to list property on the MLS |
|
|
Multiple listing services (MLS)
|
mls
|
|
|
Internet listing service
|
160
|
|
|
Ready, willing, and able
|
162
buyer who is ready to buy, willing to buy and able to buy. Not in ch 6 notes, but find in other notes!! |
|
|
Condition precedent
|
162
|
|
|
No deal, no commission clause
|
163
|
|
|
Procuring cause
|
163
|
|
|
Net listing
|
163
|
|
|
Fiduciary duty
|
167
must act in the best interest of the principal **possible short answer!! MUST HAVE ALL 3 Mutual consent must be formal in real property Conduct must be done on behalf of the principal right to control agent As an agent your work must be done on behalf of the principal |
|
|
Duty of care
|
167
|
|
|
Negligence
|
168
|
|
|
Duty of loyalty
|
168
|
|
|
Good faith and fair dealing
|
168
|
|
|
Material fact
|
169
|
|
|
Commingling
|
170
|
|
|
Misrepresentation
|
170
|
|
|
Intentionally misrepresents
|
170
|
|
|
Sales puffing
|
171
|
|
|
Intentional nondisclosure
|
171
|
|
|
Caveat emptor
|
172
|
|
|
As is
|
174
|
|
|
Latent defects
|
174
|
|
|
Patent defects
|
174
|
|
|
Errors and omissions insurance
|
177
|
|
|
Real estate recovery funds
|
177
|
|
|
Fair Housing Act (FHA)
|
181
|
|
|
Racial steering
|
181
|
|
|
Blockbusting
|
182
|
|
|
USA Patriot Act
|
182
|
|
|
CHAPTER 7
|
CHAPTER 7 back
|
|
|
Contract
|
188
Must Have: offer acceptance consideration capacity of parties legal purpose RE = in writing can be oral if: 2 of 3 of these "part performance" is 2 or 3 of these Payment (full or partial of purchase price) Possession of the property Valuable improvements made to property |
|
|
Express contract
|
189
in writing |
|
|
Implied-in-fact contract
|
189
|
|
|
Implied-in-law contract
|
189
|
|
|
Quasi-contract
|
189
|
|
|
Unilateral contract
|
190
|
|
|
Bilateral contract
|
190
|
|
|
Executory contract
|
190
|
|
|
Executed contract
|
190
|
|
|
Offer 3 elements of
|
191
Objective intent to be bound by offer intent to be bound language or conduct that are preliminary negotiations or invitations to bargain are not offers 2. definite and reasonably certain terms what am i buying and for how much 3. Offer must be communicated to the other party |
|
|
Offeror
|
191
|
|
|
Offeree
|
191
|
|
|
Objective intent
|
191
|
|
|
Counteroffer
|
192
|
|
|
Option contract
|
194
|
|
|
Acceptance
|
195
|
|
|
Mirror-image rule
|
195
|
|
|
Mailbox rule
|
196
|
|
|
Consideration
|
197
|
|
|
Legal benefit
|
197
|
|
|
Legal detriment
|
197
|
|
|
Illusory promise
|
198
|
|
|
Statute of frauds
|
199
|
|
|
Part-performance exception
|
200
|
|
|
Equal dignity rule
|
202
|
|
|
Earnest money
|
203
|
|
|
Contingency
|
204
|
|
|
Parol evidence rule
|
207
|
|
|
Merger clause
|
207
|
|
|
Integration clause
|
207
|
|
|
Latent defect
|
208
|
|
|
Good faith and fair dealing
|
209
|
|
|
Novation
|
209
|
|
|
Breach
|
209
|
|
|
Material breach
|
209
|
|
|
Specific performance
|
209
usually available to buyers only seller is limited to LDs Requires the seller to go forward with the transaction according to the terms of the contract |
|
|
Minor breach
|
210
|
|
|
Liquidated damages
|
210
parties can agree in advance what the damages will be in event of breach must be reasonable at time of contracting if not, they are unenforceable typically deposit (earnest money) is used for LD if LD clause that is the exclusive remedy |
|
|
Damages
|
212
|
|
|
Rescission
|
212
|
|
|
CHAPTER 8
|
CHAPTER 8 back
|
|
|
Appraise
|
224
|
|
|
Market value
|
224
|
|
|
Uniform Standard of Professional Appraisal Practice
|
224
|
|
|
Market approach
|
225
|
|
|
Sales-comparison approach
|
225
|
|
|
Competitive market analysis
|
226
|
|
|
Cost approach
|
228
|
|
|
Functional obsolescence
|
228
|
|
|
Economic obsolescence
|
228
|
|
|
Income approach
|
228
|
|
|
Capitalization rate
|
229
|
|
|
Financial Institutions Reform, Recovery and Enforcement Act
|
230
|
|
|
Trainee Appraiser
|
231
|
|
|
Licensed residential appraiser
|
231
|
|
|
Certified residential appraiser
|
231
|
|
|
Certified general appraiser
|
231
|
|
|
Mortgage
|
238
|
|
|
Hypothecated
|
239
|
|
|
Mortgagor
|
239
|
|
|
Mortgagee
|
239
|
|
|
Promissory note
|
239
|
|
|
Maker
|
239
|
|
|
Debtor
|
239
|
|
|
Payee
|
239
|
|
|
Usury
|
239
|
|
|
Lien theory
|
241
|
|
|
Title theory
|
241
|
|
|
Mortgage banker
|
242
|
|
|
Underwriting
|
242
|
|
|
Primary market
|
243
|
|
|
Secondary market
|
243
|
|
|
Fannie Mae
|
243
|
|
|
Freddie Mac
|
243
|
|
|
First mortgage
|
243
|
|
|
Second mortgage
|
243
|
|
|
Purchase-money mortgage
|
243
|
|
|
Conforming loans
|
244
|
|
|
Nonconforming loans
|
244
|
|
|
Private mortgage insurance
|
244
|
|
|
Impound account
|
244
|
|
|
Federal Housing Administration
|
245
|
|
|
Assumable
|
245
|
|
|
Mortgage insurance premium
|
246
|
|
|
Conventional loans
|
246
|
|
|
Institutional lenders
|
246
|
|
|
Subprime loan
|
247
|
|
|
Predatory lending
|
247
|
|
|
Fixed-rate mortgage
|
249
|
|
|
Amortized loan
|
249
|
|
|
Balloon payment
|
249
|
|
|
Adjustable-rate mortgage
|
249
|
|
|
Straight loans
|
249
|
|
|
Interest-only loans
|
249
|
|
|
Wraparound mortgage
|
250
|
|
|
Piggyback mortgage
|
250
|
|
|
Reverse mortgage
|
250
|
|
|
Home equity loan
|
250
|
|
|
Home equity line of credit
|
251
|
|
|
Sale leaseback
|
251
|
|
|
Taking subject to the mortgage
|
251
|
|
|
Assume an existing mortgage
|
252
|
|
|
Deed of trust
|
253
|
|
|
Beneficiary
|
253
|
|
|
Trustor
|
253
|
|
|
Trustee
|
253
|
|
|
Regulation Z
|
254
|
|
|
Annual percentage rate
|
254
|
|
|
Point
|
255
|
|
|
Loan origination fee
|
255
|
|
|
Community Reinvestment Act
|
256
|
|
|
Short sale
|
257
|
|
|
Construction loan
|
258
|
|
|
Loan commitment
|
258
|
|
|
Installment land sale contract
|
259
|
|
|
CHAPTER 9
|
CHAPTER 9 back
|
|
|
Title
|
266
|
|
|
Deeds
|
266
|
|
|
Grantor
|
266
|
|
|
Grantee
|
266
|
|
|
Habendum clause
|
269
|
|
|
Acknowledgement
|
270
|
|
|
Actual delivery
|
270
|
|
|
Constructive delivery
|
270
|
|
|
Title assurance
|
272
|
|
|
General warranty deed
|
273
|
|
|
Grant deed
|
274
|
|
|
Special warranty deed
|
275
|
|
|
Deed of bargain and sale
|
275
|
|
|
Quitclaim deed
|
275
|
|
|
Judicial deed
|
275
|
|
|
Trustee deed
|
275
|
|
|
Merger doctrine
|
276
|
|
|
Recording statute
|
277
|
|
|
Grantor-grantee index system
|
278
|
|
|
Tract index system
|
278
|
|
|
Race statute
|
279
|
|
|
Notice statute
|
279
|
|
|
Bona fide purchaser
|
279
|
|
|
Actual notice
|
279
|
|
|
Constructive notice
|
279
|
|
|
Inquiry notice
|
279
|
|
|
Race-notice statute
|
280
|
|
|
Marketable title
|
283
|
|
|
Chain of title
|
283
|
|
|
Title abstract
|
284
|
|
|
Title opinion
|
284
|
|
|
Title insurance policy
|
285
|
|
|
Title commitment
|
285
|
|
|
Cloud on title
|
287
|
|
|
Slander of title
|
287
|
|
|
American Land Title Association
|
287
|
|
|
Torrens title system
|
288
|
|
|
Closing
|
289
|
|
|
Closing statement
|
289
|
|
|
Escrow
|
291
|
|
|
Good faith estimate
|
293
|
|
|
HUD-1 Settlement Statement
|
297
|
|
|
Mortgage loan originator
|
297
|
|
|
Kickback
|
297
|
|
|
CHAPTER 10
|
CHAPTER 10 back
|
|
|
Mortgage-backed securities
|
306
|
|
|
Default
|
308
|
|
|
Workout
|
308
|
|
|
Deed-in-lieu of foreclosure
|
311
|
|
|
Short sale
|
311
|
|
|
Receivership
|
312
|
|
|
Receiver
|
312
|
|
|
Foreclosure
|
312
|
|
|
Judicial foreclosure
|
312
|
|
|
Mortgage Electronic Registration Systems, Inc. (MERS)
|
313
|
|
|
Equity of redemption
|
313
|
|
|
Statutory redemption period
|
314
|
|
|
Shock the conscience
|
314
|
|
|
Gross inadequacy
|
314
|
|
|
Certificate of sale
|
315
|
|
|
Sheriff's deed
|
315
|
|
|
Foreclosure by power of sale
|
316
|
|
|
Credit bid
|
316
|
|
|
Strict foreclosure
|
318
|
|
|
Absolute priority
|
319
|
|
|
Deficiency judgment
|
319
|
|
|
Purchase-money mortgage
|
319
|
|
|
Nonrecourse
|
320
|
|
|
Loan servicer
|
325
|
|
|
CHAPTER 17
|
CHAPTER 17 back
|
|
|
Prime contractor
|
529
|
|
|
Bid
|
529
|
|
|
Prime contract
|
529
|
|
|
Spearin doctrine
|
530
|
|
|
No damages for delay
|
530
|
|
|
Retention
|
533
|
|
|
Fixed-price contract
|
537
|
|
|
Cost-plus contract
|
537
|
|
|
Guaranteed-maximum-price contract
|
537
|
|
|
Change order
|
538
|
|
|
Critical path
|
538
|
|
|
Delay damages
|
538
|
|
|
Liquidated damages
|
538
|
|
|
Construction defect
|
539
|
|
|
Lien
|
542
|
|
|
Equitable lien
|
542
|
|
|
Statutory lien
|
542
|
|
|
Judicial lien
|
543
|
|
|
Mechanics' lien
|
544
|
|
|
Notice to owner
|
545
|
|
|
Notice of completion
|
546
|
|
|
Lis pendens
|
550
|
|
|
Cloud on title
|
550
|
|
|
Payment bond
|
553
|
|
|
Performance bond
|
554
|
|
|
Duties of Dual Agent |
cannot disclose that the seller is willing to take less than the asking price cannot disclose that the buyer is willing to pay more than asking cannot disclose the motivation for the parties to buy or sell |
|
|
Dual vs Designated Agency |
One person :Dual One firm: Designated could have two sales people in same firm rep each side |
|
|
3 ways buyers agent can be brought into the contract for commission |
Subagent: buyer's agent becomes subagent of seller's agent who is already contracted for commission Cooperating Brokers: the MLS will contract the commission structure for buyers and sellers agents for every transaction on the MLS (which is most) Non-agent broker: 3rd broker doesn't rep either party just facilitates the closing and the commission structure. doesn't have fiduciary duties to the parties |
|
|
Ch 6 don't test of slide 4 |
check slide 4 and remove any info |
|
|
List 4 ways agent can get authority |
express implied apparent ratification |
|
|
list 3 types of disclosure of agency to 3rd parties |
disclosed: principal liable partially disclosed: agent, then principal if revealed undisclosed: agent |
|
|
3 ways buyers agent gets paid |
no agreement for them so can: be a subagent of the sellers agent or cooperating brokers agreement which is part of listing on the MLS non-agent broker: doesn't rep any party, just facilitates close of escrow and commission payment |
|
|
List 3 types of listings |
Open Exclusive Agency Exclusive Right to Sell (required on MLS) |
|
|
termination of real estate offers |
Lapse of time (3 days) rejected counter offer revoked: can withdraw any time before acceptance: unless option contract created death or incompetency of buyer or seller destruction of subject matter prior to acceptance: house destroyed |
|
|
2nd element of Contract Law |
Acceptance manifestation of approval of the terms of the offer mirror-image rule: must be absolute, unequivocal and unconditional (or it is a counter) grumbling acceptances?? |
|
|
3rd element of contract law |
Consideration Something of value given up by each party to the contract Most common RE consideration: Seller: title of property Buyer: money Illusory promises? |
|
|
4th element of contract law |
Capacity all parties must have the capacity to enter into a contract no if: minor declared legally incompetent intoxicated persons |
|
|
5th element of contract law |
Legal Purpose contract cannot violate the law |
|
|
List 6 things that must be in a Purchase Contract |
ID of parties Description of property Terms and conditions of transactions earnest money? contingencies inspection reports home warranty policies Signature of parties Home Warranty Policies Risk of Loss what happens when property is damaged or destroyed through no fault of either party? majority view minority view? |
|
|
Interpretation of Contracts |
where there is an ambiguity in a contract
handwritten words prevail over preprinted and typed Typed prevail of preprinted words prevail over figures and numbers Parol Evidence Rule: prohibit the admission of any prior or contemporaneous negotiations and agreements that contradict, modify or vary terms Except: establish a defense to enforce the contract or explain on interpret existing ambiguous language |
