Real Estate Arizona- Key Terms #1

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Recovery fund

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State regulated fund used to pay purchasers of real estate who have suffered a a loss due to actions or inaction of licensee is

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Civil rights act of 1866

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Act that prohibits discrimination against race, religion, and color in certain real estae trasactions

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Federal Fair Housing Act

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Act that prohibits discrimination against, race, color, religion, national origin, gender, familial status and handicap in certain real estate transactions

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Sherman Antitrust Act

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Act of 1890 which ensures fairness in the market place

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Real Estate Settlement procedures Act (RESPA)

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Act which requires full disclosure of all cost involved in obtaining financing and closing on a property

Ensures buyer and seller are knowledgeable about settlement costs

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Blind Ads

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Advertisements placed by a sales agent that do not not include the employing broker's name

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Ethical

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implies a higher standard of concern for what is right or fair for all parties involved

ie-related to thinking

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Moral

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tends to be more concerned with the accepted codes for good behavior or sanctions of a community

ie-related to feeling

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Responclibities- COLDAC

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Care, obedience, loyal, disclosure, accounting, confidentiality

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Code of Ethics

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A set of principles of conduct to achieve a higher standard of conduct than that required by law.

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Standard of Conduct

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Specifies behavior that may actually violate licensing law

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Public and Fiduciary Responsibility

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protect and promote the best interest of the client is the hallmark of ethical real estate behavior

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Civil rights act of 1866

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prohibits discrimination against race and color

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Sherman Anti-trust act- Enforced by

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Is enforced by the Federal Trade Commision

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Subdivision Ads

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Never say "recommended by RE Commissioner" or No Risk

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Orientation

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how a building is placed on a lot in regard to its surroundings

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Foundation

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lowest part of a structure usually beneath ground

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Exterior wall

Siding and sheathing

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Siding- external facing for an exterior wall

ie-stucco

Sheathing- internal facing for an exterior wall.

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Building codes

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enforced by the state to establish building and construction standards for environmental and public health.

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Impact Studies/fees

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charged to new builders when obtaining a building permit for the added cost of services such as hooking up water and sewer lines.

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Uniform Residential Landlord and tenet Act of 1973

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Created for regulating the relationship between landlord and tenant in residential leases

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Lease

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A contract between a lessor and lessee that transfers the right to exclusive possession and use of the property for a specified period of time in exchange for rent

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Lessor

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A landlord

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Lessee

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A tenant

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Subletting

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Transfering part of a lessee's interest to another for a portion of the term of the lease

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Actual Eviction

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The legal process that results in the tenant being physically removed from the leased premises

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Constructive Eviction

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Actions of a landlord that disturb or impairs a tenant's enjoyment of the leased premises and causes him to leave

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Assignment

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When the right and interest in a property is transferred to another for the entire term

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Distraint

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The landlords legal right to seize a tenant's belongings for damages or rents in arrears under court order.

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aryPublic Accommodation

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A primarily owned entity that provides services or accommodations to the public

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Reversionary rights

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The right to take back possession of a property if lease ends

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Property mangager

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Must hold real estae licence if managing 2 or more properties for someone else

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Certified Property Manager (CPM)

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Designation given by Institute of RE Management

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Finders fee

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may be paid to tenants but not to leasing agent/company

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Contract Rent

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the rental amount of the lease

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Economic Rent

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the rental amount the current market is demanding.

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Gross Lease

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Tenant pays fixed rent

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Net lease

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Tenant pays rent and most of all property charges

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Ground Lease

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also land lease , this is where you are only leasing the land alone

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Percentage Lease

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Lessee pays % of income

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First Right of Refusal

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Gives the tenant right to purchase property

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Sale and Leaseback

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owner sells property on market and then leases it back

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Graduated lease

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Rent payments start at a fixed rate but increase at set intervals during lease term

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Index Lease (escalation)

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Rent adjusts according to changes in a price index

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Consideration

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rent

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Divorce

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If a couple is going through the process of divorce, the spouse does not need to sign the lease (enforceable)

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Month-to-month

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30-day notice to cancel agreement

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Breach

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Violation of any of the terms of the agreement without legal excuse

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Skip/Abandonment

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tenant moves without notice/payment of rent