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62 Cards in this Set
- Front
- Back
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Real Estate Agent |
generic term refers to anyone who has a real estate license
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Real Estate Broker
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This is a key person, must have a broker's license to perform activities like sell a house
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Real Estate Salesperson
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allowed to perform activities that require a license and must work under a broker
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Associate Broker
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has a broker's license but chooses to work under another broker's license
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Best Description of a Realtor
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a member of the NAR National Association of Realtors (must be a member)
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'binder' or 'earnest money'
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small check presented when making an offer
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marketable title
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means that a reasonable and proper search of records has been conducted, able to conveyed
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Real Estate Consultant
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paid for a service provided in helping an owner sell the home (e.g. a market analysis, listing price etc) paid a 'fee'
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MLS
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Multiple Listing System
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Appraiser
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hired by lender to ESTIMATE the value of property as a basis for a loan
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Home Inspector
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Hired by the buyer before purchasing the home to ensure it's structurly sound
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Property Management
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Maintains the property income investment, duties include
- operating budget - collecting rents - setting rents - paying bills - preparing financial reports DO NOT NEED LICENSE IN MA |
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Independent Contractor (sales person)
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Pays own taxes & SS, cannot be forced to work certain hours or attend meetings, work their own way
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real estate employee
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works set hours and has taxes & ss taking from a weekly paycheck
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Sherman Antitrust Law
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a federal law that prohibits price fixing for commission, no local real estate board can create a standardized fee
(United States vs. Foley) |
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Sherman Antitrust Law - Market Allocation
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brokers cannot agree to who will handle the north side vs. south side, nor house $300k over vs. under - violation of sherman antitrust
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Sherman Antitrust - Group Boycotts
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brokers getting together to boycott a specific broker because they don't like him is a violation - only acceptable if the broker is acting unethically
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Sherman Antitrust - Tie In Arrangement (tying agreement)
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when trying to include another product or service while selling another, e.g. asking a seller to relist a sold property with you when you just sold it
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special agent (specific agent)
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hired to represent someone in the sale or purchase of a house
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general agent
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an agent who represent somesone in a range or group of activities, e.g. property manager
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universal agent
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an agent who acts on all matters and situations for someone, has 'power of attorney'
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Agency Relationships
The 'agent' in the agency relationship is with the 'BROKER' |
the sales person is the 'subagent'
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Agency Relationships - Principle
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is the person you represent as an agent (either buyer or seller)
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Agency Relationships - Client
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another name for principle (either buyer or seller)
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Agency Relationships - Customer
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the other person in the transaction 'buyer or seller' - sometimes referred to as the 'third party'
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Single Agency Relationship
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one party in the transaction - your relationship is always with your 'principle(client)
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Buyer Agency
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represents the buyer who is in this case the 'principle(client) and the seller is the 'customer'
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Dual Agency
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you represent both the seller and the buyer from the same brokerage firm - BOTH must be informed, this is called obtaining informed consent
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Transactional Broker
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represents neither side but acts as a middle man that may handle some or all of the paperwork for a fee
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Massachusetts Mandatory Licensee-Customer Relationship Disclosure (CRM3.0)
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Form MUST be signed or initaled in MA:
mandates each broker to provide this form: - at first personal meeting - when dealing with prospective buyer or seller - when discussing a specific property will also outline the company's business model, lets the consumer know if everyone in the firm represents the principle. law is meant to be clear for buyers and sellers who is representing them - and it needs to be in writing |
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Agency Relationships - 3 ways
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- written or expressed agreement with terms and condidtions
- oral or expressed agreement with terms and conditions stated verbally - implications, implied thru actions on both parties and does not depend on written or oral agreements |
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Fiduciary Duties - will be on test
OLDCAR (think jeff) |
OLDCAR (acronym)
Obedience Loyalty Disclosure Confidentiality Accountability Reasonable Care |
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Exclusive Right to Sell Agreement
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Broker is given exclusive right to marketing the property. Broker is paid regardless of who sells the property, including the owner which always has the right but in this agreement he still must pay the broker
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Exclusive Agency Listing
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broker is hired to act as esclusive agent representing owner in marketing but the owner call sell the property without paying the broker
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Open Listing (nonexclusive, general listing)
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seller can hire as many brokers as they want, only the selling broker is paid. if the owner sells the home, nobody gets paid
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Net Listing (Illegal in MA)
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when a broker takes a listing and agrees to take whatever he can over what the asking price is, e.g. $200k home sells for $225k,
broker takes $25k off the top, illegal |
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Exclusive Buyer Agency Agreement
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broker exclusive to the buyer, even if the buyer buys direct from the seller, broker still gets paid
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Exclusive Agency Buyer Agency Agreement
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broker only gets paid if he/she finds a property and it gets purchased
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Open Buyer Agency Agreement
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Buyer enters into agreement with multiple brokers and only the broker that found the property gets paid. if buyer finds property on their own nobody gets paid
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Commingling
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funds must be kept seperate from the brokers business account and personal account. combining of client funds is illegal and called commingling
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Agency Termination
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- completion of agreement
- experiation of agreement - mutual agreement to terminate - death of insanity of agent or client principle - destruction of property - incapacity - break by one party or the other |
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MCPA - Massachusetts Consumer Protection Act 93A
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outlaws unfair and deceptive acts or practices in the conduct of any trade or commerce (advert, sale, rent, etc)
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Puffing
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is permitted, it's an exaggerated or superlative comment or opinion note made as a representation of fact
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Home Inspection Law
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agents are prohibited by law to make direct referrals
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Megan's Law - Sex Offender Law
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If buyer inquires, agent needs to refer the buy to the sex offender registry board website
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Breach of Information
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must file written notice with the attorney general and the director of the Office of Consumer Affairs
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Affirmative Disclosure / Stigmatized Property
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Agent must disclose all facts related to the sale, including stigmatized (murder, haunted, etc)
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Designated Agent
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broker appoints an agent for the seller and another agent within the broker firm to the buyer
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Cobroker Cooperation
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when one co-broker lists a property that another broker found meets the needs of their buyer
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CMA - Competitive Market Analysis
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a broker's OPINION of value, not an appraisal and must not be presented as one. It is the seller's responsibility to set the price as it's the buyer's responsibility to set the offer price
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Seller's Statement of Propety Condition
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seller must disclose anything wrong with the property and sign it, if they don't, there is probably something wrong
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Legal Life Estates - Dower Rights (formerly Dower (wife)and Curtesy (husband)
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Only called Dower, not usually an issue in MA as most live as tenants by entirety or joint tenants which leave surviving spouse the property. However if the spouse dies insolvent may dower rights arise. Surviving spouse rights come before claims of creditors
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Homestead
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Allows the homeowners and their minor children to a life estate in land and building on their principle residence protection against attachments, levy or sale to satisfy debts to the extent of $500k per residence, per family
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Encumbrances - Easement by Deed
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grantor conveys a limited easement right to propety or conveys all rights in a specific property but retains or reserves easement. May be granted for a specific limited time. (e.g. launching boat from neighbors land)
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Encumbrances - Easement by Prescription
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equivalent to adverse possion (5) factors
- used for 20 years - continuous & uninterrupted - occupied without owner's permission - owner knew or should have known but took no action to prevent it - a benefited parcel of land, usually abutting or adjacent must exist (e.g. a driveway over another's property) |
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Emcumbrace - Easment by Necessity
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created when a seller conveys a parcel of land and the buyer has no way to reach it without crossing the seller's land or that of a neighbor. Courts consider
- lay of the land (condition/geography) - buyers & seller's knowledge of the limited accessss - references (or not) to easement in the conveyance deed (courts handle each one differently) |
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License
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the smallest right a person can have to real estate
- parking space - hotel room - movie theater seat |
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Riparian Rights
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refers to the rights of an owner along river or watercourse. Riparian refers to "river or other flowing body of water that flows)
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Litoral Rights
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belong to owners of the land that borders commercially navigable lakes, seas or oceans.
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Stream
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if a boat can flow down it, the commonwealth owns the stream and the land under it. The land owner owns up to it's bank. If it can't be natigated on, the owners on each side own the water and land up to the middle of the river. If it's on one parcel of land, the owner owns the river and the and under it
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Ponds & Lakes
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are controlled by the state. Adjacent property owners own land to shore but do not have unlimited rights to fill wetland or lakeshore. Use of the water must be approved under environmental laws
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Tidal Water
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Owners of ocean front property (tidal) own the land the the mean low line or 100 rods below the mean high water, whichever is less. Land between low and high is reseved for the public
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