Reading...
Play button
Play button
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;
122 Cards in this Set
- Front
- Back
|
switch properties
|
similar to the advertised properties in price and location . no more than 15% up or down
|
|
|
pre approval
|
A pending loan where all required documents have been checked by the lender and no issues have been found that might stop the loan from funding
|
|
|
front-end qualifying ratio
|
around 28-30% . of gross income ( total monthly payment, loan payment, taxes , insurance or HOA dues, Divided by gross monthly income . percentage may not exceed 28-30%
|
|
|
back -end qualifying ratio
|
36-40 %. add the buyers long term debt to their total monthly payments and divide by their gross monthly income.
|
|
|
True or false, a buyer should attempt to sell his/her home before any attempt to purchase another home.
|
True . deals that are contingent on the sale of an existing home are usually not received well by most sellers.
|
|
|
True or false, you should always point out recent sales in a neighborhood .
|
True, this gives our buyers a ball park estimate of the current values of a given neighborhood.
|
|
|
consumer protection
|
using the knowledge gained through the licensing process to protect the interest of the client, the licensee will also protect themselves , their firm, and the reputation of the industry as a whole
|
|
|
what is the most important services offered by licensee
|
providing accurate information to clients and consumers along with proper interpretation of the data
|
|
|
MLS
|
Multiple listing service provides current information on competitive pricing in the marketplace . Allows you to more accurately assess a given property's comparable market value and then to convey that information to your client or customer so they can make better decisions about listing price or what to offer for a given property
|
|
|
The Broker acts of behalf of who and the licensee acts of behalf of who
|
the broker acts on behalf of of the seller or buyer and the licensee acts on behalf of the broker
|
|
|
T or F it is the employing broker who , by law is the only one allowed to receive compensation for effecting the sale or transfer of real property
|
True ( BPC 10131)
|
|
|
T or F the licensee is never the direct representative of the principal ; the licensee always represents the client
|
True; the broker is the "agent" of the seller or the buyer . The licensee is the "agent" of the broker
|
|
|
the process of making small but precise course corrections
|
successive approximation
|
|
|
for tax purposes the IRS considers you what?
|
may consider you to be an independent contractor , but the state of California sees you as an employee of your employing broker
|
|
|
T or F there is overwhelming evidence that the failure of the vast majority of new licensees can be traced to a failure to create and execute a business plan.
|
True . Have a plan, implement your plan and stick to your plan, make course corrections as needed .
|
|
|
what is the course requirement to obtain your real estate license and your brokers license ?
|
70% or higher on your exam, three courses or approximately 135 classroom hours , approximately 360 hours are required to take the brokers exam
|
|
|
the regulations of the real estate commissioner , article 4 section 2725 states in part what
|
A broker shall exercise reasonable supervision over the activities of his or her salesperson including but not limited to , policies , rules , procedures and a system to review , oversee, inspect and manage.
|
|
|
some tax information you SHOULD know being a licensed real estate agent are
|
real property taxes and special benefits for homeowners.
income tax benefits to home owners and how they differ from investment property income tax benefits available to income and investment property owners and how they vary from those available to homeowners , including tax deferred exchanges of " like " properties |
|
|
E&O stands for
|
Errors and omissions insurance
|
|
|
real estate professionals have two important things to offer what are they
|
Time and knowledge
|
|
|
when A real estate agent represents Either the buyer or the seller exclusively this is known as what
|
single agency
|
|
|
when a real estate agent represents both the buyer and the seller this is known as
|
dual agency
|
|
|
name the 12 different types of real estate sales
|
residential income property
manufactured home parks commercial property industrial property land and farm brokerage lots sales site sales Auction sales property management licensees specializing in leasing loan brokerage appraisal |
|
|
Graduated commission split
|
the percentage of the total commission received by the broker is paid to you in ever larger percentages as your annual earnings increase
|
|
|
100% commission plan
|
licensees working under this plan likely be at a lower commission split , usually in the range of 50 to 60 percent until they reach a threshold earnings level. then they receive 100% commission ( sales person actually pays the broker to belong to the office)
|
|
|
name some characteristics a new licensee should look for in a new brokerage
|
successful licensees
longevity of salespeople training materials mentors compatibility |
|
|
T or F it is mandatory that an employing broker have a written contract with their licensee ?
|
True. Most licensees are hired as independent contractors
|
|
|
T or F Associate brokers are considered employees of the employing broker by the state of California
|
True. they are not considered independent contractors section 10177h of the business and professions code requires that brokers supervise their salespeople
|
|
|
almost all real estate professionals work under what agreement
|
work under and independent contractor agreement with their employing broker
|
|
|
what is the definition of an independent contractor ?
|
an Independent contractor is one who in rendering services , exercises an independent employment or occupation and is responsible to the employer only as to the results of her work
|
|
|
The IRS provides guidelines that allow licensees to qualify as independent contractors for tax purposes if what criteria are met
|
salesperson is a licensed real estate agent or broker
financial reimbursement to the salesperson is based solely on sales, not hours worked. there is a written contract stating that the salesperson shall be treated like an independent contractor for tax purposes |
|
|
if the employed real estate agent meets the IRS guide lines to qualify for an independent contractor what is it the responsibility of the agent to pay in terms of taxes
|
the sales person must pay there own social security tax, employer and employee , and all required income tax
|
|
|
E&O stands for
|
Errors and Omissions insurance, the required malpractice insurance . does not cover fraud and malfeasance
|
|
|
while unemployment insurance is not required , what insurance is ?
|
workers compensation insurance , required that all employing brokers must have in place.
|
|
|
as a real estate professional how often are you required to take continuing education classes and what do they consist of?
|
every 4 years to renew your license , 45 clock hours, 15 of which from DRE approved courses as well as 18 hours in consumer protection courses , and the remaining 15 hours in courses relating to consumer service or consumer protection.
|
|
|
GRI
|
graduate realtors institute designation
|
|
|
CRS
|
certified residential specialist
|
|
|
CRB
|
certified residential brokerage manager
|
|
|
CCIM
|
certified commercial investment manager
|
|
|
epro
|
agent who had completed Technology certification program
|
|
|
SRES
|
senior real estate specialist
|
|
|
the word ethics can be described best as what?
|
morals and character , ethics has to do with standards of moral character.
|
|
|
Describe what a REALIST is and how it came to be
|
coined during the mid 1940's in response to discrimination in the African American community . A group of African American Brokers founded the NATIONAL ASSOCIATION OF REAL ESTATE BROKERS and the term REALIST.
|
|
|
describe the Dred Scott decision
|
1857 essentially requiring the federal government to keep out of any slavery issues as they were strictly matters for the states, negated the missouri compromise as unconstitutional by slating that congress had exceeded its authority by prohibiting slavery in the territories - major factor in leading to the civil war.
|
|
|
13 amendment
|
abolished slavery, however did not address rights of former slaves.
|
|
|
civil rights act of 1866
|
was to provide equal treatment of former slaves, in part all citizens of the united states " shall have the same right in every state and territory ...to inherit, purchase, lease , sell, hold to convey real and personal property "
|
|
|
14th amendment
|
to protect the rights granted in the civil rights act of 1866 by providing permanent constitutional protection , preventing a further congress from repealing the right and taking away the rights already afforded .
|
|
|
civil rights act of 1870
|
purpose was to prevent later courts from nullifying the remedies granted in the 1866 act " and be further enacted that the act to protect all persons in the united states in their civil rights and furnish the means of their vindication"
|
|
|
executive order 11063 states what
|
November 12th 1962, JFK issues order prohibiting discrimination in housing whenever federal funds were involved , FHA , VA as well as programs subsidized by the federal government.
|
|
|
civil rights act of 1964
|
made jkf's executive order a matter of law and considered one of the first modern civil rights acts. prohibited discrimination in all federally assisted programs.
|
|
|
civil rights act 1968
|
prohibited discrimination in housing based on race, religion , color, and national origin . sexual discrimination was later added in 1974 by congress.
|
|
|
what kinds of protections does the civil rights act of 1968 protect against ?
|
discrimination by brokers toward clients and customers
discrimination to access the MLS steering- directing of people of a protected class away or towards particular areas redlining - refusal by a lender to loan within certain areas -refusal to show, rent, or sell through the false representation that a property is not available -discriminatory sales or loan terms -blockbusting , induced panic selling in an area or neighborhood by representing that property values will decline or the crime rate will increase due to the entry of minority group members into the area -retaliatory acts against persons making fair housing complaints and intimidation to discourage complaints - discriminatory advertising , which is prohibited in all cases, even if it relates to activities that are exempt from this act. |
|
|
what would constitute as discriminatory advertising>?
|
advertising that describes the buyer , especially a buyer from a protected class is almost always discriminatory.
|
|
|
what are some exemptions to the civil rights act of 1968?
|
religious groups, in providing non profit housing , so long as the religion is open to everyone
-private clubs owners of one to four residential units who occupy one unit ( no real estate license can be involved) -owners of single family homes , cant own three or more |
|
|
jones VS mayer
|
1968 supreme court held that the civil rights act of 1968 applied to private property as well as real property ( based on the 13 amendment )
|
|
|
1988 fair housing amendments act
|
further extends protections against housing discrimination to families and handicapped persons
|
|
|
americans with disabilities act
|
(ADA) prohibits discrimination that would deny the equal enjoyment of goods, facilities , services , and accommodations in any existing place of public accommodation , based on a persons physical or mental disabilities. also protected is employment discrimination > 15 employees
|
|
|
Unruh act
|
prohibits discrimination in all businesses establishments , applies to all real estate licensees as well as any persons managing apartment building or other business establishment.
|
|
|
rumford fair housing act
|
Fair employment and housing act ( rumford act) prohibits discrimination in supplying housing accommodations on the basis sex, color , race religion marital status, ancestry or national origin .
|
|
|
what does the california business and professions code cover?
|
provides detailed anti discrimination information, including a definition of the term discrimination . behavior guidelines
|
|
|
what does section 125.6 provide?
|
every person holding a license under the provisions of the code, is subject to disciplinary action if she refuses to perform the licensed activity or makes any discrimination or restriction in the performance of the licensed activity because of the applicants race, religion, ect
|
|
|
what does section 10177(I) provide?
|
provides further grounds for disciplinary action if licensee induced panic selling
|
|
|
what does section 2708 provide of the business and professions code?
|
prohibits discriminatory conduct by licensees based on religion, color, ect.
|
|
|
what does section 278I of the business professions code cover?
|
panic selling
|
|
|
what does section 2725f of the business professions code provide?
|
duty to supervise, ( broker)
|
|
|
what does the Holden act ( housing financial discrimination act of 1977) cover
|
prohibits financial institutions from engaging in discriminatory loan activities.
|
|
|
sexual harassment can most nearly be defined as
|
by how your actions are views by others.
|
|
|
what does RESPA stand for?
|
real estate settlement procedures act of 1974
|
|
|
who is covered by RESPA
|
brokers, mortgage brokers and bankers, title and escrow companies , home warranty companies, hazard insurance, appraisers, home inspection and pest control inspectors
|
|
|
RESPA does not apply to
|
moving companies
gardeners painters decorating companies home improvement companies |
|
|
what does RESPA prohibit?
|
receiving a thing of value, broker or agent, for referring business to a settlement service provider SSP. can't split unless its for services actually preformed.
|
|
|
T or F RESPA prohibits a seller or listing licensee from requiring that a buyer use and pay for a certain title insurance company or policy .
|
True
|
|
|
name a few exceptions to RESPA
|
promotional and educational activities.
payments in return for goods provided or services performed. |
|
|
what does full disclosure really mean?
|
act of disclosing to a buyer fully and accurately all known material facts relevant to a decision maker in a transaction .
|
|
|
what is a material fact?
|
any fact relevant to a person making a decision . any fact that could or would affect decision of a party to a transaction to complete the lease, purchase or sale.
|
|
|
what does full disclosure satisfy ?
|
1) it protects the principal including buyers and sellers and tenants and landlords.
2) it establishes trust and confidence between the licensee and the principal 3) it satisfies both the licensees and the principals duties under the law. |
|
|
what is a mandate?
|
a mandate is on ader given by a court or other authoritative body that requires performance of specific duties
|
|
|
how are disclosures mandated?
|
mandated by law and the DRE are determined by need, judicial precedent and requirements of the contract.
they are updated twice a year |
|
|
what is the difference between a client and a customer?
|
A client employs a representative to perform some servie for compensation , this person is called a principal , a customer on the other hand is someone who is interested in buying the property that you have no contractual agreement with.
|
|
|
T or F an Oral agreement or action of the parties can create an agency and hence a fiduciary relationship.
|
True
|
|
|
an attorney will first look at what when on behalf of a disgruntled principal?
|
agency disclosure
|
|
|
ostensible agency
|
agency created if on the surface the agency appears to exist , it may be considered an ostensible agency
|
|
|
T or F you should provide both the buyer and the seller the required agency disclosure form
|
true, as soon as possible, and most definitely before an offer is produced to the seller.
|
|
|
describe the term agency
|
relationship created when one person ( the principal) directs another to act on her behalf, usually in business dealings with another party
|
|
|
what are the three parts to the agency disclosure process ?
|
disclose, elect, and confirm.
|
|
|
when should the licensee disclose agency?
|
requires written disclosure prior to entering into the listing agreement or in the case of the selling licensee " as soon as practical prior to presenting the seller with an offer to purchase.
|
|
|
for listing licensee not representing a buyer , when would you present the AD
|
must provide to seller " as soon as practicable prior to entering into the listing agreement"
|
|
|
if your representing both buyer and seller when would you disclose agency?
|
disclosure must be given with and acknowledged of receipt received from each.
|
|
|
DA form
|
disclosure and consent for representation of more than one buyer or seller
|
|
|
AD form
|
disclosure regarding real estate agency relationships
|
|
|
when should you present the AD or DA forms to the buyer?
|
provide the disclosure form to the buyer as soon as practicable prior to execution of the buyers's offer to purchase
|
|
|
T or F the law requires selling licensees to disclose agency not just to the buyer but to the seller ( even though the listing agent may have already done so) before presenting the offer
|
True
|
|
|
T or F if done properly two AD forms would have been provided, one to the seller before signing the listing and one to the buyer before writing an offer, and that same form is then presented to the seller for the sellers signature before presenting the offer.
|
True
|
|
|
what is considered a stigmatized property ?
|
property may be considered to be uninhabitable or undesirable for other than physical or environmental reasons.
|
|
|
under law the purchase of residential real property of four or less units is entitled to what form from the seller?
|
Real estate Transfer and disclosure Statement
|
|
|
what are some things that the TDS must identify?
|
1) items in the home and whether these items are operational
2) significant defects of the home , if any 3) all information regarding improvements and alterations as well as concerns with neighbors and the neighborhood. |
|
|
T or F if the TDS is furnished before the execution of the purchase agreement the buyer has no right to cancel the offer on the basis of the TDS.
|
True
|
|
|
easton vs strassburgur
|
case may 31st 1984 failure of a real estate licensee to conduct a reasonable , visual inspection and investigation of a property and report any visual defects to the buyer. visual slippage of land , law found real estate agent negligent in their duty to investigate .
|
|
|
what is a "red Flag"
|
any condition , that may signal to a reasonably observant person that a problem may exist.
|
|
|
what are the 4 factors that may signal further investigation ?
|
insect infestation, water damage, material deterioration and structural failure.
|
|
|
what insect causes the majority of damage to real property ?
|
carpenter ants and subterranean termites.
|
|
|
give an example of a sign of carpenter ant infestation and a sing of wood boring beetles infestation
|
carpenter ants- leave wood shavings near wood members
wood boring beetles- leave a series of random small holes about 1/8 th to 1/4 inch in diameter. |
|
|
name some signs of water damage
|
mold, mildew, loose or warped wood flooring , water stains on ceilings . rotten wood, roof defects
|
|
|
give some examples of material deterioration
|
decaying or warping of wood members , erosion or cracking of concrete or masonry , cracking or rotting or warping of garage door trim
|
|
|
give some examples of structural failure
|
bulging or heaving in floors and load bearing walls, excessive deflection of joist or girders evidence by an uneven or sloping floor. cracks in structural columns beams and walls.
|
|
|
what are some of the legal responsibilities an agent has in disclosure ?
|
conduct a visual inspection of reasonably accessible areas, must conduct an oral interview and investigation with the sellers and disclose in her part of the TDS anything that might be a material fact or issue to a buyer.
|
|
|
what form was developed to assist the licensee in conducting a diligent visual inspection the property
|
Agent visual inspection disclosure form ( AVID)
|
|
|
what form would you use to disclose seller carryback financing
|
(SFA) seller financing addendum and disclosure form
|
|
|
what are some required information needed for seller financing ?
|
the terms of the note, all other liens on the property , the name of the person liable for the payoff, the buyers credit worthiness, ( page 121 practice)
|
|
|
what form must be used for seller carry? or seller financing
|
seller financing addendum and disclosure
|
|
|
what are some things the Environmental Hazards disclosure statement covers?
|
asbestos , formaldehyde, lead, and radon gas
|
|
|
T or F sellers are required to disclose any know environmental hazard
|
True ( duh)
|
|
|
who should provide THE combined hazards book
|
the seller , and should be acknowledged by the buyer
|
|
|
what disclosure must be given if there is believed to be hazardous substances on or beneath the property ?
|
Hazardous waist disclosure.
|
|
|
what year does a home have to be built before in order to receive a lead based paint addendum >
|
1978- "protect your family from lead in your home " booklet
|
|
|
military ordnance must be given if property is located within how many miles of a current or former military ordnance location?
|
1 mile, the buyer has a three to five day right to rescission right after receiving the TDS
|
|
|
T or F the Earthquake safety disclosure statement must be completed and signed by every buyer and seller of a California home.
|
TRUE
|
|
|
T or F licensees must be able to discover when a property was built as well as to determine the assessor's parcel number (APN)
|
True
|
|
|
what is a common interest subdivision
|
is a subdivision in which owners own or lease a separate lot or unit together with an undivided interest in the common areas of the project .
|
|
|
CC&R's
|
covenants, conditions, and restrictions
|
|
|
in the initial sale of a common interest subdivision , the purchaser must be given what brochure
|
common interest development general information as well as a copy of the public report.
|
|
|
truth in lending act
|
when a loan , such as a home equity loan , a second loan , or a refinance of the existing first loan is placed on a property , the borrower has a rescission right until midnight of the third business day following the completion of the loan. this rescission period does not apply to a loan placed on a property for the initial purchase of that property .
|
