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111 Cards in this Set

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Comparative Market Analysis

A Comparison of one property to similar recently sold properties is called

Geographical Farm is comprised of what

The residents of a neighborhood


A group of residents an agent "cultivates" for potential clients


Residents an agent contacts on a regular basis

To expose your listing to potential buyers and agents


To Demonstrate to your seller how you are working for them to obtain the best price for their home


Also may meet potential buyers as well as prospects who may need to sell prior to purchasing

The importance of open houses are

Peronnel managers


Postal workers


Union officials

Which groups should be included in your sphere of influence?

FOR SALE BY OWNER

FSBO is

Staging

Giving Seller directions on the best way to show a home by maximizing first impressions and preparing for showing and open houses is referred to as

Check the phone call log book/ traffic sheet

When evaluating the effectiveness of the advertising campaign, the broker/manager should

One

How many brokers may a salesperson work for at one time

Employment contract

The listing agreement can be best described as

Brokers Error and Omission Insurance is

Insurance to protect the agent and broker against buyer's and seller's claims

Within 3 working days from acceptance of offer

When should a deposit be placed in a broker's trust fund, given to the principal, or placed in a neutral escrow depository

Negotiating leaseholds


Obtaining mortgage loans


Purchasing business oppurtunities

Agents may also be employed occassionally to represent buyers in what

Exclusive Right to Sell Listing

A listing in which the owners would be held liable for a commission even if they themselves sold the property is called ?

Net Listing

A listing that is most likely to give rise to charges of misrepresentation or fraud is called?

Someone who is prepared to buy a property before it is listed with a broker

A Pocket buyer is

Safety Clause is usually found in what listing?

Exclusive right to sell listing

What happens to your listings as an agent if you were to leave your employer and go work with someone else?

Your listings would stay with your old employer

A commission is earned by the broker when all terms of the contract have been fulfilled and he or she has produced a buyer who is?

Ready to buy


Able to buy


Willing to buy

Curb appeal

How a house appears when compared to the rest of the neighborhood is called?

Handwritten instructions supersede preprinted instructions

Pertaining to Listing agreements

At time the signature is obtained

An agent is required to give a copy of the listing agreement to the principal when?

What forms are part of the sellers listing kit?

Estimated Seller's Proceeds


Residential Listing Agreement

Market Value

The amount of cash or cash equivalent that is most likely to be paid for a property on a given date in a fair and reasonable open market transaction is referred to as?

Cost Approach

What type of valuation approach Involves calculating the current cost of replacing or reproducing the improvement, less depreciation, and adding the value of the land

Comparative Market Analysis

CMA - the most effective tool in determing a comparative market analysis over the complexity and cost of a full appraisal

Before 1978

Lead based paint disclosure is necessary for homes built ?

Economic Obsolescence and Incurable

Loss of Value due to conditions outside of the property is?

Floortime

The time assigned to a salesperson to answer company telephones is referred to?

3 C's of Credit

Character


Capacity


Capital

The Specific provisions ordinarily qualify the meaning of the general provisions

When there are inconsistencies between general provisions and specific provisions

Use words and full dates, like February 2, 2008

When filling out the date at the top of the Purchase Agreement it is important to

Liquidated Damages

Stated in the contract, a sum of money that is paid for not fulfilling a clause or condition in the contract, and agreed in advance is called

CE+3 in Closing and occupancy section of the Purchase Contract means?

Buyer will take possession 3 days after close of escro

Residential Listing Agreement


Seller's proceeds

What two documents does the buyer not get a copy of and are for sellers eyes only?

FIRPTA

Foreign Investment in Real Property Act

When making an offer contingent on the sale of the buyer's home you should

Always use the Contingency for Sale or Purchase of Other Property COP form, and make this an amendment to the purchase agreement

Regarding the Sale's persons commission

Selling agent must abide by the commission details placed on the MLS by the listing agent

After a physical inspection has been made and the Request for Repair (buyers wish list for seller to make repairs) Is the seller required to do all listed repairs (contingencies)?

Seller may or may not agree to repairs that need to be met. The buyer has the option to remove certain contingencies or opt to cancel the escrow

Contingency removal

Signed by borrower to acknowledge whether contingencies have been removed

Home Warranty

Can be paid by anyone. Protects the buyer (1year) from failure of built -ins like stoves, dishwashers, etc. Often paid for by seller.

Agency Relationship Disclosure

Required for both parties prior to entering into any real estate contract

Wood Destroying Pest Inspection and Allocation of Cost Addendum WPA

States whether the seller or the buyer will be responsible for the costs of the required work

Verification of Property Condition

Signed at final walk through stating that all requested repairs have been met and the property is in the same condition as when the offer was made

APR (Annual percentage Rate) includes?

Interest Rate


Points


Loan Fees

An institution lender who charges the lowest interest rates and requires repayment in 25 years or less is?

Life Insurance Companies

Fixed Rate

Type of loan that is repayed in equal monthly payments for the life of the loan

Negative amortization

A drawback of the graduated payment mortgage is its

Who is involved in the secondary mortgage market

Fannie Mae (FNMA)


Ginnie Mae (GNMA)


Freddie Mac

One

Maximum number of orgination points which can be charged to buyers under either FHA or VA loans is

Land Contract

What contract is involved when a seller retains legal title to a property until the buyer has paid off the loan

3 years

Brokers are required to keep a Mortgage Loan Disclosure Statement on file for?

Escrow

The processing of paperwork and money involved in a sale or other transaction is called

What are the requirements for a valid escrow?

Signed instructions


Neutral Third party


Conditional delivery

Recording and issuing of title policy

Last function of an escrow companies sequence of events

Must be a corporation


Is governed by the Commissioner of Corporations

California requirements for an independent escrow company

Mutual consent of both parties

Only event in which escrow instructions can be changed once they have been drawn and signed by each party is?

CRPA (California Residential Purchase Agreement) and Joint escrow instructions

Where does escrow get their information?

30 days

The standard base period when calculating prorations is

ALTA

What title policy covers most of the exclusions of a standard policy

Buyer and Seller

Who selects escrow company?

Property tax fees

An annual recurring charge

Real Property Taxes

Determined by the value of the real property and are paid annually or semi annually

County officer who has the responsibility of determining the assessed valuation of land, improvements, and personal property used in business.

County Assesor

County officer who collects the real property taxes.

County Tax Collector

Only buildings and other improvements on income, trade, or business property can be depreciated, land does not depreciate

Depreciaton of business property

A yearly tax deduction for wear and tear on improved investment property that is deducted from the taxpayer's income on his or her income tax form.

Depreciation for tax purposes

Income, trade, or business real property, not on a residence

A business owner can deduct depreciation on?

Municipal bonds issued to fund streets, sewers, and other infrastructure needs before a housing development is built

Mello-Roos

Tax sheltering


Appreciation potential


Monthly Income

Benefits of Real Estate Investment

Cash flow


Negative or positive

Differences between income generated from a property and the expenses associated with the property are?

Life Insurance Companies

A Lender who most likely will finance the purchase of a large apartment complex

Net operating income

What type of income is most commonly used in determining the capitalization of net income?

Maintenance


Taxes


Utilities

MITUM - in reference to operating expenses include?

The higher the cap rate, the lower the price

A fact about Cap rate is?

25-40 %

Regarding characteristics of a rental market, the percentage of income a family can, or will, pay for shelter is?

Syndication

Two or more people who combine their financial resources to acquire real estate is a?

REIT (Real Estate Investment Trust)

Sells shares of equity


Where the trust itself pays no income taxes

Covenant not to compete

When a seller of a business agrees not to open a business similar to that of the business being sold.

90% or more of the court appraisal

In a probate sale, the first acceptable offer must be

Property Management

A person with a CPM designation would most likely be engaged professionally in the field of

Inventory of stock


Trade name


List of fixtures and equipment

What would be included in a bill of sale transferring title to a retail merchandising business

Goodwill

The expectation of continued public patronage is

10% of the first 10k plus 5% of the remaining portion of the original bid

In a probate sale, the second bid must be

Money market

Loan Brokers operate mainly in the

Real estate syndicate

Corporation


Partnership


Trust

Main objective of professional property management is

To minimize expenses and to maximize profits

Institutional manager

Person hired to manage banks, firms, insurance companies, government agencies, trust, etc

Graduated lease

Lease that is increased at specified intervals

Why should managers keep accurate records

Compliance with statutory requirements


Meeting the agent's fiduciary obligation to client


Substantiating records for filing income tax returns

A balanced manager will

Try to correct and relieve deterioration due to wear and tear, while trying to increase net income

Property owner/management will directly employ who to manage their on site apartment building?

On site manager

Blockbusting

The practice of panic selling of homes below market value, especially by exploiting the prejudices of property owners in neighborhoods in which the racial make up is changing, or appears to be on the verge of changing.

Violation of Fair Housing Laws

What is it when a property manager is instructed to rent only to a married couple?

If a lanlord wants to get a month to month tenant out of his rental they must

Give the tenant a 60-day notice

A mortgage assistant should

Preferably hold a real estate license

Reasons for wanting to be a Real Estate assistant

Having a mentor teach the ins and outs of the business


Building knowledge and self confidence

Duties of a real estate assistant are?

Assisting in holding open houses


Preparing listing packages for agent


Making appointments for agent

Ways an assistant may be paid are?

Hourly


Base pay


Usually a salary plus a percentage of the commission earned

Closed transaction files should be

Filed away in the office file cabinet

Licensed assistants can?

Communicate with buyers and sellers quoting price


Prospect for agent


Monitor a listing progress

An assistants employment contract should?

Spell out how the assistant will be paid


Spell out if the assistant is licensed or not


State who pays for the error and omissions insurance

District Attorney

Who prosecutes for the Real Estate Commissioner

Minimum number or hours to renew your four year license?

45 hours

Brokers license examination process consists of

200 multiplication choice test


Photo Id


Two 2 1/2 hour exam periods



Real Estate Commissioner has the right to

Revoke license


Restrict license


Suspend license

NAHREP

National Association of Hispanic Real Estate Professionals

Lifetime ceiling the Recovery Fund will pay out for one licensee?

250K

Every four years the National Association of Realtors requires members to take a course covering

Code of Ethics

To call yourself a Realtor you must

Belong to NAR (National Association of REALTORS)

CAR

California Association of REALTORS

DRE

Department of Real Estate