Fil 260 Final Exam

Front 1

Fair Housing Act of 1968 concerns what

Back 1

Race, color, religion, sex, handicap, or national origin in connection with selling, renting, leasing, financing, or advertising

Front 2

Violations of the Fair Housing Act of 1968 include

Back 2

Refusal to sell or rent
False statements concerning the availability of housing
Stating different terms or conditions
lenders: deny loans or specifying different terms

Front 3

Federal truth in lending law

Back 3

-Part of the consumer credit protection act of 1968 regulation z
Disclosure of all financial charges: interest rate, prepayment penalty, late payment penalty and when it begins, APR
-Does not regulate interest rates
-consumers should compare financing costs

Front 4

Equal Credit Opportunity Act

Back 4

-Enacted in 1974
-prohibits discrimination based on: race, religion, age, sex, marital status, national origin, and recipient of public assistance
-Make credit equally available
-Regulation B

Front 5

Community Reinvestment Act of 1979

Back 5

Require lenders to meet their communities needs first
Credit for low and moderate income neighborhoods

Front 6

Real Estate Settlement Procedures Act 1974

Back 6

-To assist home buyers and understanding settlement procedures and related costs
-Good faith estimate or exact amount
-Standard form settlement
-"settlement costs and you a HUD guide for home buyers"
- no kickbacks for referring settlement closing business
-Impound escrow : advanced payment of interest, property tax and insurance premium, reasonable amount
-Does not apply to commercial properties

Front 7

Pros of homeownership

Back 7

Investment: value appreciation
Tax advantages: interest payments, property tax, capital gain tax exemption

Front 8

Cons of homeownership

Back 8

-High transaction costs: time, points and loan application fee, legal fees, title insurance, recording fee, commission
-Need down payment
-Must pay property tax
-Maintenance

Front 9

Tax considerations expenses at buying

Back 9

-points: deductible
-closing costs: increase basis
- title insurance premium, attorneys fee, appraisal fee

Front 10

Tax considerations expenses at selling

Back 10

commission
Title insurance premium
Attorneys fees
Deductible for computing gains from sale

Front 11

Gain on sale

Back 11

Selling price - selling expenses = net sales price
Net sales price - adjusted basis = realized gain LTCG
Original cost + closing costs paid at buying + permanent property improvements = adjusted basis

Front 12

Capital gains on home sale

Back 12

Exemption:
500,000
single 200,000
20% tax rate
loss not deductible (capital gains)

qualification:
primary residence, minimum 2 years during the last five years prior to selling

Front 13

Broker as an agent

Back 13

Managing broker to seller
Representation
Responsible misrepresentation
No authority to sign sales contract

Front 14

Listing agreement

Back 14

Contract of employment
Listing price
Commission
Duration of agreement

Front 15

Duties of managing broker and broker

Back 15

Delivery of offers
Loyalty to principal (seller)
-No conflict of interest
-No referral fee
Delivery of information
Disclosure requirements of problems
-physical conditions
Pre-qualification of a buyer

Front 16

duties of a broker

Back 16

broker as an agent
Duties of a managing broker and broker
Commission
Franchisor brokerage company, franchise managing broker, independent managing broker

Front 17

Open listing

Back 17

Hire several brokers
Its own sells, no commission
Procurement cause (agent who sells)

Front 18

Exclusive agency listing

Back 18

Only 1 broker
Owner can sell with no commission

Front 19

Net listing

Back 19

Net amount needed
Commission on top of required amount
Can be illegal

Front 20

Multiple Listing Service

Back 20

Monthly fee
Share listing and other information online
Selling (50%)
exclusive right to sell
No responsibility for members
Can be withdrawn from MLS
Cannot fix commission rate

Front 21

Buyers closing costs

Back 21

Appraisal fee
Points and loan application fee
Title insurance premium
recording fee
Attorney's fee
impounds (escrow)
-property tax and insurance premium

Front 22

Seller's closing cost

Back 22

Loan balance
Commission
Attorney's fee
Transfer tax
Termite Inspection fee
Unpaid Property tax

Front 23

Title insurance

Back 23

Protect against losses from a bad title
One time premium
Title insurance company
- investigate records
- examine title
Covered risk: someone owning as interest, any defect in the title, undetectes lien, anything resulting in an unmarketable title
Exclusion: eminent domain, police power
Two types of policy: buyer's, lender's

Front 24

Estate for years

Back 24

State for a stated term
No prior notice

Front 25

Estate from year to year

Back 25

Estate from period to period
Month to month; 30 days
Year to year; 60 days
No definite termination date

Front 26

Estate at will

Back 26

Indefinite duration terminated by will of either party

Front 27

Types of leases

Back 27

Fixed rent: gross vs net
Index lease
Percentage lease
Agricultural lease: cash, crop share