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27 Cards in this Set

  • Front
  • Back
Fair Housing Act of 1968 concerns what
Race, color, religion, sex, handicap, or national origin in connection with selling, renting, leasing, financing, or advertising
Violations of the Fair Housing Act of 1968 include
Refusal to sell or rent
False statements concerning the availability of housing
Stating different terms or conditions
lenders: deny loans or specifying different terms
Federal truth in lending law
-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
Equal Credit Opportunity Act
-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
Community Reinvestment Act of 1979
Require lenders to meet their communities needs first
Credit for low and moderate income neighborhoods
Real Estate Settlement Procedures Act 1974
-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
Pros of homeownership
Investment: value appreciation
Tax advantages: interest payments, property tax, capital gain tax exemption
Cons of homeownership
-High transaction costs: time, points and loan application fee, legal fees, title insurance, recording fee, commission
-Need down payment
-Must pay property tax
-Maintenance
Tax considerations expenses at buying
-points: deductible
-closing costs: increase basis
- title insurance premium, attorneys fee, appraisal fee
Tax considerations expenses at selling
commission
Title insurance premium
Attorneys fees
Deductible for computing gains from sale
Gain on sale
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
Capital gains on home sale
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
Broker as an agent
Managing broker to seller
Representation
Responsible misrepresentation
No authority to sign sales contract
Listing agreement
Contract of employment
Listing price
Commission
Duration of agreement
Duties of managing broker and broker
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
duties of a broker
broker as an agent
Duties of a managing broker and broker
Commission
Franchisor brokerage company, franchise managing broker, independent managing broker
Open listing
Hire several brokers
Its own sells, no commission
Procurement cause (agent who sells)
Exclusive agency listing
Only 1 broker
Owner can sell with no commission
Net listing
Net amount needed
Commission on top of required amount
Can be illegal
Multiple Listing Service
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
Buyers closing costs
Appraisal fee
Points and loan application fee
Title insurance premium
recording fee
Attorney's fee
impounds (escrow)
-property tax and insurance premium
Seller's closing cost
Loan balance
Commission
Attorney's fee
Transfer tax
Termite Inspection fee
Unpaid Property tax
Title insurance
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
Estate for years
State for a stated term
No prior notice
Estate from year to year
Estate from period to period
Month to month; 30 days
Year to year; 60 days
No definite termination date
Estate at will
Indefinite duration terminated by will of either party
Types of leases
Fixed rent: gross vs net
Index lease
Percentage lease
Agricultural lease: cash, crop share