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;
23 Cards in this Set
- Front
- Back
|
Agent |
? |
|
|
Agency |
? |
|
|
Principal |
? |
|
|
Buyer's agent |
? |
|
|
Seller's agent |
? |
|
|
Disclosed dual agent |
must notify principal, and must be in writing |
|
|
Who can receive commission on real estate transaction? |
only a licensed borker |
|
|
vicarious lliability |
realtor owes honesty and re something care to the principal |
|
|
Broker can not assign particular salesperson |
clients can pick real estate salesperson |
|
|
4 elements of fraud |
? |
|
|
Principal must provide honest accurate info |
? |
|
|
undisclosed principal |
real estate salesperson can represent unidentified principal in (to protect principal who can be taken advantage of of i.e. celebs, rich, discrimmination) |
|
|
Listing Agreements
4 types of listing agreements |
Net listing (illegal in NJ) listing voided from the start, unenforceable. sales person selling the house for more than what the client wants for the house, and salesperson taking the remainder.
Open listing used in commercial or vacant land real estate. the only person who gets paid a commission is the broker who produces the buyer. Seller can listing agreements with any real estate brokerages. If the seller brings in the buyer then no one gets paid a commission. (Always disclosed agency or transaction broker). Specific start and end date
Exclusive agency listing most common listing (works best for everyone) exclusive listing with that agency. who ever brings in the buyer that person gets a piece of the commission. seller could sell the property to someone they find with out paying the agent.
Exclusive right to sell (best deal for the realtor/broker) watch language in this listing in order to distinguish from exclusive agency listing. In small print you may find that "the broker has the exclusive right to sell", which is the best deal for the broker. Broker will get commission regardless of who sells the property. If the property is sold to a spouse the broker still gets the commission. the only time this becomes an issue for the seller,if they have to find their own buyer.
Realtor must cooperate with other realtors unless unless seller signs Waiver of broker cooperation |
|
|
Component of valid listing |
identified parties legal identity of subject matter negotiated comaparison rate |
|
|
unilateral contract |
one sided contract binding for only one of the parties |
|
|
Commission Rate |
broker ultimately decides commission rate
commission splits must be indentified in the listing agreement. |
|
|
executory contract |
exists when something in contract remains to be done by one or both parties |
|
|
executed contract |
both parties fulfilled all promises in contract and thus...executed contract |
|
|
how to end a listing agreement |
sold property
destruction of property
termination date
mutually agree to cancel contract
death of principal or broker (UNLESS IN ATTORNEY REVIEW)
seller or broker goes bankrupt |
|
|
statue of limitations 6 years |
all documents must be maintained for 6 years |
|
|
No incentives can be given for sale of property |
.... |
|
|
Other peoples money... |
brokerage firm must have two business checking accounts
1. real estate agency business account (money brokerage earns) 2. brokers trust/escrow account (clients money/others money)
Rules...
money must be deposited within 5 days from the date on the check to escrow account
after check has cleared if money is earned money must be transferred within 5 days to business checking account
comingled - putting money earned and others money in one account
interest earned in trust account must be paid to client
ledger sheet for every client transaction
never give money back until money has been cleared by the bank
|
|
|
Commission... |
commission come from the transaction
How to determine...
Base (whole) X Rate (percent) = Part (formula used to in calculating mortgage loan, interests, brokers commissions, loan origination fees, discount points, amount of earnest money deposits, and income capital investments
372000 x 6% (.06) = 22300
Total = Part/Rate(Percent) Formula used to compute total mortgage loan principal still due if monthly payment and interests rate are known. Also used when to calculate total sales price when the amount and percentage of commission are known
750000 = 45000/.06 |
