Real Estate License Exams For Dummies - Cheat Sheet

Front 1

Name 4 Types of Listing Agreements for Real Estate Agents.

Back 1

1. Exclusive right to sell listing.

2. Exclusive agency listing.

3. Open listing.

4. Net listing.

Front 2

Define listing agreements - Exclusive right to sell listing.

Back 2

In this agreement, the agent gets paid no matter who sells the property, regardless of whether it's the agent or the seller.

Front 3

Definelisting agreements - Exclusive agency listing.

Back 3

Agents get paid in this type of agreement only if they sell the property. No fee is earned if the owner alone sells the property

Front 4

Definelisting agreements - Open listing.

Back 4

In this type of agreement, sellers have the right to use as many brokers as they want. The seller is not, however, obligated to pay any of them if he or she sells the property without the broker's help.

Front 5

Definelisting agreements - Net listing.

Back 5

This type of agreement may be illegal in your state. The agent gets to keep everything he can get that's more than the sale price the owner wants.

Front 6

Define - Condominium/cooperative.

Back 6

A condominium owner actually owns real estate. This ownership is usually the air space and an interest as a tenant in common of the land.

A cooperative owner owns shares in a corporation that owns a building. The shareholder also gets a proprietary lease, which enables the shareholder to occupy a unit.

Front 7

Define - Foreclosure/forfeiture.

Back 7

Foreclosure is the loss of property to pay off a debt.

Forfeiture is losing the property because of disobeying a condition in the deed.

Front 8

Define - Grantor/grantee.

Back 8

The grantor gives, sells, or transfers the property to the grantee.

The grantee receives the property.

Front 9

Define - Leasehold/leased fee.

Back 9

The leasehold interest is the tenant's interest in the property. The tenant holds the lease.

The leased fee interest is the owner or landlord's interest.

Front 10

Define - Mortgagor/mortgagee.

Back 10

The mortgagor is the borrower.

The mortgagee is the lender. The borrower gives a mortgage to the lender.

Front 11

Define - Replacement cost/reproduction cast.

Back 11

These terms are associated with the cost approach to valuing a property.

Replacement cost is the cost to produce a structure that is essentially the same as the existing structure but using modern materials and standards.

Reproduction cost is an estimate of the cost to produce exactly the same structure with the same materials

Front 12

Define - Tax credit/tax deduction.

Back 12

A tax credit is subtracted from taxes due.

A tax deduction is subtracted from income. If all things are equal, a tax credit generally is more valuable than a tax deduction of the same amount.

Front 13

Name the 4 Kinds of Real Estate Ownership.

Back 13

1. Tenancy in severalty.

2. Tenancy in common.

3. Joint tenancy.

a. Interest;

b. Possession;

c. Time;

d. Title

4. Tenancy by the entirety.

Front 14

Define - Tenancy in severalty

Back 14

Although it may sound like more, this type of ownership is by one person or a corporation, and not being married has nothing to do with it.

Front 15

Define - Tenancy in common.

Back 15

Equal or unequal undivided ownership between two or more people is what characterizes this type of ownership. If an owner dies, the deceased person's share is conveyed to his or her heirs, not the other owners.

Front 16

Define - Joint tenancy.

Back 16

The four unities that must exist for this type of ownership to exist are

1.Interest: Each owner has the same interest.

2.Possession: All owners hold an undivided interest.

3.Time: All owners receive their interest at the same time.

4.Title: All owners acquire their interest with the same deed.

If one owner of a joint tenancy dies, that owner's interest reverts to the other owners. This right of survivorship may vary by state.

Front 17

Define - Tenancy by the entirety.

Back 17

Ownership that's available only to married couples, tenancy by the entirety means that property may not be sold without the agreement of both parties. The right of survivorship exists to the extent that if one spouse dies, his/her interest reverts to the other spouse.

Front 18

Name 6 ways you can convey, and or transfer voluntarily and or lose properties?

Back 18

1. Dedication.

2. Public grant.

3. Adverse possession.

4. Avulsion.

5. Erosion.

6. Partition

Front 19

Define - dedication

Back 19

When you dedicate property, you essentially give it up voluntarily to the government. An example is a developer giving up streets in a subdivision.

Front 20

Define - Public grant.

Back 20

A public grant of land is just the opposite of dedication; the government actually is giving property to private individuals.

Front 21

Define - Adverse possession.

Back 21

When someone uses your property, you may end up losing the property or having your rights to the property restricted.

Front 22

Define - Avulsion.

Back 22

Avulsion is the sudden loss of land by an act of nature like a landslide.

Front 23

Define - Erosion.

Back 23

A little like avulsion, erosion is the gradual loss of land by an act of nature, like property lost along the bank of a river.

Front 24

Define - Partition.

Back 24

A partition is a legal proceeding to divide property owned by two or more people.

Front 25

What is it called, relationship between a real estate agent & a client?

Back 25

fiduciary

Front 26

what does fiduciary mean?

Back 26

faithful servant, and an agent is a fiduciary of the client. In real estate, a broker or a salesperson can be the agent of a seller or a buyer.

Front 27

Define the 6 Fiduciary Duties of a Real Estate Agent

Back 27

1. Accounting.

2. Care.

3. Confidentiality

4. Disclosure.

5. Loyalty.

6. Obedience.

Front 28

What does Fiduciary duties - accounting mean?

Back 28

The agent must account for all funds entrusted to her and not commingle (combine) client/customer funds with her personal and /or business funds.

Front 29

What does Fiduciary duties - care mean?

Back 29

The agent must use all of her skills to the best of her ability on behalf of the client.

Front 30

What does Fiduciary duties - confidentiality mean?

Back 30

The agent must keep confidential any information given to her by her client, especially information that may be damaging to the client in a negotiation.

Front 31

What does Fiduciary duties - Disclosure means?

Back 31

The agent must disclose to the client any information she receives that may benefit the client's position in a negotiation.

Front 32

What does Fiduciary duties - Loyalty mean?

Back 32

The agent owes undivided loyalty to the client and puts the client's interests above her own

Front 33

What does Fiduciary duties - Obedience mean?

Back 33

The agent must obey all lawful orders that the client gives her.