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43 Cards in this Set
- Front
- Back
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Name Five areas in which an expert real estate broker has special knowledge? |
1. Current and prices and terms in the market for purchases. 2. Marketing procedures 3. Legal obligations of buyers and sellers 4. needs of prospective buyers 5. procedures that buyers and sellers need to complete. |
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An agent's relationship to a principle is characterized by the phase: |
"stand in the shoes" of the principle |
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Name 5 real estate services that require a license. |
1. buying 2. selling 3. auctioning 4. mangaging 5. renting |
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Two important functions of a commercial real estate broker are to provide buyers with |
1. information on the property 2. negotiate compromises |
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Fair housing laws prohibit discrimination on the basis of |
race, color, sex, religion, age, familial status, and handicap |
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Under a listing contract, a broker is entitled to a commission only if |
he produces a ready, willing, and able buyer |
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Five issues on which a seller should be clear before signing a listing agreement are: |
1. What advertisement program will be used? 2. Will the property be placed n the MLS? 3. How long is the term of the listing? 4. What progress reports will the broker provide? 5. What personal property is being listed? |
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List the 5 requirements of all contracts |
1. Competentparties 2. Legalobjective 3. Offerand acceptance 4. Consideration 5. Nodefects to mutual assent |
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list the two requirements of a Contractfor sale of real estate |
1. In writing (per Statute of Frauds) 2. Proper description of property |
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Aspects of legal competencies. |
1. Of legal age 2. Not incapacitated at time of signing 3. Appropriate official if representing a corporation 4. Power of attorney if acting for another person |
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In a contract for sale of real estate, the seller implicitly agrees to |
deliver marketable title |
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Three possible defects to mutual assent are |
1. fraud 2. errors 3. duress |
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Legal title is ownership of |
a freehold estate |
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Equitable title is the right |
to receive legal title, obtain in contract |
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advantages of standard contracts are |
1. easy to complete 2. usually fair |
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disadvantages to standard contracts are |
1. they may fail to address and important issue |
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what are two sections of a legal contract? |
1. negotiated items that need to be filled in 2. standard provision that generally do not need to be filled in. |
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Three standard remedies for a buyer are |
1. recission 2. sue for damages 3. specific performance |
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Who is responsible for the successful completion of the closing? |
the listing broker |
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The provisions of RESPA include |
1. good faith estimate of closing cost 2. borrower receives HUD closing booklet 3. use of HUD-1 form 4. prohibits kickbacks |
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The two methods of allocating closing cost are |
1. local custom 2. negotiation |
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The buyer and seller agree in thesales/purchase contract that the seller will keep the $2,000 deposit if thebuyer does not fulfill the contract. What is this called? |
liquidated damages. |
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What is one common contingency in aresidential purchase contract?� |
purchase is subject to buyer obtaining lease. |
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1. What is one way a real estate brokerdiffers from a real estate salesperson under state law? |
A broker can work independently. |
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Which is true of the listing price of aproperty? |
It is set by the seller. |
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1. According to most listing contracts,when has a listing broker has earned his commission? |
When the broker finds a ready, willing, and able buyer for the terms of the listing. |
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1. What is the amount of a broker’scommissions for the sale of real property usually based on? |
selling price. |
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The day of closing a real estate sale, existing propertytaxes and insuranceare: |
prorated. |
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1. Alocal federal savings and loan makes a home loan. RESPA requires that |
a good faith estimate of closing costs be given to the borrower. |
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According to the Real Estate Settlement Procedures Act,which of the following isillegal? |
Paymentof kickbacks |
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In a real estate sales contract, the use of wording suchas "sale subject tobuyer obtaining financing" or "sale subject to buyer selling presenthome" is |
anexample of contingencies. |
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If a contract of sale is subject to the buyer's abilityto secure a loan, andafter diligent effort the buyer is unable to do so by the stateddeadline, thebody |
the contract would become void. |
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If a real estate purchase contract is made subject toobtaining a loan, and aloan cannot be found, the |
the contract is automatically void. |
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If a seller is confident that he will have plenty ofbuyers at his askingprice, he will likely refuse offers |
with contingencies |
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The seller decided that he didn't want to sell his house a few days before settlement. He can |
be sued by the buyer for specificperformance and damages. |
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A real estate broker differs from a real estatesalesperson under the law in that |
a salesperson may operate in the brokerage business only under the supervision of a real estate broker. |
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A listing is a contract between a property owner and the |
brokeremploying the salesperson. |
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In whose name does a salesperson take a listing? |
Hisbroker's |
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A listing agreement authorizes the broker to |
sellthe property. |
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A listing is usually a contract between a property ownerand the |
broker employing the salespersontaking the listing. |
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A written agreement giving the listing broker the rightto collect a commission,no matter who sells the property, within the term of the agreement is |
an exclusive right to sell listing. |
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If an offer is rejected, the earnest money deposit is |
returnedto the offeror. |
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Commingling results when |
client funds are mixed with broker funds. |
