1 WA Fundamentals Flashcards
What is a property manager’s main focus?
to maintain a property in order to generate the highest possible financial income for the owner over the longest period of time.
List three important skills needed for success in real estate
- Communication Skills
- Negotiation Skills
- Sales Skills
- Self-motivation
- Ability to adapt (changes in routines, last minute schedule assignments, and sporadic evenings and weekend work hours)
- Knowledge of the industry
- Honesty
What federal agency oversees such laws and the Fair Housing Act and the Americans with Disabilities Act?
Department of Housing and Urban Development (HUD)
What does the National Association of REALTORS® do for the real estate industry?
NAR works for legislation that is favorable to the industry and it enforces professional standards of conduct through its Code of Ethics.
What are the four license designations in Washington?
- Broker
- managing broker
- designated broker
- branch manager
What is the main difference between an employee and an independent contractor
The main difference between the two is an issue of control, as established by income tax laws.
An Employee works under the supervision and control of the managing broker.
An Independent Contractor is hired to perform certain acts but the managing broker cannot control how the broker perform those acts.
What are the three common-law categories that determine the level of control an employer has?
- Behavioral
Does the company control what the worker does and how? - Financial
are the business aspects of the workers job controlled by the employer? - Type of relationship
Are there written contracts or employee-type benefits?
What are some important questions to ask when negotiating an agreement with a potential employee broker?
What are the start-up costs? Who pays the expenses? What are the broker requirements? What training and support is provided? What is the commission schedule? Who answers the phone? What are miscellaneous benefits?
Where in the Revised Code of Washington (RCW) would you find the laws pertaining to real estate?
In Title 18, Chapter 18.85 of the RCW
List the three basic type of rules in the Washington Administrative Code (WAC)
Interpretative rules
Procedural rules
Significant legislative rules
How many members make up the Real Estate Commission and how long is their term?
There are six members, plus the director.
The term is six years.
List for responsibilities of the Real Estate Commission director.
- Enforce all laws and rules relating to the licensing of real estate firms, brokers, managing brokers and designated brokers.
- Grant or deny licenses including temporary licenses to real estate firms, brokers and managing brokers
- hold hearings regarding actions of licensees
- develop and provide educational programs and materials for members of the public
- Approve real estate education courses
- Establish standards for licensure for persons licensed in other jurisdictions
Title companies
A title company typically handles all tasks associated with the property title, including insurance and search
Residential brokers
Assisting individuals and families in the purchase and sale of a home
Commercial brokers
Commercial brokers specialize in income-producing properties, such as shopping centers, apartment complexes, office space, retail store locations, warehouses and industrial parks
Land developers
Developers turn land into profitable and marketable parcels for residential, commercial or industrial sites
Farm and land brokers
Land brokers deal in land for farming, residential, commercial and industrial growth
Mortgage brokers
Mortgage broker specialize in loan originations and they receive a commission for matching borrowers with lenders. They also perform some or most of the loan processing functions such as taking loan applications and ordering credit reports, appraisals and title reports
Real estate appraisers
They determine the value of properties. This data is recorded and use for tax, investment, rental and insurance purposes
Real estate consultants
They provide advice about property and income potential to clients. Consultants are highly trained and experienced experts that others seek out when they want answers to specific real estate questions.
Home inspectors
Home inspectors check the physical condition of the property during the purchase process. They have to task of reporting on whether a home has any defects.
Code inspector or building inspector
They check whether a particular property is in compliance with all governing housing codes.
Real estate Regulation at the Local Level
At the local level you will typically find zoning ordinance, building code enforcement inspectors, agencies that issue occupancy permits and a property tax assessment function. Most of these agency programs and activities are directed from offices housed in the local City Hall.
Real estate at state level
- The Washington State Department of licensing (Business and professional unit) is the administrative arm and main resource for reviewing, understanding and complying with state-specific real estate laws and rules
- The Real Estate Commission
A board that works closely with the Department of Licensing to uphold, protect and promote the public interest
The Environmental Protection Agency (EPA)
Is concern about the safe and healthy living condition in our environment. The EPA provides rules, regulations and guidelines for properties that might contain toxins such Lead, mold, Radon, or Asbestos.
The Federal Reserve Board
Overseas many regulations that deal with consumer credit relating to real estate mortgage loans.
Truth-In-Lending Simplification and Reform Act (TILSRA) of 1980
Requires lenders to disclose specific terms of annual percentage rate, finance charges, amount financed, and the total amount of money to be paid towards the mortgage in both the principal and interest payments regarding residential loans to customers
Trade Associations
Also known as an industry trade group, is an organization founded and funded by businesses that operate in a specific area such as construction, transportation and the real estate industry. Its main focus is collaboration between companies and developing a standard for membership performance.
National Association of real estate brokers (NAREB)
It is the oldest and largest minority the trade association in the United States. It was formed in 1947 and is made up primarily of African-American real estate brokers.
National Association of Hispanic real estate professionals (NAHREP)
Is primarily made up of Hispanic members who meet and work towards real estate goals benefiting to the Hispanic population
Asian real estate Association of America (AREAA)
It is committed to improving success in business opportunities for real estate licensees who serve the Asian-American community
The type of taxes the managing broker must withhold from the brokers wages
Federal income tax
State income tax
Social Security tax
Medicare tax
WAC Rule-Making Process involves three phases
- Preproposal Statement of Inquiry (CR-101). The public is invited to participate with the agency to discuss the subject of possible rule making before any formal notice or action is taken.
- Proposed Rule Making (CR-102). When the rule is propose, the agency notifies the public that the new rule is being considered, that significant changes were made to a rule that has already been filed, or that the agency must delay a rule proceeding that has already started.
- Rule-Making Order (Adoption) (CR-103). After the rule is approved, the rule is filed with the Office of the Code Reviser to be put into effect.
The commissioners are appointed by
The governor
Commission responsibilities
- Hold educational conferences for the benefit of the industry
- conduct examinations of applicants for licenses
- ensure that examinations are prepared and administered at examination centers throughout the state
- approve exam locations in foreign jurisdictions
- establish procedures for real estate agents to follow when providing potential home buyers with Inspector referrals
- advise and approve actions of the director
