Agency Relationship Flashcards
Special Agent
Limited Authority
Broker/Agent Relationship
Through Broker Always
Fiduciary duty
To Client: COLA - N Care Obey Loyalty Accounting Notice of Material Fact
Listing Agreements - Types
OARN
a. Open
b. Exclusive Agency Listing
c. Exclusive Right to Sell
d. Net Listing - Illegal in Michigan
Open Listing
Seller can contract with all Brokers, Reserve FSBO
Exclusive Agency
1 broker - Reserve FSBO, will only receive commission if agent brings buyer
Exclusive Right to Sell
Broker gets commission no matter who sells
Duty of Broker to Market Property
- Improve marketability
- Net proceeds
- MLS
- Keep seller informed
Protected Classes
Race - 1866 Color Sex Religion National Origin Disability Familial Status - 18 years younger - custodial Age - Michigan only - Employment Marital Status - Michigan Only
Disparate impact Doctrine
Allows to prosecute - based on impact not intent
Exemption to Fair Housing
POOR-N
a. Not more than 3 houses every 24 months
b. Owner occupied
c. Private Club
d. Religious
e. Older residents
Statute of Limitations
HUD - 1 year
Federal Court - 2 years
Michigan - 180 days
Blockbusting
Enducing to move for $
Steering
Steering in a certain direction
Elements of a Contract
1 - O; 3 - Cs and 2 L's Offer and acceptance Consideration Capacity Consent* Legal Object Legal Form
Counter offer
Signed, Sealed and Delivered back
Parole Evidence Rule
No oral modifications -
Previous to or After Contract - Not enforceable
Option must contain what to be valid
VIFS
- In writing
- Valuable Consideration
- Fixed price
- Stated period of time
Characteristics that Comprise Value
DUST
Demand
Utility
Scarcity
Transferability
Sub-Agent Status (Buyer)
- No Buyer’s Contract - Represent Seller
Easement in Gross
Utilties
Easement Appurtenant
Attached to legal description; Runs with the land
Easement by necessity
Not to land lock, can’t divide
Easement by Prescription
Through Use
Easement by implied
Shared Driveway
Ad Valorem
According to Value
Assessed Value
50% of true cash value`
Mills
$1.00 per $1,000
Owner’s policy
Seller provides to Buyer
Mortgagees
For Lender - Amount owed on loan - paid by buyer
Clouds on Title
Fixed through Quit Claim Deed
Bankruptcy
Stops all sales
Lis Pendens
Lawsuit Pending
Warranty Deed
Most common, seller will defend
Limited Warranty
Grant or Special
time seller owns property
Quit Claim
All interest given, no warranty
Closing Disclosure
Between Lender and Borrower
Transfer tax
$8.60 per $1,000
Constructive Notice
Tells the world you own property - taken to County
Severalty
One person
Co-Ownership - Joint Tenancy
2 or more
PITT (possession, interest, time and title)
Not inheritable
Co-Ownership - Tenancy in Common
2 or more;
Does not meet time
Heritable
eg - Timeshares
Co-Ownership - Tenancy by entirety
Saved for husband and wife
Considered one person
Adverse possession
Without Permission
Can Claim after 15 years
Characteristics of a Condos
Individual unit - own cube of air
common elements
HOA
Timeshares
Eminent Domain
Police power
condemnation
just compensation - up to 125% of value
good of all
Inverse condemnation
No buying, just taking (eg wetland)
Assignment of Mortgage
assumption
novation
sale subject to mortgage
FHA
Insures
What do VA loans do for consumer?
guarantees loan
Conventional
Loans money
USDA
low income and rural areas
Ginny Mae
Backs kids Freddie Mac and Fannie Mae
Reverse mortgage
More than 62 years of age
Open End Mortgage
HELOC
Open Mortgage
No prepayment penalty
Term loan
Interest only
Points
1 pt = 1/8 %
8 pts to buy down 1 %
Loan to Value
Appraised Value or Purchase Price, which ever is less
Lien Theory
Gives lender right to purchase property
Title Theory
Transfer title from borrower to mortgagor (person)
Truth in Lending
Advertising
RESPA
Residential loans
Redlining
Discriminates on certain areas
Strict Foreclosure
Goes to Lender
Judicial foreclosure
Construction liens
Land Contracts
Equitable Redemption
Late on Payment goes to Sheriff Sale
Statutory redemption
Time mortgagor has to free property of foreclosure
6 months = more than 2/3
1 year = less than 1/3
Deficiency Judgment
Short Sale
IRS reporting
Cash of over $10,000
Department - LARA
Protects the public
Issues/Renew Licenses
Enforce Occupational Code
Board
Interprets law
Assist in investigations
Assess penalties
Formal Complaints
Only AG or Dept
Penalties
Revocation - Indefinately Civil Fine - up to $10,000 Citations - $100 Censure - Slap on hand Cease and desist - Stop
Exemptions from Real Estate License
Licensed Builder Owner Attorney in Fact Court Appointed Receiver Trustee Personal Rep Clerical Tenant/Landlord - 1/2 months rent or less)
Transfer License
Broker - 5 days to return license
Salesperson can run 45 days until new pocket card signed
Escrow
2 days to deposit after accepted by all parties
No more than $2,000 in account
Inducements
No raffle or fishbowl
Cannot promote just one property
Land Division
10 acres = 4 splits
additional 10 = 1 more split
Keep 60% or New Road = 2 Bonus splits
Michigan Rights
Elliott Larsen
Michigan Persons with Disability Civil Rights Act
Usury
Cannot charge more than 11% - Private
25% - regulated institution eg payday lending
Right to Farm Act
Noise, Fumes, Care of Animals
Uniform Sale Antitrust Act
Monopolies
Price fixing
Boycotts
