Barney Fletcher Flashcards
What is assemblage & plottage?
Assemblage = combining two or more plots Plottage= the money made on it.
Who do trade fixtures belong to?
The tenant
What makes something a fixture?
permanently attached personal property that goes with the land
How do you calculate acres?
L X W \ 43,560
What are appurtenances?
Run with the land
What is an associate broker?
Has a broker’s license but is working under another broker.
What is a qualifying/principal broker?
Head broker whom everyone works under
How are properties described in a Government / Rectangular Survey?
As they relate to baselines & meridians.
What is a lien?
A claim against the property of another as security for a debt.
Difference between general & specific lien
A specific lien is on something specific. A general lien is on all property - real & personal.
What type of lien is a mortgage?
Specific lien
What is joint tenancy & what are the requirements for it?
Equally shared/ownership in a property. Possession, Interest, Title, & Time.
Difference between limited and general partners?
The general partner is the owner. A limited partner is a silent partner.
What are blue sky laws?
Laws that regulate the sale of securities to protect people from fraud.
Recording a valid deed gives _____ notice.
Constructive notice.
A divorced wife gets the house, husband disappears and is still on the title. What must the wife do to sell the house?
File a title action.
What is a license on a property?
Short-term permission & revocable.
Is a license on property considered an encumbrance?
No.
If there is an alcohol restriction on a deed from the seller - what type of estate does the borrower have?
Fee simple defeasible estate.
Unequal percentage ownership can only be accomplished through what type of ownership?
Tenancy in common.
What is a deficiency judgment?
The lender gets the balance due after foreclosure.
What is intestate succession?
Died without a will. Goes to probate.
What is created through Power of Attorney?
Attorney In Fact.
Do co-op owners get individual tax bills?
No. One bill.
Define Estate for Years rental.
Has a specific beginning and end.
What do condo owners and apartment dwellers have in common?
They both have an estate in real property.
What is homestead protection?
Protects a home from being taken for debts (don’t have it in GA)
Define General Lien
Covers all real and personal property.
Exclusive and Non Exclusive listings
Must prove procuring cause to earn commission.
When do listings automatically end?
Death of the seller, broker, destruction of property. Not death of the salesperson.
Who pays commission?
Seller typically pays listing broker, listing broker splits it among companies.
Who are ministerial acts for?
Clients and customers.
When working as a designated agent who can you ask for advice?
Just your broker - not other agents.
If you pass the state exam - how long do you have to activate license? If you don’t what must you do?
12 months. Retake the state exam.
When deal falls apart and buyer and seller can’t agree on earnest money dispersal - what happens?
Broker should take it to court.
What is a specific performance lawsuit?
Forces a party to carry out his/her obligations under a contract.
As a duel agent, if the seller reveals his bottom line, when do you disclose this?
With a written contract.
If a seller asks you not to disclose a serious adverse defect/material fact, and you honor it, who is liable?
Seller & broker.
What are the 3 ways to handle trust funds when selling your own property as an agent?
- List with your broker and put funds in his trust account.
- List with another broker and put funds in his account.
- Open your own trust account with your broker’s permission and register it with the Commission. (Within 30 days)
Are illegal drug users covered under fair housing?
No.
When can you guarantee earnest money refund?
If you withdraw your offer prior to acceptance.
When is option to buy price determined?
When negotiating the original option agreement.
Is earnest money a requirement for a valid offer?
No.
Who determines commissions?
Listing broker & seller.
Federal law against monopolies?
Sherman Anti-Trust Act.
What do counter offers do to the original offer?
Cancels it. You cannot accept it any longer.
When does an offer become binding?
When acceptance is communicated back to the buyer.
What is redlining?
The practice of refusing to make loans in specific areas.
When is market allocation not illegal?
When agreed between 2 agents in the same office/company.
When is spousal approval contingency legal?
When approved by all parties in a contract.
What is a tie-in? Under what act is it illegal?
When builder requires someone to buy one lot in order to get another. Sherman Anti-Trust Act.
Is disclosing how you prequalify buyers a requirement before signing a broker agreement?
No.
The death of an owner does what to a contract/listing?
Terminates a current listing & unsigned offers.
What is illegal under Sherman Anti-Trust Act?
Tie-Ins, Market Allocation, Price Fixing, Boycotting/Denying Membership.
What happens if a seller asks you to not disclose a defect?
Tell them you can’t do that.
When can you do duel-agency?
If allowed in office policy & with written informed consent of all parties.
Formula for calculating down payment.
Loan to value ratio.
What is blockbusting? Under what act is it illegal?
Inducing panic selling (the neighborhood is going downhill). Ilegal under Fair Housing Act.
Define fiduciary.
A person in a position of trust/confidence.
What can be in an escrow account?
All monies except the money you are hiding. Cannot comingle.
Who are vendor/vendee? What type of contract?
Vendor - seller. Vendee - buyer. In a contract for Deed (like rent to own)
What is exclusive right to sell listing?
Typical listing - you get paid no matter what.
Under RESPA, federal law, no ____ are allowed in a transaction.
Kickbacks.
If contract is expiring and you want to extend, what do you need to do - at minimum.
Do an amendment to extend
Who is a contract binding for if the buyer is under 18?
Seller only.
What is puffing?
Fluffing. Not illegal.
In exclusive agency agreement who gets the commission?
If you find buyer you get it - if seller finds buyer they don’t pay commission.
What is truth in lending?
Federal law that requires disclosure of APR.
What is Market data approach?
Adjustments are made for area/location, financing, physical characteristics.
What is cost approach?
The cost of a property should be equal to the cost of building the same property from scratch.
What is income approach?
Uses the income the property generates to estimate a fair value. (net operating income rate / capitalization rate)
What do developers use blanket mortgages for?
Partial release clause to allow them to sell off one at a time without having to pay off the full development loan. (selling piece by piece)
What is an accelerator clause in a mortgage?
Upon default of any terms of the mortgage- entire loan is due.
What is a balloon payment?
Large payment.
What is a balloon payment often represented as?
An amortized loan for 30 years with a 10-year due date.
What is a legal land description?
Metes & bounds, plats, ect.
What is the concept that a property’s value is set by acquiring a similar property?
Substitution.
What are the parts of an ARM mortgage & what is NOT part of an ARM mortgage?
Index, margin, interest cap rate structure, initial interest rate period. Negative amortization is not part of an ARM mortgage.
What does an underwriter do?
Makes the final decision on a loan approval.
What is the non-disturbance clause in a mortgage?
The rental agreement will continue between the landlord and tenant regardless of circumstance.
Define leverage.
Borrowing as much as possible.
What are qualifying ratios?
Used by lenders as a qualifying tool for residential mortgages.
FHA currently only allows assumptions if
The borrower does a full qualified assumption.
What does a mortgage clause/addendum do?
Makes the earnest money refundable if you get approved.
Define functional obsolescence.
Old fixtures that still work.
What is reverse mortgage?
Loan type for 62 and older. The lender makes payments to a homeowner who later makes repayments in a lump sum.
Does VA require a downpayment?
No.
What is negative amortization?
Insufficient payment to pay one month’s interest payment.
Define Interest-only mortgage.
AKA Straight mortgage & term note. Borrower pays only interest for x amount of time.
September closing - who pays who for taxes?
Credit to seller, debit to buyer.
Gross Rent Multiplier formula.
SP / rent = GRM
Rent of new property x GRM = new property sales price
Loan Amount Calculation.
SP x Loan % = Loan amount.
Define amortization.
A promissory note structure where there are equal and regular monthly payments over a set number of years resulting in a full payoff.
What properties are appraised by the cost approach?
Special purpose, unique, or new properties.
Define liquidity.
Assets that can be sold quickly.
When is PMI required?
On conventional Loans greater than 80%.
Do trust accounts have to be interest barring?
No.
In Georgia, when a home is under contract which offers do you have to continue to present?
Only written offers.
Employees of the commission can or cannot have a real estate license?
5 must be licensed 1 normal person. 5 that are licensed must have it on inactive status.
When must you complete post-license course? If you don’t do it by then?
You have a year. If not done by then can’t practice until it is done - you have 18. months from original license date.
What is a net listing? Is it legal?
Seller wants to make x amount off listing, broker keeps the rest. Illegal in Georgia.
Once released from prison on a felony how long to reapply for a license?
10 years.
What year home requires lead-based paint disclosure?
Prior to 1978.
CAM license allows you to do what?
Manage HOA - no sales or listings.
If real estate education research and recovery fund drops below _____$ every agent has to pay ___.
Drops below $1 million. Active and inactive pay $30 at time of renewal.
If convinced of a crime how long to let commission know?
10 days of court completion - whether gulty or innocent.
Post license course must be taken when?
1 year before or 1 year after being licensed.
Rules of RESPA -
1-4 family residential, does not include commercial, agricultural, owner financing, or contract for deed, cash sales (no loan), 25 acres or less with a home is covered.
What is REPA?
Explains closing costs more clearly.
How many years to keep records?
3 years.
In GA we use the ___ to record a lender’s claim to property.
Security Deed.
If you move, you must let commission know within ___ days. If not you can be fined $___ per day.
30 days. Fined $25/day.
How many days after closing, expiration, or withdrawal to remove advertising.
10 days.
When do you have to disclose murder in house?
Only when asked.
Transaction broker agents have agency relationship with who?
No one. Everyone is a customer.
UDTPA penalties incude..
Fines, injunctions, and triple damages. Regulates deceptive practices.
How long can you remain inactive?
Indefinitely.
Who cannot claim any payment from REERR?
Licensed agents.
When can GREC review trust accounts?
With reasonable cause - at any time.
A property manager working for an unlicensed owner must….
Surrender your real estate license.
Duties to customers.
Be fair, honest, and accurate. Disclose everything you know within a 1-mile radius of the property.
When do you need a Phase 1 inspection?
All properties greater than 4 units - mostly commercial.
___ Hours of CE every __ years to renew your license.
36 hours. Every 4 years.
How much does REERR pay out?
$25,000/person or $75,000 lifetime for agent paid.
What can you do for a customer?
Ministerial acts.
Can associate brokers work as a qualifying broker too?
Yes, with current broker’s permission.
Who conducts closings in GA?
Attorneys.
Trust accounts must equal ___ + ______ before paying bills.
Equal bills + security deposits before paying bills.
