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Broker > Broker II > Flashcards

Broker II Flashcards

1
Q

Valid Contract requirements

A

Offer and contract
Consideration
Legally competent parties
Voluntary

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2
Q

Statute of Frauds

A

Must be in writing

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3
Q

Novation

A

Contract substituted for another

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4
Q

Escalator offer

A

Person will top an existing offer up to a certain price

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5
Q

PMI Loans

A

Private Mortgage Insurance- less than 20% down

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6
Q

When can someone terminate PMI

A

when principal balance reaches 78%

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7
Q

How much are loan origination fees

A

1-3%

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8
Q

Defeasance clause

A

immediately release full title when loan is paid in full

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9
Q

FHA borrowers min down payment

A

3.5%

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10
Q

Deed of trust participants

A

trustor(borrower)
beneficiary (lender)
trustee (holds deed)

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11
Q

Deed of trust definition

A

primary security instrument

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12
Q

Universal agent

A

authority to act for principal
someone w POA

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13
Q

General agent

A

handles all dealing in a specific area for a client: real estate or escrow

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14
Q

Single license dual agency

A

Licensee reps both buyer and seller in a single transaction

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15
Q

Designated agency/ dual license dual agency

A

2 separate licensees from a single firm represent a party in the same transaction
impossible to provide loyalty
or full disclosure

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16
Q

Sub agency

A

Unrepresented buyer to a transaction

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17
Q

express agency

A

Agency understood and agreed to
spoken or written

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18
Q

Implied agency

A

Avoid!

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19
Q

Ratification

A

Acceptance after the fact-
signing paperwork
or parties actions

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20
Q

Estoppel

A

prevents parties from suing each other
Actions or statements have implied a certain agreement

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21
Q

Agency

A

created solely through agreement

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22
Q

Exclusive agency

A

one brokerage market and sells property

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23
Q

Exclusive right to Sell

A

listing agent w commission
*start and end dates

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24
Q

Open Listing

A

Seller can work w multiple agents
Agent who brings successful buyer will be paid

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25
Q

Net Listing

A

Broker contract w seller to receive all net proceeds above a specific price
-Illegal in most jurisdictions
-conflict of interest

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26
Q

listing contracts basics

A

1-written or oral
2-protection
3-almost always require date
4-outline duties
5-confidentiality
6-disclosure
7-obligations
8-present offers

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27
Q

Marketing listing - must provide

A

Specify:
1-MLS
2-Internet
3-Yard signage

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28
Q

Open buyer representation

A

Allow buyer to work w many agents
can enter into an exclusive w anyone and open agreements are terminated
-addresses compensation
-parties obligations
-general description
-buyers duties

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29
Q

Non agency

A

provides non agency assistance

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30
Q

POA

A

grants rights and powers from one person (principal) to another (agent)
-special and general POA
-terminates on death
-or divorce

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31
Q

Different ways to contract Termination

A

expiration
completion
force of law
destruction of property or death
mutual agreement

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32
Q

Revocation

A

lack of trust

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33
Q

Post agreement client/licensee relationship

A

confidentiality extends

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34
Q

Agency Duties

A

1-act in principals best interest
2-dislose
3-disclose profit
4-reasonable skill
5-care for property received
6-obedience
7-consent

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35
Q

Specific Duties- are general

A

-seek price and terms acceptable
-show properties
-present offers
-copies

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36
Q

Fiduciary Duties
OLD CAR

A

Obedience
Loyalty
Disclosure
Confidentiality
Accounting
Reasonable skill and care
-Confidentiality and Accounting don’t end

37
Q

Agent duty to customer

A

-Honesty
-integrity
-cooperation
-disclosure
-Fairness
-Accounting

38
Q

Disclosure

A

status
-interest
-Agency and interest end at sale of property
-death of principal doesn’t void agency

39
Q

Eminent Domain

A

govt takes private land for public use
fairly compensate owners

40
Q

Taking

A

govt appropriation

41
Q

Escheat

A

-takes property of descendent without will, heirs or creditors
-benefits public

42
Q

Sunshine Act

A

FOIA
Freedom of Information Act

43
Q

FEMA

A

researches areas that are risky for flooding

44
Q

Brownfield Act

A

provides funds for cleaning brown fields

45
Q

Deed restriction

A

can have time limit or not

46
Q

CCR

A

HOA or developer
expires
member of HOA can pursue enforcement
in civil law court

47
Q

Prop manager

A

general agent w license

48
Q

Types of Leases

A

-Estate at sufferance
-estate at will- unknown date
-estate for years- terminates at specific date
-periodic estate- auto renewal period to period

49
Q

Sherman Act

A

prevent monopolies

50
Q

Clayton Act

A

supports Sherman Act- prohibits mergers

51
Q

FTC

A

investigates antitrust/penalizes violaters

52
Q

Property Disclosures- MAAP

A

Material
Adverse
Actual
Physical

53
Q

Carpenter ants generate

A

Frass

54
Q

General warranty Deed

A

greatest warranty to buyers
6 covenants:

55
Q

Present warranties

A

Seisin
Right to Convey
Against Encumbrances

56
Q

Future Warranties

A

Quiet enjoyment
Further assurances
Warranty forever

57
Q

Bargain and Sale deed

A

owner has right to convey
no other warranties

58
Q

Executors Deed

A

convey property from a decendents estate

59
Q

Sheriff Deed

A

convey foreclosed property

60
Q

Deed in Trust or of Trust

A

conveys real estate to a trustee for the beneficiary named in the trust

61
Q

TRID required settlement statement

A

Closing Disclosure
CD

62
Q

RESPA

A

LE 3 days before loan app and CD

63
Q

Closing Disclosure

A

minimum of 3 days before closing

64
Q

Possible Closing Costs

A

-Loan fees
-appraisal and survey
-title insurance
-legal fees
-real estate commissions
-tax and insurance prepayments
-transfer fees

65
Q

FIRPTA- foreign investment real property tax act

A

Withhold 15% of gross sales at closing
Buyer responsible
Closing Agent handles withholding

66
Q

person under FIRPTA

A

not a resident alien/ green card holder
not a US citizen

67
Q

Home warranty

A

system or appliance problems after home is purchased

68
Q

Home construction warranty

A

structural issues
workmanship
system/appliances
10 yr

69
Q

FHA/VA loans required for new homes

A

warrantor agrees to pay for covered defects
1 year
finished construction date or
title conveyance

70
Q

Acceleration clause

A

entire loan due immediately

71
Q

Deficiency Judgement

A

borrower pays shortage due at foreclosure sale

72
Q

Short sale

A

Redemption may allow to buy back after foreclosure- not with short sale
Lengthy closing process

73
Q

Probate

A

distributing deceased person estate

74
Q

FIRREA

A

1898 appraisals state certified/licensed appraisers

75
Q

FHA insured loan

A

-appraised by state licensed appraiser
-approved by HUD

76
Q

VA loan

A

VA certified appraiser

77
Q

Appraiser Independence Requirements AIR

A

Accurate, unbiased value

78
Q

Approaches to Value

A

Sales Comp
Cost
Income

79
Q

Appraisal Process

A

Reconciliation process

80
Q

4 Characteristics of Value

A

DUST:
demand
utility
scarcity
transferability

81
Q

Other values

A

Value in use
Assessed value
Mortgage value
Insured value
Investment value

82
Q

Economic Principles of Value-9

A

Conformity- conform to neighboring properties
Competition- value in comparison to competitive props
Substitution- value assessed via comparison of other similar props
Contribution- does it add value to area
Plottage- combining plots
Assemblage-
Regression- is value decreased by nearby properties
Progression- is value increased by nearby properties
Anticipation- future development of change in value affecting property

83
Q

Sales Comparison

A

most commonly used-
Elements
Units

84
Q

Cost approach

A

sum of value of land and improvements on land

85
Q

Income Approach

A

Income from property

86
Q

Gross rent Multiplier- GRM

A

4 or less units
GRM= sales price/gross monthly rent

87
Q

Gross Income Mult

A

5 + units
GIM= sale price/gross annual income

88
Q

Cap Rate

A

annual rate of return
I/V=R
I=R x V
Annual

89
Q
A

Broker (5 decks)

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