Brokerage Flashcards
created by neighborhood developers or associations to ensure that the neighborhood maintains certain standards. Examples include minimum housing size, restrictions on architectural style, or mandated underground sprinkling.
restrictive covenant
the broker may help with general information or services, but she is not looking out for the specific interests of either the buying or selling party.
transaction brokerage
How many square feet in one acre?
43,560 square feet
requires participant to be 62 or older and converts equity into cash
reverse mortgage
As opposed to personal property, this is land and everything permanently attached to it.
real property
All rights and privileges belonging to the land (air, soil, water, etc.)
appurtenances
articles of personal property that are attached (screwed in, etc.) and become real property.
fixture
a promise of real property to secure a loan.
promissory note (note)
converting real property to personal property.
severance
When an agent represents both the buyer and the seller,
dual agency
legally and ethically obligated to protect the principal’s interests over their own for the duration of the agent-principal relationship
fiduciary
Almost always, is paid by the seller of the property. This is true even if it is to be split among the seller’s agent and the buyer’s agent.
commission
the listing broker is owed a fee regardless of who makes the sale.
exclusive right-to-sell
seeks to accommodate those with disabilities by broadening their access to public facilities
Americans with Disabilities Act
the act of directing (or not directing) clients to a certain area based on race, religion, sex, familial status, national origin, or handicap
steering
states the Annual Percentage Rate, or APR, (cost of credit) must be disclosed when borrowers apply for credit
Regulation Z (Truth in Lending Act)
When real estate agents represent the buyer and not the seller of a piece of property, they are engaging in ____.
buyer agency
In a ____, the real estate agent represents only the buyer or the seller of a piece of property.
single agency relationship
____ is when an individual can be paid for brokering a real estate transaction, yet represent neither the buyer nor the seller.
transactional brokerage
Some states have ____ that require agents to disclose who they are representing to the buyers.
agency disclosure laws
When the agent and the principal agree that the agent will represent the principal, it is called ____.
express agency
When the agent and the principal have not officially agreed that the agent will represent the buyer, but their actions imply this, it is called ____.
implied agency
When a principal doesn’t stop an agent from going beyond his or her normal line of duties, this is called ____.
agency by estoppel
When an agreement is formed between an agent and a principal after a sale is confirmed, this is called ____.
agency by ratification
When an agent is invested in a project outside his or her agent status, this is called ____.
agency coupled with an interest
When a broker is given the right to collect the commission, no matter who sells a property, this is a(n) ____.
exclusive right to sell listing
When a homeowner reserves the right to sell his or her own property, but offers the exclusive right for only one agent, this is a(n) ____.
exclusive agency listing
When a property owner wishes to use multiple agents to sell a property, this is a(n) ____.
open listing (non-exclusive, general listing)
____ were put in place to make sure that property buyers’ rights are protected.
buyer agency agreements
Buyers should receive a settlement statement ____.
settlement statement (HUD-1 statement)
useful because it takes interest and fees and extras into account, giving a rate representative of the the total amount a debtor will owe. Because of this, it will be higher than the nominal interest rate.
annual percentage rate
usually tied to LIBOR or the interest rate on a Treasury bond. This means that a debtor’s payment can fluctuate over the life of the loan. Depending upon how things go, this could be a blessing or a curse.
variable interest rate
PITI
Principle
interest
prorated taxes by month
insurance by month
What feature of a loan allows the creditor to initiate a foreclosure?
demand feature
secures a loan
collateral
let the lender take a specific asset of the borrower; in residential real estate, this is usually the house.
equitable charges
provides the framework for the transfer of a loan balance
assumption policy
Lenders must redisclose a loan estimate if the APR is ____
one-eighth of a percentage point higher or lower than the APR that was initially disclosed to the borrower
If a borrower refinances or an existing loan is assumed by a new borrower, ______ may be required of the lender.
subsequent disclosure
Within three days of receiving their loan closing documents, borrowers can change their minds, even if the loan terms are exactly what the lender promised.
right of rescission
Who can originate a loan?
creditors, lenders
