Chapter 12 Flashcards by Jolee Goularte

Pre-Approval

A step above pre-qualification, it involves verifying a purchaser’s credit, down payment, and employment history.

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Listing Agent

The individual who enters into a listing contract with a principal.

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Selling Agent

The individual who finds the buyer (or seller) for the property.

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DEC

Disclose, Elect, Confirm

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Broker/Agent Commission Split

The BROKER and SALESPERSON are bound by an Independent Contractor Agreement.

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What is an Independent Contractor Agreement

The independent Contractor Agreement describes the commission split between the Broker and Salesperson

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Is the Broker/Salesperson commission split negotiable?

Yes

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Who pays the Salespersons commission?

The Broker

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Who pays the Broker Salesperson Commission

The Principal

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A broker received a $12,000 commission from a recent transaction. As listed in the Independent Contractor Agreement, the broker has 60/40 commission split with his agents (60% to the broker, 40% to the salesperson.)

The agent who worked on the transaction will receive the following: $12,000. What is the Split?

60% (to Broker)
12,000 x .60 = $7,200

40% (to Agent)
12,000 x .40 = $4,800

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Who does the PRINCIPAL enter int a Listing Contract with?

The Broker

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Resident Manager

An individual who supervises the care of an apartment complex while living in one of the units in the complex.

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Mobile Home

A structure transportable in one of more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system.

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Special Assessment

A legal charge against real estate by a public authority to pay for the cost of public improvements such as street lights, sidewalks, and street improvements

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Documentary Transfer Tax

A State enabling Act that allows a country to adopt a documentary transfer tax to apply on all transfers of real property located in the county. Notice of payment is entered on the face of the deed or on a separate paper filled with the deed.

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Ordinary Income

Income earned from providing services or the sale of goods (inventory)

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Capital Gain

At resale of a capital item, the amount by which the net sale proceeds exceed the adjusted cost basis ( book value). Used for income tax computations. Gains are called short or long term based upon length of holding period after acquisition. Usually taxed at a lower rate than ordinary income.

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Dual Agency

An Agency that represents the Buyer and Seller

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In the mortgage industry, this is a step above pre-qualification, it involves verifying a purchaser’s credit, down payment, and employment history….?

A. Pre-approval
B. Commitment
C. Commissioned
D. Post-approval

A. Pre-Approval

The individual who enters into a listing contract with a principal is known as the ….?

A. Dual Agent
B. Listing Agent
C. Selling Agent
D. Sub-agent

B. Listing Agent

A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system is known as a ….?

A. Mobile Home
B. Movable Home
C. Slab on a Grade Home
D. Free Standing Home

A. Mobile Home

Who is authorized to advertise a mobile home as a new….?

A. Mobile Home Dealer
B. Real Estate Agent
C. Real Estate Broker
D. Mobile Home Owner

A. Mobile Home Dealer

A real estate broker can only sell a mobile home if they have been registered with ….?

A. California Bureau of Real Estate
B. Bureau of Mobile Homes
C. Housing of Community Development
D. Housing and Urban Development

C. Housing and Community Development

A real estate banker cannot have 2 or more mobile homes offered for sale without first having a ….?

A Associate Broker’s License
B. Mobile Home Dealer’s License
C. Real Property License
D. Personal Property License

B. Mobile Home Dealer’s License

A legal charge against real estate by a public authority to pay for the cost of public improvements such as street lights, sidewalks and street improvements is known as a ….? A. Special Assessment B. Condemnation C. Transfer Tax D. Levy

A. Special Assessment

Taxation of manifestation of …..? A. Civic Duty B. Condemnation C. Special Assessment D. Police Power

D. Police Power

According to this, State property taxes are limited to 1% of the fair market value….? A. Proposition 21 B. Article 12-A C. Section 1031 D. Proposition 13

D. Proposition 13

Properties in California are assessed at which of the following events….? A. Survey of property B. Leasing of property C. Purchase of sale of property D. All of the above

C. Purchase of sale of property

A property will be sold at a tax sale if property taxes are not paid for how many years…..? A. 2 B. 3 C. 4 D. 5

D. 5

The 1st installment of property taxes are due on……? A. November 1st B. December 1st C.. February 1st D. January 1st.

A. November 1st

The 2nd installment of property taxes are due on….? A. November 1st B. December 1st C. February 1st D. January 1st

February 1st

Income earned from providing services or the sale of goods (inventory) is known as …….? A. Taxable Income B. Ordinary Income C. Business Income D. Capital Income

B. Ordinary Income

At resale of a capital item, the amount by which the net sale proceeds exceed the adjusted cost basis (book value) is referred to as ……? A. Capital Gain B. Income Gain C. 1031 Gain D. Taxable Gain

A. Capital Gain

Capital Gains are typically taxed at a lower rate than the ordinary income….? A. T B. F

A. True

Capital gains is 15% for high earners A. T B. F

B. False

An owner is exempt from paying capital gains on up to how much profit on an owner-occupied residence, if he or she has lived there for at least 2 of the previous 5 years..,,,,? A. 100,000 B. 250,000 C. 350,000 D. 500,000

B. 250,000

a married coupe are expert from paying capital gains up to how much profit on an owner-occupied residence, if they lived there for at least 2 of the previous 5 years…..? A. 100,000 B. 250,000 C. 350,000 D. 500,000

D. 500,000

How long does an individual have to identify another property in order to take advantage of a 1031 exchange…..? A. 30 Days B. 45 Days C. 60 Days D. 180 Days

B. 45 Days

How long does an individual have to close on another property in order to take advantage of 1031 exchange……? A. 30 Days B. 45 Days C. 90 Days D. 180 Days

D. 180 Days

Once a mobile home is no longer available for sale… how long do you have to remove the advertisement?

48 hours

In order to execute a 1031 exchange, a qualified intermediary must be used…..? A. T B. F

A. True

The listing agent can also be the selling agent….? A. T B. F

A. True

Disclosure to the client must be executed prior to signing the listing agreement? A. T B. F

A. True

An individual who supervises the care of an apartment complex while living in one of the units in the complex is known as a ……? A. Building Architect B. Property Manager C. Real Estate Agent D. Resident Manager

D. Resident Manager

Resident managers are required to hold a real estate license in the State of California? A. T B.. F

B. False

``` In California, resident managers are required in buildings with at least how many dwelling units…..? A. 1 B 4 C. 10 D. 16 ```

D. 16

In the Property Management Agreement, who is the agent…….? A. Landlord B. Property Manger C. Real Estate Broker D. Resident Manager

B. Property Manager