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Realestate > Chapter 19 > Flashcards

Chapter 19 Flashcards

Basic Construction

1
Q

Foundation

A

Supports a home and protects it from damage.

  • Concrete slab
  • Crawlspace
  • Basement foundation
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2
Q

Foundation Detail

A

Basic components:
* Footings
* Slab
* Foundation
* Wall
* piers

Major types: concrete slab, basement, crawl space

Termite protection: chemical treatment of ground near foundation walls and piers and use of pressure traeted wood

Ventilation
Waterproofing

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3
Q

TP

Footing

A

The LOWEST part of construction

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4
Q

TP

Framing: Lowest Part of the Framing is:

A

SILL plate. This is what rests on top of the footing.

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5
Q

Exterior Wall Sheathing

A

Sheathing: plywood or partical board
Wrapped in tar paper or house wrap

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6
Q

TP

Window Construction: Muntin

A

Divide, reinfoce, and join class (constructive)

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7
Q

TP

Window Construction: Mullion

A

Vertical memebers of a window or door (decorative)

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8
Q

TP

Highest Part of the Roof Framing is: :

A

The ridge/ridge board

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9
Q

RPOADS

RPOAD Exemptions

RPOADS does not apply to vacant land or commercial property

A

New construction
Transfer between spouses
{fill in rest of list}

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10
Q

2 Parts to an HVAC System

A

Indoor (air handler, furnance)
Outdoor (heating and cooling unit)

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11
Q

Certificate of Occupany

A

Needs to be issued by county before buyer can move in

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12
Q

TP

Residential Square Footage Guidelines

A

MLS requires you to advertise it but NOT real estate commission

Living area: heated, finished, and directly accessible from other heated living area.

Agents expected to VERIFY square footage on their property.
* Cannot rely on tax records, owner, past transactions

Measure from the EXTERIOR when possible (TP)

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13
Q

Living area

A

Heated, finished, and directly accessible from other heated living area.
Bsement: Earth and adjacent to one side. Considered “below grade”

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14
Q

Measuring From Interior

A

If we have to measure from the inside:

Homes: Add 6” for each interior wall
Condominiums: DO NOT include the walls

Note: in condos we own air space - wall to wall

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15
Q

Stairway Rules

A

The stairs are included in the first and second floor

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16
Q

Ceiling Height

A

Has to be 7’ in height to count as liviing area (include in sq footage)

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17
Q

Sloped Ceilings

A

You walk outside of the room until the ceilimng height is 5’. From there you start measuring square footage.

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18
Q

Basements: Pipes and Beams

A

You can go up to 6’ 4” and it will count (vs. 7’)

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19
Q

MOG

MOG

A

{review what this is and the exemptions}

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20
Q

Agency Disclosure

Agency Disclosure

A

Disclosing who we represent in anyone

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21
Q

Agency Disclosure

What we use to tell the consumer who we represent

A

Form:
Working with Realestate Agents Disclosure Form
{read the form}

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22
Q

Agency Disclosure

When is the Agency Discolsure Form Presented?

Form is “Working with Reall Estate Agents”

A

Presented at: First Substantial Contact
When the customer starts giving you personal information: i.e., this is my price range, what I can afford, I have to sell a house, why I am moving.

Need to stop them and give them the disclosure form. Have to give it to them within 3 calendar days.

It is not ok to just have a link in your email signature. You have to discuss the form with your customer at first substantial contact.

No. They do not have to sign it but we need to document they did not sign. Keep for three years.

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23
Q

Agency Discloaure

What kinds of transactions require use to use this disclosure

A

All REAL ESTATE **SALES **transactions (dont choose all realestate transactions becasue this could pertain to porperty management)

on test do not pick rentals or property management pick SALES

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24
Q

Single Agency, Designated, Dual Agency,

A
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25
Q

Agency Disclosure

What do we need to disclose at initial contact

A

Have to disclosure to another broker you atre a broker and who you represent (broker to broker)

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26
Q

In order to start a relationship: seller side

A

we would get a signed listing agreement

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27
Q

In order to start a relationship: Buyer side

A

Before manking an offer

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28
Q

Dual Agency

Designated Dual Agency

This is when both agents are withing the SAME firm

A

2 licensee
* 1 designated by firm/BIC to represent seller
* 1 designated to represent buyer

Listing agreement has to be **in writing **at THE FORMATION OF THE R

Rules:
1. BIC and provisional broker cannot be in designatd dual
2. If you have confidential information about the other party you cannot be designated

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29
Q

Dual Agency

To Practice Dual Agency We Need

A
  1. Discloure
  2. Consent from both clients

Listing agreement has to be **in writing **at THE FORMATION OF THE RELATIONSHIP

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30
Q

Buyer Agreements

Buyer Agreements: when need in writing

Before this it is a verbal agreement.

A

Prior to making the first offer

need it in writing prior to first offer

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31
Q

RPOADS

As a listing agent

A

We provide them with the form (RPOADS) and advise them of their rights.
3 day recission period if we do not provide prior to making an offer

Their biggest right is to decline broker representation.

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32
Q

Misrepresentation and Ommission

Misrepresentation

Rules and Comments section of General Statues Laws. In appendix C.

A

Spoke something that was inaccurate

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33
Q

Misrepresentation and Ommission

Ommission

A

left someyhjing out

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34
Q

Misrepresentation and Ommission

Willful Misrepresentation

A

Lied

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35
Q

Misrepresentation and Ommission

Willful Ommission

A

Left it uot on purpose

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36
Q

Misrepresentation and Ommission

Negligent Ommission

Page 835.

A

Forgot and left it out

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37
Q

Listing Agreemnet and Buyer Agency Agreements

A

These are. EMPLOYEMNT contracts
different than SALES CONTRACTS

38
Q

Sales Contracts

A

Contract is between buyer and seller

39
Q

Purpose of the listing agreement

A

To find a ready, willing, and able buyer

40
Q

Llisting agreeemnt

The following MUST be included in a listing agreement

A
  1. License number
  2. Non discrimination clause
  3. Beginning and end date - no automatic renewal
41
Q

When do we deliver documents

Delivery of Instruments Rule AKA

A
  • Immediatley but never later than 3 days
  • Need to also turn into the firm no later than 3 days

ALL DOCUMENTS

42
Q

Type of Listing

Exclusive Agency Agreement (the seller can sell themselves and I do nt get paid) vs. Exclusive Right to Sell (I get paid no matter what)

A

If the seller sells themselves:

43
Q

Bonuses

Do We Have to Discolsure Bonuses?

i.e., builder bonus

A

Yes. Prior to making an offer

44
Q

Termination of Agency Agreements

What terminates an agreeement

buyer agency agreement and buyer broker agreement are the same

A
  • Expiration Date
  • Completion of Sale
  • Death of the Seller or Death of the Buyer
  • NOT death of agent unless they are a sole practitioner
45
Q

Do Not Call List

Do Not Call List

A

Check list every 31 days
Exceptions (you do not have to check the DNC list if):
Business relationship up to 18 months ago
90 days after they make inquiry
FSBO if you actually have a buyer (you do not have to check the DNC list before you call them)

46
Q
A
47
Q

Anti Trust Act

A
  • Price Fixing
  • Market Allocation (you work in this side of town, I will work on this side of town)
  • Boycotting: I am noyt going to show your listing becasue of XYZ
  • Unfair Competitive Trade Practices
48
Q

Advertising

Guidelines When Advertising Listings

A
  • We have to get consent from seller
  • Include firm name and BIC name on all advertising
  • Cannot discriminate

This includes ALL forms of advertising

49
Q

Oral Buyer Agency Agreement

Oral Buyer Agency Agreement

A
  • Is an expressed agreement
  • Cannot put a timeframe on an oral agreement
  • The agreement is non-exclusive. Buyer can work with as many agencies as they want.
    *
50
Q

Sub Agency

Subagency Rules

A
  • We are ALL subagents of the firm
  • If the firm has a seller (llisting cllient) we are all subagents of the seller
  • If the firm has a buyer we are ALL subagents of the buyer

i.e., Buyer comes in to office and wants to see listing they dont have. You have to call listing agent and ask to show property. Have to ask firm

On the exam when you hear subagency it means the buyer DOES NOT want to

51
Q

Contracts

Essential Elements of a Valid Contract

Needs to be in the contract for a court of law to enforce

Must know this! Pg. 207 in adventure guide

A
  1. Agreement Mutually
  2. Competent Parties
  3. Consideration (money or something of value)
  4. Legal purpose)
52
Q

Contracts

Void vs. Voidable

A
  • A void contract cannot be enforced
  • A voidable contract (one person is able to void the contract)

Example: contarct with a competent party and incompetent party (minor).

53
Q

Contract

Mistake of Fact

A

If there is a mistake of fact (both parties thought something different). The contract can be voided.

54
Q

Contracts: Offer and Acceptance

What Makes an Offer Contract Valid

Multiple test questions on offer accept and communications

Mailbox rule

A

For an offer to be valid seller has to:
* accept
* signed AND
* communicated to the other side

When it is communicated to the other side.

55
Q

NC Statue of Frauds

Statue of Frauds

A

Certain documents have to be in writing to be enforceable (DREAMOILS)

Deeds, Restrictive Covenants, Easements, Assignments, Mortage, O???, Installement Land Contract, Leases longer than 3 years, Sales contracts

If you drop the S - we are now talking about the Connor Act

Sales contract does noyt have to be recorded

56
Q

Installemnt Land Contracts

A

Full legal title is given when it is paid off
Buyer has equitable title

57
Q

Option Contract

A

Know this

58
Q

Unilateral Contract

A
59
Q

License Law

Who Needs a License

A

Buy, sell, lease
for others for compensation need a license

Exemptions: attorney, selling or leasing your own property including LLC, FSBO,

exemptions: TP

60
Q

Firm LIcense

A

Any firm that is an entity needs a firm license

61
Q

Licensed and Unlicensed Assistants in Property Management vs. Sales Office

A
62
Q

How much education for PB

A

3 - 30 hour courses within 18 months of day of licensure
If not completed by then you become inactive

Continuing Education: 4 hours of elective done by June 10. If not, midnnight on June 30th become inactive

BIC = 8 hours of education. BIC update and 4 hours elective

Inactive is due to educationm
Exoired is due to

63
Q

BIC

A

2 years experinec

64
Q

LImited Non-LIcensed Commercial Broker

A

Need to advertise what kind of broker they are
Know what they can and cannot do

65
Q

Amendment (changes terms) and Addendum (adds terms)

A
66
Q

Rights when porerty borders a bodyy of water

A

Latoral rights: large bodies of water with tides. Own: Mean or average high tide mark

Riparian Rights: Property line ends (depends) - if the water is navigable or non-navigable BY motorboat

Non-navigable: property ends in center or moddle of waterway
Navigable: property line ends at the edge of the shoreline

67
Q

Personal Property vs. Fixtures

A
68
Q

Total Circumstance Test

A

XXX
Method
Adaptation

69
Q

Types of Estates

Types of Estates

A

Think about how we hold title and deeds
1. Fee Simple/Fee Simple Absolute
2. Defeasible Estate (ownership can be defeated - comes with conditional ownership ~ if you do xyz)
3. Life Estate: conventional life estate vs. por avturave (for the life of another. measuring life is not grantee, it is another party.)

70
Q

How We Take Title (upon death)

A

Severalty
(one person or entity)
Will go to heirs or by will

Co-ownership (more than one person)
* Tenancy by entirety (married when you took title) - always survivorship
* Tenants in Common (many owners - can be 2 or 200) - never have survivorship. If someone dies, the other ownership passes to the heirs
* Joint Tenancy (buy at same time from same person for same percentage) - has survivorship. In NC you need to write survivorship in the deed to take title.

71
Q

Deeds

A

General Warranty Deed - grantor makes all types of promises to grantee for ever

Special Warantee Deed - same promises to grantee but only for the time they own it

Quit Claim Deed - no promises at all

72
Q

Three Legal Descriptions

A

Meets and Bounds
Lot and Block (refernced on plat map - subdivisions)
US Governement Survey (used in west and midwest).

73
Q

Title Insurance

A
  • Backs up the promoses the grantor is makng in the deed
  • 2 polices: one for brrower and one for lender
74
Q

Land Use Controls

A

Legal non-comforming use: zoning changed, you are granfathered to continue

chapter 5

75
Q

Public Offering Statement

A

Recision period for new construction
7 days
Condo 5 days

76
Q

Liquidated Damages

A

Agreed upon amount $$ written in contract in case of breach (earnest money)

77
Q

Ammoritization

A

Lona that is paid in full

78
Q

Co-ops

A

Buying shares of stock and fo rthat you are getting a proprietary lease for property

79
Q

Commission Splits

A

REad who buyer is and …….
review

80
Q

RESPA
TILA (review trigger terms)

A
81
Q

Affiliated Business Relationships

A

Under RESPA we need to disclose how much these peple charge and client is not required ot use them

82
Q

Fair Housing

A

Note: The government extended sexual orientation as a protected class

83
Q

Primary MOrtgage Market vs. Secondary

A

Primary: banks and credit unions
Secondary: Fannie May, Freddie Mac (buying loans)

84
Q

Sue for Partition

A

Trying to go to court to force the sale

cant do with tenancy by entirety (co-owner by spouse)

85
Q

RESPA

A
  • Prohibits illegal kickbacks between setllement service providers
  • Disclosure of settlement costs (disclosure 3 days prior to closing)
86
Q

Finance

Documents to Sign at Closing

A

Signing 2 documents
* Mortage/Deed of Trust (depending on state - NC). Collat
* Promisory Note

87
Q

Finance

Promisory Note

A

Mortage Note or Note
Know clauses in promsory note
due on sale clause: bring me all your money now
Accelleration clause: bring me all yoyur money now becasue you defaulted
Pre-payment penalty: I am going to charge you more money
Defeatance Clause: It has been paid off, I am going to release my lien on the property

88
Q

Full Performance
Impossibility of Performance

A
89
Q

Picture questions
C: property taxes

A
90
Q

Math for Exam

    1. Tax bill proration
    1. Excise tax
    1. Commission math
    1. Annual interst or loan interest (daly, monthly, etc.)
    1. Cash that a buyer brings to closing
    1. Cash a seller walks away with (proceeds)
    1. Loan factor math
    1. Principle reduction of balance after one payment
    1. Loan origination fees and dicount points
    1. Acreage math
      Loann to value
      Debt to income
      Adjustments on comps (CMAs)
      Net Operating Income (cap rate)
      Cost approach
      Profit loss
      Area math - other areas
A

Tax bill proration
Excise tax
Commission math
Annual interst or loan interest (daly, monthly, etc.)
Cash that a buyer brings to closing
Cash a seller walks away with (proceeds)
Loan factor math

Realestate (21 decks)

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