Course 1, Module 2, Lesson 1 Flashcards
What are the SIX things that are considered “Trading” according to REBBA
- Selling, leasing or exchanging real estate
- Listing propert
- Showing property
- Advertising property
- Negotiating (ie assisting on agreement)
- Creating a weekly blog on market trends
What does a brokerage do?
A brokerage trades in real estate on behalf of others
What is the difference between a co-operating brokerage and buyer’s brokerage?
Both represent the buyer but the term co-operating brokerage is used if the seller is using a brokerage. (ie the seller’s brokerage seems to be the focus)
What is another name for a seller?
A vendor
What are TWO other terms for selling?
- Disposing
2. Divestiture
What is another term for a Landlord?
A lessor
What does leasing/renting mean?
It means to possession of property rather than ownership
What is another name for a tenant?
A lessee
What does it mean to represent a client?
A regulatory and fiduciary (trust) responsibility is placed on the brokerage. This includes loyalty, confidentiality and promotion of the best interest of the buyer/seller
What does it mean to provide services to a customer
In this case, there is no agency relationship established. have to treat them with fairness, honesty, and integrity BUT don’t owe them loyalty or looking out for best interest. (Ie you are the selling salesperson and folks come in looking to buy without agent - have to treat them well but not above and beyond)
Can a customer have offers drafted for them?
Yes, but they are not advised by the brokerage, have to do their own due diligence (unlike clients)
What is the difference between a Representation Agreement and a Listing Agreement?
The former relates to buyers and the later to sellers
What are TWO other names for an Offer
- An agreement fr the conveyance of an interest in real estate
- An agreement of purchase and sale
What does an offer aid the buyer and seller in doing?
In negotiating the terms of sale
What are FOUR basic requirements of an Offer?
- Must be in writing
- Must be signed by both parties (to be enforceable)
- Must be legible
- A copy should be sent to both buyer and seller ASAP
Where are remuneration rates set out?
Typically in the representation agreement
How is remuneration calculated?
As a percentage of the sale price, a fixed fee or both
What does the term “Real Estate” refer to?
Tangible aspects such as land, structure
What does the term “improvements” refer to?
Any structure or permanent addition made (ie: fence, deck, shed, etc)
What does the term “real property” refer to?
this refers to all tangible aspect as well intangible rights such as to possess, use, and enjoy
What is also referred to as the “bundle of rights”
The rights to possess, use and enjoy (as is afforded by real property
What is meant by “personal Property”?
Anything in a house that is movable and thus not considered real estate (ie: appliances, furniture, etc). as well as some items which usually are not moved (light fixtures, shutters etc).
Define “fixtures”
Fixtures are a type of personal property that are securely attached (shutters, light fixtures, etc) and so are usually included in a sale.
Define “chattels”
A Chattel is personal property that can be moved and so is usually excluded from the sale (ie: fridge, stove)
