Exam Flashcards
Licensed Property Manager
Negotiates contracts
No entry unless contracted
Colo Warranty of Habitability Act
protects tenants
requires tenants to maintain safety, clean, no damages
must provide written notice if defect occurs
must be dangerous or affect tenants health/welfare
Lease Termination possibilities
Expiration
Mutual agreement
Breach of lease
Eviction
Notice of termination delivery options
direct delivery
deliver to another resident of family over 15
post notice
Eviction options
Actual
Constructive
Retaliatory
Termination of Lease options
Tenancy at will- 3 days
Estate for years- no specified number of days
Security Deposits reason retained
Landlords aren’t governed on how to handle security deposits
Retained for:
-unpaid rent
-utilities
-cleaning
-repair of tenant damages
Method of Returning Security deposits
-Landlord/Tenant Laws dictate use and return
-Landlords must provide accounting of deduction from returned deposits
-Must pay treble damages if wrongfully withheld
Fair housing laws
Illegal to pick and choose
Legal rejection:
-criminal conviction
-poor credit history
-too low income
-prior eviction lawsuit
Carbon Monoxide
Lessor responsible for installation
15 ft from entrance to bedroom
Well change of ownership
-first in time, first in right
-must be Permitted
-Div of water resources handles permits
Uniform duties- basic
-Reasonable skill and care
-Confidentiality
-Clarifies limitations for broker
-Owed by transaction broker
Additional duties
Promoting interests:
-Faith
-loyalty
-fidelity
-Seeking price and terms
-Counseling of known risks and material benefits
Limited agent
Statutory and uniform duties
Single agent
Uniform and additional duties
Sub agency
2 different firms with 2 agents representing seller client
Not practiced in Colo
Designated agency
-Employing broker assigns employed broker to a party
-Only used in multiple broker firms
-2 agents can work on one transaction in the same firm
-Designated broker may share info w employing broker
Terminating lease
Tenancy at will 3 days
Month to month 10 days
Estate for years specified in contract
Handling security deposits
Landlords aren’t required to handle a certain way
Property managers must deposit in 5 days
Security deposits
Returned within 30 days not exceeding 60 days
Well- type of information disclosed on addendum
-Source and type of potable water
-Water rights
-Type of sewer
-Disclosed on sellers addendum or disclosure
Well change of ownership info
Submitted by buyers
Colo property taxes
Paid in arrears
Colo tax due date
Less than 25-
1 payment
Jan 1-April 30
More than 25-
2 payments
Last day of Feb and June 15
Accrue interest starting May 1
Special tax districts
Costs for services
Seller provides disclosure
Colo fair housing act
Mrs Murphy allows discrimination only of family
Foreclosure
Non agricultural 110-125
Agricultural 215-230 days after recording
Can cure default up to sale but not after
Notice of cancellation form -
CREC seller warranty equity skimming
Buyer won’t assume any loans
Class 5 felony
Prorated payments- 4
-Taxes
-rent
-utilities
-HOA
Buyers closing costs- 9
Appraisal
Inspection
Doc fees
Title insurance
Atty fees
Loan fees
Recording fees
Mortgage insurance
Tax and insurance reserves
Seller costs- 6
Brokers fees
Atty fees
Recording costs
Title insurance
Existing liens
Withholding tax
Closing statements
Broker responsive for accuracy
6 column worksheet optional
Doesn’t record lenders fees
Closings
Most face to face
Most use title company
-Title company performs title search
-issues title insurance
Closing agent
Submits 1099
FIRPTA
Colorado non resident withholding
Closing legal doc
Listing broker pays doc prep
Broker closing their owns transactions may charge for services but not doc
File retention
4 years
Closing docs include
CD
Closing instructions
Contract
Title
Tax cert
Lending disclosure
Closing statement
ILC
Less extensive survey
Required by lenders and title insurance companies
Off record title section
Seller must deliver to buyer copies of surveys
OEC
Owners Extended Coverage
may be paid by either buyer or seller
Original offer
Brokers must sign
Due diligence
Info about financial and physical conditions
Mortgage and Deed
Security instruments
Promissory note
Describes loan and terms
Title theory state
Deed creates a lien
Deed payment
Trustee executes deed of reconveyance and releases property
Closing Instructions
Give closing agent right to collect info
Contract for deed
Transfer noting county treasurer
Who withholds FIRPTA at closing
Party who performs closing
Material facts
Must disclose ALL in a transaction
What creates loan agreement and security for financing and
Promissory note and deed of trust
Must be delivered before financing deadline
Deed
document to transfer ownership
How long retain transaction files
4 years
sales and property management
Use Variance
must show hardship to qualify
Ad information options
only APR
but no other credit terms
Amendment
changes any existing terms of contract
Assistance animals
must permit with no additional costs
landlord may not about disability if not obvious
SARA innocent landowner defense
superfunds amendment and reauthorization act-
Pending Contract
shows how long property was on the market- DOM
Addenda
must be drafted by an attorney
Tenancy in Common
inheritable
Periodic Estate
month to month lease
Inactive license renewal
must complete every 3 years
or license will expire
Price Fixing
must occur to the public in order for price fixing to occur
Reconciliation
weighted averaging of two properties or comparable
also reconciliation
Blockbusting
Change in value due to influx of new demographic
Accounting and trust account record keeping
Cash, not accrual
Keep hard copies
Reconcile monthly
Reasonable time
contract necessity
LTV ratio
using lesser of the sales price or appraised value
UETNA
Universal Electronic Transactions Act
State laws take precedence over UETNA
Statute of limitations
Deadline written
Acceptance of contract
all parties have signed
Binding acceptance
offer is delivered
Straight mortgage
Interest only
Budget
PITI included
monthly payment remains the same
Adjustable
fluxuates depending on rates
Title theory
lender holds title
Lien theory state
lender holds lien
foreclosure proceedings may be more lengthy
Conventional Loans
Offered on the secondary market
VA loan
No down payment
Balloon Loan
Regular amortized payments
Balloon lump sum due at maturity date
ARM
Adjustable Rate Mortgage
Payment and Interest locked for first period
then interest in response to economic index
Bridge Loan
delay between sale of old home and purchase of new home
Land Contract
seller retains right to title until loan is paid off
both buyer and seller have equitable title while loan is being paid off
Freddie Mae and Freddie Mac
Govt Sponsored Entities GSE
when loans meet their guidelines, they’r less risky, more attractive, lower rates
Mortgage bankers
in house processing and underwriting
Kickbacks between mortgage broker and agent
illegal under RESPA between service providers
Loan Estimate
Dodd Frank Act
tells buyer their estimated settlement costs and loan specifics
Equal Credit Opportunity Act
protects classes like national origin
Underwriters
Collateral, capacity, credit
Pre-qualification vs pre- approval
pre-approval lender verification of information
pre- qualification unverified info
Force of Law termination
bankruptcy of brokers
property destruction
principal incompetency
Sub agency
Agent working w buyer on behalf of another firm’s listing
Estoppel
making actions based on agreed terms
and later denying it
Bulk Zoning
regulates density with setbacks and building heights/widths
Reverse redlining
charging higher interest rates to non white
Blockbusting
inducing owners to sell due to influx of different types of homeowners
Cease and desist order
penalties of more than 15k per penalty per day
civil penalties
up to millions in damages
corrective ads may be needed
CE at firms
Firms can’t dictate where agents get their continuing ed
Tax abatement
assessment halted for construction or renovation
Indestructibility
land has great value
Metes and bounds
first reference to a property when surveying in a lot and block system
RGSS or metes and bounds
Fee simple estate that ends when owner dies
Life Estate
only valid during his lifetime
Disposition
right to convey
Transfer of title occurs
Owner delivers the deed to the new owner
Required elements of deed
Grantor:
signs
legal age and capacity
positive identification
act of conveyance
may include habendum clause
MUST BE RECORDED
CLOSING disclosure
Details closing costs
due 3 days before closing
Closing Estimate
Estimated fees
Payment schedule
doesn’t include final closing costs
Deduct taxes
Homeowners are sometimes eligible to deduct if they itemize
FHA loan on new build
Requires builder take out third party warranty
Correlation
Reconciliation
Appraisal process using findings to determine value
Using comparable
Sales Comparison Approach
1-financing terms and cash equivalency
2-conditions of sale
3-market conditions
4-location
5-physical characteristics
Comparable pricing
adjust only the comparable property, not the main property
Bracketing
Comparing similar properties
Pending sale
Determines DOM days on the market
Unbiased opinion of value
Formal Appraisal
