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Ch.6 (Practice Of Real Estate & Disclosures) > Key Terms (Ch. 6) 25% > Flashcards

Key Terms (Ch. 6) 25% Flashcards

1
Q

Abondonment

A

unilateral termination of a tenancy by forfeiture, delivered by land Lord.

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2
Q

Advertising

A

marketing materials by licensee (fliers, classified adds, brochures)

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3
Q

ADA

A

Americans with Disabilities Act, prohibits employers from discriminating against a qualified person based on disability.

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4
Q

Anti-trust

A

state & federal regs designed to promote fair competition in the marketplace

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5
Q

Blockbusting/Panic Selling/Peddling

A

A licensee inducing a property owner to list their property for sale in response to a change taking place in neighborhood demographics

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6
Q

Bulksale

A

Transfer of more than one half the inventory of a businesses goods to a person other than the business’ customers.

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7
Q

CalBRE

A

Agency which oversees, regulates, and administers cal real estate law as practiced by licensee. ( contained within the Department of Consumer Affairs)

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8
Q

Certificate of clearance

A

Document certifying a property has been cleared of all infestations and all repairs necessary to prevent infestations have been completed

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9
Q

Commingly

A

The mixing of personal funds with client or third party funds held in trust

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10
Q

Commission

A

look up

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11
Q

Common Area

A

An entire common interest subdivision except the seperate interests therein

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12
Q

CMA

A

Comparative Market Analysis; used by agent to prepare an estimate of properties value for review with property owner for purpose of listing presentation. (based on prices recently paid for similar properties in area)

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13
Q

Disclosure

A

A fact made known about property’s condition

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14
Q

Due Diligence

A

Efforts of an agent to meet the objective of their client (the agents promise given in exchange for the clients promise to pay a fee)

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15
Q

Estoppel

A

A legal theory barring a person from later asserting or denying a condition based on the persons previous acts or statements.

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16
Q

Ethics

A

Duties a member of a profession owes to the public; acepted standards of right and wrong.

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17
Q

Fair Housing Laws

A

Designed to prevent discrimination in the access to housing based on an occupants inclusion in a protected class. (title VIII of 1968 civil rights act)

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18
Q

Franchise

A

License granted by franchise company to an individual or corporate broker to market their services in a specific territory under name and oversight of the franchise company

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19
Q

Grace Period

A

Time period following due date for a payment during which payment recieved by the lender or landlord is not delinquent and a late charge is not due.

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20
Q

Habitable Condition

A

Mininum acceptable level of safety, utility and sanitation permitted in a Residential rental.

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21
Q

Independent Contractor

A

A salesperson employed by a broker under an employment arrangement which avoids income tax withholding and unemployment benefit payments by broker.

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22
Q

Interpleader

A

A court proceeding initiated by holder of $ or other property, who claims no proprietary interest in it, for the purpose of deciding who among claimants is legally entitled to the property.

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23
Q

Leverage

A

Use of debt financing to acquire property to maximize the return on cash investedn the loan-to-value ratio.

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24
Q

License

A

The personal right held by an individual to the nonexclusive use of property owned by another person.

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25
Q

Material Fact

A

A fact that, if known, may cause a buyer or seller of real estate to make a different decision regaurding the price to offer for a property or whether to remain in a contract or cancel it.

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26
Q

NHD

A

Natural Hazard Disclosure Statement; Report provided by a local agency or NHD vendor and used by sellers and sellers agents to disclose natural hazards which exists on property for sale.

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27
Q

Nuisance

A

Activity which is injurious to health, offensive to the senses, or obstructs the use and enjoyment of surrounding property.

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28
Q

Periodic Tenancy

A

A leasehold interest which continues automatically for successive rental periods each for the same length of time, terminating upon notice of either party.

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29
Q

Property Management

A

Service offered by a licensed real estate BROKER; involving marketing, operation, maintenance and day to day accounting for rental property.

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30
Q

Puffing

A

An exaggeration of a property feature or benefit which, if reasonably believed to be fact, can rise to misrepresentation and fraud.

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31
Q

Quiet Enjoyment

A

Right of an owner or tenant to the use of property without interference of possession.

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32
Q

Ready, Willing and Able Buyer

A

One prepared to enter into a purchase agreement, wants to buy, and meets the financing requirements for purchase.

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33
Q

Real Estate Law

A

Collection of 29 codes in CA civil law governing real estate practice licensed.

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34
Q

Red Flag

A

A visually observable material defect in a property that was previously unknown and not disclosed to the buyer.

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35
Q

Redlining

A

Failure to provide financing or insurance in certain communities based on the demographics of that community.

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36
Q

Right of First Refusal

A

A pre-emptive right held by another person to buy a property if the owner decides to sell.

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37
Q

Security Deposit

A

Source of funds to pay tenant obligations owed the landlord on the tenant’s default in the rental or lease agreement.

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38
Q

Statute of Frauds

A

CA state law requiring specific types of contracts to be in writing and signed by the person to be charged with performance before they will be enforceable by a court. (i.e. purchase agreements and lease agreements for a term of more than one year)

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39
Q

Statute of Limitations

A

A period of time establishing the deadline for filing a lawsuit to resolve a dispute.

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40
Q

Steering

A

Words or actions by a sales licensee intended to influence the choice of a buyer or tenant.

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41
Q

Sublease

A

A leasehold interest subject to the terms of a master lease.

42
Q

Surrender

A

A mutual cancellation of a lease agreement by the landlord and the tenant, written or by their conduct, when the tenant vacates the leased premises.

43
Q

Trade Fixtures

A

Fixtures used to render services or make products for the trade or business of a tenant.

44
Q

TDS

A

Transfer Disclosure Statement; A mandatory disclosure prepared by a seller and given to to prospective buyers setting forth any property defects known or suspected to exist by the seller, generically called a condition of property disclosure.

45
Q

Trust Funds

A

Items which have or evidence monetary value held by a broker for a client when acting in a real estate transaction.

46
Q

Unlawful Detainer

A

The act of retaining possession of property without legal right. (tenant remains in possession without the owners consent)

47
Q

Unlicensed Activities

A

Activities performed by unlicensed assistants, such as clerical work which does not relate to the communication of information such as price and terms of a sale with potential buyers and sellers.

48
Q

Held by brokers for safekeeping and are kept separate from the broker’s personal funds. (record keeping and accounting imposed)

A

Trust Funds.

49
Q

Regarding Trust Funds; Monies collected on behalf of a client need to be deposited no later than ____ after receipt.

A

3 Business Days

50
Q

Regarding Trust Funds; A broker may maintain a maximum of ____ in the account to offset bank fees.

A

$200

51
Q

Primary causes of licensee disciplinary action. (mixing of one clients funds with other clients)

A

Commingling

52
Q

Licensee uses client’s funds for their own purposes.

A

Conversion

53
Q

Fair Housing Laws (1968 Civil Rights Act)

A

Federal Fair Housing Act (FFHA) and Federal Open Housing Law

54
Q

Thirteenth Amendment of the United States Constitution

A

Foundation of much of the fair housing laws. (Dowel Jones vs. Mayer & Title 8)

55
Q

Discriminatory Actions

A

Actions taken against individuals based on; race/color, national origin, religion, sex or gender, pregnancy, or handicap.

56
Q

Implicit Discriminatory Practices

A

Those which are not openly discriminatory, but result in discriminatory effects

57
Q

HUD

A

Department of Housing and Urban Development

58
Q

Complaints filed with HUD must be filed within ____ of the discriminatory act.

A

one year

59
Q

Fair Employment and Housing Act

A

Rumsford Act; prohibits discrimination in supplying housing accommodations and is overseen by Department of Fair Employment and Housing

60
Q

Housing Financial Discrimination Act

A

Holden Act; protects against discrimination in lending practices.

61
Q

Unruh Civil Rights Act

A

Prohibits discrimination in business

62
Q

Must be contained in all advertising intended to be the first point of contact with a potential client, including business cards.

A

A licensee’s name and license number.

63
Q

Misleading Advertisements

A

Failure to state material facts about condition of property; or publishing of a map that causes people to believe a property is closer to area amenities.

64
Q

Blind Advertisement

A

An ad that neither names the broker nor states a licensed agent is involved.

65
Q

Buyers Gifts

A

Are permissible so long as they are available to everyone, and any obligation is clearly disclosed.

66
Q

Business and Professions Code requires records to be kept for ____ years and include;

A

3; All listings, trust account ledgers, deposit receipts, and transactions.

67
Q

WORM

A

“Write once, read many” format; electric records ok as long as they are non-erasable.

68
Q

Broker is responsible for licensee in the case of___

A

An error, omission, or misunderstanding

69
Q

Unlicensed Assistant

A

May not communicate price and terms with potential clients, but may host an open house or write up contracts and comparative market analyses (only if reviewed by broker)

70
Q

Unlicensed Finder

A

A fee collected from broker by an unlicensed person to locate prospective buyers, sellers, or borrowers. (must be hired under a written contract)

71
Q

Finders Compensations

A

Salary, percentage fee, or lump sum basis per closing.

72
Q

Chief Officer of Cal BRE

A

Real Estate Commissioner (Wayne S Bell); enforces all laws pertaining to real estate licensing and Subdivided Lands Law. (has authority over developers)

73
Q

Title 10

A

Rules and regulations addressing conduct of persons; part of Cal Code of Regulations

74
Q

Legal actions such as fraud dealt with by ____

A

Justice Department

75
Q

Allowed to fine, suspend or revoke a license

A

CalBRE

76
Q

Eligibility for a broker or sales license

A 
18yrs old/emancipated minor
honest and truthful
proof of legal presence in US
proper application
complete education
pass exam
77
Q

Broker and real estate sales license valid for ___ from the date of issuance noted on certificate.

A

4 years

78
Q

Real Estate Brokers and Sales agents must complete ____ hours of continued education to ___ a license issued by CalBRE.

A

45; Renew

79
Q

45 hours of cal BRE continued education consists of the following;

A 
~MAFTER (15 hrs)
Management and supervision
Agency
Fair Housing
Trust Funds
Ethic (every 2 yrs)
Risk management
~Consumer protection (18 hrs)
~Remaining consist of consumer protection/service
80
Q

Failure to renew license prior to expiration date

A

Enter 2 yr grace period, may not practice if license is expired.

81
Q

Real Estate Recovery Fund

A

AKA Consumer Recovery Account; available to individuals who have obtained a final court judgment against a real estate licensee for losses caused while acting as an agent and are unable to recover the judgment from the licensee.

82
Q

Real Estate Recovery Fund Judgment must be based on the following;

A

Fraud or misrepresentation or deceit
Conversion of trust funds
Criminal restitution

83
Q

Recovery fund is limited to _____ for one transaction and ____for any one licensee.

A

$50,000; $250,000

84
Q

After a judgment has been made a licensee’s license will be _____ and he must_____ any amounts paid from the Real Estate Recovery fund plus ____.

A

Suspended; Repay; Interest

85
Q

Pocket Listings

A

Holding a signed listing contract rather than submitting it for exposure to the general public on the MLS ( is unethical unless authorized by the seller)

86
Q

Records

A

Must be maintained for 3 years in the event of a CalBRE audit

87
Q

Property Management

A

The management of client properties requires a broker license.

88
Q

Security Deposits

A

~Max security deposit equals 2 months rent for an UNFURNISHED rental
~3 months for a FURNISHED

89
Q

After the tenant has surrendered the unit, the property manger has ___ to return any unused deposit along with an explanation of how the monies were used.

A

21 days

90
Q

Only people allowed to receive a fee for the sale of a business opportunity that do not hold a real estate licensee

A

Securities broker or Dealer

91
Q

Documents used in a sale of business

A

bill of sale
Uniform Commercial Code Financing Statement(UCC-1)
deed

92
Q

Bulk Sale

A

The transfer of more than one half the business’s inventory of materials or goods to a person other than a customer of the business

93
Q

Escrow is required if the business opportunity includes a _____

A

Liquor License

94
Q

Mobilehome

A

AKA a manufactured home;
is a structure at least 8ft wide, 40ft in Length
built on a permanent chasses
(if attached to a permanent foundation loses its personal property status and becomes real)

95
Q

TDS

A

Transfer Disclosure Statement (Eastern VS Strawburger)
-mandatory of seller of one to four unit residential property
- requires seller to state all known material facts
- affecting the property’s value.
(required if sold “as is” or FSBO)

96
Q

A buyer has ____ to bring an action against a licensee for failure to disclose a known material fact.

A

2 years

97
Q

If TDS is belatedly delivered to the buyer, the buyer has ___or ____to terminate the offer in writing.

A

3 days after personal delivery; 5 days after mailed delivery

within 7 days must be disclosed to buyer and 21 days for loan approval

98
Q

In addition to NHD the buyer is to receive copies of the following booklets;

A
  • Environmental Hazards(all one to four residential units)
  • Protect Your Family from Lead (all pre 1978 one to four units)
  • The Homeowners Guide to Earthquake Safety (all pre 1960 one to four units)
99
Q

Houses built prior to 1978 must receive

A

Lead based Paint disclosure (1.0mil or 0.5% by weight)

100
Q

Death in or on a property

A

Must be disclosed if death occurs within last 3 years, or if asked, or if after 3 years the death adversely affects the market price

Ch.6 (Practice Of Real Estate & Disclosures) (9 decks)

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