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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
Material Fact
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.
26
NHD
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.
27
Nuisance
Activity which is injurious to health, offensive to the senses, or obstructs the use and enjoyment of surrounding property.
28
Periodic Tenancy
A leasehold interest which continues automatically for successive rental periods each for the same length of time, terminating upon notice of either party.
29
Property Management
Service offered by a licensed real estate BROKER; involving marketing, operation, maintenance and day to day accounting for rental property.
30
Puffing
An exaggeration of a property feature or benefit which, if reasonably believed to be fact, can rise to misrepresentation and fraud.
31
Quiet Enjoyment
Right of an owner or tenant to the use of property without interference of possession.
32
Ready, Willing and Able Buyer
One prepared to enter into a purchase agreement, wants to buy, and meets the financing requirements for purchase.
33
Real Estate Law
Collection of 29 codes in CA civil law governing real estate practice licensed.
34
Red Flag
A visually observable material defect in a property that was previously unknown and not disclosed to the buyer.
35
Redlining
Failure to provide financing or insurance in certain communities based on the demographics of that community.
36
Right of First Refusal
A pre-emptive right held by another person to buy a property if the owner decides to sell.
37
Security Deposit
Source of funds to pay tenant obligations owed the landlord on the tenant's default in the rental or lease agreement.
38
Statute of Frauds
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)
39
Statute of Limitations
A period of time establishing the deadline for filing a lawsuit to resolve a dispute.
40
Steering
Words or actions by a sales licensee intended to influence the choice of a buyer or tenant.
41
Sublease
A leasehold interest subject to the terms of a master lease.
42
Surrender
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
Trade Fixtures
Fixtures used to render services or make products for the trade or business of a tenant.
44
TDS
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
Trust Funds
Items which have or evidence monetary value held by a broker for a client when acting in a real estate transaction.
46
Unlawful Detainer
The act of retaining possession of property without legal right. (tenant remains in possession without the owners consent)
47
Unlicensed Activities
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
Held by brokers for safekeeping and are kept separate from the broker's personal funds. (record keeping and accounting imposed)
Trust Funds.
49
Regarding Trust Funds; Monies collected on behalf of a client need to be deposited no later than ____ after receipt.
3 Business Days
50
Regarding Trust Funds; A broker may maintain a maximum of ____ in the account to offset bank fees.
$200
51
Primary causes of licensee disciplinary action. (mixing of one clients funds with other clients)
Commingling
52
Licensee uses client's funds for their own purposes.
Conversion
53
Fair Housing Laws (1968 Civil Rights Act)
Federal Fair Housing Act (FFHA) and Federal Open Housing Law
54
Thirteenth Amendment of the United States Constitution
Foundation of much of the fair housing laws. (Dowel Jones vs. Mayer & Title 8)
55
Discriminatory Actions
Actions taken against individuals based on; race/color, national origin, religion, sex or gender, pregnancy, or handicap.
56
Implicit Discriminatory Practices
Those which are not openly discriminatory, but result in discriminatory effects
57
HUD
Department of Housing and Urban Development
58
Complaints filed with HUD must be filed within ____ of the discriminatory act.
one year
59
Fair Employment and Housing Act
Rumsford Act; prohibits discrimination in supplying housing accommodations and is overseen by Department of Fair Employment and Housing
60
Housing Financial Discrimination Act
Holden Act; protects against discrimination in lending practices.
61
Unruh Civil Rights Act
Prohibits discrimination in business
62
Must be contained in all advertising intended to be the first point of contact with a potential client, including business cards.
A licensee's name and license number.
63
Misleading Advertisements
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
Blind Advertisement
An ad that neither names the broker nor states a licensed agent is involved.
65
Buyers Gifts
Are permissible so long as they are available to everyone, and any obligation is clearly disclosed.
66
Business and Professions Code requires records to be kept for ____ years and include;
3; All listings, trust account ledgers, deposit receipts, and transactions.
67
WORM
"Write once, read many" format; electric records ok as long as they are non-erasable.
68
Broker is responsible for licensee in the case of___
An error, omission, or misunderstanding
69
Unlicensed Assistant
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
Unlicensed Finder
A fee collected from broker by an unlicensed person to locate prospective buyers, sellers, or borrowers. (must be hired under a written contract)
71
Finders Compensations
Salary, percentage fee, or lump sum basis per closing.
72
Chief Officer of Cal BRE
Real Estate Commissioner (Wayne S Bell); enforces all laws pertaining to real estate licensing and Subdivided Lands Law. (has authority over developers)
73
Title 10
Rules and regulations addressing conduct of persons; part of Cal Code of Regulations
74
Legal actions such as fraud dealt with by ____
Justice Department
75
Allowed to fine, suspend or revoke a license
CalBRE
76
Eligibility for a broker or sales license
``` 18yrs old/emancipated minor honest and truthful proof of legal presence in US proper application complete education pass exam ```
77
Broker and real estate sales license valid for ___ from the date of issuance noted on certificate.
4 years
78
Real Estate Brokers and Sales agents must complete ____ hours of continued education to ___ a license issued by CalBRE.
45; Renew
79
45 hours of cal BRE continued education consists of the following;
``` ~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
Failure to renew license prior to expiration date
Enter 2 yr grace period, may not practice if license is expired.
81
Real Estate Recovery Fund
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
Real Estate Recovery Fund Judgment must be based on the following;
Fraud or misrepresentation or deceit Conversion of trust funds Criminal restitution
83
Recovery fund is limited to _____ for one transaction and ____for any one licensee.
$50,000; $250,000
84
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 ____.
Suspended; Repay; Interest
85
Pocket Listings
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
Records
Must be maintained for 3 years in the event of a CalBRE audit
87
Property Management
The management of client properties requires a broker license.
88
Security Deposits
~Max security deposit equals 2 months rent for an UNFURNISHED rental ~3 months for a FURNISHED
89
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.
21 days
90
Only people allowed to receive a fee for the sale of a business opportunity that do not hold a real estate licensee
Securities broker or Dealer
91
Documents used in a sale of business
bill of sale Uniform Commercial Code Financing Statement(UCC-1) deed
92
Bulk Sale
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
Escrow is required if the business opportunity includes a _____
Liquor License
94
Mobilehome
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
TDS
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
A buyer has ____ to bring an action against a licensee for failure to disclose a known material fact.
2 years
97
If TDS is belatedly delivered to the buyer, the buyer has ___or ____to terminate the offer in writing.
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
In addition to NHD the buyer is to receive copies of the following booklets;
- 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
Houses built prior to 1978 must receive
Lead based Paint disclosure (1.0mil or 0.5% by weight)
100
Death in or on a property
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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