Nature of Real Property Flashcards
Is puffing an issue of misrepresentation or fraud?
No, it is a statement of opinion
“Home is located in a beautiful neighborhood”
“good shape” “good price” “nice home”
What should a broker provide to all affiliated licensees and staff?
Education and Training
Who are the parties to a listing agreement?
Entered into between Seller and Broker
Under the Listing Agreement, what promises does a broker have to the principle?
Best efforts and due diligence
RESPA Violations
- No kickbacks
- Charging for unearned fees
- True cost to finance
It the listing agreement open ended?
No, it must contain an expiration under the operation of law
Dual Agency
fiduciary duties are balanced,
especially disclosure and confidentiality
Designated Agency
Only one licensee within the company is designated as exclusive agency
Loan Estimates timing
Deliver to Consumer no later than 3 business days after application is complete and 7 days before the loan is consummated.
Closing Disclosure Timing
Must be delivered to Consumer at least 3 days before loan is consummated
Corrected Closing Disclosure may ..
trigger a new 3-day waiting period
- Increase in APR
- loan product changes
- prepayment penalty is added
Settlement Statement
Written analysis and itemization of amounts owed to or by (Seller/Buyer)
Computer Loan Origination
- Assists consumers in finding a lender
- RESPA does not prohibit payment by a borrower, as long as it is reported on Good Faith Estimate or HUD-1 (CD)
