Practice of Real Estate 13% Flashcards

1
Q

Trust

A

Property right held by one on behalf of another. A fiduciary relationship is created in which the trustee controls the property for the advantage of the beneficiary.

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2
Q

Trust Account

Purpose and definition of trust accounts, including monies held in trust accounts

Responsibility for trust monies, including commingling/ conversion

A

A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary

trust money means client’s money, earnest money, rent, unearned fees, security deposits, or any money held on behalf of another person.

Commingling is a breach of trust in which a fiduciary mixes funds held in care for a client with their own funds.

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3
Q

Protected Classes in FHA

A

race, color, religion, national origin, sex, disability, familial status

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4
Q

Red-lining

A

Refusal to lend based on a property’s location within a “red lined” area on a map. The illegal practice in which a lender refuses to provide loans to mortgagors in certain geographic locations they consider to be risky. Little consideration is given to applicant’s individual qualifications.

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5
Q

Blockbusting

A

blockbusting. An illegal practice in which licensees or others encourage homeowners to sell because of an influx or expected influx of minorities into the area.

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6
Q

Steering

A

a lender to refuse to lend in a specific area, often based on the minority makeup of the area

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7
Q

Americans with Disabilities Act (ADA)

A

A Federal Act designed to eliminate discrimination against individuals with disabilities.

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8
Q

Exemptions to ADA

A

illegal use of drugs, sexual behavior, compulsions.

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9
Q

Truth in Advertising

A

Federal Law states that an ad must be truthful, not misleading and when appropriate, backed by science.

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10
Q

Employee

A

an affiliated licensee who works on behalf of a broker.

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11
Q

Independent Contractor

A

one hired for an end result. one who is hired to complete a specific job or to produce a specific result according to his own methods.

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12
Q

Due Diligence

A

The standard of care a person exercised prior to engaging in an activity. The state of being diligent, meaning attentive, observant, or vigilant. Refers to the level of care and attention a person observes with entering into an activity such as purchasing land, e.g., did the buyer make all reasonable inquiries and conduct all appropriate inspections.

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