Practice of Real Estate 13% Flashcards
Trust
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.
Trust Account
Purpose and definition of trust accounts, including monies held in trust accounts
Responsibility for trust monies, including commingling/ conversion
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.
Protected Classes in FHA
race, color, religion, national origin, sex, disability, familial status
Red-lining
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.
Blockbusting
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.
Steering
a lender to refuse to lend in a specific area, often based on the minority makeup of the area
Americans with Disabilities Act (ADA)
A Federal Act designed to eliminate discrimination against individuals with disabilities.
Exemptions to ADA
illegal use of drugs, sexual behavior, compulsions.
Truth in Advertising
Federal Law states that an ad must be truthful, not misleading and when appropriate, backed by science.
Employee
an affiliated licensee who works on behalf of a broker.
Independent Contractor
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.
Due Diligence
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.