Principles - Chapter 8 Real Prop contracts & Escrow

Question 1

authorization to sell, contract and create agency
  first step
  must be in writing
  belongs to broker
  must give copy to each signatory
  not recorded

Answer 1

Listing Agreement

Question 2

Exclusive Right to sell-no matter who sells, broker is paid, timeframe required, 10pt font

Exclusive Agency-no commission if owner sells, time frame required

Open Listing-commission earned by broker who sells property, written memorandum

Net Listing-commission is all money in excess of selling price, could bring rise to fraud, payment must be disclosed

Answer 2

4 types of Agency Agreements

Question 3

Statement of observation of known defects of property condition

Answer 3

Real Estate Transfer Disclosure Statement

Question 4

Disclosure of duties owed to each party

Answer 4

Ca Assoc of Realtors Disclosure regarding real estate Agency Relationships Form

Question 5

Non-Foreign Status

Answer 5

Broker should obtain statement. If foreign status, buyer must withhuld 10% of sales price

Question 6

Cooperative listing service conducted by a group of brokers who are usually members of a real estate board.
Provides broad exposure

Answer 6

Multiple Listing service

Question 7

Offer to purchase-money deposit

Answer 7

Earnest Money
May be in form of cash, cashiers check, personal check (remains uncashed until acceptance), promissory note or personal property
Acceptance must be unqualified

Question 8

Purchase Form is unilateral and becomes bilateral when signed is called?

Answer 8

California Residential Purchase Agreement and Joint Escrow Instructions

Question 9

Counteroffer

Answer 9

A qualified acceptance to an offer - a new offer

Question 10

Binding contract between buyer and seller and conditional delivery of transfer instruments to a third party (escrow agent)

Answer 10

Escrow

Question 11

Trustee for money and documents

Answer 11

Escrow Agent

Question 12

Escrow Agencies licensed by…

Answer 12

Corporations Commission of California

Question 13

Court action for resolution by escrow agent

Answer 13

Interpleader Action

Question 14

Expenses paid by buyer and seller upon sale of property

Answer 14

closing costs

Question 15

Recurring and Non-Reoccuring (one time charges) closing costs-

Answer 15

usually paid by buyer
Recurring Ex: hazard insurance, prorated taxes, interest
Non -recurring: loan orig fee, appraisal, credit report, pest inspection, recording, notary fees

Seller usually pays:
ex: transfer tax, prepay penalties, commission, title and escrow? pg 146

Question 16

Proportional division of costs

Answer 16

Proration
beyond=buyer
short=seller

Question 17

lender to disclose to buyer certain info and estimation of closing costs

Answer 17

RESPA Real Estate Settlement Procedure Act