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Real Estate Practice Flashcards

1
Q

Define Due Diligence

A

A fair, proper, and due degree of care and activity

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2
Q

Who administered Federal Do Not Call Registry?

A

FTC - Federal Trade Commission

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3
Q

What is the CAN-SPAM ACT?

A

Consumer privacy for emails

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4
Q

Listing Agreement

A

Place seller ‘s property on the market and find a buyer.

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5
Q

Requirements of a Valid listing:

A

Signatures of all the owners and the listing licensee

Legal description

Listing price

Broker’s commission

Definite Starting &Termination Date

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6
Q

4 types of Listing Agreement:

A

Exclusive Right To Sell
Exclusive Agency
Open Listing
Net Listing

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7
Q

Exclusive right to sell

A

Broker is the exclusive agent and receives the commission.

This type of listing eliminates most procuring cause controversies

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8
Q

Exclusive Agency

A

Broker is the exclusive agent unless the seller sells the property himself.

Often used by builders who reserves the right to sell new construction

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9
Q

Opening listing

A

Reserves the right to list with as many brokers as he chooses.

Open listings are not found in the MLS.

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10
Q

Net listing

A

Any amount over wants for sale of the property is treated as the broker’s commission.

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11
Q

Is net listing illegal in some states?

A

Yes

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12
Q

MLS

A

Owned and operated by board of Realtors

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13
Q

Buyer representation agreement

A

Is an employment contract where in the broker will be the buyer’s agent

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14
Q

Requirements of Buyer Rep:

A

Buyer’s broker must protect the buyer’s interest at all points in the transaction.

Specific services provided to the buyer should be spelled out.

Compensation issues should be addressed.

Agreement must have beginning and ending date.

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15
Q

Does all agency agreements must be in writing?

A

Yes to satisfy Statute of Frauds

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16
Q

Termination of Employment Contracts

A

Fulfillment of purpose
Abandonment or cancelation by the broker
Revocation by your principal
Mutual consent
Acts of law including:
Bankruptcy of the Seller or the broker, or foreclosure
Death
Destruction of the property or condemnation under eminent domain

A change in property use by o/s forces, such as zoning

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17
Q

Property manager

A

Is a general agent with broad scope of responsibilities and liabilities

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18
Q

Management agreement

A

Is used to create this relationship and define the role and responsibilities of the agent and the owner.

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19
Q

What’s the 1st step when an agent agree to property managers

A

Sign the management agreement

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20
Q

Roles of a property manager

A

A) finances and marketing of the property and generating income.
B) Tenant relationships & occupancy
C) Managing the facility
D) administration of the lease agreements and risk management

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21
Q

Civil Rights Act of 1866

A

prohibits discrimination based on race or color.

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22
Q

Federal fair housing act a/k/a Title VIII of the Çivil Rights Act of 1968

A

Forbids discrimination on the basis of race, color, national origin, and religion

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23
Q

When was a 1974 amendment added

A

Sex as a protected class

24
Q

Act amended in 1988 to include

A

Family composition (familial Status) and the handicapped. That amendment went into effect 1989.

25
Age is not covered
Allow for senior housing- Familial Status Exemption
26
3 Watson a community can qualify as a senior housing
1) 100% of the units must be occupied by someone 62 or older 2) 80% of the units must be occupied by someone 55 or older
27
Blockbusting
Causing panic selling by homeowners (panic peddling )
28
Steering
Directing buyers into or away from certain areas because of their race, color, etc. Aka channeling
29
What's required that every broker must have in office?
Equal Housing Opportunity Poster available from HUD
30
If a complaint is filed against a license, the licensee best defense
Is written records of interaction with clients and prospects.
31
How many years does victims have to file a complaint?
Up to 2 years to file a complaint with the court
32
How many years to seek mediation?
1 year to seek through HUD
33
ADA
Was passed to prohibited discrimination against individuals with special needs
34
Risk Management
1) Supervision and compliance with Federal Laws
35
Independent contractor status
Must be established by written agreement between the parties to comply with IRS regulations
36
Income will be reported to the IRS
On form 1099NEC
37
Commingle
Mixes client 💰 with his or her funds, either personal or business.
38
Conversion
A broker uses a client's money or commingled funds for his or her own purposes.
39
How many years should a broker keep documents involved in his/her business?
Minimum of 4 years
40
Vicarious liability
broker is responsible for the sponsored agent actions
41
Antitrust laws
The Sherman & Clayton Antitrust Acts - passed to preserve business competition by prohibiting monopolies, monopolistic practices, and restraint of trade.
42
The most significant impact of this on real estate
Area of commission
43
Boycotting discount brokers is prohibited
True
44
Is death by natural causes or suicide need to be disclose
NO
45
Stigmatized
A property where there had been a murder or alleged haunting
46
Megan's Law
requires all states to register convicted sex offenders.
47
Puffing
Is not misrepresentation. Puffing us marketing...uses adjectives an opinions
48
Remember, opinions are subjective and not factual.
True
49
Should latent or hidden defects must also be disclosed.
Yes
50
Errors and omissions
Protects both broker and sales license from a legal claims
51
General Liability Insurance
Liability risks may include bodily injury or property damage caused by direct or indirect actions of the insured.
52
Brokers can operate their business es in a variety of ways.
Sole proprietorship- single person company Partnership- all general partners or a combination of general and limited partners
53
General Partnership
Co-owner who can enter into contracts on behalf of the partnership and is fully liable for all partnership debts
54
Limited partner
An investor with no say in the operation of the partnership. Liability is limited to the amount of their investment
55
S corporation
A small corporation designed to remove self employment tax and reduce personal liability

Real Estate (5 decks)

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