Real Estate Terms #1 Flashcards
The practice of influencing a buyer’s choice of communities based upon one of the protected characteristics under the Fair Housing Act, which are race, color, religion, gender, disability, familial status, or national origin.
Steering
Was a business practice in the United States in which real estate agents and building developers convinced white residents in a particular area to sell their property at a below-market prices.
Blockbusting
The practice of denying a creditworthy applicant a loan for housing in a certain neighbor hood even though the applicant may otherwise be eligible for the loan.
Redlining
An account separate from a broker’s own funds (business and personal) in which the broker is required by law to deposit all funds collected for clients before disbursement.
Trust account
A deed issued by a borrower of funds (the trustor) conveying title to a trustee on behalf of a lender, the beneficiary of the trust ; the trust deed authorizes the trustee to sell the property to pay the remaining indebtedness to the beneficiary if the trustor defaults on the underlying obligation.
Trust deed
One who hold property conveyed by a trustor on behalf of (in trust for) the beneficiary, to secure the performance of an obligation.
Trustee
One who conveys property to a trustee to hold on behalf of (in trust for) a beneficiary to secure the performance of an obligation; borrower under a deed of trust.
Trustor
This listing entitles the listing agent to the compensation, no matter who sells the property. All exclusive listings, by law, must have a definite termination date.
Exclusive-authorization-and-right-to-sell listing.
With an exclusive-agency listing, the broker is not entitled to a commission if the owner sells without an agent’s assistance.
Exclusive-agency listing
Nonexclusive. Commission earned only if listing broker is procuring cause of sale.
Open Listing
No other broker authorized. Seller receives predetermined amount and broker receives excess.
Net Listing
No other broker authorized. Broker has right to purchase the property. Requires full disclosure to seller of broker’s profit if option exercised.
Option Listing
A _________ is one that is terminated.
Discharged contract
Ways to terminate a contract or change one or more of its terms, including the following:
Performance.
Rescission.
Release.
Novation.
Reformation.
Assignment.
Breach.
The cancellation of a contract and restoration of the parties to the same position they held before the contract was formed.
Rescission
The substitution or exchange of a new obligation or contract for an old one by mutual agreement of the parties.
Novation
An action to correct a mistake in a contract, deed, or another document.
Reformation
Transfer or rights from one party to another, usually for compensation.
Assignment
The failure of a duty imposed by law or by contract, either by omission or commission.
Breach of contract
Event, such as destruction of property, that makes it impossible to perform a contract on its terms.
Impossibility of performance.
An offer to perform a contracted obligation.
Tender.
Use of a fiduciary or confidential relationship to obtain a fraudulent or an unfair advantage over another’s weakness of mind, distress, or necessity.
undue influence
A deliberate statement of a material fact that the speaker knows to be false and on which the speaker intends another person to rely to his detriment.
Affirmative fraud
Deliberate concealment of something that should be revealed.
Negative fraud
A deliberate misrepresentation or a representation made in reckless disregard of its truth or falsity; the suppression of truth; a promise made without the intention to perform it; or any other act intended to deceive.
actual fraud
Any representation made without a deliberate intent to deceive.
constructive fraud
A lawsuit to recover title to real property must be brought within _______.
five years.
An action base on a written instrument (such as a real estate sales contract) must be brought within ________.
four years.
An action based on fraud must be brought within _______ of the discovery of the fraud.
three years.
An action based on an oral agreement (such as a lease for only a few months) must be brought within _______.
two years.
An action base on a judgment must be brought within _______ of the awarding of the judgment.
10 years.
