Real Estate Terms #1

Question 1

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.

Answer 1

Steering

Question 2

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.

Answer 2

Blockbusting

Question 3

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.

Answer 3

Redlining

Question 4

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.

Answer 4

Trust account

Question 5

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.

Answer 5

Trust deed

Question 6

One who hold property conveyed by a trustor on behalf of (in trust for) the beneficiary, to secure the performance of an obligation.

Answer 6

Trustee

Question 7

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.

Answer 7

Trustor

Question 8

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.

Answer 8

Exclusive-authorization-and-right-to-sell listing.

Question 9

With an exclusive-agency listing, the broker is not entitled to a commission if the owner sells without an agent’s assistance.

Answer 9

Exclusive-agency listing

Question 10

Nonexclusive. Commission earned only if listing broker is procuring cause of sale.

Answer 10

Open Listing

Question 11

No other broker authorized. Seller receives predetermined amount and broker receives excess.

Answer 11

Net Listing

Question 12

No other broker authorized. Broker has right to purchase the property. Requires full disclosure to seller of broker’s profit if option exercised.

Answer 12

Option Listing

Question 13

A _________ is one that is terminated.

Answer 13

Discharged contract

Question 14

Ways to terminate a contract or change one or more of its terms, including the following:

Answer 14

Performance.
Rescission.
Release.
Novation.
Reformation.
Assignment.
Breach.

Question 15

The cancellation of a contract and restoration of the parties to the same position they held before the contract was formed.

Answer 15

Rescission

Question 16

The substitution or exchange of a new obligation or contract for an old one by mutual agreement of the parties.

Answer 16

Novation

Question 17

An action to correct a mistake in a contract, deed, or another document.

Answer 17

Reformation

Question 18

Transfer or rights from one party to another, usually for compensation.

Answer 18

Assignment

Question 19

The failure of a duty imposed by law or by contract, either by omission or commission.

Answer 19

Breach of contract

Question 20

Event, such as destruction of property, that makes it impossible to perform a contract on its terms.

Answer 20

Impossibility of performance.

Question 21

An offer to perform a contracted obligation.

Answer 21

Tender.

Question 22

Use of a fiduciary or confidential relationship to obtain a fraudulent or an unfair advantage over another’s weakness of mind, distress, or necessity.

Answer 22

undue influence

Question 23

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.

Answer 23

Affirmative fraud

Question 24

Deliberate concealment of something that should be revealed.

Answer 24

Negative fraud

Question 25

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.

Answer 25

actual fraud

Question 26

Any representation made without a deliberate intent to deceive.

Answer 26

constructive fraud

Question 27

A lawsuit to recover title to real property must be brought within _______.

Answer 27

five years.

Question 28

An action base on a written instrument (such as a real estate sales contract) must be brought within ________.

Answer 28

four years.

Question 29

An action based on fraud must be brought within _______ of the discovery of the fraud.

Answer 29

three years.

Question 30

An action based on an oral agreement (such as a lease for only a few months) must be brought within _______.

Answer 30

two years.

Question 31

An action base on a judgment must be brought within _______ of the awarding of the judgment.

Answer 31

10 years.