Review Unit 7, 8, & 9

Question 1

Constructive notice is..

Answer 1

legal presumption that information has been obtained by an individual through due diligence

Question 2

Actual notice is..

Answer 2

not only that information of an interest in property is available but also that someone is actually aware of it.

Question 3

Recording is..

Answer 3

the act of placing documents in the public record

Question 4

Chain of title is..

Answer 4

the record of a property’s ownership

Question 5

Cloud on title is..

Answer 5

a chain broken on the title

Question 6

Title search is..

Answer 6

an exam of the public records to determine whether any defects exist in the chain of title

Question 7

Abstract of title is..

Answer 7

is a summary report of what the title search found in the public records

Question 8

Marketable title is..

Answer 8

(FREE & CLEAR) a title that’s acceptable to a reasonably prudent person and which will not subject the buyer to litigation

Question 9

Certificate of title is..

Answer 9

is a statement of opinion of the title’s status on the date the certificate is issued

Question 10

Title insurance is..

Answer 10

is a contract under which the policyholder is protected from losses arising from defects in the title

Question 11

Torrens system is..

Answer 11

a legal registration system used to verify ownership of real estate

Question 12

What is the purpose of real estate license laws?

Answer 12

to protect the public by insuring a standard of competence and professionalism in the real estate industry

Question 13

A real estate broker is..

Answer 13

licensed to buy, sell, exchange, or lease real property for others and to charge a fee for those services

Question 14

Sales associate is..

Answer 14

might be licensed as a real estate sales person or be a licensed real estate broker who simply chooses to work for another person.

Question 15

What is a multiple listing service?

Answer 15

a membership that provides marketing opportunity

Question 16

Procuring clause of a sale is..

Answer 16

the broker must have started an uninterrupted chain of events that result in a sale

Question 17

When a broker has a ready, willing, and able buyer is when..

Answer 17

the broker is entitled to commission

Question 18

Graduated commission split is ..

Answer 18

50/50, 60/40, 80/20, 90/10

Question 19

Sherman Anti-trust Act is…

Answer 19

what prohibits monopolies and contracts including.. price fixing, group boycott, allocation of customers or markets, or tie-in agreements.

Question 20

Expressed agency vs applied agency…

Answer 20

Expressed interest is when two parties formally express interest to establish state and agency

Implied is when the parties act as though they have mutually contented to an agency even if they have not entered int a formal agreement

Question 21

Fiduciary responsibilities are … OLD CAR

Answer 21

Obedience
Loyalty
Disclosure

Confidentiality
Accounting
Reasonable Care

Question 22

TYPES OF AGENCY RELATIONSHIPS…

Answer 22

Universal - person empowered to do anything the principal could do personally

General - represents the principal in a broad range of matters related to a particular business or activity

Special - authorized to represent principal in one specific act or business transaction

Single - the agent represents only one party to a transaction

Dual - agent represents two principals in the same transaction

Question 23

Megan’s law is..

Answer 23

duty to disclose where the client can get their information on sex offenders

Question 24

Termination of Agency occurs when…

Answer 24

Completion or fulfillment
Death or incapacity of either party
Destruction or condemnation of the property
Expiration of the terms of the agency
Mutual agreement by all parties to cancel
Breach by one of the parties
By operation of law as in bankruptcy

Question 25

Negligent misrepresentation is …

Answer 25

Occurs when the real estate professional should have known that a statement about a material fact was false

Question 26

Latent defect is..

Answer 26

is a hidden structural defect that would not be discovered