Vocabulary: Real Estate License - Utah Law Flashcards
Study for the Utah Law section of the Utah Real Estate License Exam.
Recission
The right of an individual involved in a contract to return to a state identical to that before they entered into the agreement, due to courts not recognizing the contract as legally binding. In many cases, rescission may be an option if there is a material error in the contract, among other reasons.
Abrogation
The act of cancelling, repealing or annulling. \Then a transaction is closed, the REPC is annulled, except for those clauses specifically stated to extend beyond the closing in the Abrogation Clause.
Acceptance
When used in reference to a real estate transaction, acceptance occurs when the transaction is signed and agreed to by all parties and their agreement is communicated to all parties to the transaction.
Accretion
The addition of land, such as by deposits of sand or soil which occur naturally from a body of water as it runs along the property.
Active Licensee
One who has (a) paid all applicable fees and (b) affiliated with a principal brokerage.
Addendum
An addition to a real estate transaction written and signed on a legal form recognized in the real estate profession.
Administrative Procedures
Clerical processes involved in an activity,
such as those used in handling complaints made against licensees.
Administrative Rules
Rules enacted by the Utah Real Estate Commission, which have the same force and effect as statutes.
Affirmative Duties
Actions which favor a particular party, such as a client, and which the licensee has an obligation to complete.
Agency Agreement
The contract in which a buyer or renter agrees to
representation by a real estate licensee and the licensee agrees to provide that representation.
Agency Disclosure
The disclosure required by every real estate licensee as to who they are representing in a real estate transaction.
Associate Broker
A real estate licensee who has completed the additional education and experience required for broker status and applied for a broker license, but does not currently manage a real estate office or own a real estate firm.
Auctions
An event in which a product, such as real estate property, is
offered in a group setting in which individuals may compete and outbid each
other to acquire the property offered.
Avulsion
The violent removal of land, such as in a flood.
Assignment
When used in regard to a lease or sale of real property, the act of taking the place of a buyer or prospective renter to fulfill the responsibilities and benefit from a real estate transaction. Most Utah
contracts are fully assignable, but in real estate, all parties must agree to any assignment.
Branch Manager
A.n associated broker who manages a branch office under the supervision of the principal broker.
Branch Office
A real estate office affiliated with and operating under the same name as a principal brokerage but located at an address different from the main office.
Business Opportunity
The sale, lease, or exchange of any business which
includes an interest in real estate.
Brokerage
A real estate sales brokerage or a property management company.
CC&R’s
Covenants, conditions and restrictions pertaining to real estate property Ownership.
Certification
The authorization issued by the Utah Division to (a) establish and operate a real estate school which provides courses approved for licensing requirements, (b) provide courses approved for renewal requirements, or ( c) function as a real estate instructor.
Client
A customer who has requested representation by a real estate licensee and their broker is now a broker’s client
Closing
When settlement has been completed and proceeds of any new loan have been delivered by the lender to the seller or the escrow company and
the transaction is recorded. All of these actions must be completed within four days of the settlement.
Code of Ethics
Standards of practice adopted by a group, such as the National Association of Realtors.
Commingling
Mixing trust funds with personal or operating funds.
Common Areas
Parts of a property available for all residents to use, such as the swimming pool in a condominium complex.
Company Registration
Registration issued to a corporation, partnership~
Limited Liability Company, association, or other legal entity of a real estate brokerage. A company registration is also issued to an individual or an
individual’s professional corporation.
Condominium
Absolute ownership of a unit in a multi-unit building based on a legal description of the air space occupied by that unit, plus an undivided interest in the common areas or elements owned jointly by the
other condominium owners in a specific development.
Construction Access
The right to enter the grounds of a property during its construction.
Construction Compliance
In accordance with all federal, state and local
government laws, ordinances, and regulations, and in compliance with restrictive covenants applicable to the lot.
Construction Loan
A loan taken out by the future owner or builder of a
property, typically paid off by a permanent loan taken out by the buyer when the construction is complete.
Continuing Education (CE)
Professional education required as a condition of
renewal in accordance with Subsection 61-2-9(2)(a).
Contract Deadlines
Time requirements for various actions to be completed as set forth in the REPC.
Conveyance
Transfer of ownership of real property.
Counter Offer
A legal action in which a buyer or seller alters the terms of a presented offer and asks the other party to accept these altered terms.
Customer
Someone interested in buying a product or property, but is not represented by an agent or broker.
DBA (doing business as)
The authority issued by the Division of Corporations and Commercial Code to transact business under an assumed name.
Declaration
In the case of a condominium project, the instrument which establishes its compliance with the Condominium Act.
Default
When a party to a real estate transaction does not perform as they’ve agreed, they are said to be in default, for which there are legal consequences.
Director
Someone serving in a position of authority, such as the Director of the Division of Real Estate.
Disclosure
Providing information, such as on the condition of a real property or who the licensee is representing.
Double Contract
A contract in which there are two agreements, one that is turned in to the lender as if it is true and another representing the actual agreement between the patties which is withheld from the lender.
Due Diligence
The concept of reviewing all disclosures and having any tests necessary to determine if the buyer will proceed in a real estate transaction.
Evaluations and Inspections Deadline
The date by which all inspections
and review of disclosures must be completed in order to cancel the transaction and have earnest money returned or alternatively to proceed with
the transaction.
Expired License
A license will be deemed “expired” when the licensee fails to pay the fees due by the close of business on the expiration date; if the expiration date falls on a Saturday, Sunday or holiday, the effective date of expiration shall be the next business day.
Express Warranties
Guarantees to which the parties in a real estate
transaction have agreed, typically as to the condition of the property and the title.