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realestate KEY POINT
real estate Michigan
| Question | Answer |
|---|---|
| What if the owner wants to sell his gas station? will the new owner have to switch to residential? | have the buyer talk to the municipal (city) department that handles zoning issues ! don't assume hes grandfathered in . |
| Asbestos is ... | Fire resistant |
| They find asbestos in a public building . What is the safest method of remediation ? | Encapsulation of asbestos may be safer than removal . |
| What is required for sale and rental of property that contains lead based paint as ell as (EPA) informational pamphlet ? | Special disclosure |
| How long are buyers given to inspect the property for lead based paint ? | 10 days |
| Lead is found in paint , piping and soil but not in ? | NOT in insulation . |
| What is Radon ? | Colorless, order less radioactive gas resulting from decay of natural radioactive substances . |
| Private control on land use includes ? | deed restrictions |
| A requirement that all structures have an attached garage that measures 30X33 is an example of a ? | covenant |
| What are deed restrictions also know as? | CC&R's |
| What is used to stop violators of a deed restriction ? | upon violation of a deed restriction , a court injection may be obtained by a neighborhood association to stop the violators . |
| There's an updated house located near ugly , boarded up houses. The buyer my lose value due to the principal of...? | Regression |
| What principal of vale would apply for someone who wants to buy an empty lot in a busy city and leave it alone for parking ? | If you have someone that wants a vacant lot in a busy city who wants to turn it into a parking lot , you may be something like a building . |
| What are economic characteristics that affect value ? | Remember D.U.S.T ( Desirability , Utility, Scarcity, Transferability ) |
| If the seller has a 1 story home, Which are the best type of comps to use when running a market analysis? | When trying to comp out 1 story ranch, you want to use another 1 story structure that recently sold ! - Even if its a townhome, if its 1 story and sold recently, that's the best answer. And no, you cant use a 2 story and "cut the square footage in half". |
| Which is true about the cost approach ? | The cost of reconstructing the building as a new unit is estimated. *Careful !don't pick an answer that makes you calculate the assessed value +land . ( assessed has to do with tax)* |
| when you're trying to value an older building , what should you use ? | Replacement cost ( preproduction cost might also be there but don't pick it ). |
| An outdated floor plan would be an example of ? | functional obsolescence |
| A property located next to a noisy airport would be n example of .. | external obsolescence |
| another name for a market analysis | CMA ( competitive or comparative market analysis) |
| What is the biggest benefit of a FH loan ? | Low down payments of Approximately 3.5% |
| No down payments required for? | VA LOANS |
| What is a disadvantage of a partially amortized loan? | It involves a lump sum due at the end of the term. |
| An elderly couple may use this type of loan. | Reverse Mortgage. The purpose of a reverse mortgage is to supplement the mortgagors income . |
| What's another name for a land contract ? | Installment sales contract or contract for deed . |
| What is the primary purpose of the secondary mortgage market ? | A lender that receives more demand for loans then funds available may decide to sell its interest in past loans and mortgages to the secondary market thus receiving more funds to generate more lending transitions . |
| Which is a fake name for the secondary mortgage market ? | GINNIE MAE, FREDDIE MAC and FANNIE MAE are secondary mortgage market . NOT SALLY SUE . |
| What is the Alienation Clause ? | Provides that if the mortgagee transfers ownership to another person, the amount owed to the lender is immediately due in full. |
| Mortgage Discharge ( release/satisfaction ) | issued and recorded by the lender as evidence of releasing the lien that the mortgage created at the time of financing the property . |
| What do borrowers receive at least 3 business days before closing ? | Borrowers will receive a closing disclosure, stating loan terms such as monthly payments as well as various closing fees. |
| Any significant change to the loan switching from a fixed rate to an adjustable rate loan, does what ? | Triggers a ew 3 day waiting period for the CD |
| Truth in lending is associated with .. | REGULATION Z |
| What may lenders use when advertising ? | The APR |
| How many days do you have to rescind a refinance on a principal residence ? | When refinancing residential property an owner may rescind the loan within 3 business days after closing date and receive refund of loan fees paid . |
| What is RESPA ? | Prohibits "kickbacks'" ( i.e. payments when services have not been provided) " settlement service providers " such as lenders, real estate agents, title insurance services, appraisals, credit reports, inspections , surveys, and legal service . |
| What is a Deed in lieu of foreclosure ? | Upon default , lender agrees not to go through foreclosure and accepts a deed from mortgagor surrendering property to lender in full satisfaction of debt . |
| If a bank doesn't get all of their money at the auction, they will send a __________ to get the mortgagor to recover the debt . | At a property auction , if the highest bid is not enough to satisfy the loan then a DIFICIENCY JUDGEMENT against the mortgagor is obtained to hold him/her personally liable foe the difference . |
| What always gets paid first at a property auction ? | unpaid property tax . |
| If a broker wants John to work exclusively with the seller and Mari to work exclusively with the buyer , this would be ________? | Designated agency ( its also dual agency , but go with designated agency ) |
| The seller authorize you to take any cash offers over $108,000. A cash offer for $112,000 comes in , what do you do ? | If a seller authorizes you to accept offers on her behalf through a power of attorney, you can do so as they say . For example , she authorizes you to accept any cash offer over $130,000 cash; if $140,000 cash comes in , take it ! |
| The employment contract is known as the ______ when working for the seller and a _____ when representing the buyer. | The employment contract is known as the LISTING agreement when working for the seller and a BUYER AGENCY AGREEMENT when representing the buyer. |
| The contractual relationship that's created between the broker and seller : | Expressed agreement |
| IMPLIED (OSTENSILE) AGENCY | Leading a person to believe that agents is representing him by so acting or making statements such as telling the customer , " I protect your interest , "I will get you the best possible deal from the other party ". |
| When should you provide the agency Disclosure to the other parties ? | Anancy statements must be given in advance, before they provide agent any confidential information . |
| PROCURING CAUSE | The effort that an agent contributes that ultimately results in a sale . |
| EXCLUSIVE RIGHT O SELL (THE BEST LISTING!): | The broker is employed the sole agent of the principal and is promised a fee regardless of who procures a buyer . |
| EXCLUSIVE AGANCY LISTING ( THE SECOND BEST LISTING !) | Gives broker THE sole right to sell property , however , owner reserves right to sell by him/her without paying commission .If any other broker sells the property, listing broker is still protected . |
| EXCLUSIVE BUYER/TENANT AGANCY AGREEMENT ( The " Twin sister" of the Exclusive right to sell ): | The broker will earn a commission when the buyer/tenant buys leases a property weather through the brokers efforts, or if the byer/tenant locates property on his own, even if listed by another broker or offered trough a private owner . |
| What is owed to your clients ? | TRUST , LOYALITY AND SKILL |
| Puffing | An exaggeration of facts I.E a realtor claiming that property values will double by next year . |
| The broker and seller are not getting along, what would have to happen for the listing to terminate ? | The house burns down . |
| When must you provide the sellers disclosure statement ? | When entering into a binding purchase agreement . |
| The _____ must make the sellers disclosure statement available to the public if requested . | The real estate licensee must make the sellers disclosers statement available to the public if requested. |
| The act of withholding information regarding concealed property defects from the buyer while the seller knows id such information is disclosed is called _______? | Silent fraud |
| OBVIOUS things that are wrong i.e bad furnace, leaky roof . | MATERAL FACTS |
| Death in house , sellers are desperate to move | NON MATERAL |
| If your buyer is waiting on a seller to respond to an offer and get impatient, What should you do to your current offer before you make any new offers to other sellers ? | REVOKE YOUR CURRENT OFFER |
| Do all contracts have to be bottom line ? | Contracts do not have to be " bottom lone " : Even if a buyer refuses to sign the "bottom line " of a purchase agreement , it is nonetheless and in full force and effect . |
| What is required by law to enter into a contract? | $0 |
| Why do we have an earnest money deposit ( EMD) ? | Valuable Consideration |
| If someone is not of legal age wen they entered into a contract, the contract is ? | VOIDABLE |
| STATUTE OF FRAUDS : | REQUIRES CRTAIN CONTRACTS TO BE IN WRITING IN ORDER TO BE ENFORCEBLE. also REUIRES PARTIES TO SIGN CONTRACT TO BE COME BOUND BY ITS TERMS . |
| If you're "verbal listing " you ay or may mot be entitled to a ? | Commission |
| Seller receives an offer from buyer that is subject to the sale of the buyers present house. The seller wishes to accept but doesn't want to be at the mercy of the buyer who may not sell his house anytime soon . | The seller counters by adding an " escape clause ". |
| A broker is hired to sell property under a listing agreement. A month , the broker dies . What happens to the agreement ? | The listing agreement will be terminated due to operation of law . |
| EQUITABLE TITLE | Legal interest that buyer acquires in property after signing of a contract ( purchase agreement) by all parties that gives her the legal right to compel the seller to deliver title to property when the buyer pays the entire purchase price . |
| Option contract : | A unilateral contract by which the seller must perform . |
| Optionee | BUYER |
| TENANCY AT WILL | Leasing month to month i.e an undetermined duration |
| Tenancy for years | A lease with a beginning date and an end date . Don't be fooled: 3 month lease could be a "year " . Don't let the word "years" trick you you . |
| NET LEASE | The tenant pays rent ,plus some or all of the operating expenses such as property taxes , insurance, maintenance , ect . |
| A net lease is also know as .... | Also referred to as a TRILE NET lease . |
| If you have people that are looking to rent space but they don't want any surprises in their rent , what should you recommend ? | A gross lease . |
| Where are percentage leases are mainly found in ? | Retail |
| If you represent the LESSEE , you represent the ? | TENTANT |
| RIGHT OF GIRST REFUSAL : | Allows an individual ( usually a tenant ) to match a purchase price or rent offered to landlord by third party. If tenant agrees to match price, then the property is sold or re-entered to the tenant and not to the third party . |
| What is true bout title insurance ? | ( BOTH the buyer and the seller must obtain title insurance ) . |
| Subordination Clause : | States that the rights of a mortgage holder will be secondary or subordinate to a later lien or encumbrance first priority . |
| Subrogation Clause: | A clause in the title policy that allows the insurance company who pays a claim to seek reimbursement from the party who caused the loss. |
| Special Warranty deeds only protects against claims arising out of the . | Grantors (sellers) period of ownership . |
| Quit Claim Deed | This deed provide the least liability for title defects against the grantor (seller ). |
| Gains on the sale of a "principal residence " are exempt (up to $250,000 per person and $500,000 for who ? | A married couple filing jointly |
Created by:
whitneygod1
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