Help
Options
Term
open-non exclusive listing agreement
click to flip
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't know
Term
affordability in your investing markets
Remaining cards (54)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
real estate
license exam
| Term | Definition |
|---|---|
| open-non exclusive listing agreement | property can be shown by more than one broker. multiple brokers may list property. whichever broker sells property gets commission |
| affordability in your investing markets | measured by comparing the median income of an area to its median home price |
| exclusive right to rent | Enter with owner (list and find suitable tenants) or Enter with specific tenant |
| when does disclosure form have to be signed | the law requires disclosure form be signed at first substantive meeting |
| FSBO | For Sale By Owner |
| Client refuses to sign Disclosure form | Agent should explain that this form is to protect the client |
| Differences between Independent Contractor and Employees | 1. Instruction and training 2. Set work hours 3. Job Location 4. work specific order 5. Work expenses 6. Work Tools |
| Are Real Estate Salesperson Independent Contractors? | Yes! |
| 1986 Law Regarding Independent Contracts | Compensation has to be directly related to sales! |
| Independent Contractor | 1. Taxes paid on commissions are paid in arrears 2. No set working hours 3. No specific job location 4. can be employed w another company 5. Agent must cover own expenses 6. Broker cannot control agents work activities 7. Either party can terminate |
| Salesperson Fiduciary Duties | 1. Loyalty 2. Disclose 3. Obedience 4. Diligence and Due Care |
| Duty of Loyalty | Everything in your power to get advantage for specific client |
| Breach of duty loyalty | -Have multiple clients bid against each other in order to raise the price (raise the commission) -Multiple property listing where you lead buyer |
| Duty to Disclose | -Disclose necessary information to buyer -Any issues that materially impact property |
| Buyers Agent SHOULD disclose | -Detail that sellers agent didn't disclose -School district -Crime rate in specific area -Can disclose reason for property on market or issues with unit/building (not breaching confidentiality) |
| Duty of Obedience | -Must do what the client says -Within limits of law (must follow fair housing... etc) |
| Duty of Due Diligence and Due Care | -Get a copy of Property inspection report as part of DD -Co-ops and condo's different story -if client is self-employed, be sure they qualify for financing |
| Reasonable Care Example | - Be aware of buyers qualifications -pre qualification or pre approval letter from lender -building assessments -Pending or impending litigations -Do NOT place multiple contracts on multiple properties at the same time |
| What records should a BUYERS agent keep? | -Disclosure form -Affidavit -Property showings -Prospective properties -correspondence -offers and negotiations -Financial Documents and application file -Contract of sale (deadlines) (mortgage contingency clause) |
| What records should a SELLRS agent keep? | -Potential purchasers -Disclosure forms Correspondence (regarding disclosure of condition of property to other party) -Purchasers budget |
| Mortgage Contingency | A mortgage contingency is a clause in a real estate purchase contract that gives buyers a set amount of time to secure a mortgage (seller has every right to keep contract deposit) |
| Disclosure as sellers agent | 1. Lead paint disclosure form (ALL building built before 1978) 2. SHOULD do... Property condition: Mold, foundation, termites, etc... if not it's a $500 credit to buyer on sale 3. |
| Land lease | - A co-op or condo is being built on land owned by someone else - Generally usually 50 year lease, w/ right to renew for another 50 years -Rent paid annually -If land lease has less than 30 years, they may not lend to specific client |
| When is agent disclosures form used? | -Party that has to sign form is potential client that you are representing (print name, sign form) -If not, you must fill out affidavit stating the reason -Wherever you first meet and discuss possibility of working together, they must sign form |
| Loyalty | The salesperson must work in the best interest of the client. This is known as___ |
| Disclosure of Information | The salesperson must communicate with the client and present all offers. This is known as__ |
| Accountability | The salesperson must safeguard any money or property held on behalf of the client. This is known as___ |
| Reasonable Care | The salesperson must be competent and not act in a negligent manner. This is known as___ |
| Obedience | The salesperson must act in accordance to the client's demands and instructions. This is known as___ |
| Which of the following may be considered a 3rd party to a transaction...? | Customer |
| John is a real estate broker and wants to enter into an agency relationship with Steve, a property owner. What document must John and Steve execute in order to enter into an agency relationship...? | Listing Agreement |
| Mark, a real estate broker, teamed up with Chris, another real estate broker, in an effort to not do business with a cross-town broker. What may Mark and Chris be accused of...? | Group Boycotting |
| Many brokerages allow in-house referral fees when an agent refers a client to another agent. Who ultimately distributes the referral fee to a referring agent...? | The sponsoring broker |
| Chris, a real estate broker, has entered into an agreement to lease one of John's apartments. Who is the customer in the transaction...? | The Tenant |
| In a typical transaction, who directly pays the real estate salesperson his/her commission...? | Broker |
| The broker's client is also referred to as the...? | Principal |
| The principle which precludes a person from asserting something contrary to what is implied by a previous action or statement of that person, or by a previous pertinent judicial determination, is known as...? | Estoppel |
| The fiduciary duty that prohibits the agent from advancing any interests adverse to the principal’s interest, or conducting the principal’s business in such a way as to benefit a customer is known as...? | Undivided Loyalty |
| Which of the following is NOT an example of an agency relationship...? | Owner- tenant |
| Which of the following is NOT considered a principal in an agency relationship...? | Agent |
| he degree of caution and concern for the safety of himself/herself and others an ordinarily prudent and rational person would use in the circumstances is known as...? | Reasonable Care |
| A real estate salesperson is typically what type of agent...? | Special Agent |
| According to an agent's fiduciary duties, the agent must not reveal information detrimental to his/her client without written permission. Which of the following fiduciary duties best reflects this...? | Confidentiality |
| Which section of the New York State Real Property Law states that the broker may be liable for the salesperson's actions...? | Section 442-C |
| Which of the following is considered a principal in an agency relationship...? | Landlord |
| According to this doctrine, a principal cannot claim that an implied agency relationship did not exist...? | Estoppel |
| An agency relationship is created through a | Listing Agreement |
| Principal is also know as the... | Client. |
| Estoppel | Estoppel is a legal principle that prevents someone from contradicting a statement or action from the pas |
| A dual agent owes full _____ ____ to both the buyer and seller. | Fiduciary duties |
| Abby, a buyer's broker, found a property for her client on the MLS. As a result, Abby has now become a sub-agent to the owner of the MLS listing. This is an example of what type of agency...? | Dual Agency |
| Ben, a real estate agent, represents several buyers. In an attempt to increase his commission, he decides to have his clients bid against the same property without their knowledge or consent. Which fiduciary duty has Ben breached... | Duty of loyalty because he's not working in best interest of client |
| Prior to January 1, 2011, which of the following was NOT permitted under New York State law... | Advance consent to dual agency |
| Which of the following forms is used to inform the parties to a transaction about the risks of dual agency…? | Disclosure form |
| When a buyer's broker agrees to the cooperative arrangement of the MLS, he/she becomes what to the seller, who’s property is listed on the MLS...? | Sub-agent. The buyers broker also has an indirect, sub-agency relationship w/ the seller. |
Created by:
jelia