GRI Exam Questions and Answers Graded A+

GRI Exam Questions and Answers Graded A+ The Do Not Call Act Prohibits Calls to -- residential and cell phone numbers registered with Federal Trade Commission. Do Not Call Act Exception include: Call may be placed for up to 18 months after the last transaction to a consumer with an established business relationship. A consumer who made an inquiry may be called for up to 3 months from the initial inquiry. A consumer who has given written permission CAN-SPAM set--- rules for all sending commercial email. CAN SPAM requires all commercial email to contain: An opt out Mechanism which is to remain active for at least 30 days after the message transmission. A clear and conspicuous notice that the message is an advertisement. A legitimate return email address A valid physical In the sales process, the listing agent is most responsible for- Marketing the property The NAR 2012 Home Buyer and Seller Survey, reports that the successful sale of FSBO properties increases slightly to 6% when: eliminating material relationship transactions. Per NAR Survey the number 1 reason that seller attempt to sell their property FSBO is: their reluctance to pay a commission 3 types of behaviour that can be displayed and encourage when in a negotiation Red, Blue and Purple What color is recognized as representing a win-win behaviour Purple Two types of negotiation strategies are: adversarial and interest-based. Interest-based is recognized as producing win-win results. BATNA stand for-- Best Alternative to a Negotiated Agreement BATNA is the best option if the current negotiation fails When conducting a negotiation, it would be considered prudent practice to: Ask effective questions Explain the process to your client Ask for a concession in return for giving one A REALTOR must take responsibility for what is conveyed to all parties and prevent their personal opinions from causing the buyer and seller to dislike each other. When counter-offering you should avoid negotiating down to only one item - if the only thing you are negotiating is price, you lose Leverage. To maintain your reputation and gain the respect of all the parties in the negotiation, a REALTOR should Keep all appointments Return calls in a timely manner fulfill promises Technology Tools to build your busines A City-D Google Alerts ( M T Z Largest provided of E-forms? ZipForm- Exclusive form software to NAR When an agent use TBD in a contract The contract will be void property sold subject to Due diligence period Time period to discover defects and righet to seek to address concerns through mutual agreement. If buyer fails to givetimely notice, buyer will have accepted property as is True Property sold as is Property sold withall faults. Sellerhaz no obligation to make repair to property Does not eliminate Arbitaion if not resolved. And must be confidential Mediation Little delay ( is quicker), Maximum range-solutions and maintain/improve relationship (preserve relationship) Mediation A voluntary process in which disputing parties meet witha mediator appointed by the association of the dispute, rather then having a decision imposed by an arbitration hearing panel Mediation Professional standards hearing panel in arbitration Board Attorney/ Attorney The Board/ Association may decline to hear an arbitration case if it is Too large or too small / Too legally complex Ethics Hearing: After conducting a hearing, the hearing Panel decides whether there was a violation of the code of Ethics, proven by Clear, strong and convincing proof The Grievance Committee Acts like a Grand jury, does not make decision if code of Ethics has been violated or not, Does not Mediate or Arbitrate Business Disputes Money always come First Arbitration before Ethics The standard of proof in Arbitration is Preponderance of the Evidence What is it when the lender structure a plan to deal with a borrower inability to pay mortgage obligation Work out The Arbitration will always be first If both Ethics and Arbitration are filled The standard of proof in Ethics Hearings is Clear, strong and convincing Any Realtor requesting Arbitration should be offered Mediation prior to the Arbitration Hearing Parties to an Arbitration may settle any time prior to and / or during an Arbitration Hearing Ethics Complaint may be brought by Anyone The Arbitration Award will specify the amount of the award and the disposition of the arbitration deposit. During a Hearing the Board/ Association attorney will only provide legal guidance to the hearing Panel If Mediation is unsuccessful the party still has the right to arbitrate and nothing learned during the Mediation can be used later if the request goes to Arbitration Advantage of Mediation include It is quicker, has a wide range of solutions and will likely preserve relationships. When the financing contingency is the existing loan being to be assumed. (F61) Loan Assumption Exhibit should be attached. Loan Assumption: Property completing the third paragraph in either exhibit (F61) Price Control (F62) Cash to control ensures the method of financing is described in sufficient detail. Loan number and servicing company: Original principal amount and amount due: Amount of principal and interest payment and, the payment including escrows: term of loan, interest rate and type of loan Loan Assumptions Closing Attorney Select Buyer has the right to select, Lender has final approval Unless a financing contingency is attached to the P&S Agreement, the only right for the buyer to terminate the agreement due to failure to obtain financing would be under Due Diligence When a buyer agrees to pay all cash at closing, the buyer may still attempt to obtain a loan, but would be in default if Buyer lacked sufficient funds because the loan was unobtainable. To prove buyer has the ability to obtain a loan under a financing contingency. Buyer must cause a loan commitment to be delivered to seller- BUT ONLY IF ASKED TO DO SO BY SELLER. Duties to clients include Loyalty, Obedience and accounting An agent working with a customer is praticing Transaction brokerage anything which affects the use or value of property is Material Fact Broker approve commission reductions Impending foreclosure is a Material fact and should be disclosed The listing Broker, by agreement with the seller, is responsible for sharing commission with other brokers The listing broker should present all multiple offers, regardless of their terms Agents who do not disclose their real estate license in personal transactions are violating license law All material facts known by a licensee must be disclosed, even if such knowledge comes after a contract is written. Why do foreign investor buy property in the US? Who are they, and what and where do they buy? opportunity for stable returns at lower risk, the size of US market and availability of property, Political and economic stability, Market liquidity What are some difference between working with foreign buyers and working with local clients and customers? Compare foreign and immigrant customers withdomestic buyer. Avoid business practice that could "turn off" a foreign or immigrant customer. What should a real estate professional do to be successful in today's global market? Prepare for working in today's diverse market. Apply practice to succeed in the international real estate business. Why is it important to have knowledge about the international real estate market. Impact of current and predicted population and new household creation trends. How much property in the U S do foreign homeowners and investors own and what is the impact of the global market on the local real estate market. Economic benefits of foreign investment what global market factors and trends are driving change in the us market? Factors contributing to the globalization of business in your local market. Elements of a 1031 RExchange Like-Kind Property Strict time periods (45/180) Equal or greater value, (spend equity / replace/debt) IRC section 1031 On gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for Investment if such property is y for property of like kind which is to be held either for productive use in a trade or business or for investment. Like Kind property Rental Home or Condo, Land or Ranch, Office building, Tenant in common Fractional interest and Apartment Cash BOOT when you have to pay tax on the cash not spent Reverse Exchanges Previously considered aggressive, Approved by IRS, "Safe Harbor " technique is available, Two variation of reverse exchanges Property Conversion You have to have own for 5 years what website feed to all social media