Principles 1 Real Estate
Ad Valorem Taxes - ✔✔Taxes on real properties (according to value)
Adaptation to the property - ✔✔How the item fits the property
Agency - ✔✔An agency relationship exists when one person (the agent) acts for, or on-behalf of another
person (the principal is known as the client). The principal is one who hires the agent and gives authority
to the agent. This relationship is a fiduciary (trust) relationship
Agent Duties - ✔✔Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care (OLD
CAR)
Americans with Disabilities Act (ADA) - ✔✔Removal of all barriers, and install of ramps, cut curbs,
repositioned shelves, flashing alarm lights, marked elevator buttons, wider doors, levered door handles,
etc.
Blockbusting (panic peddling) - ✔✔Any attempt to induce panic selling in a neighborhood for financial
gain
Client - ✔✔An agreement with broker and agency
Competency - ✔✔It is the obligation of real estate to be knowledgeable market, pledge continued
education, exercise judgment and skill in the performance of his or her work.
Conditional, defeasible, or determinable fee - ✔✔Is ownership that could be voided if a condition is not
met, or if a requirement is violated. (violates conditions or terms in the deed)
Customer - ✔✔When a potential buyer contacts an agent for information regarding a property
Describing Land - ✔✔(1 acre of land= 43,560 sq. ft.)
, Disclosure of Representation - ✔✔At first contact with a party to a potential transaction a license holder
must disclose to that party whom they represent (orally or in writing at 1st contact)
Elements of a Valid and Enforceable Contract - ✔✔Competent parties, Offer and acceptance (mutual
parties), Legal purposes, In writing, Consideration
Emblements - ✔✔Annual crops produced with labor
Even though attached to the land the crop is personal property. Tenant will still be allowed to harvest
annual crop even if not in possession of the land
Eminent Domain Condemnation - ✔✔The right of the government to take private land for public use.
The action of taking the land is called condemnation.
Exempt from ADA - ✔✔single-family homes, churches, private clubs, historic buildings
Factors that affect insurance premiums - ✔✔1;Age and Condition 2; The home replacement cost 3;
Location 4; Availability of local fire protection 5; The policy claims history 6; The policyholder credit
score
Federal Fair Housing Laws - ✔✔Housing should be available to all on an equal basis, subject only to the
purchaser's ability to pay (Age is not a protected category under this law)
Federal Fair Housing Laws (civil right act) Penalties - ✔✔Violation are up to 75,000 for 1st and up to
150,000 for 2nd.
Fee simple - ✔✔Is the best type of ownership. Fee simple is always an estate of inheritance. Can NOT be
terminated due to violation of conditions or terms in the deed.
Fidelity - ✔✔Primary duty of real estate agent represent his or her client
Ad Valorem Taxes - ✔✔Taxes on real properties (according to value)
Adaptation to the property - ✔✔How the item fits the property
Agency - ✔✔An agency relationship exists when one person (the agent) acts for, or on-behalf of another
person (the principal is known as the client). The principal is one who hires the agent and gives authority
to the agent. This relationship is a fiduciary (trust) relationship
Agent Duties - ✔✔Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care (OLD
CAR)
Americans with Disabilities Act (ADA) - ✔✔Removal of all barriers, and install of ramps, cut curbs,
repositioned shelves, flashing alarm lights, marked elevator buttons, wider doors, levered door handles,
etc.
Blockbusting (panic peddling) - ✔✔Any attempt to induce panic selling in a neighborhood for financial
gain
Client - ✔✔An agreement with broker and agency
Competency - ✔✔It is the obligation of real estate to be knowledgeable market, pledge continued
education, exercise judgment and skill in the performance of his or her work.
Conditional, defeasible, or determinable fee - ✔✔Is ownership that could be voided if a condition is not
met, or if a requirement is violated. (violates conditions or terms in the deed)
Customer - ✔✔When a potential buyer contacts an agent for information regarding a property
Describing Land - ✔✔(1 acre of land= 43,560 sq. ft.)
, Disclosure of Representation - ✔✔At first contact with a party to a potential transaction a license holder
must disclose to that party whom they represent (orally or in writing at 1st contact)
Elements of a Valid and Enforceable Contract - ✔✔Competent parties, Offer and acceptance (mutual
parties), Legal purposes, In writing, Consideration
Emblements - ✔✔Annual crops produced with labor
Even though attached to the land the crop is personal property. Tenant will still be allowed to harvest
annual crop even if not in possession of the land
Eminent Domain Condemnation - ✔✔The right of the government to take private land for public use.
The action of taking the land is called condemnation.
Exempt from ADA - ✔✔single-family homes, churches, private clubs, historic buildings
Factors that affect insurance premiums - ✔✔1;Age and Condition 2; The home replacement cost 3;
Location 4; Availability of local fire protection 5; The policy claims history 6; The policyholder credit
score
Federal Fair Housing Laws - ✔✔Housing should be available to all on an equal basis, subject only to the
purchaser's ability to pay (Age is not a protected category under this law)
Federal Fair Housing Laws (civil right act) Penalties - ✔✔Violation are up to 75,000 for 1st and up to
150,000 for 2nd.
Fee simple - ✔✔Is the best type of ownership. Fee simple is always an estate of inheritance. Can NOT be
terminated due to violation of conditions or terms in the deed.
Fidelity - ✔✔Primary duty of real estate agent represent his or her client
