- Study guides, Class notes & Summaries

What would you call a situation where I represent the seller as my client but then work in the best interests of the buyer (my customer?) (Ans- Undisclosed dual agency If I represent the buyer as a broker, this would be called ___. (Ans- Buyers agency I owe all of the fiduciary obligations to my client or to my customer? (Ans- client I work ___ the client, and ___ the customer. (Ans- for/with What does fiduciary mean? (Ans- a person placed in a position of TRUST and CONFIDENC...

A broker has listed a seller's property. The seller travels extensively and would like the broker to have the authority to accept a full price offer if he receives one. The seller's layers prepare a limited power of attorney authorizing the broker to accept any offer for at least list price. Once the broker has the authority to accept a full price or better offer for the seller, what is his agency role with that seller? (Ans- He is a General Agent A signed employment agreement is ne...

Ownership in severalty (AnsWhen title to real estate is in the name of only one person or entity, it is an estate (ownership) in severalty. Think of it as a single individual owns real estate, therefore, the ownership is 'severed' from all others. Littoral Rights (AnsLittoral Rights = Lake Littoral rights apply to property bordering a stationary body of water. Riparian Rights (AnsRiparian Rights = River (stream) Riparian rights belong to the owner of a property bordering a flowin...

Liquidity (Ansability to convert something to cash quickly - real estate not liquid Effective Gross income (Ans- potential gross income- vacancy and collection loss+ other income potential gross income (Ans- maximum amount of rent a landlord could get at full occupancy Net Operating income (Ans- effective gross income- expenses Eviction (Ans- - legal way to evict is court order - Constructive eviction- landlord forces tenant out because they make the property uninhabitable (like tur...

Alienation (Ans- The transfer of ownership or an interest in property from one person to another, by any means. Alienation Clause (Ans- A contract clause that gives the lender certain stated rights when there's a transfer of ownership in the property. Upon sale of, or even a transfer of, significant interest in the property, the lender will often have the right to accelerate the debt (here called a due on sale clause), change the interest rate, or charge a hefty assumption fee (FHA an...

In an exclusive right-to-sell listing, an owner lists the property for sale with how many brokers? (Ans- One A prospective buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if (Ans- the owner withdraws the counteroffer before it is accepted. Antitrust laws prohibit competing brokers from all of the following EXCEPT (Ans- receiving c...

What happens if any of the principals in a transaction refuse to grant consent to dual agency...? A. The buyer must find a new agent B. The parties cannot proceed with dual agency C. The seller must find a new agent D. The transaction can close nonetheless (Ans- B. The parties cannot proceed with dual agency According to an Exclusive Right to Sell agreement, what price is listed in the agreement...? A. The Sale Price B. The Listing Price C. The Fair Market Value Price D. The price as...

If you buy materials from a supply house and fail to pay them, they can file a? (Ans- Mechanics Lien How is an example of a formal legal description (FLD)? (Ans- Metes and Bounds, Block and Lot, Section What is not a FLD? (Ans- Street name and Street address Who determines what the commission will be on a real estate sale? (Ans- Client and Broker If someone dies without having a valid will, this is called? (Ans- Intestate If someone dies without having a valid will or heirs or credito...

A property was sold for $845,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the buyer's broker...? A. 25350 B. 20350 C. 50700 D. 30350 (Ans- A. 25350 A general agent is typically granted more power than what other type of agent...? A. Universal Agent B. Legal Agent C. Special Agent D. Trust Agent (Ans- C. Special AgentThe broker, as a franchisee of a na...

Who determines what the commission will be on a real estate sale? (Ans- Client and Broker If someone dies without having a valid will, this is called? (Ans- Intestate If someone dies without having a valid will or heirs or creditors, that persons property reverts to the state through a process called? (Ans- Escheat What is the name of the standardized closing statement or settlement statement, required by RESPA? (Ans- HUD-1 What is a synonym for proration? (Ans- Adjustment What is th...