(Due on default clause) A mortgage clause where a lender calls a loan balance due and payable upon the happening of certain event, e.g., non-payment of mortgage
A client level duty relating to account of earnest money, actions, etc.
Gradual build up of soil; person gains title to added land built up on property
A customer level duty relating to disclosure of all material defects (including latent or hidden defects) to any customer; e.g., leaky roofs, leaky basements, etc.
Occurs when a document, such as a deed, is signed by the seller in the presence of a notary public, acknowledging that this is a voluntary act
A situation where a person has actual or personal knowledge of a transaction, etc.
Based on value
A change made to an original contract; e.g., extending closing date on contract; also referred to as an amendment
Adjustable Rate Mortgage
(ARM) A note where the interest changes periodically, thereby possibly changing all terms of the loan
Court appointed person to oversee estate distribution of deceased; only applies when one dies intestate (without a valid will)
Squatter's Rights; can gain title by using someone else's property continuously, openly and notoriously (without permission) for a certain period of time
One who is hired to represent another
In a real estate context, this relates to the word transfer; e.g., in a mortgage, an alienation clause allows the lender to call the loan due and payable if a property is sold or transferred, in other words, making the loan non-assumable
(Due on Sale Clause) A mortgage clause where a lender calls a loan balance due and payable upon selling the property; makes loan non-assumable
A change made to an original contract; e.g., extending closing date on contract; also referred to as an addendum
Annual Percentage Rate
(APR) Takes all costs of borrowing and expresses as a percentage
Looks to the future for value
A document that gives an estimate of fair market value; for lenders, owners, etc.
A right, privilege or improvement that is permanently attached to the land
A type of easement that runs with the land tied to a particular property given for the benefit of the particular land, e.g., shared driveway
Refers to an agreement arrived at under no undue pressure
At the end, e.g., May 1st house payment applies to April's interest
The total value of combined properties exceeds total value of individual properties; also referred to as a plottage increment
A total transfer of rights in a lease where the original tenant and new tenant are both liable to the landlord for the lease payments
A transfer of rights in contract to another party
An assignment of a loan from the seller to the buyer where the buyer becomes primarily liable for debt and the seller remains secondarily liable
The title given to someone who has the power of attorney; can sign on others' behalf
Sudden transfer; e.g., stream changing channel. With an avulsion, the boundary lines for a property remain the same as they were before the sudden change.
Bargain and Sale Deed
A type of deed transferring title from a seller to a buyer where the only promise made by the seller is the covenant of seizing (seller promises ownership of the property and the right to sell)
Legal holder of the note (lender)
Transfer of personal property through a will
A contract containing a promise for a promise; e.g., buyer and seller in selling and buying a house
Covers more than one property; used by developers, etc. Usually contains a partial release clause to release each property from the blanket mortgage as sold
The illegal act of making a profit by inducing owners to sell by telling them that persons of a protected class are moving into their neighborhood
Creates the debt; a promise to pay back money that was borrowed; also referred to as a promissory note
Markers in a Metes and Bounds description; e.g., stake, well, etc.
Where a party to a contract does not perform according to the terms of the agreement
An area separating two incompatible areas
Similar to discount points; a buydown is where one pays extra money to a lender up front in order to lower the interest rate for the first several years of the loan term; helps buyer qualify for loan
Buyer's Guide to Settlement Costs
(HUD booklet) A booklet that explains all about closing costs; must be given to buyer within 3 days of loan application
Profit made on an investment item, such as real estate
An approach to value best used on income producing properties such as shopping centers, apartment complexes, etc. This approach uses the net operating income and a capitalization rate to estimate the value. Also referred to as the income approach.
A client level duty exercising knowledge and skill
Chain of Title
List of recorded documents
Another word for personal property; comes from the word "cattle"
Civil Rights Act of 1866
Banned all racial discrimination
Civil Rights Act of 1968
Banned discrimination in residential real estate on the basis of race, color, religion, national origin, sex, handicap, or familial status
Cloud on the Title
Any claim that impairs title; e.g. forged signatures or no signatures on deed, heirs of prior owner claiming title, etc.
Color of Title
Refers to a squatter's rights to ownership once time period has been met
A type of lender that historically specialized in making business loans
Mixing escrow money with personal or business funds; illegal
Property acquired during marriage; spouses have equal interest in property
An essential element of a contract; one must be of legal age and of sound mind
High profits attract competition
Competitive Market Analysis
(CMA) What an agent uses in trying to find a value for a piece of property; a residential agent analyzes sold properties, currently for sale properties, and expired listing properties in an effort to determine a range of value for a particular piece of property
Where two or more own property together at the same time
The PROCESS used to take the property when the government exercises the right of Eminent Domain.
Property deeded with conditions; e.g., must be used as a school. Also referred to as a defeasible fee
A multi-unit building where the occupants each own their individual units and receive a deed granting ownership of the property
A client level duty relating to maintaining confidential information of the client
Properties should conform to the neighborhood to maintain the greatest value
An item of value; one must have consideration to have a valid deed or contract
Constant Mortgage Payment Plan
A payment plan where the total principal and interest payment remains the same each month; amount toward principal and interest changes monthly
Typically, a short term loan; money is released as needed; usually riskiest type of loan
In leasing, a situation where the landlord constructively evicts the tenant by not maintaining the premises; e.g., no heat in the wintertime; lessee or tenant must actually leave the premises and is released from lease obligations
Occurs when a document is recorded on the public record at the county courthouse; a person is responsible for knowing facts because of recording on the public record
Contract for Deed
Owner financing where the seller keeps the warranty deed for the entire duration of the contract for deed; thus the seller retains legal title. The buyer gets possession and receives an equitable title upon the signing of the contract for deed, allowing for the buyer to obtain the deed after the entire contract is paid off. Also referred to as an installment contract or land contract.
Value of improvement is equal to what it adds to total value
A type of loan where the borrower typically pays a down payment of 20%, thus receiving an 80% loan from the lender; there is no government involvement in this type of loan
A multi-unit building where the people who occupy the units own stock in a corporation, thereby receiving a right to lease the unit from the cooperative itself
A type of syndication where owners can limit their liability; a corporation who purchases real estate takes title in severalty
An approach to value best used on special purpose properties, such as churches and hospitals; the approach values a property by determining the current replacement cost, less depreciation, plus the current land value
A rejected offer and a new offer made back to the other party
Cubic Foot Method
A way to determine current replacement cost by taking the cubic footage (length times width times height) of a property times a cost per cubic foot
A life estate interest a husband receives in property upon wife's death, regardless of debts owed on the property
Principal and interest payments required to retire debt
Declare Contract Forfeited
Buyer backs out of a contract, is release from the contract but the seller keeps the earnest money is liquidated or pre-arranged damages
Money spent on improvement does not add at least that much or more to the total value
Voluntarily giving land to government; typically done by a developer
Deed In Lieu of Foreclosure
An agreement whereby the lender receives the deed to a property from the defaulting borrower rather than foreclosing; this is still referred to as an involuntary alienation; this does help save the borrowers credit
Deed of Reconveyance
A document verifying that a trust deed loan has been paid in full; should be recorded on the public record, thus releasing the property from the trust deed
(Null and Void Clause) A mortgage clause that voids the security upon the loan being paid off
Property deeded with conditions; e.g., must be used as a school. Also referred to as a conditional fee
A personal judgment against the defaulting borrower for any other debts owed and not satisfied by a foreclosure sale
Delivery and Acceptance
Title is transferred from seller to buyer when the deed is delivered and accepted
An element of value; must be wanted
A transfer of rights in real property through a lease
Department of Veteran's Affairs
DVA or VA or GI; established by the government in the 1940's, the VA guarantees loans made by lenders in case of default by the buyers
Occurs when one dies intestate; probate judge then determines who receives the property of the deceased, such as children, parents, other family members, etc. In essence, judge determines who property descends or goes to
An essential element of a contract; must have an adequate description of the real estate; generally a legal description
Improves the lots
Transfer of real property through a will
Receiver of real property through a will
A client level duty relating to disclosing to a client all material facts regarding the transaction
Extra money paid up front in cash to a lender in order for the buyer to receive a lower interest rate; in essence, pre-paid interest; 1 point = 1 percent; discount points are always based on the loan amount
Interest rate banks pay to borrow money
Selling a note for less than face value
Land benefited or in favor of the easement
A life estate interest a wife receives in property upon husband's death, regardless of debts owed on the property
Going from a more active use to a less active use; e.g., multi-family to single family
A situation where a broker represents both buyer and seller at the same time; must have written prior permission from both parties and informed consent
Good faith money
Gives someone else the right to use a part of your property while you still retain the ownership rights
Easement by Prescription
Using someone else's property continuously, openly and notoriously for a certain period of time the adverse user then gains an easement to use that land
Easement in Gross
A type of easement not tied to any land but instead that is owned by a person or company, e.g., utilities, railroads
Number of years item is profitable; economic life is shorter than the physical life
A form of depreciation due to problems outside the property lines; e.g., owning a house next to a factory or sewage treatment plant; also referred to as external obsolescence
Apparent age based on condition; generally less than chronological age
Effective Gross Income
The annual gross income for a property less a vacancy rate; used with the income approach
Growing crops in the field; allows the seller to come back and harvest after the sale
The RIGHT of the government to take private property for public good. The property owner is paid compensation for the property.
Trespassing; an improvement or appurtenance that extends across the property line; e.g., fences, tree limbs, etc.
Something that burdens or limits your title to a property, such as a lien or deed restriction (or) rights held by someone else in your property, such as through an easement
Equal Credit Opportunity Act
Bans credit discrimination based on: Race, Color, Religion, National origin, Sex, Age & Marital status
The right to redeem property before the foreclosure sale
What a buyer receives upon buyer and seller signing a contract to purchase a property; allows buyer to receive deed (or legal title) at a later date, usually at closing
Gradual wearing away of soil; owner loses title to land eroded away
A lease clause allowing a landlord to pass increased costs along to tenant; i.e., can raise rent to tenant if landlord's costs go up
A mortgage clause allowing a lender to increase the interest rate in the event of a late payment or default
The right of the government to take private property when an owner dies intestate (no will) and has no heirs; also applies if owner abandons the property
A separate account for holding other peoples' money; e.g., a broker holding earnest money in escrow or a lender holding pre-paid taxes and insurance in escrow
The degree, quantity, nature and extent of ownership interest in real property.
Estate for Years
A lease with a definite beginning and ending date
Estate in Remainder
A life estate whereby the property goes to a third party (named by the grantor) when the grantee (life tenant) dies
Estate in Reversion
A life estate whereby the property reverts back to the grantor when the grantee (life tenant) dies
States the current loan balance on a note; used especially when notes are sold to others
Exceptions and Reservations Clause
A clause in a deed that lists any encumbrances the buyer is subject to; many times, referred to simply as the reservations clause
Exclusion on Homes
Only for owner-occupied properties; a person can write off up to $250,000 of capital gains if single, $500,000 if married; must have been your personal residence for 2 of the past 5 years; can use exclusion repeatedly, not just once in a lifetime
Exclusive Agency Listing
A type of listing where the owner and one broker are authorized to sell and receive a commission
Exclusive Right to Sell Listing
A type of listing where only one broker is authorized to sell and receive a commission
The phase in a contract where the promises have been completed; e.g. contract closing
One named in will to carry out will
Type of deed used by the executor to transfer property to those named in will
The phase in a contract where the promises have been made but not completed; e.g. contract pending
Refers to a contractual obligation where all parties have clearly stated their intentions
A title insurance policy that may cover more things than a standard policy, such as unrecorded liens, etc.
A form of depreciation due to problems outside the property lines; e.g., owning a house next to a factory or sewage treatment plant; also referred to as economic obsolescence
A customer level duty relating to treating all customers fairly
A person with a child under 18; a protected class under the 1988 Amendments to the Fair Housing Act
Federal Deposit Insurance Corporation
Government agency that insures deposits in banks and savings & loans
Federal Home Loan Mortgage Corporation
FHLMC, Freddie Mac: An organization in the secondary mortgage market that primarily buys conventional loans from savings & loans
Federal Housing Administration
FHA; Established by the government in the early 1930's, FHA insures loans made by lenders in case of default by the buyers
Federal National Mortgage Association
FNMA, Fannie Mae: The largest organization in the secondary mortgage market that buys notes from lenders, thus providing liquidity for lenders; even though a private organization, FNMA raises money by selling government guaranteed bonds; buys all types of loans
The maximum rights one can have in owning real estate; also called fee simple absolute.
Loyalty and trust; what an agent owes to a principal (client)
First lender to record a mortgage is first in rights
Going from personal to real property; item that was once personal property but is now attached
What we usually think of as OWNERSHIP. There is no definite ending date and it is for at least a lifetime.
Linear (straight) feet along the street line; in essence, the width of your property along the street
Fully Amortized Note
A loan where the payments apply to principal and interest; the entire principal loan balance is totally paid off over the term
A form of depreciation due to problems inside the property lines; does not function the way modern properties do; e.g., outhouses, pumps for water, etc.
A promise made by the seller in a general warranty deed assuring the buyer that the seller will provide or sign documents in the future if necessary to help prove buyer's title
A person who represents someone else in several areas on an ongoing basis; e.g., property manager to owner; also salesperson to broker
Tax on land plus improvements; pays for school, police and fire protection, etc.
A lien that applies to all of one's property, real and personal
General Warranty Deed
The instrument used to transfer title from a seller to a buyer whereby seller gives buyer greatest protection; seller promises the covenant of seizin, quiet enjoyment, against encumbrances, further assurance and warranty forever
Geodetic Survey System
A form of legal description that uses benchmarks to identify land
Good Faith Estimate of Settlement Costs
A preliminary estimate of expected closing costs given to buyer within 3 days of loan application
Government National Mortgage Association
GNMA, Ginnie Mae: An organization in the secondary mortgage market that buys notes from local lenders; government corporation under HUD; buys notes in depressed areas of country; primarily buys FHA & VA loans
Government Survey System
A form of legal description that describes land in America using meridians (north and south) and base (east and west) lines; every six miles range and tier lines are drawn to form townships; also referred to as the rectangular survey system
A lease where the payments can go up or down, but are pre-determined
Graduated Payment Note
A note where payments start out lower than normal, then go up yearly typically for 5 years, then leveling off for the remaining term; the FHA245 is a type of graduated payment note; sometimes can result in negative amortization
The person receiving title to real property; typically the buyer
Receiver of real property (buyer)
Words of conveyance in a deed; using property wording and verbiage in a deed
The person transferring title to real property; the seller
Giver of real property (seller)
The possible annual gross income for a property; used with the income approach
A lease where the landlord pays taxes, assessments, insurance, etc.
Gross Rent Multiplier
(GRM); This is a form of the income approach used to estimate the value of a rental property. The gross rent multiplier is computed by taking a rental property's sale price and dividing by the rent charged.
A lease for ground; usually long-term; e.g., farmers, gas stations, etc.
Growing Equity Mortgage
A type of mortgage where predetermined amounts, in addition to regular principal and interest payments, apply to principal each month, thus growing equity faster than normal
In a deed, contains just these words: "To have and to hold"
A physical or mental impairment; a protected class under the 1988 Amendments to the Fair Housing Act
Highest and Best Use
The use of a property that provides greatest net return on land
A law that protects a family's home from creditors; does not apply to real estate taxes or home mortgage
A customer level duty relating to being honest with customers
The borrower retains item used as security for loan; e.g., house or car loan
Refers to a contractual obligation that is created by one's actions
An approach to value best used on income producing properties such as shopping centers, apartment complexes, etc. This approach uses the net operating income and a capitalization rate to estimate the value. Also referred to as the capitalization approach.
Income Tax Lien
A lien for non-payment of income tax to the IRS (Internal Revenue Service)
Money spent on improvement adds at least that much or more to the total value
A lease where the payments can go up or down but are based on some type of index, such as the consumer price index
Owner financing where the seller keeps the warranty deed for the entire duration of the contract for deed; thus the seller retains legal title. The buyer gets possession and receives an equitable title upon the signing of the contract for deed, allowing for the buyer to obtain the deed after the entire contract is paid off. Also referred to as a contract for deed or land contract.
Primarily make large loans
Rental charge for using someone else's money
Dying without a valid will
A form of ownership where two or more parties own property together; carries the right of survivorship (when an owner dies, the ownership interest goes to the surviving owners, not the heirs of the deceased)
Jones VS Mayer
In 1968, the United States Supreme Court rules that one cannot discriminate racially under any circumstances
A lien for personal debts; covers all real and personal property
Where a mortgagee/lender has to go to court to foreclose upon breach of contract
Any mortgage other than a first; also called a second mortgage
A spot on the earth that goes down to the center of the earth and up to infinity
Owner financing where the seller keeps the warranty deed for the entire duration of the contract for deed; thus the seller retains legal title. The buyer gets possession and receives an equitable title upon the signing of the contract for deed, allowing for the buyer to obtain the deed after the entire contract is paid off. Also referred to as a contract for deed or installment contract.
What we usually think of as RENTING or LEASING. It is for a definite period of time, i.e., a limited duration.
An essential element of a contract; must be for a lawful purpose
Refers to party who actually is in possession of warranty deed
Receiver of lease (tenant)
Giver of lease (landlord)
Using borrowed money to make money
Personal permission to use someone else's property; does not encumber title as an easement does
States that honor this recognize that a homeowner has title; the lender has mortgage lien against property
A money encumbrance against a property
A property that is deeded to someone for their life or the life of another
An arrangement where one can invest money with a general partnership; the limited partner is normally only liable for their investment; basically a financial backer; not involved in day to day running of business
A clause in a contract allowing for the earnest money to be forfeited to the seller if a buyer backs out of a contract; also called pre-arranged damages
Latin for "pending litigation or action"
Property bordering a lake or ocean
Loan Origination Fee
A fee charged by a lender for originating and processing a loan
Loan to Value Ratio
The percent the loan is to the total value; e.g., a loan of $80,000 on a property valued at $100,000 would result in an 80% loan to value ratio
A lender guarantees a borrower a fixed interest rate and a fixed amount of discount points for a certain time period
Lot and Block System
A form of legal description which lists a lot #, block#, subdivision, county and state; recorded on a plat map; used primarily for new subdivisions
(Fiduciary) A client level duty relating to doing what is in your client's best interest
Basically, a lenders' profit; the margin is added to an index in an adjustable rate mortgage to come up with the actual interest rate charged to the borrower; the margin remains the same for the life the loan
Market Data Approach
An approach to value best used on residential property and vacant land; uses comparable properties to estimate values
Master Land Plan
Plan for a cities future growth
A lien designed for people who make improvements on property and are wrongfully not paid; e.g., contractors, sub-contractors and material vendors who are not paid for work performed or materials supplied
Length measurements in a Metes and Bounds description; e.g., feet and inches
Metes and Bounds
A form of legal description that gives a physical description of the property
False statement of a material fact
A document where property is used as security for the debt
Acts as a middleman between lender and borrower; mortgage bankers actually make the loans to the borrowers; earns money by servicing loans
Earns money by bringing lenders and borrowers together; normally does not actually make loans
Mortgage Contingency Clause
A clause in a contract where the buyer is obligated to buy only if loan approval is obtained; usually buyer gets earnest money back if mortgage is denied
A voluntary lien where one uses property as security for a loan
A document verifying that a mortgage loan has been paid in full; should be recorded on the public record, thus releasing the property from the mortgage
The receiver of a mortgage (lender)
(lender) A title insurance policy covering a lender for the outstanding loan balance
The giver of a mortgage (borrower)
An instrument that can be bought and sold
A lease where the tenant pays all or part of taxes, assessments, insurance, etc. Taxes paid by tenant would be tax deductible for the tenant.
Normally illegal; this is where the real estate commission is the sale price less the seller's required proceeds
Net Operating Income
NOI; the annual gross income for a property less a vacancy rate and operating expenses; used with the income approach
Before zoning; similar to a grandfather clause; allows continued use of a property that is technically in violation of the current zoning law because the owner was using the property a certain way before the zoning change. Property can be sold as non-conforming use if buyer uses it the same as the seller had; however, if property burns down, generally property then must conform to the new, current zoning use.
A clause in a lease and lending document allowing for continuation of a lease even if the property is foreclosed on
In a trust deed state, the trustee sells the property and pays off the beneficiary (lender) without having to go to court
Without permission (hostile); this is a requirement for a person claiming rights to a property either through adverse possession or an easement by prescription
New contract takes place of old contract; e.g., an assumption of a loan with a release of liability given by the lender to the seller
(Performance) A client level duty following instructions of a client
In a real estate transaction, the buyer makes the first offer
Offer and Acceptance
An essential element of a contract; the parties must agree on the exact same terms
Open End Mortgage
Line of Credit; can borrow again and again on the same loan; e.g., home equity loan; works like a credit card
A type of listing where everyone is authorized to sell and receive commission, including the owner; the only one who gets paid is the one who is the procuring cause (found the buyer)
Open Market Operations
Federal Reserve transactions in buying and selling securities
Costs incurred in a property management situation, such as utilities and repairs; does not include vacancies
Used with the income approach, the operating expenses include all operating costs, such as utilities, maintenance, salaries, etc. The one expense NOT considered is the debt service (mortgage payments).
A possibility contract where one party is bound to perform but the other party is not
Receiver of option (possible buyer)
Giver of option (seller)
Refers to a contractual obligation that is created by what appears to be; similar to implied
Uses both real and personal property as security
Partial Release Clause
A clause in a blanket mortgage allowing each property to be released from the blanket mortgage as sold; however, loan balance must be reduced
Partially Amortized Note
A loan where the payments apply to principal and interest; however, the principal loan balance is only partially paid down, thus usually requiring a balloon payment at the end of the loan term
A type of syndication where the partners have unlimited liability and generally share in profits, losses, taxes, etc.
A situation where two structures share the same wall; e.g., a duplex
A lease where the rent is based on a percentage of sales; normally used in retail leases
A lease that runs from period to period; e.g., a month-to-month lease
Anything that is easily movable; e.g., camera, grill, etc.
Personal Services Contract
A non-assignable contract; e.g., listing contracts
A form of depreciation due to peeling paint, sagging floors, etc.
Number of years item is physically sound
Planned Unit Development
(PUD) Diverse uses of land in one area; requires special zoning (referred to as overlay, cluster or density zoning)
Used with the Lot and Block System, this map is a diagram of a subdivision
The lender retains item used as security for loan; e.g., stocks, bonds, etc.
The total value of combined properties exceeds total value of individual properties; also referred to as assemblage
Keeping things in order; e.g., zoning and building codes fall under police power
Power of Attorney
A written document authorizing one to sign legal documents on behalf of another
A clause in a contract allowing for the earnest money to be forfeited to the seller if a buyer backs out of a contract; also called liquidated damages
Pre-payment Penalty Clause
A mortgage clause where a lender charges a penalty if the loan is paid off early
Principal / Client
One who hires an agent for representation
A special court for handling estates upon one's death. Court determines who gets what property and in what amounts if the deceased died intestate (without a valid will)
Creates the debt; a promise to pay back money that was borrowed; also referred to as a bond
Property Management Agreement
An agreement between an owner and property manager that shows basic duties of the property manager; generally this agreement does not contain a vacancy rate
Property Tax Lien
A lien for non-payment of real estate taxes; this always takes priority getting paid off at a foreclosure sale
Protective Period Clause
Protects broker in case negotiations extend past the expiration date of listing; this clause is normally standard in an agency agreement
Subjective opinion; e.g., this home has a beautiful view; not a law violation
Pur autre vie
(for another's life) A life estate where the grantee owns a property based on someone else's life
Purchase Money Mortgage
Owner financing; typically where a seller carries a second mortgage on behalf of the buyer
Quantity Survey Method
A way to determine current replacement cost by pricing the rebuilding item by item; every brick, board, etc.
A promise assuring no third party claims; e.g., in a lease, a tenant receives the right of quiet enjoyment from a landlord, thus relieving tenant from having to worry about another party claiming rights to that same space
Quiet Title Suit
Court action to clear a cloudy title; e.g., ownership disputes, adverse possession claims, encroachments, etc.
A type of deed transferring title from a seller to a buyer where NO promises are made by the seller. The seller says IF I own it, but I'm not saying I do, I give you whatever rights I MAY have. This deed is typically used to quiet cloudy titles.
Real Estate Investment Trust
(REIT) A type of syndication that is basically a giant mutual fund for real estate investments
Real Estate Settlement Procedures Act
(RESPA) A federal law whose purpose is to inform borrowers ahead of time total closing costs so borrowers can shop around to get the best deal
Allows owners of investment property to deduct a percentage of the cost of the property each year from their taxable income; also referred to as tax depreciation
(Correlation) The final step in the appraisal process; this reconciles differences from among three different approaches to value to arrive at a final dollar amount for the appraisal
Rectangular Survey System
A form of legal description that describes land in America using meridians (north and south) and base (east and west) lines; every six miles range and tier lines are drawn to form townships; also referred to as the government survey system
Redeem = buy back; defaulting borrower has a certain time period to buy property back at foreclosure sale price plus any other costs owed
Lenders refusing to loan in certain areas based upon protected classes
A federal law pertaining to lenders having to disclose all loan costs to borrowers; also referred to as Truth-In-Lending Laws
Government regulations relating to subdivisions; e.g., most cities require streets, sewers, easements, etc.
Third party who receives fee simple title upon death of the grantee (life tenant)
Using the cost of similar materials
Using the exact replica cost
In a contract, this returns the parties to status quo; way they were before contract signed
A form of life estate where the seller sells the property but retains (reserves) a life estate interest in that same property for the seller's lifetime
Percent of funds banks must keep on hand
A private agreement contained in a deed that restricts the use of a property; e.g., certain types of fences or roofs required. Also referred to as restrictive covenants or deed restrictions.
A private agreement contained in a deed that restricts the use of a property; e.g., certain types of fences or roofs required. Also referred to as deed restrictions
Reverse Annuity Mortgage
RAM; A type of mortgage where the mortgagee (lender) pays the mortgagor (borrower) a fixed amount every month; usually for retired people with home completely paid off
Upon expiration of a lease, the property goes back to original lessor (landlord); also, a life estate in reversion is where once a grantee (life tenant) dies, the property goes back to original grantor
Right of First Refusal
A contract where one is given the first opportunity to buy if a property is put up for sale
Right of Rescission
Allows for a party to rescind or back out of a contract. On many loans, a borrower has a 3-day right to rescind (back out). However, there is no right of rescission with a real estate sales contract.
Right Of Survivorship
Found in joint tenancy, when one owner dies, the ownership interest passes to the surviving owners
Property bordering a flowing waterway; e.g., river or stream
Sale / Leaseback
This is used when owner needs capital (money); owner sells property to a buyer and then leases the same property back from the purchaser
Savings & Loans
A type of lender with their largest investment in residential home loans
An element of value; must be a limited supply
Schedule of Exceptions
A title insurance clause stating that certain items are excluded from coverage; e.g., government regulations such as zoning
Any mortgage other than a first; also called a junior mortgage
Secondary Mortgage Market
A place where loans already made by local lenders are bought and sold; the purpose is to provide liquidity for lenders
A portion of ground measuring one mile square; also one square mile; contains 640 acres; every acre contains 43,560 square feet
Required if one sells investments to the general public, such as REIT's (Real Estate Investment Trust)
Seized of title; A term where seller promises ownership of property and has the right to sell
Property acquired before marriage; individual spouses retain sole ownership interest
Land burdened by the easement
Amount of space between lot line and building line
A situation where one person only owns the property; also, how corporations take title
Going from real to personal property; e.g., cutting down a tree
Shared Appreciation Mortgage
SAM; A type of mortgage where the lender shares in appreciation plus interest; a form of a participation loan
Transfers property to buyer at foreclosure sale; e.g. for non-payment of mortgage
Sherman Anti-Trust Laws
A federal law that prohibits groups of brokers setting a fixed price for services
An essential element of a contract; must have signatures of all parties to contract
A person who represents someone else one time in one area; e.g., broker to seller
Property tax for improvements that benefit certain properties; e.g., sewers and sidewalks
Special Warranty Deed
A type of deed transferring title from a seller to a buyer. However, the seller only makes promises regarding ownership, encumbrances, etc. during the time period in which the seller owned the property, no promises before that.
A lien that applies only to one specific property
Specific Performance Suit
Court action to force completion of a contract
Changing the zoning of one particular spot; normally for public good
Square Foot Method
A way to determine current replacement cost by taking the square footage (length times width) of a property times a cost per square foot; appraisers use outside dimensions in determining square footage
Length times width
A title insurance policy that covers forged documents, undisclosed heirs, etc.
State the Problem
The first step in the appraisal process; this defines the purpose of the appraisal
Statute of Frauds
A law that requires certain documents to be in writing to be enforceable; e.g., real estate sales contracts, deeds, leases over 1 year
The right to redeem property after the foreclosure sale
Directing people toward areas based upon their protected class
Straight Line Method Depreciation
A method of depreciation where one depreciates equal amounts each year; what appraisers use
(Term Loan) A loan where the payments apply to interest only; usually short-term; e.g., used on construction loans
An agency situation where one agent is authorized to use another agent to represent the client; historically, this is where two brokers, the listing and selling broker, both represent the seller; buyer is a customer and is unrepresented
Divides land into lots for sale
An assignment of a loan from the seller to the buyer where the seller remains solely liable for debt
A partial transfer of rights in a lease where just the original tenant remains liable for the lease payments; the new tenant is a lessee of the original tenant
A mortgage clause where lenders change the lien priority that is different than recording date; lender waives their right in favor of another
Signing over rights in a claim to a title insurance company in return for getting paid off
A property is only worth what one can get another one for just like it
Suit to Partition
A lawsuit where one of the owners institutes court action to force sale of property by all parties
Two or more people investing together
A public official who appraises property for tax purposes to determine only the assessed value.
Total of all assessed values
Transfers property to buyer at foreclosure sale for non-payment of taxes
Allows owners of investment property to deduct a percentage of the cost of the property each year from their taxable income; also referred to as recapture
Exchanging like-kind property for like-kind property, resulting in a deferral of capital gains tax; also called a 1031 exchange
Tenancy at Sufferance
A lease where the tenant stays over without permission; landlord suffers
Tenancy at Will
A lease where the tenant does have permission to occupy but nothing is in writing; e.g., a landlord continuing to accept rent from a tenant even after expiration of the original lease
Tenancy by the Entireties
Very similar to joint tenancy, with the difference being that the owners must be husband and wife
Tenancy In Common
An individual interest in group ownership; the ownership interest can be unequal, the parties all share possession, and the heirs of the deceased receive the property upon the death of one of the owners (ownership does NOT transfer to the other co-owners)
Dying with a valid will
Deceased person who had made a will
Time is of the Essence Clause
States that all terms of the contract must be completed in a timely manner
Fee simple ownership to a unit for a set period of time each year; interval ownership
Insures the title to a particular piece of property
States that honor this recognize that generally, the lender has title until debt is paid off
A portion of ground measuring 6 miles square; also 36 square miles
Item installed by a commercial tenant for business use; e.g. display cases
An element of value; seller must be able to give to buyer
Separate account for holding other people's money; usually held by broker; also referred to as escrow account
A document where property is used as security for the debt
The receiver of a trust deed; a neutral third party whose primary job is to foreclose if payments are not made to the lender or beneficiary
The giver of the trust deed (borrower)
A federal law pertaining to lenders having to disclose all loan costs to borrowers; also referred to as Regulation Z
A contract that may not be enforceable in court; e.g., an oral contract
A contract containing a promise for an action; e.g., a lease with an option to buy
Uniform Settlement Statement
(HUD 1 Form) Lists actual final closing costs for seller and buyer
A way to determine current replacement cost by pricing the rebuilding by units; concrete, roof, etc.
Set the maximum interest rate that can be charged by law; states have their own unique usury laws
An element of value; must be useful
Valid and Enforceable
A contract containing all the essential elements, including being in writing
An item goes down in value due to age, wear and tear, etc.
After zoning; this is a small deviation in the current zoning law that still conforms to the over all general plan for the area. Variances are generally granted for things like setback requirements, front footage requirements, etc.
Buyer of property; in a contract for deed, buyer is one who gets possession of property and pays "installments" to the seller until the contract is paid off
Seller of property; in a contract for deed, seller is one who retains legal title
A type of easement for viewing across another's property
A contract with no legal effect; e.g., one of the parties not of sound mind
A contract that can be voided by one of the parties; e.g., contract signed by a minor, under duress, or due to misrepresentation
A promise made by the seller in a general warranty deed that says if the seller provides faulty title, the seller will return the purchase price money back to the buyer; in essence, a money back guaranty
Difference between earth's surface and percolating water
A financing arrangement where typically a 2nd lender assumes the note of a 1st lender on behalf the buyer, advances the buyer additional funds to purchase the property with the buyer then making payments on the entire new mortgage made to 2nd lender
Writ of Execution
A procedure where a sheriff seizes property and sells to satisfy a judgment
An essential element of a contract; contract doesn't have to be in writing, but generally does to be enforceable (an oral contract generally cannot be enforced in court)
The regulation of structures and uses of property within designated areas
As Real Estate Agents we sell?
Land & Appurtenances
The right, privilege, or improvements permanently attached (run with the land)
Examples of Appurtenances are:
Natural (creek, trees) Man made (garage or house) Mineral Rights (Oil) Air Rights & Water Rights.
Do Mineral Rights transfer with the land?
Always unless specified otherwise.
What is used to transfer personal property?
Bill of Sale
What is it called when real property gets converted to personal property?
What is it called when personal property gets converted to real property?
What is personal Property?
Not Real Property
What are trade fixtures?
Personal Property that a tenant can take with them at the end of the lease.
What are emblements?
Crops cultivated by previous tenant or owner, it belongs to the past owner. (does not run with the land)
What is the difference between government and private rights?
Government rights are for the good of the entire community.
What rights does the government have?
Taxation, Police Power, Eminent Domain, Escheat
What is Eminent Domain?
The right of the government to seize a persons property through the process of condemnation, for the greater good.
What is Escheat?
Right of the government to seize abandoned property.
2 Kinds of Freehold Estates are:
Fee Estates & Life Estates
Which type of estate is fully inheritable to the occupant?
Fee Simple Estate
Which type of estate is non inheritable?
Freehold estate means what?
You own it with no definite ending date - all conditions transfer with it.
Leasehold estate means:
You rent or lease for a definite period
If someone dies & the property is a life estate it becomes an:
estate in reversion
What are the 4 unities of Joint Tenancy?
T - Time: Take ownership at the same time
T - Title: Must all be on title
I - Interest: Equal Interest
P - Possession: Undivided, take possession at the same time.
An estate in remainder means:
As long as the life tenant is breathing, the grantor can lease, sell, mortgage, but when the life tenant dies it will go back to the original grantor (3rd party involved)
Mortgage "discount" points only apply if:
The interest rate on the mortgage loan has been lowered by 1% for each point charged
Standing trees would be considered:
What tenancies does Kansas allow?
Which is not necessary for a valid contract?
Who is responsible for maintaining a habitable property and for complying with local housing and building codes?
Does Kansas allow Holographic wills?
How soon can a broker receive a commission check after a closing in Kansas?
After the transaction is completed and funded.
Which of the following is required for an applicant to receive a Real Estate License?
Must sit and pass the required exam
Which of the following would not put a sales person in jeopardy of losing their license in Kansas?
Being authorized to accept and excessive commission.
What term means "going to the state?"
Does Kansas have dower laws?
Does Kansas have reciprocity with other states?
Is Kansas a community property state?
Which of the following isn't part of a deed?
Novation, Acknowledgement, Habendum, Premises
A license expires every 3 years. True or False
False. Every 2 years.
After getting a license, how often must you take Continuing Education classes?
Every 2 years
What is homestead protection?
The status provided to a home owner's principal residence that protects the home against judgement up to a specified amount.
Which of the following is a landlord's option for a tenant not paying rent?
unlawful detainer action in court
A Salesperson license fee costs how much?
The license law is administered by:
Kansas Real Estate Commission
In what circumstances, if any, can a broker in Kansas who is serving as an intermediary representing both parties collect compensation from both the buyer and the seller?
Only when both buyer and seller give informed consent to this arrangement
Does Kansas have homestead laws?
What is the effect on mineral rights when the land is sold?
They pass to the grantee unless specifically noted.
When is an item considered to be real estate?
When it is permanently attached to the land.
Which of the following would not be appurtenance? (Right, Privilege, Improvement, Reversion)
A buyer made an offer on a house and the seller accepted the offer as written. The buyer wanted some of the seller's personal property to remain with the house. The personal property would transfer to the buyer under what conditions?
If it was included in the contract.
A commercial tenants lease for a seafood store was about to expire. The tenant began dismantling the display cases that the tenant had originally installed. The owner of the property informed the tenant that the tenant could not dismantle the display cases. Whats is correct concerning this situation?
The tenant would be able to take the cases and would not have to pay the owner for the fair market value of the cases.
A seller sold a property to a buyer. The property contained built-in bookshelves. What would be true about the built-in bookshelves?
They stay with the property as they are permanently attached.
Which of the following is not a fixture? (bathtub, extra and attache door locks, built-in dishwasher, above ground pool)
Above ground pool
When a property is taken for public improvements from an unwilling owner, this is:
When a property is taken through condemnation, it was a result of:
the government exercising the right of eminent domain.
the state government can take property that has been abandoned by the owner through what right?
the zoning commission has the authority to zone under which government right?
Fee simple title would BEST be described as receiving:
The maximum rights in a property.
T deeds a property to L, giving L a life estate in the property. T also selects R to receive the property after L dies, this would become an:
estate in remainder
a Child owns a life estate and sells the property to a friend. What is true regarding the friend's estate?
It ends when the child dies
Property owned solely and separately is:
A person owned a condominium and leased it to K for one year. What did this create?
a Leasehold Estate
G has a lease for one year. At the end of the year, G stays over without consent. This would be called an:
estate at sufferance
What is a voluntary lien against a persons property?
One year ago, a seller had work performed on their property. Currently, the seller sold the property to a buyer. Just before closing, it was discovered that there existed a judgement against the seller from the work that was done one year ago. Who would be responsible for this judgement lien?
A trespass of an improvement is what?
A devoloper has a 50 acre development with 500ft of lake frontage. A purchaser of a non-lake frontage would want what included in the purchase?
an appurtenant easement to the lake
What would transfer legal use, but not ownership of a property?
Easements, rights of ingress, rights, privileges and improvements that transfer with the delivery of the deed are called:
A building with a roof that extends over the boundary line would be considered?
An encroachment on a property would be discovered though a:
Who would determine the amount for maintenance fees in a condominium?
the board of directors
The right of a party to the use and occupancy of a property for a stipulated recurring period is known as:
An owner of a condominium unit failed to pay the property taxes. What is most likely to occur:
Ownership of the condominium unit will be jeopardized.
What interest does a condominium owner have in common with the other condominium owners?
Undivided interest in the common areas
When ownership is conveyed through the transfer of shares of stock, this is:
Ownership of a unit in a condominium is transferred through:
As a condition of owning space in a condominium, the owners were assessed a monthly fee for the use of the clubhouse and swimming pool. An owner did not use either. The owner:
Would still have to pay the full monthly assessment.
A condominium development with a long standing established home association would be governed by the:
Association of unit owners.
A relocation company purchased a property. The relocation company in trying to sell the property only wanted to guarantee the property since they have owned it. The type of deed necessary to accomplish this would be a:
special warranty deed
A grantee is going to sue a grantor based on a cloudy title. The grantor would most likely prevail in this lawsuit under which circumstance?
The grantor conveyed the property with a quitclaim deed.
The purpose on the encumbrance clause in a general warranty deed is to protect against:
unrecorded liens that may affect the value of the property.
Unless specified otherwise, when a property is sold, when would possession of the property normally be given?
Upon the deed being delivered and accepted by the buyer.
When does title to real estate transfer from the seller to the buyer?
When the deed is delivered and accepted.
The purpose of recording the deed is to protect the:
Documents are recorded to provide:
A person occupies a property in a hostile, visible, actual and direct manner. This is BEST described as:
What is a quitclaim deed generally used for?
To quiet a cloud on the title.
An insurance policy designed to insure against title defect is paid:
Once when the policy is issued.
What would not place a limitation on your rights in property?
A tax assessment for the addition of a sidewalk in a neighborhood would be referred to as:
Special Tax Assessment
A property with a total value of $40,000 was appraised for tax purposes at 25% of market value. If the tax rate was $3 per $100 of the appraised tax value, how much tax was owed?
A property was assessed at $150,000 with a rate of $27.50 per $1,000. The next year the tax rate was reduced to $25 per $1,000 and the assessed value went up by 10% the tax rates would:
stay the same
An established family grocery store is in an area that has recently been zoned residential. If the grocery store was to be sold, what document would be needed to allow continued use of the grocery store.
Pre-existing non-conforming use
Property used for something other than the current zoning is referred to as:
Why would an appraiser, in doing an appraisal on a particular property, check out the zoning on that property?
To see what the legal uses are for the property.
An owner wanted to extend the current garage, but found out that the modification would extend the garage over the side set-back line. What would the owner need to obtain in order to extend the garage past the set back line?
What is the purpose of a mortgagor giving a mortgage to the mortgagee?
To pledge property as security for the loan
What liens would take priority over all other liens?
Real Estate Tax Lien
The primary purpose of a mortgagor giving a mortgage to the mortgagee is to:
Secure the debt
A mortgage is recorded to protect:
A property appraised for $42,000. If the buyer borrowed $28,000, what is the difference between the two amounts called?
How does a buyer become a client of a broker?
By signing an agency agreement with a broker
Dual agency is allowed in a real estate transaction as long as:
Both parties give written informed consent right up front.
Sellers who hire agents to represent them and sell their properties are:
What does a person have who can sign legal papers for another person?
POA - Power of Attorney
What are the Legal Principals of a contract?
Offer & Acceptance
Do you have to have earnest money for a contract?
NO, but it does have to have something of consideration (something of value)
What is lawful purpose?
Contract cannot be for anything illegal, only for a purpose that is legal.
Parol Evidence allowed in regards to real estate contracts in court?
(Oral agreement) Not allowed if it differs from the written agreement
When is a purchase said to have "equitable title"
At the signing of the sale contract by both the buyer and the seller
If a counter offer is made by a seller, what happens to the previous offer?
It becomes void.
H had a property for sale for $129,000. B made an offer for $123,000. H made a counter offer for $127,000. Would the counter offer be binding on B?
No, because it's not signed and accepted by all parties.
In the process of preparing to present and offer to the seller, a broker receives another offer. The broker is required to:
Present both offers at the same time.
How are contracts created?
An agreement has been signed by all parties but the terms have NOT been fully performed. What kind of contract would this be?
What are the 4 ways to legally classify contracts?
Valid and Enforcable
3 examples of a voidable contract:
Contract signed by a Minor
Contract signed under Duress
Contract signed due to Misrepresentation
Is puffing a voidable contract?
No, it's in the eye of the beholder
A contract where one party is bound to perform but the other party is not would be referred to as:
Knowlingly misrepresenting a material fact in a deliberate way so that someone else suffers a loss in an attempt to make money is:
What are the choices a Buyer has if a seller defaults on a contract?
Specific Performance Suit
Sue for Damages
What are the 4 choices a Seller has if a buyer defaults on a contract?
Declare contract forfeited
Specific Performance Suit
Sue for Damages
What type of contract cannot be assigned?
Personal Services Contracts
What is the difference between an option contract and a right of first refusal?
An Option - Seller gives the buyer the option to buy or not to buy
Right of First Refusal - A person has the first opportunity to buy if offered for sale or lease
What is a Possibility Contract(Option Contract)?
Definite Time Period
Definite Sales Price
Unexercised Option Contracts (Uni-Lateral)
Exercised Option Contracts (Bi-Lateral)
Is an address a legal description?
What are the methods of giving legal description?
Metes & Bounds
Geodetic Survey System
Rectangular Survey System
Lot & Block System (Plat Map)
How many acres are in one Section (1sq mile)
How much sq ft is in 1 acre?
43,560 sq ft
What is the distance between the street and a house called?
What is a plat map?
Lot & Block Numbers
What are examples of Syndication?
What is REIT?
Real Estate Investment Trust - A group of managers used to buy houses
A sale of Interstate Real Estate Securities would be governed by which organization?
SEC - Securities & Exchange Commission
A corporation who purchased a piece of real estate as a co-owner with and individual would usually take title in which of the following manners?
Tenancy in Common
What are the 3 main Fair Housing Laws that pertain to Real Estate?
1: Civil Rights Act of 1866 (Racial Discrimination)
2: Civil Rights Act of 1968 aka Title 8 (7 Protective Classes: Race, Color, Religion, National Origin, Sex, Handicap, Familial Status)
3: Illegal Acts
What are Illegal Acts in the Fair Housing Laws?
Refuse to sell, rent or negotiate
Change terms or conditions
State property is restricted
Tell persons property is not for sale when it is
Telling owners to sell because a particular type of people are moving in
Different terms for loan
Deny membership in the MLS
Which two Fair Housing Laws were added in 1988 to the Civil Rights Act of 1968?
Handicap & Familial Status
Who is exempt from Fair Housing Laws?
Owner Occupied 1-4 Plex
Can a Landlord deny a rental if the family size is too large for the unit?
What is considered a Handicap?
Physical or mental impairment that limits activity
What is Jones VS. Mayer (1968)
Mayer owned a 4-Plex and rented out the other 3 and refused to rent to an African-American family. They went all the way to the Supreme Court and they found it is ALWAYS illegal to discriminate Racially.
On multi-family units (4 or more), how are elevators handled? (After 1991)
Either all elevators in all units or no elevators and use ground floor only.
What age is the exception for familial status?
62 and older
A handicapped person made some reasonable modifications to a rented unit after moving in. What should the handicapped person do?
Return the space to the landlord in the original condition
What is the purpose of an appraisal?
What has the greatest influence on appraisal value?
Local economic conditions (supply & demand)
What are the Economic Characteristics of Value?
Demand - must be wanted
Utility - must be useful
Scarcity - must be a limited supply
Transferability - Seller must be able to give to buyer
What never depreciates due to passage of time?
What kind of property can deduct depreciation for rent purposes?
When it is a rental (income property)
What are the factors affecting real estate supply and demand?
Local Economic Conditions
Economic life refers to the period:
Over which a property may be profitably utilized (# of years of profit)
Physical Life refers to:
the period of the actual age of the property (# of years structurally sound)
What would lead to an increase in the demand for residential rental property?
Mortgage rates going up
An appraisal is used to give an:
Opinion of Value
How do you deduct taxes for investment depreciation?
Deduct a percentage of the cost of the property each year from their taxable income
What are the types of Depreciation?
Depreciable base is:
Improvements only due to passage of time (houses or buildings we build on land)
How to compute Straight Line Method Depreciation:
1: Determine value of improvements (As if new)
2: Subtract depreciation
3: Add in current land value
What is it called when a person takes the cost of purchase and then recaptures this amount?
How do you calculate Appreciation vs. Depreciation?
Appreciation is accrued to the value each year.
Depreciation is calculated to one price all at once.
6 Principles Appraisers need to consider:
1: Highest & Best use
6: Plottage Increment
The direst sales or market approach is based on upon which principal?
CMA consists of:
2: For Sale
Always make adjustments to the comps or subject property?
What type of properties do appraisers use a "cost approach" appraisal?
2: Very few comps
3: Special purpose properties
Comparable is poorer you add
Comparable is better - subtract
What is the difference between reproduction cost & present value?
What steps are taken when using the "Cost Approach" method?
1: Estimate replacement cost
2: Subtract for depreciation
3: Add the current land value
An appraiser should lend most validity to the market data approach on which of the following properties?
How can property depreciate?
Functional obsolescence (inside)
External (economic) obsolescence (outside)
What way can an appraiser estimate value on a commercial property?
In the appraisal process, What are the 3 approaches to value?
1: Market data approach
2: Cost approach
3: Income approach
An appraiser must use how many approaches to complete/reconcile the appraisal?
2 of the 3 approaches
What are the steps involved in the appraisal process?
1) State the problem
2) Gather Data
3) Analyze and Interpret
4) Three Approaches to Value
5) (Final Step) Reconciliation
Kansas License Law was enacted by?
What activities require a KS Real Estate License?
3: Lease Commercial Property
4: Auction or Assist
6: Procure Prospects
Is KS License required to rent residential real estate?
Real Estate includes:
1: Freehold Estates
2: Non-Freehold Estates
People Exempt from License Requirements:
2: Someone acting under a POA (no compensation)
3: Licensed Attorney performing attorney duties
4: Government offices performing Government duties
5: Gross Easements (railroads, public health)
Which Broker hold all licenses at main office?
Can a salesperson hold licenses?
What is the makeup of the KREC?
1: 5 members appointed by Governor
2: 3 must have been Brokers for 5 years
3: Employs a director to run the office (Public Member)
The KREC director cannot do what?
What are the active duties of the KREC?
1: Make Investigations
2: Issue licenses
3: Publish disciplinary action in Newspapers
4: Revoke, suspend, restrict, or censure licenses
5: Fine up to $1000 per violation
6: Fine up to $5000 for an aggravated offense such as: risk of loss to client, fail to disclose clients ability to perform under the agreement (withholding a material fact)
KREC Can not:
1: Give criminal penalties
2: Arbitrate commission disputes
Does Branch Broker hold all licenses?
Can Associate Broker hold all licenses?
What are reasons the KREC can refuse a license?
1. earlier revocation or suspension
2. you have already committed an act that could get your license revoked
3. you plead "guilty" or "no contest" or convicted of a ethical crime or felony
4. you have sold real estate without a license (illegally) earlier
5. you lied on your application
6. other matters deemed pertinent by the KREC
1: you must recommend to every buyer that an attorney check on the marketability of title and any other legal issues
2: you cannot try to get someone to break a contract of listing, sale or lease
seller, landlord, buyer or tenant who has an agency agreement
seller, landlord, buyer or tenant in which a broker is involved but has not entered into an agency agreement
Does a Transaction Broker have a Customer or a Client?
acts a licensee may perform that do not rise to agency status - answering basic questions for peeps
What do you do for a client?
promote interests of client with loyalty including:
a. disclosing to client all adverse material facts known by licensee
b. advising client to obtain expert advice in areas outside expertise of licensee
What do you do for a customer?
disclose all adverse material facts known by licensee including:
a. environmental hazards
b. physical condition of property
c. material defects in property or title to property
broker owes no duties to client after termination EXCEPT:
1. account for moneys relating to transaction
2. account for property that changed hands during transaction
3. keep all confidential information confidential
1. When an option to buy is exercised, the contract becomes:
39. A broker who moves his personal residence should do which?
(a) Notify the KREC in writing within 10 days
(b) Return his license to the KREC
(c) Notify the KREC about the new address at the next renewal
(d) Nothing, the KREC only needs notification if he moves the office
(a) Notify the KREC in writing within 10 days
44. What duty does a listing agent owe to a prospective buyer?