1. It is unethical for a broker representing the seller to tell the buyer the lowest price a seller will accept.
2. Whenever money is transferred into a client’s trust account, accurate records must be kept.
3. Standard Accounting Practices are used for keeping records.
4. The phrase “procuring cause” is most important to the broker and seller in an open listing contract.
5. The Real Estate Settlement Procedures Act (RESPA) is designed to regulate disclosure of closing information.
6. An owner’s title insurance protects the owner from loss to a claimant with superior right of title.
7. A building constructed off site is a modular home.
8. The disadvantage in investing in real estate is that the money is not easily accessible.
9. Regardless of how many loans a person takes out on their property, tax liens take priority.
10. An assessment is a tax. Taxes takes priority in getting paid off first after a foreclosure.
11. Zoning changes require a public hearing and then council vote.
12. When an agent collects money from a tenant, the agent gives it to her broker, not the owner.
13. USPAP relates to the appraisal specialty of real estate.
14. The least obvious lead product to be found on a property is lead pipes.
15. A lead based paint disclosure gives buyers 10 days to inspect the property at their cost.
16. Banks don’t like to take a deed in lieu of foreclosure because they may have to pay off the junior loans.
17. Each discount point equals 1% of the loan not the sales price.
18. Puffing is not illegal.
19. A broker or agent should caution the seller not to respond to all multiple offers at the same time.
20. A counter offer voids an offer.
21. The agent’s obligation to the seller in regards to disclosure is to have him disclose all material defects.
22. An agent gets to keep his commission if the seller lied about a material fact and the buyer finds out after the close.
23. An open agreement is when the seller hires multiple agents.
24. An abstract of title is the history of the property title.
25. The attorney reads the abstract of title.
26. A salesperson can get leases for the broker and direct customers to the broker.
27. Once planted oranges and apple trees are real estate.
28. A leasee and a vendee have possession of property but not legal title.
29. A lease is personal property.
30. Dogs are allowed to live in non-pet apartments for handicap purposes including “comfort dogs”. Americans with Disability Act.
31. Broker protection Clause is a clause in the Listing Agreement that protects the broker after the listing expires.
32. UFFI is pumped between the walls and banned in the 70’s.
33. The Grantor signs the Deed.
34. A non-licensed secretary can refer a client to a broker.
35. Sharing a driveway is an encumbrance.
36. In a sales comparison method of appraisal, you subtract or add from the comparable, not the subject property.
37. What is not covered on a home warranty? The quality of workmanship.
38. The death of an associated broker does not cancel a contract. Associated brokers are broker agents. The death of the Responsible Broker kills the deal. Agents can die and the deal stills lives.
39. When a salesperson doesn’t know something but should have, he did not practice care. Negligent Misrepresentation. (If an agent tells a client that her fireplace will keep her warm and the client buys the property and then finds out the fireplace is actually just a fake front fireplace, it is Negligent Misrepresentation.) (If a buyer who wants to have a beauty salon in her garage tells the agent she is looking for a home for that purpose and buys a house with a garage that will accommodate her business from that agent which is not zoned for a home business, the agent did not practice care. (Negligent Misrepresentation)
The agent will be responsible for Actual Damages. Her E and O insurance will cover it.
40. The best reason for buying real estate is appreciation.
41. Real Estate is not easily liquid.
42. A Reverse Amortization Loan is a reverse mortgage. It is for older people who would like to have tax free income.
43. Novation: an agreement to replace an old debtor with another one. (Used when assuming a loan.)
44. When the developer of an apartment complex is forced into having two parking spaces for each unit, it is a building code. It is police power.
45. When a seller gives an agent a bonus check, the agent must turn it over to her broker.
46. A subordination agreement is a release to take a second position. The second loan on your house is a subordinated loan to the first lien holder (loan, lender).
47. Land is not a fixture. Land is real property. Fixtures are attached to the land. (trees, fences, shrubs or an attached door, door knob, window, awning, faucet, sink.
48. Straight line method of depreciation is dividing the adjusted basis of a property by the estimated remaining useful life.
49. PUD: Planned Unit Development, A project or subdivision that has individually owned parcels and homes, together with recreational or landscaping elements owned by a homeowners association and managed for the mutual benefit of all homeowners.
50. The most Trade Fixture used in a course of business is a bowling alley.
51. A vineyard (grapes) are real property. Apple trees and orange trees are real property. They are Fructus Naturales. (Natural Fruit)
52. Emblements are personal property. Emblements are crops such as tomatoes, corn, cucumbers. They need to be planted and cultivated yearly. (If a renter farmer is evicted from his property after his crops are planted, he is allowed to harvest those crops. A farmer is entitled to the fruits of his labor.)
53. Standing timber is considered real property.
54. IDX technology is the technology that allows agents to link to the MLS on their web-page.
55. Title insurance insures up to the date the policy is issued.
56. A property manager’s duties does not include investing the property owner’s funds.
57. If Sam and Joe own property as joint tenants, when Joe dies, Sam will hold title in Severalty.
58. When a tenant in common tries to convey 100% title. he has violated the Covenent of Seisen.
59. The term that best describes a tenant’s interest in property is Lease Hold Estate. It is personal property. It’s a reversionary estate since it reverts back to the owner.
60. A prospective buyer has the right to demand his deposit money before the offer is accepted.
61. An option contract is a unilateral contracted. In a rent to own, the renter need not buy but if he chooses to buy, the seller must sell. A Listing Agreement is a unilateral contract also. The Listing Broker may not sell the property but if he brings a ready, willing and able buyer that meet the terms of the contract, the seller must sell.
62. A written and signed real estate contract may be voided if one of the parties is an unmarried minor. It’s a voidable contract. A married minor is considered an adult and the contract is valid.
63. If a tenant signs a five year lease and the owner dies in 3 years with will (testate) the lease is valid.
64. When a property reaches a physical condition where a tenant can no longer live there (unsafe), he may move and it is called Constructive Notice. When a person records a deed, it is said to be giving Constructive Notice to the World.
65. The first person to record the deed is the owner. An unrecorded deed is valid only between the parties involved and to those who have been given notice.
66. You are assured you are getting fee simple ownership when the seller can furnish title insurance.
67. When a person dies testate, his will passes by devise. Before his heirs can take possession, there must be probate.
68. When a person dies intestate, his property passes by descent and distribution.
69. When a commercial property is in a neighborhood that gets down-zoned, the property gets grandfathered in and is of non conforming use.
70. The economic life of a property has come to an end when the value of the land and the building equals the value of the land only.
71. A capitalization rate incorporates return on land and building and recapture of the building.
72. A mortgage broker can not take money for an appraisal.
73. When a FHA or DVA buyer wants to take out a loan, he must go to a qualifies lender. FHA and DVA do not lend money. FHA is an insurance company and DVA is a guarantee company.
74. The mother or father of an active military person can not get a DVA loan.
75. The Truth in Lending Act is designed to disclose the cost of borrowing.
76. Agents can’t go around the neighborhood inducing fear to get commissions. It is called panic peddling and blockbusting.
77. Agents can not steer people into neighborhoods where they believe people should live. It’s called steering.
78. When three banks turn down a loan for a person based on the property’s neighborhood economic factors, it is not redlining.
79. refusing to rent to someone based on race is a violation of the Fair Housing Act.
80. When a brokerage does not predominately display the Equal Housing Opportunity (EHO) Poster, it is called Prima Facie Discrimination. (Prima Facie=Prime Face=In your face.)
81. The best way to appraise a single family home is Comparative Market Analysis. (The date a comparative is sold is an important factor.)
82. A broker’s trust account is a checking account.
83. Monies in a trust account are not assets of the broker. It is the clients funds and accurate records must be kept.
84. A broker may deposit his own funds into a trust account to open the account and to pay any fees associated with it.
85. Brokers are not responsible to identify latent defects.
86. A loan made in installments for a majority of the term of the loan and at the end has a balloon payment is a partially amortized loan.
87. A loan that only interest is paid and at the end has a balloon payment is a straight loan
88. Disadvantages of a bank taking a deed in lieu of foreclosure is that it is not a legal event and they will be responsible for junior loans.
89. Th primary responsibility of a property manager is to get the highest NET return for the owner.
90. When you want to extend your patio, check setback limits.
91. When a co op (cooperative) owner defaults on his payment, the others in the complex must pay his share. Co op ownership is personal property. The owner owns stock in a cooperative. It is the only personal property that has property disclosures (1 to 4 units only.)
92. A condo owners title is fee simple.
93. Owners of a time share hold title as tenants in common.
94. Trigger terms for Regulation Z are a percentage, down payment, number of payments, starting amount of payments and service charge. (It’s the stuff you need a magnifying glass to read.)
95. When a broker receives an earnest money check, he must deliver it to the trust account by the end of the next business or banking day.
96. Brokers cannot price fix commissions or boycott other agents.
97. A handicapped person may make Reasonable Alterations to an apartment but return the apartment to it’s original condition at the end of the lease. The least likely thing to be brought back to it’s original conditions is the hand rails screwed into tile. (They are left because it will do more damage to remove them.)
98. Regulation Z requires that the buyer have a three day right of rescission if the loan is on his personal residence.
99. A bank that substitutes it’s judgement on behalf of another bank is a bank intermediary.
100. HUD protects people dealing with Fair Housing complaints. You have one year to file a complaint. Some people will take their complaint to the courts because the courts do not cap rewards.
101. Laches is when you waited too long to sue someone. (Laches=locks=locked out of suing) (For instance, if you wait one year and three days to file a Fair Housing Suit, the doctrine on Laches has taken over. You are locked out of suing because you attempted your suit after the one year allowance time to file a complaint.)
102. Caveat Emptor means Buyer Beware.
103. Pur Autrie Vie means “for the life of another”. It’s a life estate based on another’s life.
104. Private Mortgage Insurance (PMI) is not needed when you put 20% down.
105. A writ of Execution is a court order to allow the sheriff to seize property because it’s suspected that a person will be transferring property out of his name during a Lis Pendins. (Lawsuit Pending)
106. A government entity can take your property by eminent domain. (They pay just compensation and then condemn the property.) The only person who can do Reverse Condemnation is the property owner.
107. A CMA and BPO differ from an appraisal in that the appraisal can determine more.
108. Sending in a partial payment on your mortgage will cause a default.
109 A Power of Attorney allows someone to act for someone else.
110. When in doubt as to where money should go, turn it over to the courts to determine. The form you use will be an Interpleader.
111. A seller is not obligated to accept a price lower than the asking price.
112. An Exclusive Agreement does not guarantee you a commission but an Exclusive RIGHT Agreement does. A broker will spend more money on advertising with an Exclusive RIGHT Agreement. The Exclusive Agreement allows the seller to sell it themselves without paying a commission. (If it doesn’t RIGHT, then it’s wrong for you.)