Agency Relationship Flashcards by Tonia Kequom

Special Agent

Limited Authority

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Broker/Agent Relationship

Through Broker Always

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Fiduciary duty

To Client:  COLA - N
Care
Obey
Loyalty
Accounting
Notice of Material Fact

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Listing Agreements - Types

OARN

a. Open
b. Exclusive Agency Listing
c. Exclusive Right to Sell
d. Net Listing - Illegal in Michigan

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Open Listing

Seller can contract with all Brokers, Reserve FSBO

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Exclusive Agency

1 broker - Reserve FSBO, will only receive commission if agent brings buyer

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Exclusive Right to Sell

Broker gets commission no matter who sells

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Duty of Broker to Market Property

Improve marketability
Net proceeds
MLS
Keep seller informed

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Protected Classes

Race - 1866
Color
Sex
Religion
National Origin
Disability
Familial Status - 18 years younger - custodial
Age - Michigan only - Employment
Marital Status - Michigan Only

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Disparate impact Doctrine

Allows to prosecute - based on impact not intent

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Exemption to Fair Housing

POOR-N

a. Not more than 3 houses every 24 months
b. Owner occupied
c. Private Club
d. Religious
e. Older residents

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Statute of Limitations

HUD - 1 year
Federal Court - 2 years
Michigan - 180 days

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Blockbusting

Enducing to move for $

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Steering

Steering in a certain direction

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Elements of a Contract

1 - O; 3 - Cs and 2 L's
Offer and acceptance
Consideration
Capacity
Consent*
Legal Object
Legal Form

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Counter offer

Signed, Sealed and Delivered back

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Parole Evidence Rule

No oral modifications -

Previous to or After Contract - Not enforceable

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Option must contain what to be valid

VIFS

In writing
Valuable Consideration
Fixed price
Stated period of time

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Characteristics that Comprise Value

DUST

Demand
Utility
Scarcity
Transferability

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Sub-Agent Status (Buyer)

No Buyer’s Contract - Represent Seller

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Easement in Gross

Utilties

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Easement Appurtenant

Attached to legal description; Runs with the land

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Easement by necessity

Not to land lock, can’t divide

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Easement by Prescription

Through Use

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Easement by implied

Shared Driveway

Ad Valorem

According to Value

Assessed Value

50% of true cash value`

Mills

$1.00 per $1,000

Owner's policy

Seller provides to Buyer

Mortgagees

For Lender - Amount owed on loan - paid by buyer

Clouds on Title

Fixed through Quit Claim Deed

Bankruptcy

Stops all sales

Lis Pendens

Lawsuit Pending

Warranty Deed

Most common, seller will defend

Limited Warranty

Grant or Special | time seller owns property

Quit Claim

All interest given, no warranty

Closing Disclosure

Between Lender and Borrower

Transfer tax

$8.60 per $1,000

Constructive Notice

Tells the world you own property - taken to County

Severalty

One person

Co-Ownership - Joint Tenancy

2 or more PITT (possession, interest, time and title) Not inheritable

Co-Ownership - Tenancy in Common

2 or more; Does not meet time Heritable eg - Timeshares

Co-Ownership - Tenancy by entirety

Saved for husband and wife | Considered one person

Adverse possession

Without Permission | Can Claim after 15 years

Characteristics of a Condos

Individual unit - own cube of air common elements HOA Timeshares

Eminent Domain

Police power condemnation just compensation - up to 125% of value good of all

Inverse condemnation

No buying, just taking (eg wetland)

Assignment of Mortgage

assumption novation sale subject to mortgage

FHA

Insures

What do VA loans do for consumer?

guarantees loan

Conventional

Loans money

USDA

low income and rural areas

Ginny Mae

Backs kids Freddie Mac and Fannie Mae

Reverse mortgage

More than 62 years of age

Open End Mortgage

HELOC

Open Mortgage

No prepayment penalty

Term loan

Interest only

Points

1 pt = 1/8 % | 8 pts to buy down 1 %

Loan to Value

Appraised Value or Purchase Price, which ever is less

Lien Theory

Gives lender right to purchase property

Title Theory

Transfer title from borrower to mortgagor (person)

Truth in Lending

Advertising

RESPA

Residential loans

Redlining

Discriminates on certain areas

Strict Foreclosure

Goes to Lender

Judicial foreclosure

Construction liens | Land Contracts

Equitable Redemption

Late on Payment goes to Sheriff Sale

Statutory redemption

Time mortgagor has to free property of foreclosure 6 months = more than 2/3 1 year = less than 1/3

Deficiency Judgment

Short Sale

IRS reporting

Cash of over $10,000

Department - LARA

Protects the public Issues/Renew Licenses Enforce Occupational Code

Board

Interprets law Assist in investigations Assess penalties

Formal Complaints

Only AG or Dept

Penalties

``` Revocation - Indefinately Civil Fine - up to $10,000 Citations - $100 Censure - Slap on hand Cease and desist - Stop ```

Exemptions from Real Estate License

``` Licensed Builder Owner Attorney in Fact Court Appointed Receiver Trustee Personal Rep Clerical Tenant/Landlord - 1/2 months rent or less) ```

Transfer License

Broker - 5 days to return license | Salesperson can run 45 days until new pocket card signed

Escrow

2 days to deposit after accepted by all parties | No more than $2,000 in account

Inducements

No raffle or fishbowl | Cannot promote just one property

Land Division

10 acres = 4 splits additional 10 = 1 more split Keep 60% or New Road = 2 Bonus splits

Michigan Rights

Elliott Larsen | Michigan Persons with Disability Civil Rights Act

Usury

Cannot charge more than 11% - Private | 25% - regulated institution eg payday lending

Right to Farm Act

Noise, Fumes, Care of Animals

Uniform Sale Antitrust Act

Monopolies Price fixing Boycotts

Agency Relationship Flashcards

(83 cards)