Brokerage Flashcards

Question

Types of agencies ## Footnote Brokeareg Book - Unit 3

Answer 1

Universal agent (Without prior permission) General agent (broad range of matters) property manager Special agent (specific capacity) real estate agent or broker Power of attorney (A legal written authorization for specific areas)

Answer 2

Care Obedience Accounting Loyalty (confidentiality) Disclosure General duty of fair dealing

Answer 3

Care and diligence while transacting Knowledgeable about the property to arrive at a reasonable listing price Discover material facts Properly handling escrow deposits Obtaining all signatures

Answer 4

Obeying the principles lawful instructions excludes unlawful or unethical instructions

Answer 5

Safeguarding an accounting for all money and property disclosing expenses keeping copies of documents for six years not having secret profits no commingling

Answer 6

Placing principles interests of all others including agents own interest Not profiting from principles misfortune not buying principles property for personal gain

Answer 7

Pass on all facts and information no Confidentiality applies to sellers disclosure if made to buyers broker

Answer 8

Dealing fairly and honestly with all parties

Answer 9

Dealing fairly and honestly with all parties

Answer 10

The salesperson functions as an **agent** of the broker and as a **subagent** of a principal

Answer 11

After listing broker procures a **ready**, **willing** and **able buyer**, the seller technically is liable for the brokers commission ## Footnote A broker generally is due a commission if a sale is not finalized because of the principles default.

Answer 12

Must have income tax, Social Security, and unemployment tax withheld from wages by broker May receive employee benefits Must adhere to office regulations

Answer 13

Assume responsibility for paying on income tax and Social Security Cannot receive any employee benefits whatsoever from Broker Can be told what company expectations are

Answer 14

The one who first introduced the buyer to the property A meeting of the minds: when the parties are in agreement on **price, down payment and financing method**

Answer 15

When the parties are in agreement on **price, down payment and financing method**

Answer 16

The return of part of the commission as gifts or money to sellers

Answer 17

**Illegal price fixing**: Uniform commission rates among competing firms would be a clear violation of state and federal antitrust laws **Allocation of customers or markets:** **Sherman anti-trust Act:** punishable by a maximum 1 million and up to 10 years in prison

Answer 18

Mutual agreement between the broker and sales person A broker may agree to pay a split sales person may never except compensation from a buyer, seller or broker except the one they are associated with

Answer 19

A form of disclosure to all **sellers, buyers, landlords**, and **tenants** on the **sale** or **rental** of **1 to 4 family residential properties** or **vacant one family lots**. CIS describes the **types of business relationships** a real estate agent can enter into with a customer or client and the **duties associated with each relationship** **Furnish CIS before any discussions and take place**. **Prior to the first showing of the property.**

Answer 20

Written employment contract: * Sellers; exclusive listing agreement * Buyers; exclusive buyer agency agreement

Answer 21

* Death or incompetency of either party * Destruction or condemnation of the property * Expression of the term of the agency * Mutual agreement * Renunciation by agent * Revocation by principal * Bankruptcy of either party * Completion or fulfillment of the purpose of agency

Answer 22

Broker represents both parties in the same transaction Undisclosed Dual agency is it illegal **An agent cannot give the highest level of loyalty to two or more principles in the same transaction** Dual agency is legal in New Jersey if the broker * explains fully the legal duties that will and will not be available from the broker * discloses any other business relationships that might affect the transaction * octanes sellers and buyers written informed consent to the brokers acting as a dual agent and CIS * advises as each party may want to consult a lawyer

Answer 23

Any defects of material nature that affect the physical condition of the property Latent defects (hidden)

Answer 24

Comprehensive loss underwriting exchange hey Siri report from LexisNexis the comping to December stay there from participating insurance companies

Answer 25

Noisy dogs, unpleasant neighbors, suicide. If asked, agents must pass along any information they possess but they are not required to investigate social or psychological conditions.

Answer 26

Hazardous waste dump site new construction can **cancel a sale in 5 days**

Answer 27

Created in 1995 in New Jersey Requires that community be alerted to the presence of **convicted sex offenders** * New Jersey lease and sale contracts * Licenses are not permitted to inquire or give information * Suggest a concerned client to check New Jersey State police website

Answer 28

**Puffing**: extravagant statements of opinion **Fraud**: Deceitful or dishonest practices intended to harm or take advantage of another person * Fraudulent misrepresentation: Intentional * Negligent misrepresentation: Unintentional * Innocent misrepresentation: Honest

Answer 29

Extravagant statements of opinion

Answer 30

Deceitful or dishonest practices intended to harm or take advantage of another person

Answer 31

Intentional

Answer 32

Unintentional

Answer 33

Urea-formaldehyde foam insulation

Answer 34

**Errors and omissions insurance**; defense against many circumstances but does not cover fraud. It is carried by many brokers and some individual sales persons. It is like a malpractice insurance

Answer 35

Generally used to cheat the lender **Illegal in New Jersey**

Answer 36

A system of moral principles, rules, and standards of conduct. Addresses two sides of profession: * They establish standards of integrity and confidence in dealing with consumers open industries services. * They define code of conduct for relationships within the industry, among its professionals.

Answer 37

An Outgrowth of **14th** amendment * **Race** * **Color**

Answer 38

**Tittle VIII** of the civil rights act of 1968 **Residential Properties Only!** * **Race** * **Color** * **Religion** * **National Origin** **Exemptions for sale or rental:** * Single Family FSBO, No Agent, No Discriminstory Ad * Rental of Rooms or Units owner occupied 1-4 dwelling * Dwellings owned by religious organizations * A private club long as not operated commercially

Answer 39

This is an amendment to 1968 **Sex**

Answer 40

This is an amendment to 1968 * **Familial status** * **Disability** **Exemptions:** Senior housing is exempt if solely occupied by 62 years old and older, and if 80% of its units are occupied by at least one person 55 and older **Jones vs Mayer** **All racial discrimination without exception**

Answer 41

This is an amendment to 1968 Department of housing and urban development poster and needs to be **displayed at Brokerage**

Answer 42

AKA **panic peddling** making representations regarding the entry or prospective entry of **minority persons into the neighborhood**

Answer 43

**Channeling** Homeseekers from an area

Answer 44

Refusing to make **mortgage loans or issue insurance** policies in specific geographic areas

Answer 45

One year after the alleged act

Answer 46

**Originally passed in 1945 and broadened in over the years** * Race * Color * Religion (creed) * National origin * Sex * Marital Status * Disability * Familial Status * Lawful Source of Income * Ancestory * Affectional or sexual orientation * Nationality * Gender Identity or Expression * Pregnancy or breast-feeding * Liability for service in the US Armed Forces **Exepmtions**: * Age * Rental of rooms, apartments for owner occupied duplex or open down to family dwelling * Rentals for one sex or religious-based organizations

Answer 47

* Race * Color * Religion (creed) * National origin * Sex * Marital Status * Lawful Source of Income

Answer 48

Needs to be displayed in real estate and rental offices

Answer 49

Must be filed with **Attorney General** within **180 days**

Answer 50

Must be given to the homeowner at the time of the property is listed Salespersons and brokers **must refuse** listings from owners who indicate that they intend to violate the law against discrimination

Answer 51

Owners of developments containing **25 or more apartments** must file an annual report with the division of civil rights. The report covers **racial composition of the tenants** and **methods of advertising and handling inquiries**

Answer 52

1971 filed by NAACP against the town of Mount Laurel New Jersey no and moderate income cannot be zoned out

Answer 53

In 1983 20% Must be set aside zoning for mobile homes and the requirement that communities must cooperate with. Then subsidies

Answer 54

Gift of real estate in a will

Answer 55

Extending downward from the surface to the center of the earth and upward to infinity including all things permanently attached by nature

Answer 56

Add specific track of land with legally defined boundaries

Answer 57

Bundle of rights Sold by deed

Answer 58

Natural resources lying below the earth surface Maybe owned separately

Answer 59

The rights to use the air above the land may be sold or least independently of the lend itself

Answer 60

Land bordering on oceans, seas, or large lakes affected by tide currents

Answer 61

Land bordered or traversed by stream or waterway

Answer 62

If a stream is the common border between two properties and if the stream moves to another area, the property lines would remain the same as before

Answer 63

**Accretion**: The process. Increase or addition of land by the deposit of sand or soil washed up naturally from a river lake or sea. **Alluvion**: The solid material, new land by deposition

Answer 64

Losing land by water

Answer 65

Creation of dry land by gradual withdrawal of water from the land by lowering of its surface level

Answer 66

Tangible personal property, Personalty

Answer 67

Personal property Crops

Answer 68

An article that was once personal property but has been so attached to land or to a building that it is now considered to be part of the real estate.

Answer 69

An article owned by a tenant and attach to a rented space for use in conducting a business is a trade fixture Tenant fixtures can also be fixtures installed by a tenant in a residential rental property

Answer 70

**The amount and kind of ownership interest that a person has in real property.** 2. Freehold estates (owners) 2. Less than freehold or leasehold estate (tenants)

Answer 71

Owners 2. Fee simple 1. Fee determinable 1. Life Estates

Answer 72

Largest bundle of rights no time limit (the best)

Answer 73

aka **conditional fee** or **defeasible fee** For example giving their land to open space foundation as long as it's maintained is it wildlife preserve **Remainderman**: the property goes back to the remainderman if a third party is named

Answer 74

**reversionary interest** Limited to the life of a specific person (person B) Person A (Owner) or Person C (A's heirs, remainderman) can get the property

Answer 75

Dower; wife's right Curtesy; husband's right May 28, 1980 NJ Abolished Newer D&C rights

Answer 76

An encumbrance is a **claim**, **lien**, **charge**, or **liability** *attached* to and *binding* on **real property**; its affects or limits its **use**, **value**, or **title**. 1. **Liens** (*financial claims* against a property) 1. **Physical** or **usage** (*restrictions*, *easements*, *licenses*, and *encroachments*)

Answer 77

Financial claim against the property **voluntary** lien (mortgage) **involuntary** lien (tax) **General** lien affects **all** the property someone owns **Specific** lien is placed against **one parcel of real estate only** (*mortgage*, *Special Assessment*, *construction/mechanics*, *utility*, *Ad Valorem*)

Answer 78

* The owner is free to sell... * Runs with the land and still binding after the sale * Do not survice foreclosure (except property taxes and special assessments)

Answer 79

Determined by the **date of recording** in the public records of the county where the property is located **Taxes and special assessments have priority over other liens**

Answer 80

Mortgage lenders generally require a preferred lien, referred to as a **first mortgage lien** (this means that aside from taxes no other major liens against the property take priority over the mortgage lien)

Answer 81

Also known as **mechanics lien**, placed against real estate by workers who have contributed labor or material to that specific property and who have not been paid

Answer 82

A decree issued by a **Court** (money judgment etc) A general, involuntary lien on a real property A judgment differs from a mortgage in that a specific parcel of real estate **was not given as security** at the time debtor–creditor relationship was created.

Answer 83

* Estate taxes * inheritance taxes * IRS tax liens

Answer 84

**(Lien Pending)** A judgment or other decree effecting real estate is rendered at the conclusion of a lawsuit. When any suit is filed that potentially affects the title, a notice known as **lis pendens** is recorded

Answer 85

A right acquired by **one party to use the land of another party** for a particular purpose Easements can be created and terminated

Answer 86

An easement that **grants rights to the owner of an adjacent parcel** of land **Servient estate:** The tract over which the easement runs **Dominant estate:** Benefiting from the easement

Answer 87

A simple **right to use the land of another** is an easement in gross (**Power company**) * no adjoining lanes are involved * if they need ends the easement also ends

Answer 88

If the **only access to a parcel is through another's property**, the owner may acquire an easement by necessity.

Answer 89

When someone has **used another person's land for certain period of time** is defined by state law **Tacking**: successive theories of continuous, uninterrupted occupation by different parties may be combined to reach the prescriptive period.

Answer 90

A wall on the boundary lines between two owners' lots * Each owner owns half of the wall * Each owner has an assessment right in the other half of the wall for support of the building * A written agreement should be used for this * Each owner must pay half of the expenses

Answer 91

Add permission to enter the land of another for a specific purpose is a license

Answer 92

When all or part of a building, fence, driveway or any other installation illegally extends beyond the land of its owner and covers some land of an adjoining owner or a street or alley

Answer 93

Restrictive clause is added to a deed when property is conveyed that are establish by the seller to restrict future owners use of the property

Answer 94

One person or entity (sole ownership) when the person dies, title to the property will pass to his or her heirs or devisees

Answer 95

* 2 more people own it * **Undivided interest** in the whole property * They **can sell their interest without the consent of co-owners** * In death, **the interest transfers to devisees** * Can **file a suit to partition** the property

Answer 96

Two or more people can on the property Carries **right of survivorship** Interest **will not pass to the other owner's heirs** Requirements * Unity of **time** * Unity of **title** * Unity of **interest** * Unity of **possession**

Answer 97

**Husband and wife (no common law)** * owners must be husband and wife * owners have rights of survivorship * there is no right to petition

Answer 98

1. In a **General partnership: **all partners participate to some extent in the operation and management of the business and may be held **personally liable** for business losses and obligations even **beyond the amount of their initial investment**. 1. A **Limited partnership:** Includes a general partner as well as limited partners. The limited partner do not participate in the operation of the business and each can be **held liable for the business's losses only to the extent of their investment**

Answer 99

**Severalty** or **tenant in common** if it is partial ownership Managed and operated by its **Board of Directors**

Answer 100

* Members have the tax advantages offered by partnerships. * Limited liability offered by the corporate form of ownership

Answer 101

**Syndicate** is a joining together of tour more people to carry out a particular business project **Joint venture **is an organization of people or firms designed to carry out a single project A **Real Estate Investment Trust (REIT)** is a form of organization that is useful for taking advantage of certain tax benefits

Brokerage Flashcards

(131 cards)