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Flashcards in Real Estate Deck (455)
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1

What word do we use instead of price reduction and why?

We use price adjustment because the word reduction carries too many emotions for the seller.

2

What are two important reasons to price the sellers house correctly?

1. The longer the properties on the market the more likely buyers will perceive a defect in the property.

2. When an agent for the buyer sees multiple price adjustments on the properties history they will get really aggressive and asking for more concessions which results in the cellar getting less than their anticipated price.

3

How should a seller’s agent suggest to price?

Seller’s agent will advise clients to list just below the comparative market analysis suggested value.

4

By pricing sellers home just below the comparative market analysis, What could this create that would benefit the seller?

It could create a bidding war or multiple offer situation due to increased buyer traffic early on a listing.

*Could potentially get far more money by listing the home for less than an overpriced house from the start

5

Who is an appraiser?

An independent decision maker who cast a professional judgment on the agreed-upon price.

6

How will providing comps and CMA for the appraiser help the seller?

It will show you have done your homework and prevent large discrepancies from occurring.

7

What will the lender usually require that the property appraises for?

At least the sales price outlined in the contract

8

What does CMA Take into account?

Number of homes that are currently on the market in the local area, they are listing prices, and purchase prices of recent sales

9

When realtors prepare opinions of real property value or price such opinions shall include: NAR Standard of 11-1

Identification of the subject property

Date prepared

Defined value or price

Limiting conditions including statements of purposes and intended user

Disclosure of weather and when a physical inspection of the properties interior was conducted

Conflicts of interest

Any present or contemplated interest including possibility of representing the seller landlord or buyers tenants

basis for opinion including applicable market data

If the opinion is not an appraisal, a statement to that effect

10

Why would a mortgage company want a BPO?

The people in the home have asked to refinance the home and lender does not want to pay for the full appraisal but they do want to have some assurance that the home is valued at or above what the loan will be

The people in the house are about to be foreclosed on and lender wants an inexpensive estimate of value

11

Who potential he receives funds in a sale?

The list of potential’s are seller, license holder, broker, title company, surveyor, home inspector, termite inspector, remodeler doing repairs, lender, appraiser, insurance agent, taxing entities, other

12

Key terms -define


Misrepresentation
Party
Commingle
Promulgated forms
Approved forms
Cloud on the title
Puffing

Misrepresentation is a false statement made unintentionally

A person involved in a contract for sale, lease, or agency- party

Commingle-an illegal act of a license holder who makes is their own money with the clients or customers

Promulgated forms are forms prepared and authorized by the Texas real estate commission that MUST be used by real estate license holders

Approved forms are forms prepared and authorized by the Texas real estate commission that CAN be used by real estate license holders

Cloud on the title is an encumbrance that keeps the title to the property from transferring easily

Puffing is the exaggeration of opinions about real estate

13

What act was passed in 1939?

The Real Estate Dealer’s license Act

Later became Tx Real Estate Licensing Act

14

What was the first note of the legislation requiring sales agents to be licensed called?

The Real Estate Dealer’s License Act

15

The enforcement of the site of the real estate dealers license act that was passed in 1939 was initially handled by whom?

Texas Secretary of State

16

When was the Tx Real Estate Commission established?

1949

17

How often is the NAR Code of Ethic’s reviewers and updated?

Annually

18

TRELA is reviewed and update how often?

Every two years when Tx legislator meets

19

What licenses holders MUST do?

Keep their license up-to-date if it’s an active status

Keep the continuing education up to date

Stay current on off to the Texas real estate commission

The practice will stay under the sponsorship of an active broker

Always disclose agency relationships to customers and other license holders

Provide customers with information about brokerage services form when required

Be fair and honest with all parties, client and customer

Perform fiduciary duties for clients

Disclose if a license holder is involved in the transaction

20

What license Holders SHOULD do?

Quote the source of all information you share

Give that info in writing or back up verbal statements in writing

21

What licenses Holders CANNOT do?

Commit fraud/misrepresentation

Practice without a license or sponsoring

Fail to inform TREC of convicted felony

Fail to notify TREC of address/email change

Fail to do any of the items under what a license holder must do

22

Through the license act and the minimum level of service, a Texas broker can offer their sellers?

(Under exclusive agreement)

a)A broker who represents a party in a real estate transaction or less real estate for sale under exclusive agreement for a party is that the parties agent.

23

Cont sect 1101.557 acting as agent

The sole delivery of an offer to a party does not violate section 1101.652 if:

A party’s broker consents to the delivery

A copy of the offer sent to the parties broker and less a governmental agency using a sealed bid process does not allow a copy to be sent

The person delivering the offer does not engage in another activity that directly or indirectly violate section 1101.652

24

Section 1101.558 representation disclosure addresses?

Need for license holders to properly disclosed representation when dealing with others

25

What does section 1101.558 say?

License holder representing a party in a proposed real estate transaction must provide either oral or written disclosure of that representation upon first con tact with the party to the transaction for to another license holder representing another party to the transaction

It identifies content and format of written communication required when substantive dialogue relating to proposed transaction regarding real property occurs with a party.

It lists few exceptions to the written notice requirement

26

What does IABS notice stand for?

Information about brokerage services notice

27

Sect 1101.652 grounds for suspension or revocation of license

How?

Enters a plea of guilty or is convicted of felony or criminal offense including fry, and a time for appeal has elapsed or judgment or convection has been affirmed on appeal without regard to an order granting community supervision that suspends the apposition of the sentence

Procures or attempts to procure a license under chapter for the license holder by fraud, misrepresentation, or deceit by making a material miss statement of fact in an application for license

Fails to honor a check issued to the commission after the commission has sent by certified mail a request for payment to the license holders last known business address according to commission records

Fails to provide information requested by commission that relates to a formal or informal complaint to the commission that would indicate a violation of this chapter

Fails to surrender to the owner without just cause, a document or instrument that is represented by the owner and that is in the license holders possession

Fails to notify the commission not later than the 30th day after the date of final conviction or entry of plea of guilty, that the person has been convicted or entered a plea of guilty to a felony or criminal offense including fraud

Disregards our violates chapters

28

What is incompetence?

Attempting to facilitate something in which you’ve never attempted

29

How can you avoid getting into trouble for misrepresentation?

By stating the source of any information you provide

30

As selling agent, who should be responsible for filling out the disclosure form on the property?

The seller’s agent should make sure that the seller feels out the disclosure form