Flashcards in Real Estate Deck (455)
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.
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.
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.
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
Who is an appraiser?
An independent decision maker who cast a professional judgment on the agreed-upon price.
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.
What will the lender usually require that the property appraises for?
At least the sales price outlined in the contract
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
When realtors prepare opinions of real property value or price such opinions shall include: NAR Standard of 11-1
Identification of the subject property
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
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
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
Key terms -define
Cloud on the title
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
What act was passed in 1939?
The Real Estate Dealer’s license Act
Later became Tx Real Estate Licensing Act
What was the first note of the legislation requiring sales agents to be licensed called?
The Real Estate Dealer’s License Act
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
When was the Tx Real Estate Commission established?
How often is the NAR Code of Ethic’s reviewers and updated?
TRELA is reviewed and update how often?
Every two years when Tx legislator meets
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
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
What licenses Holders CANNOT do?
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
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.
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
Section 1101.558 representation disclosure addresses?
Need for license holders to properly disclosed representation when dealing with others
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
What does IABS notice stand for?
Information about brokerage services notice
Sect 1101.652 grounds for suspension or revocation of license
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
What is incompetence?
Attempting to facilitate something in which you’ve never attempted
How can you avoid getting into trouble for misrepresentation?
By stating the source of any information you provide