real estate unit 2 Flashcards
(42 cards)
BPOA
Bureau of Professional and Occupational Affairs
how many members on the PA real estate commission?
11
list the members of the PA real estate commission:
- The Commissioner of Professional and Occupational Affairs.
- The Director of the Bureau of Consumer Protection.
- Three members of the public at large appointed by the governor.
- Five members, licensed real estate brokers of PA, engaged in the real estate business for a period of not less than 10 years.
- A cemetery broker.
How long in the term of each commissioner?
5 years
define quorum
A quorum for the Real Estate Commission is a majority of its members.
how many public meetings per year?
3
where are the public meetings?
philly, pittsburgh and harrisburg
what is the commission empowered to do?
The commission is empowered to oversee unlicensed individuals practicing real estate on the general public and licensed persons practicing real estate, conduct investigations, and seek criminal and civil remedies for illegal activities.
what is the administrative wing of the commission?
the department of state
what is the department of states responsibility?
It is the duty of the Department to:
1. Arrange for professional testing services to write and administer examinations on behalf of the Commission with Commission guidance and approval.
2. Issue license and registration certificates to any person who complied with the Real Estate Act.
promulgate definition
promote or make widely known (an idea or cause).
define broker
A real estate broker is generally defined as one who is licensed to represent another person in a real estate transaction with the intent to receive compensation or valuable consideration.
More specifically, a real estate broker is a licensed person or legal business entity who, for a fee:
* Sells
* Lists
* Leases
* Exchanges
* Negotiates
* Otherwise deals in the real estate of others
define real estate brokerage
A real estate brokerage serves as an intermediary
between buyers and sellers and/or lessees and lessors of real estate, finding buyers for sellers, tenants for landlords, and properties for buyers and tenants.
define Real Estate Salesperson
a real estate salesperson is an individual licensee associated with a broker who may perform most of the acts of a broker. However, a real estate sales associate may not work independently of his or her licensed broker and, in fact, can function only
through the broker with whom he or she is associated.
Everything must be done with the consent of the broker.
what can a salesperson NOT do?
The salesperson cannot independently enter into listing agreements or other contracts to represent people.
Furthermore, a salesperson cannot independently
conclude a sale, receive a commission, or advertise.
All of these actions must be done in the name of the broker.
what do Real Estate Finance people do?
take and approve mortgage loan applications,
manage loan portfolios, appraise properties and assess risk.
what do Real Estate Appraisal peeps do?
An appraiser must have a thorough understanding of real estate and of the appraisal methods.
A real estate appraiser’s job is to look at the characteristics of a specific property and the characteristics of its location, and then make a fair and accurate estimate of the property’s value based on how it compares to comparable homes.
Real estate appraisers can work for financial institutions, developers, property managers, or government agencies.
What are the duties of a Real Estate Property Management company?
A property management company has an agency
relationship with the property owner, and owes the owner the same fiduciary duties of obedience, loyalty, disclosure, confidentiality, accountability, and reasonable care they provide to all clients.
The property manager is responsible for
collecting rents,
selecting tenants,
renting and leasing units,
maintaining and repairing the building,
supervising all building personnel,
managing tenant relations, and
accounting for all income and expenditures.
What is Real Estate Property Development?
Property development is the process of acquiring large tracts of land at a low cost per acre, then subdividing and improving it with streets, sewers, and utilities so it can be resold at a higher cost per front foot (for lots) or
per square foot (for buildings).
Real Estate Property Development types of land:
residential
commercial
industrial
other
Real Estate Developer steps:
feasibility study of the prospective development
execute an option or purchase agreement
obtain zoning changes
obtain early financing from FI’s or investors
install improvements (streets, sewer, water, electric, gas lines, etc)
arrange for parks, playgrounds, golf course, swimming pool, etc
take care of legal agreements (deeds and title evidence for each lot)
Market and sell each lot
construct buildings
What are blue sky laws?
Every state has securities laws, sometimes called “blue sky laws” that a registered securities broker-dealer is licensed to sell any type of investment opportunity or security, such as registered stocks and bonds or unregistered securities
such as mortgages or land contracts.
define “blue sky law”
a law regulating the sale of securities, intended to protect the public from fraud.
Blue sky laws—which serve as an additional regulatory layer to federal securities regulations—usually mandate licenses for brokerage firms, investment advisors, and individual brokers offering securities in their states.
Blue sky laws are state-level, anti-fraud regulations that require issuers of securities to be registered and to disclose details of their offerings.
Blue sky laws create liability for issuers, allowing legal authorities and investors to bring action against them for failing to live up to the laws’ provisions.
List the types of Residential properties:
Single family
multi family (twins, duplex, doubles)
condominiums
cooperatives (co-op)
