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Flashcards in TN Section Deck (264)
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1
Q

What do agents owe third parties?

A

honesty, fair dealings, reasonable care and skill, and proper disclosure

2
Q

What are the fiduciary duties agents have to clients?

A

skill, care, diligence, loyalty, obedience, confidentiality, accounting and full disclosure

3
Q

There is no agency without what?

A

written agreement

4
Q

If there is no written agreement, what is an agent?

A

facilitator

5
Q

Real estate agency is what type of agency?

A

limited

6
Q

What is a designated broker?

A

an agent appointed by the managing broker to be the designated and individual agent of a party

7
Q

managing brokers cannot be a ____ agent

A

designated agent - but can be a facilitator

8
Q

Opinion of the value of a property based on analyzing data collected about the property

A

market value

9
Q

Actual sales price

A

selling price

10
Q

Market value of a property is the ____ price a buyer is willing to pay and the ____ lowest price the seller will accept

A

highest, lowest

11
Q

Properties on the market and demand for property interact in a cycle to affect price and value

A

supply and demand

12
Q

future benefits expected over a holding period

A

anticipation

13
Q

buyer will pay no more for 1 property than for a comparable and available substitute

A

substitution

14
Q

change in market value of a property due to a particular improvement

A

contribution

15
Q

fluctuations in market conditions affect benefits

A

change

16
Q

must be legally permissible, physically possible, financially feasible, and maximally productive

A

highest and best use

17
Q

in form and to use surrounding properties produces max income and value

A

conformity

18
Q

Increase of value due to quality of adjacent properties

A

progression

19
Q

decrease of value due to quality of adjacent properties

A

regression

20
Q

combining properties to create a value greater than that of the single property

A

assemblage

21
Q

dividing a property to create a value greater than that of the single property

A

subdivision

22
Q

continuing to add improvements when those will have no effect on increasing the value of the property

A

diminishing return

23
Q

_____ approach is the most reliable for properties that were built recently

A

cost

24
Q

____ approach to estimate the property’s replacement or reproduction value

A

cost

25
Q

____ approach to estimate the value of properties that produce income - using substitution principle

A

income

26
Q

with the _______ approach the value is determined by comparing the property being appraised with recently sold comparable properties

A

sales comparison

27
Q

____ approach is the most reliable method

A

sales comparison

28
Q

What are the elements of a home’s value?

A

location, property condition, improvements, supply and demand, financing trends

29
Q

What are the steps in a CMA?

A

collect and analyze info about the property, choose comparable properties in the area, compare seller’s property to the comparables and do some adjusting to comparable’s value, estimate a reasonable and realistic selling price

30
Q

What neighborhood data should be collected?

A

ownership makeup, vacancies and consistency, current land use, public services

31
Q

What data on the property should be collected?

A

age and quality of construction, home size and basement, AC and energy efficiency

32
Q

What are strong design features?

A

overall size, number of beds and baths, amount of closet space and kitchen workspace

33
Q

What are weak design features?

A

no coat closet in front of house, not enough windows in living areas, kitchen too small for eat in area

34
Q

Another property that has the same characteristics as the seller’s property

A

comparable

35
Q

What are properties that can be used as comparables?

A

ones that have sold within the last 3-6 months, pending sales, active listings, and listings that have expired

36
Q

What info should a licensee include in a CMA regarding comparables?

A

market data - including listing and selling prices, financing terms of the sold transactions, and physical aspects of the properties

37
Q

What are the key factors to look for in comparables?

A

location, physical characteristics, date of sale, financing terms, and sale condition

38
Q

Adjustments are always made to the _______

A

comparable

39
Q

If a comparable LACKS a feature that the seller’s property has, ____ the value of the feature to the price of the comparable

A

ADD

40
Q

The most reliable comparables are the ones with ________ adjustments

A

fewer and smaller

41
Q

For active, pending or expired listings, how do you find price per square foot?

A

divide the listing price by total square feet

42
Q

For sold listings, how do you find price per square foot?

A

divide the sales price by total square feet

43
Q

What is farming?

A

prospecting in a selected area

44
Q

What is a geographical farm?

A

neighborhood, subdivision or an area where the homes share some common characteristics like age of family type

45
Q

what is a licensee exempt from advertising rules?

A

if it includes “owner/agent” or is the property is NOT listed

46
Q

What are some contract essentials?

A

competent parties, mutual consent, valuable consideration, legal purpose, and voluntary good faith act

47
Q

What must a contract be in writing to be enforceable?

A

$500+ sale of goods or the sale of real estate or lease for longer than 1 year

48
Q

Void Contract

A

Is not valid

49
Q

Voidable contract

A

when a party has a way to disaffirm it

50
Q

In TN, who files civil actions against anyone who engages in the unauthorized practice of law?

A

TN AG’s office

51
Q

What should licensees use to avoid unauthorized practice of law?

A

standard forms

52
Q

Exclusive Right to Sell

A

only the AGENT is authorized to sell; gets paid even if owner sells

53
Q

Exclusive Agency

A

the agent is the only agent authorized to sell; agent gets paid if another agent sells but NOT if the owner sells

54
Q

Open Listing

A

non-exclusive - anyone may sell and whoever procures the buyer gets paid

55
Q

___ listings are forbidden in TN

A

net

56
Q

Binds the principal to a compensation agreement in the event to the broker procures a property or buyer

A

Transaction Brokerage Agreement

57
Q

Refers to verifying the accuracy of the statements in the listing regarding the property, the owner and the owner’s representation

A

due diligence

58
Q

A listing broker delegates _____ to affiliated brokers in normal business

A

marketing responsibilities

59
Q

The 2 principal determinants of procuring cause are:

A

being the first to find the customer and being the now who induces the customer to complete the transaction

60
Q

Is the client responsible for commission in an exclusive right to sell agency if the property sells during the term of the revoked listing?

A

Yes

61
Q

Is the client responsible for commission in an exclusive agency if the property sells during the term of the revoked listing?

A

That are liable for at least the broker’s costs and possibly commission

62
Q

Is the client responsible for commission in an open agency if the client revokes the listing prior to performance?

A

no

63
Q

In exclusive right to sell agency, the listing agent can

A

file the listing with the MLS within 3 days of signing

divide the commission and to cooperate with other licensees

share the final sales info with the MLS

64
Q

In an exclusive buyer representation agreement, the client promises to

A

assist the broker by giving financial and personal info

pay broker a commission

let the agent contact sellers’ agents

schedule showings

have the broker as they sole agent

65
Q

Property condition disclosure must be delivered when?

A

prior to the acceptance of the purchase contract

66
Q

Property condition disclosure is required if

A

the transfer has an option to buy

property consists of 1-4 dwelling units

transfer if not specifically exempt

67
Q

The disclaimer statement is only permitted when?

A

if the purchaser explicitly waives the required disclosure

68
Q

Which transfers are explicitly exempt from the disclaimer statement?

A

pursuant to court order

by a trustor who is in default to a beneficiary of a deed of trust

made solely between spouses

sold at public auction

69
Q

Licensee must:
Inform owner and buyer of disclosure ___ and ___

Must inform buyer of known ___ facts

Not liable for ____ failure to disclose

Not required to disclose _____ facts

Liable for intentional ____, ___, failure to disclose _____

A

duties and rights

adverse

owner’s

stigmatizing

misrepresentation, fraud, adverse facts

70
Q

______ agreement, the buyers agree to purchase a property for a certain price and sellers agree to convey title to the buyers using a deed or an assignment of lease

A

purchase and sale

71
Q

______ is an agreement for the purchase of a property in which the payment of all or part of the sale price is DEFERRED

A

contract for deed

72
Q

______ agreement is a contract that TRANSFERS the right to exclusive possession and use of the property fora definite period of time

A

lease of rental

73
Q

_____ is an agreement to keep open an offer to sell or lease property for some set period of time - creates only a RIGHT to the property

A

option

74
Q

What are the contents of a sale contract?

A

ID of all parties

legal description

monetary issues

provisions including: closing, contingencies, property damage, prorations and remedies for default

75
Q

Unless buyers are doing a full cash offer with no financing help, the purchase will almost be contingent on what?

A

financing

76
Q

What should the agent take into consideration when setting a closing date?

A

how long it will take the buyer to get financing

77
Q

What do the sellers provide at closing?

A

marketable title

78
Q

The buyer has a number of days from the ______ date to contact the seller regarding any repairs that need to be made

A

Binding Agreement Date

79
Q

If the ____ defaults, the ___ gets to keep the earnest money deposit and may sue for further damages

A

buyer, seller

80
Q

If the ____ defaults, the ___ recovers the earnest money deposit and may sue for damages or performance

A

seller, buyer

81
Q

If the property is damaged to an extend that does NOT exceed 10% of the purchase price, the ___ repairs it

A

seller

82
Q

What happens iIf the property is damaged and it exceeds MORE than 10% of the purchase price?

A

either party may terminate the contract and the earnest money is refunded

83
Q

The buyer can have a ___ done to determine if there are any zoning violations or encroachments

A

survey

84
Q

Lenders charge fees when the borrower gets the loan

A

loan origination fee

85
Q

1 point =

A

1% of the loan amount

86
Q

Ratio of the mortgage principal to the value of the property the borrowers are purchasing

A

LTV ratio

87
Q

What is a loan term?

A

number of years the borrower has to repay the loan

88
Q

the longer the repayment period, the ___ the monthly payment will be

A

lower

89
Q

the shorter the repayment period is, the ___ total interest the borrower will pay over the life of the loan

A

less

90
Q

the loan amount or the principal is the ____ borrowed

A

amount

91
Q

The loan amount remaining to be repaid ay any given time

A

loan balance or principal balance

92
Q

Amount of principle and interest the borrower makes to the lender in each payment period

A

loan payment

93
Q

With a ____ loan, the monthly payments are allocated only to interest and no principal is paid off

A

straight

94
Q

With an ____ loan, a borrower makes periodic payment of principal PLUS interest

A

amortized

95
Q

With a ______ loan, the borrower has the same payment amount ever month

A

fully amortized

96
Q

___ loan has one large final payment due when the loan matures

A

Balloon

97
Q

With a ____ loan, the monthly payments are not large enough to fully amortize the loan by the end of the term, leaving a large balloon payment due

A

partially amortized

98
Q

Loan popular when interest rates for fixed rate loans are HIGH

A

adjustable rate loans

99
Q

When 30-year fixed rates are in a reasonable range, ARMs _____ appeal to most borrowers

A

do NOT

100
Q

What are the components of an ARM?

A

index

margin

calculated rate

initial rate

adjustment period

mortgage payment

adjustment period

interest rate caps

payment cap

negative amortization cap

conversion option

step rate or buy down

101
Q

The lender making the primary loan will typically restrict the type of loan arrangements the borrower can make for the ____ loan

A

secondary

102
Q

Which loan usually requires the borrower to make a down payment of 20%+, making the loan 80% or less of the property’s sale price - typically uninsured

A

conventional

103
Q

What loans are mortgage loans that conform to the guidelines established by Fannie Mae and Freddie Mac.

A

Conforming loans

104
Q

With original conforming loans, the borrower was required to provide at least __% of the down payment from their own funds

A

5

105
Q

Any loan that falls outside the documentation and underwriting standards set by Fannie Mae or Freddie Mac are considered to be _____ loans

A

nonconforming

106
Q

___ loan exceeds the conforming loan limits set by Fannie Mae and Freddie Mac

A

Jumbo

107
Q

____ loan - being kept in the lender’s own portfolio of investments

A

portfolio loans

108
Q

a borrower who wants a conventional loan with a down payment of less than 20% will usually have to unsure the loan through what?

A

a private mortgage insurance (PMI)

109
Q

conforming loans allow the seller to make a cash contribution to the ____ closing costs

A

purchaser’s

110
Q

No _____ penalty is allowed on conforming loans

A

pre-payment

111
Q

Conventional conforming loans are

A

non assumable

112
Q

Establishes the borrower’s capacity to pay by limiting the percent of gross income a borrower may spend on housing costs

A

income ratio

113
Q

housing costs include

A

principal, interest, taxes, and homeowner’s insurance (PITI)

114
Q

Calculated based on all of the monthly obligations the borrower has, including those items or payments the borrower must make for other debts

A

borrower’s debt ratio

115
Q

What is the most popular FHA loan?

A

FHA203(b)

116
Q

FHA loan that covers loans on 1-4 unit owner occupied dwellings

A

FHA203(b)

117
Q

With FHA loans, what is the max loan term?

A

30 years or 75% of the remaining economic life of the property - whichever is less

118
Q

With FHA loans, down payments are low or high?

A

low

119
Q

With FHA loans, the MAX loan fee is _% of the loan amount and is typically paid by the ___

A

1%, buyer

120
Q

With FHA loans, ____ is a percentage of the loan amount

A

mortgage insurance premium (MIP)

121
Q

FHA loans are

A

assumable

122
Q

FHA loan mortgaged real estate must be appraised by

A

FHA approved appraiser

123
Q

With FHA loans, is there a max on what the purchase price of the property can be?

A

no

124
Q

With FHA loans, the ___ must occupy the property

A

borrower

125
Q

FHA ratios are _% for the housing ratio and _% for the total debt ratio

A

29/41

126
Q

FHA ratios allow the seller to contribute up to _% of the sales price toward discount points and other closing costs

A

6

127
Q

The _ loan amount allowed varies by geographic location based on 95% of median house prices for the area with a ceiling calculated asa percentage o the current conforming loan limits

A

Max

128
Q

The _ offers loan guarantees to qualified veterans

A

Dept of Veteran Affairs (DVA)

129
Q

A veteran must provide what to qualify for a DVA loan?

A

certificate of eligibility

130
Q

DVA guaranteed amount of _% of the current Freddie Mac conforming loan limit for a single family home

A

35

131
Q

What is the max DVA home loan term?

A

30 years and 32 days

132
Q

The DVA does not require what?

A

a down payment

133
Q

If there a loan max amount with DVA loans?

A

no

134
Q

What can the lender and veteran borrower negotiate with DVA loans?

A

interest rate and discount points

135
Q

With DVA loans, the loan origination fee cannot exceed _% of the loan amount

A

1

136
Q

What type of payments are required with DVA loans?

A

monthly principal and interest payments

137
Q

With DVA loans, is there a prepayment penalty?

A

no

138
Q

With DVA loans, the ____ is a percentage of the loan amount charged for the privilege of obtaining a DVA loan

A

funding

139
Q

What are advantages of conventional loans?

A

processing usually takes less time and fewer forms and there is usually no legal limit on loan amounts

140
Q

Disadvantages of conventional loans?

A

require higher down payments and come carry prepayment penalties

141
Q

What are benefits of seller financing?

A

can make a property more marketable, can help buyers who are unable to qualify for lender financing, and important tax benefits

142
Q

Pledges to pay the seller the amount of the debt

A

promissory note signed by the buyer

143
Q

What does the buyer agree to with seller financing?

A

give the seller a down payment and regular payments of principal and interest for some agreed-upon number of years

144
Q

Reduces the monthly payment for the buyers during the initial years of the loan

A

buy down

145
Q

Gives the tenants the right to purchase the property under specific conditions - usually a predetermined price and within a set period of time

A

lease option

146
Q

What are the steps in the closing process?

A

secure financing, receive and deposit earnest money, order title/title insurance, order appraisal, buyer gets hazard insurance, home inspection, contingencies met, pest inspection ordered, results of inspection sent to seller with any requested repairs, repairs conducted, home re-inspected if needed, closing date set, buyer and seller notified of closing costs, final walk through, closing

147
Q

RESPA applies to what purchases?

A

of residential property, involving 1st or 2nd mortgages, and financed by a federally-related loan

148
Q

RESPA does NOT apply to ____ loans

A

seller financed

149
Q

according to TRID rule, lenders must provide

A

Your Home Loan Toolkit booklet, loan estimate and closing disclosure

150
Q

RESPA prohibits any payment or receiving what?

A

kickbacks

151
Q

RESPA permits sharing ____ and the payment of referral fees amount cooperating brokers or MLS

A

commissions

152
Q

List of Buyer’s Credits

A

earnest money, loan amount (borrower or assured) and seller’s share of prorated items the buyer will pay

153
Q

List of Buyer’s Debits

A

purchase price, expenses and buyer’s share of prorated items prepaid by seller

154
Q

List of Seller’s Credits

A

purchase price and buyer’s share of prorated items prepaid by seller

155
Q

List of Seller’s Debits

A

expenses, seller’s share of prorated items the buyer will pay, loan balance or other liens to be paid off

156
Q

Debit and credit items that are the responsibility of only one party

A

non-prorated items

157
Q

If an expense is paid in advance by the seller

A

debit buyer and credit seller

158
Q

If an income is received in advance by the seller

A

credit buyer and debit seller

159
Q

Item the buyer pays in arrears

A

credit buyer and debit seller

160
Q

If the seller paid the buyer’s before closing, charge the _ for the _’s share of the period

A

buyer, buyer

161
Q

If the seller has received the buyer’s share before the closing, charge the _ for the _’s share of the period

A

seller, buyer

162
Q

If the buyer will pay the seller’s share after closing, charge the _ for the _’s share of the period

A

seller, seller’s

163
Q

12 month/30-day method calculates the amounts due based on what?

A

360-day year and 30-day month

164
Q

Steps in the 12 month/360 day method

A
  1. ID an items about the amount needing to be prorated
  2. Divide by 12 to get the monthly rate
  3. Divide by 30 to get the daily rate
  4. Multiply the monthly rate by the number of months the seller owned the property before closing to get the monthly amount due - repeat for daily amount
  5. Add the 2 amounts to get the prorated amount for the seller
  6. Subtract the seller’s prorated amount from the starting amount to get the buyer’s; prorated amount
165
Q

After all the closing docs have been signed, the settlement agent arranges for the recording of the _ deed and security instrument

A

grant

166
Q

What does the settlement agent do after recording?

A

disburse funds, pay off ant amounts due, and arrange for a title insurance policy to be issued to the purchaser

167
Q

The title to the property has transferred when the ____ and ____ by the buyer

A

delivered and accepted

168
Q

All real estate sales must be reported to the ___ and be reported on what form?

A

IRS, Form-1099

169
Q

The servicing entity must:

A

notify the borrower of the mailing address to send payment, restate the terms and conditions of the loan, and verify the amount of the payment to include PITI and mortgage insurance

170
Q

Mortgage loans are fully ___ and may be sold many times over the life of the loan

A

negotiable

171
Q

Most lenders require the borrower to include __ of the annual taxes and insurance as part of the monthly mortgage payments

A

1/12th

172
Q

__ funds must be analyzed periodically to be sure that adequate funds will be available at the time they are due

A

escrow or impound

173
Q

Each January, the servicing lender must provide a ___ to the borrower to include their federal income tax return

A

Form 1098

174
Q

What must he loan servicer provide the borrower when the property is sold?

A

exact amount owed for principal and interest, any outstanding late payments, and any penalty fees for prior late payments

175
Q

When another lender buys a mortgage loan

A

assignment

176
Q

Prohibits discrimination in housing based on race

A

Civil Rights Act of 1866

177
Q

Contains Title VIII, Fair Housing Act, prohibits discrimination in housing based on protected class status

A

Civil Rights Act of 1968

178
Q

Prohibits discrimination in housing based on sex, handicap, family status

A

Fair Housing Amendments Act of 1988

179
Q

Channeling customers toward or away from homes or neighborhoods

A

steering

180
Q

using fear of ethnic change to induce owners to sell

A

blockbusting

181
Q

denying the right to belong to a MLS

A

restricting MLS participation

182
Q

reusing to make loans in a certain neighborhood

A

redlining

183
Q

Prohibits racial discrimination in any real estate transaction

A

Jones v Mayer

184
Q

Brokers are required to display ____ poster

A

equal housing opportunity

185
Q

Examples of potential client discrimination

A

refusing a full-price offer from a party, removing the property from the market to sidestep a potential purchase by a party, accepting an offer that is lower than one from another party

186
Q

A party can file a complaint with ___ and a suit in federal or state court within _ years of the alleged violation

A

HUD, 2

187
Q

Lenders may not discriminate on the basis of a protected class status

A

equal credit opportunity act

188
Q

Designed to prohibit redlining - enforced by requiring lenders to report to authorities where they have placed their loans

A

Home Mortgage Disclosure Act

189
Q

Federal Fair Housing Act does NOT prohibit discrimination based on _ status

A

marital

190
Q

What is the additional protected class for employment and public accommodations in TN?

A

creed

191
Q

Owner occupants of ____ unit dwellings are exempt in TN vs the ___ unit dwellings for federal law

A

1-2, 1-4

192
Q

Regarding housing, _ is not a protected class

A

age

193
Q

Steps for handling a fair housing violation in TN

A
  1. complaint filed with the HR commission within 180 days
  2. alleged violator notified of complaint within 10 days of filing
  3. HR commission begins investigation within 30 days
  4. If violation is found, commission attempts to end the practice, asks court to intervene, and may issue an order to cease and desists
  5. HR commission may assess fine
194
Q

What Act makes it illegal to try to restrain trade or to form a monopoly

A

Sherman Antitrust Act

195
Q

List of illegal categories of anticompetitive restraint of trade

A

horizontal and vertical price fixing, bid rigging, market division, group boycott, tying arrangement

196
Q

It is illegal to licensees to

A

lessen full and free competition in the sale of properties and to enter into price fixing agreements

197
Q

Who enforces antitrust laws?

A

federal trade commission, AG of the US, State AG, private parties

198
Q

What are the penalties for violation of antirust laws?

A

$350,000 for individuals, $10 million for corporations and a jail term of up to 3 years

199
Q

Chance of experiencing a loss

A

risk

200
Q

_ is the size of chance

A

probability

201
Q

_ is the size of the loss

A

exposure

202
Q

4 strategies for managing risk

A
  1. avoidance
  2. reduction
  3. transference
  4. retention
203
Q

refraining from taking an action that carries risk

A

avoidance

204
Q

mitigating the risk or getting someone to share it

A

reduction

205
Q

inducing someone else to take the risk

A

transference

206
Q

accepting the risk and budgeting for the possible loss

A

retention

207
Q

3 risk management procedures

A
  1. Disclosure
  2. Documentation
  3. Insurance
  4. Education
208
Q

Deflects and reduces risk by giving people info they need and are entitled to - when other parties know the facts, they cannot cry foul later

A

Disclosure

209
Q

Reduces risk by providing evidence of your actions, in case malpractice is alleged

A

documentation

210
Q

partially transfers risk to an insurer by reducing potential financial damage and legal responsibility for certain actions

A

insurance

211
Q

uses info about laws and procedures to anticipate and avoid risky situations

A

education

212
Q

What terms can you NOT use in a CMA?

A

appraisal and value

213
Q

Civil statute that carries no criminal penalties - prohibits mergers or acquisitions that are likely to lessen competition

A

Clayton Act

214
Q

Prohibits unfair methods of competition in interstate commerce, but it carries no criminal penalties

A

Federal Trade Commission

215
Q

Causes for license expiration

A
  1. failure to maintain E&O insurance
  2. failure to satisfy education requirements
  3. failure to follow renewal procedures
216
Q

Transaction progress reports should be

A

in writing and accurate, faxed/emailed so that receipt is recorded, and totally devoid of speculation

217
Q

what is a major cause of transaction all through?

A

failure to qualify buyers

218
Q

_ appraised value requires the buyer to make a larger down payment or a seller to take less for the property

A

lower

219
Q

_ appraised value does not generally mean that the seller gets more for the property

A

greater

220
Q

_ committee’s role is to make a decision as to whether they should dismiss or forward the complaint for a professional standards or to an arbitration hearing

A

grievance committee

221
Q

What is the most difficult part of making an ethical decision?

A

there is seldom a clear cut answer

222
Q

What are the guidelines when faced with an ethical decision?

A

determine exact nature of the problem and parties involved, concentrate on the pertinent facts, specify who stands to gain and who to lose by the decision

223
Q

specialty that deals with the leasing, managing, marketing and maintenance of property belonging to others

A

property management

224
Q

Class A

A

newer, more desirable buildings

225
Q

Class B

A

older, but very well maintained buildings

226
Q

Class C

A

older, but not as desirable as Class B

227
Q

Class D

A

least desirable - lowest rents and poor location

228
Q

PM goals

A

income, investment security, depreciation, capital gains, appreciation, pride of ownership, utility

229
Q

What are the components of a management plan?

A

owner’s needs and goals, market analysis, property analysis, operating budgeting, 5 year forecasting, income expense analysis

230
Q

List of management policies?

A

securest deposits, pets, period of lease, qualification requirements

231
Q

PMs have a dual responsibility to the _ and _

A

owner and tenants

232
Q

Should be set in accordance with other vacant units currently on the market, as opposed to setting the rates with other already rented units

A

rental rates

233
Q

What is a PM’s most important function?

A

max the ROI for the owner

234
Q

Vacancy rate causes

A

rental rates too high, poor management rep, poor building image

235
Q

what are 2 records that PM should maintain

A

monthly account statement and detailed annual statement

236
Q

Estate for years lease

A

for a fixed term of any specified length of time

237
Q

Periodic tenancy lease

A

automatically renews itself periodically

238
Q

Gross Lease

A

the tenant pays only rent, no utilities or other expenses

239
Q

Net Lease

A

tenant pays flat amount pf rent each month plus taxes, maintenance, and other expenses

240
Q

Percentage Lease

A

tenant pays a base rent plus a percent of sales volumes generated on the premises

241
Q

Transfer of a tenant’s remaining rental rights in a property to a third party

A

assignment

242
Q

partial transfer of a tenant’s right in a rental property to a third party

A

sublease

243
Q

Gives a tenant a financial incentive to come into or stay in a building

A

concession

244
Q

List of exemptions to the TN Landlord and Tenant Act

A

transient occupancies, condo and coops, occupancy in a residence that is under contract for deed, rental agreements before July 1, 1975

245
Q

2 situations that cause abandonment

A
  1. 30 days of absence and failure to pay rent on time

2. 15 days late in paying rent and appears to be absence

246
Q

What can a tenant do if the landlord fails to provide essential services?

A

deduct cost from rent, recover damages, procure substitute housing and not pay rent until fixed, recover cost of substitute housing

247
Q

How many days does the tenant have before late fees begin?

A

5 days

248
Q

What acts can someone perform without a license?

A

answer and forward calls, give info on the listing agreement as limited by the broker, assemble closing docs, have keys made for company listings

249
Q

All licenses expire _ years from the date the license was issued or renewed

A

2

250
Q

All required docs and fees must be received by TREC no later than _ days before the expiration date

A

60

251
Q

A license which has not been renewed before expiration must be

A

reinstated

252
Q

Within _ days of the expiration date, an expired license may be reinstated without examination if the licensee provides proof of compliance and pays a penalty fee

A

60

253
Q

What has to happen if a license is not renewed 60 days - 1 year

A

signed consent order, penalty of no more than $50, additional penalty of $150 per month for over 120 days but less than 1 year plus attendance at a commission meeting

254
Q

Licenses expired for more than _ year, the licensee must reapply and meet educational requirements

A

1

255
Q

New Expired License reinstatement policy

A

allows avoidance of late penalties with a medical excuse; establishes penalties ranging from $50/month up to $1500; must reapply as a new licensee after one year

256
Q

New Lapsed E&O Insurance Policy

A

all licenses must maintain insurance; principal broker can be fined $1000/affiliate for failure

257
Q

New License Exam Application

A

no one can apply to take exam within 2 years of a conviction for a felony or misdemeanor involving theft

258
Q

New Septic System Inspection Letter

A

licensee must inform buyer that they may obtain a septic system inspection letter from the state Department of Environmental and Conservation

259
Q

New Requirement for Courses

A

it is no longer enough to have a college degree with a major in real estate of a law degree to meet pre-license education requirements; must have at least 1 30-hour course in principles, plus contracts and agency for the law degree holder

260
Q

TN law requires brokers to maintain a separate __ account for the purpose of holding funds they receive

A

escrow

261
Q

What are two unacceptable forms of payment for deposit or earnest money

A

postdated check and non-cash item

262
Q

Broker must maintain accurate escrow account records for at least _ years

A

3

263
Q

Commingling

A

mixing escrow with non-escrow funds

264
Q

Conversion

A

using escrow funds for the wrong purposes