Real Estate Brokerage SAE - Champion's School of Real Estate 291 Questions with Verified Answers
Search Engine Optimization (SEO) - CORRECT ANSWER The
... [Show More] process of maximizing the number of visitors to a particular website by ensuring the website appears high on the list of results returned by a search engine.
Fcebook Live - CORRECT ANSWER Video streaming through facebook.
CoStar Database - CORRECT ANSWER Functions much like a residential MLS, connecting commercial agents with brokerages, owners, lenders, property managers, appraisers, and investors.
Virtual Reality (VR) - CORRECT ANSWER A computer-generated image or environment that can be interacted with by using special electronic equipment
Augmented Reality (AR) - CORRECT ANSWER Provides a modified view of reality for the user
Artificial Intelligence (AI) - CORRECT ANSWER A way of describing intelligence exhibited by machines
Google Analytics - CORRECT ANSWER A powerful analytic software
MLS Systems - CORRECT ANSWER The gold standard in data collection, processing, and dissemination in the real estate industry for years.
Millennial Generation - CORRECT ANSWER People reaching young adulthood in the early part of the 21st century
What does a consumer want from their brokerage? - CORRECT ANSWER - hyper-personalization
- high online ratings
- high level customer service
- marketing that creates interest
- give back to community
- deeper relationship with agent
Mission Statement - CORRECT ANSWER Announces to the world what the company's long-term goals are, describing the overall purpose of the organization.
Value Statement - CORRECT ANSWER Define how a company's work will be accomplished, articulating a set of beliefs and principles that guide the way the company conducts business.
Action Plan - CORRECT ANSWER Outlines the steps, approaches and resources that will be used to fulfill the objectives of the company.
Operational Planning - CORRECT ANSWER The aspect of planning that encompasses the day-to-day operations of a company.
Due diligence - CORRECT ANSWER Analyzing, exploring, investigating and evaluating a business to learn about the business, in order to position themselves to make an educated decision about whether to buy or not buy a business.
DBA - CORRECT ANSWER Doing Business As An assumed name or a trade name used instead of the legal name of a business entity.
FBN - CORRECT ANSWER Fictitious Business Name An assumed name or a trade name used instead of the legal name of a business entity.
Assumed name - CORRECT ANSWER A trade name used instead of the legal name of a business entity.
Trade name - CORRECT ANSWER An assumed name used instead of the legal name of a business entity.
Sole Proprietorship - CORRECT ANSWER A venture owned by one individual.
Partnership - CORRECT ANSWER A type of business entity that has partners
General partner - CORRECT ANSWER Responsible for the day to day operations of the business and has full liability
limited partnership - CORRECT ANSWER A type of partnership created in Texas by filing a certificate of limited partnership with the Texas Secretary of State
Limited partner - CORRECT ANSWER A business partner whose liability is limited to the amount invested in the partnership, having no involvement in the day-to-day operations of the business.
limited liability partnership - CORRECT ANSWER Formed by filling a statement with the Texas Secretary of State. a partner is not individually liable for the debts and obligations of the partnership, nor is the partner liable for tortious acts committed by other partners.
joint venture - CORRECT ANSWER A group of individuals joining together for a single business venture, combining their funds and talents to carry out one project. When the project or venture is complete, they will dissolve as a group.
syndicate - CORRECT ANSWER Two or more parties join together to create and operate a real estate investment
corporation - CORRECT ANSWER estate investment
Corporation
Corporations in Texas are created by filing with the office of the Secretary of State. The corporate entity is comprised of three components:
- Shareholders (stockholders) who are the owners of the corporation
- A Board of Directors elected by the shareholders who represent the interests of the shareholders
- Corporate Officers who are responsible for the overall management of the operation of the business
shareholders - CORRECT ANSWER The owners of the corporation.
board of directors - CORRECT ANSWER Elected by the shareholders who represent the interests of the shareholders
corporate officers - CORRECT ANSWER Corporate officers are responsible for the overall management of the operation of the business.
limited liability company - CORRECT ANSWER Formed by filing articles of organization with the Texas Secretary of State and is governed by the Texas Limited Liability Company Act. The limited liability company offers limited liability protection.
franchise - CORRECT ANSWER An authorization given by a company to an individual enabling the individual to carry out specific commercial activities as an agent for the company's products.
T or F: A limited partner is involved in the day-to-day of the business - CORRECT ANSWER False
A partnership may be created by: - CORRECT ANSWER filing documents with the Secretary of State
The three main categories that sould be addressed during the planning phases are: operational planning, _______, and time planning. - CORRECT ANSWER budget
How much cash reserves do industry experts recommend new brokerages have available for operating expenses? - CORRECT ANSWER 6 months to 2 years
Ethics - CORRECT ANSWER Concerned with what is right or wrong, good or bad, fair or unfair, responsible or irresponsible, obligatory or permissible, praiseworthy or blameworthy
Ethics refers to the well-rounded standards of right and wrong that prescribe what humans ought to do. usually in terms of: rights, obligations, benefits to society, fairness, specific virtues
Ethics refers to the study and development of one's ethical standards, principles that when followed, promote values such as: trust, good behavior, fairness, kindness
TRELA - CORRECT ANSWER Enacted in 1939, the Texas Real Estate License Act protects the public against unscrupulous brokers and sales agents.
Canons of Professional Ethics and Conduct - CORRECT ANSWER Section 531 of TREC's Rules includes Fidelity, Integrity, Competency, Consumer Information, and Discriminatory practices
Consumer information - CORRECT ANSWER The Consumer Protection Notice that is required to be posted in a prominent location in each place of business the broker maintains
Discriminatory practices - CORRECT ANSWER Article 5 of the Canons of Professional Ethics and Conduct
DTPA - CORRECT ANSWER A Texas consumer protection law that was passed in 1973, allowing an aggrieved consumer to sue a seller of goods or services for damages
Goods - CORRECT ANSWER Tangible chattels (real property is tangible when purchased or leased. Under DTPA, the sale of a house is considered a good)
Services - CORRECT ANSWER Means work, labor, or repair of goods. Brokerage is a service.
Consumer - CORRECT ANSWER An individual, corporation, partnership, or government source who seeks to acquire or purchase the goods or services
Producing cause - CORRECT ANSWER Proof that the act or omission was a significant factor in bringing about injury.
Knowingly - CORRECT ANSWER With actual awareness of a falsity, deception, or unfairness of an act. If an agent deliberately made a false statement about the condition of the property, or intentionally did not disclose a known defect
Intentionally - CORRECT ANSWER With actual awareness, or flagrant disregard of prudent and fair business practices
Statutory defences - CORRECT ANSWER Defenses that arise out of law (statute)
National Association of Realtors - CORRECT ANSWER Founded in 1908, is America's largest trade association, representing 1 million members, composed of residential and commercial REALTORS® who are brokers, sales agents, property managers, appraisers, counselors, and others engaged in all aspects of the real estate industry.
Price fixing - CORRECT ANSWER Any attempt by a group of brokers or brokerage firms to set the commission rates in their area.
Sherman Anti-Trust Act - CORRECT ANSWER Federal law that prevents any combination in restraint of trade.
Clayton Act - CORRECT ANSWER Federal law that defines unethical business practices such as price-fixing and monopolies.
Texas Free Enterprise and Antitrust Act - CORRECT ANSWER Texas state law that prohibits any attempt to fix prices, limit competition by assigning market areas, or boycotting of discount brokers
Illegal boycott - CORRECT ANSWER Prohibits any attempt to fix prices, limit competition by assigning market areas, or boycotting of discount brokers
ADA - CORRECT ANSWER Federal law that prohibits discrimination against those with disabilities by denying them the full and equal enjoyment of goods, facilities, accommodations, services, and privileges
Penalties for violation of the act are up to $75,000 for the first violation, and up to $150,000 for subsequent violations.
Civil Rights Act - CORRECT ANSWER Prohibits discrimination connected to housing. The Civil Rights Act of 1968 with amendments prohibits discrimination based on race, color, religion, national origin, sex, families with children, and disabilities
Steering - CORRECT ANSWER The illegal practice of directing buyers into or away from certain areas because of their race, color, or other protected classes
Blockbusting - CORRECT ANSWER The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of minority persons into the neighborhood
Substantice discussion - CORRECT ANSWER A discussion about a specific property triggering the need to deliver the Information About Brokerage Services notice.
Prospecting laws - CORRECT ANSWER Federal and state laws that govern how a person solicits or advertises by phone, fax, or email
Listing agreements - CORRECT ANSWER A contract between a landowner (as principal) and a licensed real estate broker (as agent) by which the broker is employed to sell real estate on the owner's terms within a given time, for which service the landowner agrees to pay a commission
Multiple Listing Services - CORRECT ANSWER Site where member firms share their listings with other members
Comparative Markey Analysis - CORRECT ANSWER An analysis of data to provide the seller with a range of appropriate list prices for their property and range of offer prices for the buyer
RESPA - CORRECT ANSWER Real Estate Settlement Procedures Act ensures that consumers throughout the nation are provided with more helpful information about the cost of the mortgage settlement and are protected from unnecessarily high settlement charges caused by certain abusive practices
Controlled business arrangement - CORRECT ANSWER An affiliate relationship of a direct or beneficial ownership interest of more than 1 percent in a provider of settlement services where a lender directly or indirectly refers business to the provider
5 sources of ethical standards - CORRECT ANSWER utilitarian approach
the rights approach
the fairness of justice approach
the common good approach
the virtue approach
The Utilitarian Approach - CORRECT ANSWER Ethical action produces the greatest balance of good over harm to those who are affected.
The Rights Approach - CORRECT ANSWER Individuals have the right to have their moral rights protected and respected, and the right to be told the truth, and not to be injured.
The Fairness or Justice Approach - CORRECT ANSWER Ethical action is equal for all, or if not, then fair for some, based on some defensible standard.
The Common Good Approach - CORRECT ANSWER Ethical standards and actions embrace common conditions that are important to the welfare (common good) of all.
The Virtue Approach - CORRECT ANSWER Ethics are habits that enable us to act accordingly as persons who are truthful, honest, courageous, compassionate, generous, tolerant, and possess integrity, fairness, self-control, and prudence.
Ethical Dilemmas - CORRECT ANSWER 1. recognize the issue
2. get the facts
3. evaluate alternative actions
4. make a decision and test it
5. act, then reflect on the decision later
Federal Fair Housing Act - CORRECT ANSWER The Federal Fair Housing Act covers the sale and rental of most housing. No one may take any of the following actions based on race, color, national origin, religion, sex, familial status, or handicap in the sale or rental of housing
Americans with Disabilities Act - CORRECT ANSWER The Americans With Disabilities Act (ADA) prohibits discrimination against those with disabilities by denying them the full and equal enjoyment of goods, facilities, accommodations, services and privileges. When readily achievable, the ADA requires the removal of architectural and communication barriers. The ADA affects almost all public accommodations. Single-family homes, private clubs, historic buildings, and religious organizations are exempt from the ADA.
Truth in Lending Act
(TILA) - CORRECT ANSWER Truth In Lending Act (TILA) protects consumers by providing them with complete information regarding loans and the actual cost of borrowing, including interest and all other charges associated with the loan. The law closely regulates the advertising of financial terms. In addition, the law requires lenders to provide the borrower with a full disclosure of the loan costs within three business days of loan application.
Real Estate Settlement Procedures Act (RESPA) - CORRECT ANSWER Real Estate Settlement Procedures Act (RESPA) ensures that consumers throughout the nation are provided with more helpful information about the cost of the mortgage settlement and are protected from unnecessarily high settlement charges caused by certain abusive practices. The Act requires mortgage loan originators and servicers of residential loans to provide borrowers with timely disclosures of the nature and costs of the real estate settlement process. RESPA also prohibits abusive practices such as undisclosed referral fees and kickbacks. RESPA is applicable to all "federally related" mortgage loans.
Securities Act of 1933 - CORRECT ANSWER Securities Act of 1933 prohibits deceit in the sale of securities and provides for the complete and accurate disclosure of all information to potential investors. Securities can include real estate investments as there is an expectation of profit. The sale or offering of securities must be registered with the Securities and Exchange Commission (SEC) and all material information must be disclosed to shareholders.
Sherman Anti-Trust Act - CORRECT ANSWER Sherman Anti-Trust Act prevents any combination in restraint of trade. Commission rates must always be a matter of negotiation between the broker and the client. Any hint that there is a "standard" or "going rate' for commissions in a given market area could be evidence of violation and restraint of trade. Any attempt to boycott a discount real estate broker is a violation. Attempts to limit competition by allocating markets or customers is also a violation. Any attempt by a group of brokers or brokerage firms to set the commission rates in their area would be considered illegal price-fixing.
Texas Free Enterprise and Anti-Trust Act - CORRECT ANSWER Texas Free Enterprise and Anti-Trust Act prohibits any attempt to fix prices, limit competition by assigning market areas, or boycotting of discount brokers. An illegal boycott is an agreement among two or more competitors not to do business with another competitor for the purpose of inducing the other competitor to change its business practices. The state law is enforced by the Texas Attorney General.
Canons of Professional Ethics and Conduct: fidelity - CORRECT ANSWER A real estate broker or salesperson, while acting as an agent for another is a fiduciary. Special obligations are imposed when such fiduciary relationships are created. They demand:
That the primary duty of the real estate agent is to represent the interests of the agent's client, and the agent's position, in this respect, should be clear to all parties concerned in a real estate transaction, that however, the agent, in performing duties to the client, shall treat other parties to a transaction fairly;
That the real estate agent be faithful and observant to trust placed in the agent, and be scrupulous and meticulous in performing the agent's functions;
That the real estate agent place no personal interest above that of the agent's client.
Canons of Professional Ethics and Conduct: integrity - CORRECT ANSWER A real estate broker or salesperson has a special obligation to exercise integrity in the discharge of the license holder's responsibilities, including employment of prudence and caution so as to avoid misrepresentation, in any way, by acts of commission or omission.
Canons of Professional Ethics and Conduct: competency - CORRECT ANSWER It is the obligation of a license holder to be knowledgeable as a real estate brokerage practitioner. The license holder must:
be informed on local market issues and conditions affecting real estate in the geographic area where a license holder provides services to a client;
be informed on national, state, and local issues and developments in the real estate industry;
exercise judgment and skill in the performance of brokerage activities;
be educated in the characteristics involved in the specific type of real estate being brokered by others.
Canons of Professional Ethics and Conduct: discriminatory practices - CORRECT ANSWER No real estate license holder shall inquire about, respond to or facilitate inquiries about, or make a disclosure of an owner, previous or current occupant, potential purchaser, lessor, or potential lessee of real property which indicates or is intended to indicate any preference, limitation, or discrimination based on the following:
(1) race;
(2) color;
(3) religion;
(4) sex;
(5) national origin;
(6) ancestry;
(7) familial status; or
(8) disability.
T or F: An informal TREC proceeding requires a public member of TREC and at least 2 TREC staff members with regulatory experience - CORRECT ANSWER True
T or F: The ADA covers the sale and rental of most housing in the country - CORRECT ANSWER False
A TREC disciplinary panel consists of: - CORRECT ANSWER 3 commission members
T or F: you can hold a brokerage and sales agent license at the same time - CORRECT ANSWER false
All of the following are statutory defenses under the DTPA, except: - CORRECT ANSWER a. written information drafted by the real estate agent
b. written information relating to the good or service from another source
c. written information relating to a particular good or service from another source
d. written information concerning a test required
a. written information drafted by the real estate agent
If an agent deliberately made a false statement about the condition of the property, the agent could: - CORRECT ANSWER be liable for up to three times the amount of money lost by the consumer
The NAR Code of Ethics is organized into the Preamble, Articles, and
___________. - CORRECT ANSWER standards of practice
NARS was founded in _______ becoming the largest trade association in the United States - CORRECT ANSWER 1908
The association of Realtors may take a variety of actions when it is determined one of it's members has violated the Code of Ethics, including: - CORRECT ANSWER suspension of membershoip
The Code of Ethics and Standards of Practice address how Realtors should treat customers, clients, the public, and - CORRECT ANSWER other realtors
Accredited Buyer's Representative (ABR) Designation - CORRECT ANSWER Show your buyers that you are an expert in the field with the designation that is solely dedicated to the buyer's representative.
Accredited Luxury Home Specialist (ALHS) Designation - CORRECT ANSWER Give your clients confidence that you have been well trained in selling their luxury homes with the designation that gives you an edge on the high end real estate market.
Certified Home Marketing Specialist (CHMS) Designation - CORRECT ANSWER Help your clients prepare their homes for sale with this designation dedicated to marketing dialogue and staging techniques.
Marketing Strategy and Lead Generation - CORRECT ANSWER Employ a creative and memorable marketing approach to generate leads, while clearly communicating services and value based on the buyer's needs and expectations.
Military Relocation Professional (MRP) Designation - CORRECT ANSWER Learn to help our military professionals relocate.
NAR's Green Designation - CORRECT ANSWER Learn the principles of green as well as green building trends and practices.
New Home Construction (NHC) Designation - CORRECT ANSWER Discover how the development and new-home sales process work and the type of services the buyer needs.
Pricing Strategy Advisor (PSA) Certification - CORRECT ANSWER Improve your skills in creating CMAs, pricing properties, understanding home values, and working with appraisers.
Seller Representative Specialist (SRS) Designation - CORRECT ANSWER Gain the necessary knowledge to apply methods, tools, and techniques to provide support and services that sellers want.
Real Estate Negotiation Expert (RENE) Certification - CORRECT ANSWER Hone your negotiation techniques to be a skillful advocate for your clients.
Seniors Real Estate Specialist (SRES) Designation - CORRECT ANSWER Counsel senior clients through the major financial and lifestyle transitions involved in relocating, refinancing, or selling the family home.
Texas Real Estate Broker Designation - CORRECT ANSWER Obtain the only designation the general public recognizes.
TREC Rules - CORRECT ANSWER Rule 535.2(i)(2): All sales agents conducting real estate activities must have an active real estate license.
Rule 535.2(i)(4): A broker is required to make certain that any sales agent they sponsor has been notified about changes to the Texas Real Estate License Act and Texas Real Estate Commission rules including promulgated contract forms and educational requirements
Rule 535.2(i)(5): In addition to completing statutory minimum continuing education requirements, each sponsored sales agent receives such additional educational instruction the broker may deem necessary to obtain and maintain, on a current basis, competency in the scope of the sponsored sales agent's practice subject to the Act
Sales Agent Apprentice Education (SAE) Requirements: A sales agent is required to have completed a total of 18 semester hours (or 278 credit hours) of qualifying education along with the non-elective TREC Legal Update courses prior to the end of their first license term.
TREC CE Rules: TREC CE rules require all license holders to take a four hour Legal Update I course and a four-hour Legal Update II course created for and approved by TREC to satisfy the 8 hours of legal topics on continuing education required by the Act. A broker or a designated broker of a business entity, who sponsor one or more sales agents during their current license period, or a delegated supervisor of one or more license holders for a period of six months or more during the supervisor's current license period must also attend a 6-hour Continuing Education (CE) Broker Responsibility course. In addition to TREC's minimum education requirements, brokers may require additional education or training of the agents that they sponsor.
Background Checks: Many sponsoring brokers require a background check for all employees with access to the office, including e
In order to renew an active broker or sales agent license past the first renewal, the license holder must complete 18 hours of continuing education including ___________ hours of Legal Update. - CORRECT ANSWER 8
All sales agents in their first renewal period must complete________ hours of SAE courses along with 8 hours of Legal Update - CORRECT ANSWER 90
A broker is required to advise a sponsored sales agent ________ of the sales agent's authorizes activities - CORRECT ANSWER in writing
Fiduciary duties and responsibilities - CORRECT ANSWER OLDCAR:
Obedience
Loyalty
Disclosure
Confidentiality
Accounting
Reasonable Care
Advantages of Buyer Agency Only and Seller Agency Only (No Intermediary) - CORRECT ANSWER Firms that practice Buyer Agency Only or Seller Agency Only do not have to worry about unintentional dual representation.
Brokers do not have to act as Intermediary or make appointments.
Agents are only responsible for giving advice and opinion to the buyer or seller, avoiding conflicts of interest that may occur when representing both sides of a transaction.
Disadvantages of Buyer Agency Only and Seller Agency Only - CORRECT ANSWER Many buyers do not want to sign a Buyer's Representation Agreement because they do not want to pay a commission to a Buyer's Agent.
Agents can only list properties for sellers, or have buyers sign Buyer's Representation Agreements, limiting the firm to either the selling side only or listing side only commission.
Intermediary Advantages - CORRECT ANSWER The brokers and associates can work with both sellers and buyers, under listing contracts and/ or buyer representation agreements.
Using the Intermediary process, in-house sales may be performed, widening the firm's client base.
Some buyers like to work with listing agents because they think that they are more motivated to get an offer accepted because they will collect both the buyer and seller side of the commission.
Intermediary Disadvantages - CORRECT ANSWER The broker must remain neutral: the broker must create as much transparency as possible and cannot do anything that may be construed as giving an advantage to one party over another, making negotiations difficult even with Intermediary with Appointments.
All documentation must be in order, all disclosures made correctly, and great caution taken.
You are the listing agent for the seller and are also under a buyer's representation agreement with the buyer who is paying you on a daily basis for your time. Can you accept this payment from the buyer who would like to buy your listing? - CORRECT ANSWER Yes, you can accept the daily fee from the buyer and the commission on the sale from the seller with the written disclosure and permission from both parties.
What is your agency relationship or status under this type of sale?
The agency status is intermediary without appointments.
Your neighbor tells you about another neighbor who is interested in buying your listing. Your neighbor asks you "if the sale goes through, can I receive a finder's fee"? What do you tell them in order to be within compliance of the law? - CORRECT ANSWER "I am not allowed to pay a commission to someone who is not licensed; however, I can pay you a flat fee of $50. This amount is all the law allows."
You are purchasing a property for your spouse's company and you are the buyer's agent. Do you need to disclose anything about your relationship on the offer to purchase? - CORRECT ANSWER Yes, you must disclose that you are a principal in the transaction as well as the buyer's agent and you must disclose your relationship with the buyer-client if it is a spouse, child or parent of the agent.
The buyer's agent discovers the listing broker's license has expired and the sale is going to closing soon. Is the listing broker allowed to receive a commission? What is the status of the buyer's agent's commission? - CORRECT ANSWER The listing broker is not allowed to receive a commission as the broker is considered not licensed.
The listing broker in the listing agreement agrees to split his or her commission with the selling broker. The selling broker would need to get a separate agreement from the seller on how they are going to get paid as the listing broker's license is expired.
The listing agent has a pocket listing and the seller is not aware his property was not placed on the MLS. Is this a violation? - CORRECT ANSWER Yes, it is a violation as it constitutes conduct which points to dishonest dealings, bad faith and untrustworthiness. A pocket listing is one in which the agent leaves the listing off MLS and may only advertise it in his brokerage office. To perform this type of action, the agent must have the written permission of the seller. This is also called an Exclusive Agency listing. This action, done without the seller's knowledge, is also an example of placing the agent's interest above that of the client-seller.
The buyer's agent gives the seller's agent the option money and the seller's agent does not physically give it to the seller, but rather, puts it in his file. The transaction does not go through to closing. The seller's agent gives the check back to the buyer's agent to give to the buyer.
Did the seller's agent do anything wrong? - CORRECT ANSWER Yes, he disbursed money before the transaction was consummated or terminated and the option money should have been delivered to the seller. However, if he had the written permission of the seller to perform this action, then there would be no problem.
The Disclosure of Relationship with Residential Service Company should be included: - CORRECT ANSWER In a transaction when the broker receives compensation from the residential service company
Can Spam Act of 2003 - CORRECT ANSWER The Can Spam Act (Public Law No. 108-187) of 2003 is a commonly used name for the Federal law more formally known as the "Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003." The law took effect on January 1, 2004.
When sending out emails with advertisements, brokers and their agents must comply with the Federal CAN-SPAM Statute governing e-mail solicitations. The statute applies to any email that contains advertising. The statute prohibits:
the falsification of routing or sending information in any e-mail; and any false, misleading or deceptive statements in the subject line.
The CAN-SPAM statute provides that the sender's message must contain clear and conspicuous notice that the message is an advertisement or solicitation. The statute also requires the sender's message to include a valid physical postal address and requires that emails containing advertisements must contain unsubscribe features. The statute requires that it be honored in ten days and also requires that the unsubscribe feature remain active for 30 days after the message is sent.
Each separate email in violation of the CAN-SPAM Act is subject to penalties of up to __________. - CORRECT ANSWER $16,000
Housing for older persons is exempt from the prohibition against familial status discrimination if: - CORRECT ANSWER HUD has determined that it is specifically designed for and occupied by elderly persons under a federal, state, or local government program or
It is occupied solely by persons who are 62 or older
It houses at least one person who is 55 or older in at least 80 percent of the occupied units, and adheres to a policy that demonstrates an intent to house persons who are 55 or older.
Elements of a Listing Agreement - CORRECT ANSWER In most states a broker must provide to a seller certain disclosures prior to entering into a listing agreement. These disclosures often address such issues as:
Agency relationships
Brokerage fees
Property condition
Relationships with buyers
Market value of the property being listed
Local market conditions
Additionally, a listing agreement should provide the broker with specific authorizations and instructions including:
Permission to place a sign on the property
Permission to place a lock box on the property
Permission to advertise the property on the Internet
Other provisions regarding showing times and instructions
Statute of Frauds - CORRECT ANSWER is a body of law that requires that certain contracts be in writing in order to be enforceable
Types of Listing Agreements - CORRECT ANSWER Exclusive Right to Sell: Real estate brokers recommend this listing which grants an exclusive right to sell the property during the listing term. A commission is paid even if the property is sold by the owner.
Exclusive Agency: In an exclusive agency listing, the seller agrees to list the property with only one broker during the listing term, with the provision that the seller can sell the property himself or herself, without payment of a commission
Open Listing: The open listing gives the seller the right to list the property with multiple competing brokers and to sell the property personally without liability for payment of a commission.
Net Listings: the seller establishes a minimum acceptable net price
According to the Statute of Frauds, all listings must be in writing to be _______________. - CORRECT ANSWER enforceable
A(n) _______________ allows the seller to list the property with multiple competing brokers and to sell the property personally without the liability for payment of a commission. - CORRECT ANSWER open lisitng
The Multiple Listing Service - CORRECT ANSWER Shares listings of member firms with each other
Increases the inventory of properties for sale among member brokers
Is used by agents to prepare a Comparative Market Analysis
RESPA Section 8: Prohibition against Kickbacks and Unearned Fees - CORRECT ANSWER prohibits any person who, pursuant to any agreement or understanding, gives or receives a fee or a thing of value (including payments, commissions, fees, gifts, or special privileges) for the referral of settlement business. Payments in excess of the reasonable value of goods provided or services rendered are considered kickbacks.
RESPA Section 8: no referral fees - CORRECT ANSWER No person may give and no person may accept any fee, kickback or other thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or part of a settlement service involving a federally related mortgage loan shall be referred to any person. A business entity (whether or not in an affiliate relationship) may not pay any other business entity or the employees of any other business entity for the referral of settlement service business.
RESPA Section 8: no split charges except for actual services performed - CORRECT ANSWER No person may give and no person may accept any portion, split, or percentage of any charge made or received for the rendering of a settlement service in connection with a transaction involving a federally related mortgage loan other than for services actually performed. A charge by a person for which no or nominal services are performed or for which duplicative fees are charged is an unearned fee and violates this section. The source of the payment does not determine whether or not a service is compensable. Nor may the prohibitions of this part be avoided by creating an arrangement wherein the purchaser of services splits the fee.
Transactions exempt from RESPA include loans: - CORRECT ANSWER 1. Secured by parcels of 25 acres or more, whether or not the property is improved.
2. For which the primary purpose is business, commercial, or agricultural. However, a business purpose loan made to one or more persons, acting in an individual capacity (natural persons) to acquire, refinance, improve, or maintain a one-to-four family residential property used or to be used to rent or lease to other persons is a covered transaction.
3. Temporary loans, such as construction loans. (The exemption does not apply, and the transaction becomes covered by RESPA, if the loan is used as, or may be converted to permanent financing by the same bank. A lender's commitment for permanent financing is covered by the regulation. Any construction loan with a term of two years or more is covered by the regulation, unless it's made to a bona fide contractor. Bridge or swing loans are not covered by the regulation).
4. Secured by vacant or unimproved property when none of the loan proceeds will be used to construct a one-to-four family residential structure. If the proceeds will be used to locate a manufactured home or construct a structure within two years from the date of settlement, the loan is covered [Show Less]