Real Estate Section 3

NON-EXCLUSIVE

must prove procuring cause to earn a commission

Listing automatically ends with the death of the seller,

Broker destruction of property, but not death of salesperson

Seller pays full commission to the Listing Broker

It is divided among the companies

Ministerial Acts

Are for clients and customers

When working as a designated agent

you cannot ask advice from other agents, you can only ask your broker

When a deal falls apart and buyer and seller cannot agree on earnest money dispersal

broker should interplead in court

Specific performance lawsuit

forces a party to carry out his/her obligations under a contract

If Seller ask you not disclose a serious adverse defect/material fact and you honor it;

Seller and Broker would be liable

Dual agent

If the seller reveals his bottom line, only disclose with written contract

The 3 ways to handle Trust Funds when selling as an agent your personally owned properties ARE

List with your broker and put funds in his trust acct

With your Broker's permission list with another broker and put funds in his acct

Open your own trust acct with your broker's permission and register with GREC (within 30 days)

Fair Housing act doesnt cover

Current illegal drug users

You can always count on an earnest money refund if you

Withdraw your offer prior to acceptance

Commission on an Option is paid once

The Option is excerised

Option to buy price is determined when

Negotiating the original option agreement

Earnest money

is not a requirement of a valid, binding contract. Know all parts want earnest money can be

Commissions are determined by

listing broker and seller

You receive two offers

Tell seller to accept or counter on one offer and reject the other or reject both

Sherman Anti- Trust Act

Federal Law against monopolies

Special stipulations

are used to fully express the intent of the parties when not covered in the pre-printed fill in the blank forms

If owner instructs you as the property manager to do something that might harm the owner and/or tenant:

You must inform owner of potential danger prior to doing the task...such as, removing a loose railing on the outside deck could harm the tenant and cause them to sue the landlord

1st counter and additional counters reject the previous offer

seller cannot go back and accept a previous counter

When a seller receives and accept an offer,

it becomes binding when communicated back to the buyer

Market allocation

is not illegal when agreed between 2 agents in the same office or company

Spousal approval contingency

is legal if approved by all parties in a contract

What is a tie-in?

illegal under Sherman Anti-Trust Act... where builder requires to buy one lot to get another

redlining

Restricting you to higher interest rate mortgages despite your credit bc of race

Two types of Exclusive listings ARE

Exclusive Agency & Exlusive Right to Sell

Exclusive Agency

you agree to let one agent and their brokerage (basically, the company they work for) be the only ones to market your home

Exclusive Right to sell

a type of listing contract you enter into with a real estate agent

signing agent is the only person allowed to market and sell your property for a certain amount of time

Misrepresentation and an ethical violation

Illegal to use anything other than the true sales price in publications to keep prices higher

Disclosing how you prequalify buyers

Not required prior to signing a brokerage agreement

Death of an owner

Terminates a current listing and unsigned offers

Designated agency

You are not acting as a dual agency

Illegal acts under Sherman Anti-Trust Acts:

Tie-Ins, Market Allocations, Price Fixing (commissions) Boycotting Denying Membership.

Seller asks you not to disclose a defect

Tell him you cannot honor the request

Dual Agency:

Permissible if allowed in office policy; must have written informed consent of all parties

How to calculate a down payment. Loan to value ratio. In the case of a mortgage, this would be the mortgage amount divided by the property's value.

taking the loan amount and dividing it by the value of the asset or collateral being borrowed against

What Panic Selling/Blockbusting?

Investors will start to sell their investment properties all at once. This will cause a big drop in the prices of these properties & it is illegal under Fair Housing

Fiduciary

a legal relationship that is confidential between two parties

escrow account

part of your monthly loan payment is deposited to cover some of the costs associated with home ownership; no hiding monies

Designated agent

assigned to a client

Contract for Deed

Vendor/Seller; Vendee/Buyer

You/Broker always get paid with an

Exclusive Right to Sell listing

Under RESPA, federal law,

no kickbacks allowed

At minimum, you must do an amendment to extend

a contingency, so it doesn't expire

Under age buyer, contract binding on

Seller only

puffing

the exaggeration of material facts

Seller asks the race of the buyer, and you refuse to answer

Does not break your fuduciary duties

Exclusive Agency Agreement

the fact the seller can still sell without paying a commission

Regardless of the offer or how many times a Seller may have refused an offer at a particular price,

you always present all offers

Brokers can only send licenses to

GREC

A licensee can only

complete forms for someone who is a client

Can have license suspended for not giving copies of

Signed listing to all parties involved

An owner is not required

to notify a licensee when not re-newing a listing

A Broker cannot

contact a seller who is currently under a listing agreement with a different Broker

Earnest money can be anything

of value as long as its agreed upon

Agency created on National level can either be

Implied or verbal

When is your commission is earned?

When a ready, willing, and able buyer is found

How to terminate a contract

Contact party and negotiate an end date to that contract

Requirements for a valid contract

a legal purpose, legally competent parties, agreement by offer and acceptance, consideration, and consent

Fair Housing Laws of 1866, 1968 and 1988

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Fudicuary Duties

Real estate agent must act in the best interests of their clients and not their own interests

Transaction Broker all are

Customers; Only ministerial acts.