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Details

PA Real Estate Exam
Serving Buyers
29
Real Estate & Planning
Not Applicable
07/19/2005

Additional Real Estate & Planning Flashcards

 


 

Cards

Term
What do you do on an initial appointment
Definition
Provide and explain the Consumer Notice
Discuss the expectations and concerns regarding the purchase of property
Complete buyer's representation agreement and obtain the buyer's signature
Determine if buyer has been preapproved, if not get buyer's agreeent to get pre-approved
Discuss mrotgage loan alternatives and max. loan amount
Discuss cash needs and availability
Compare the purchaser's expectations w/financial position and discuss issues related to this
Agree on a search strategy
Term
When presenting a property
Definition
Offer the property as a colution the the expectations
Confirm that the property is on targer or clarify what doesn't meet expectations but also what does
If necessary adjust your analysis of their expectations or work to adjust the purchaser's expectations

If necessary show another property as a solution to their needs
Term
When the purchaser is ready to make an offer:
Definition
Prepare and review the estimate of settlement costs to the purchaser
prepare and review the purchase agreement, making recommendations that are necessary to protect the buyer's interests
Make a copy of all documents for the purchaser
Present the offer to the seller/agent
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

The use of untruthful/misleading advertising is ok under certain circumstances
Definition
FALSE
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

A licensee may not advertise nor solicit for prospective buyers or tenants without the consent of the owner of the property
Definition
TRUE
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

A rental listing referral agent may publish infomation about a rental property even when the owner or property manager requests that such info not be published
Definition
FALSE
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

The business name and telephone number of the broker must appear in all advertising. This includes all e-mails and on each page in a web site
Definition
TRUE
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

If an advertisement includes the name and/or telephone number of a licensed employee, the broker's and sales associate's business anme and telephone number must be EQUAL in size
Definition
TRUE
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

The unauthorized use of any trade marked or copyrighted term is considered misleading advertising
Definition
TRUE
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

Licensees may not solicit for listings with such frequency as to consitute harassment
Definition
TRUE
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

It is ok for licensees to solicit in such a way as to make sellers believe that they HAVE to sell or face trouble, ie. panic selling
Definition
FALSE
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

A broker who sells or leases his own real estate must disclose that he is a real estate broker in the ad
Definition
TRUE
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

A liscensee who sells or leases his or her own real estate must disclose that she is a liscensee in the ad
Definition
FALSE:

If they list w/a broker they do not, if they are a FSBO they do
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

Soliciting selling or offering for sale real prperty by offering free lots or conducting lotteries or contests or offering prizes to deceptively influence a purchers is considered mi
Definition
TRUE
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

An advertisement that states sales volume or production can refer to any transaction
Definition
FALSE only to closed transactions
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

An ad about production or market position must identify the municipality that the market comprises
Definition
TRUE
Term
TRUE/FALSE according to PA Real Estate Commission's Rules/Regulations

An ad about the number of offices can include only offices that are licensed in PA
Definition
TRUE
Term
Buyer must have sufficient cash for...
Definition
the closing costs

down payment (not ernest money) amount varies according to the maximum loan to value ratio
Term
Loan-to-value ratio
Definition
the percentage of the property value that is finaced

loan-to-value ratio = Mortgage loan amount% Property value

Property value=appraised value or sale price, whichever is LESS
Term
income-to-payment ratio
Definition
the total montly housing expense(PITI)may not exceed a certain percentage of the borrower's gorss verifiable monthly income. Most commonly 28%
Term
Debt-to-income ratio
Definition
the borrower's total montly debt (existing montly debt and a new housing expense payment) may not exceed a certain percentage of the borrowers gross verifiable montly income.

Most commonly 36%
Term
Fair Isaac Company
Definition
company that invented credit scoring. FICO score 200-800
Term
Agreement of sale must have:
Definition
date

names of buyer and seller

description of the property and interest to be conveyed

the sale price

the dates for payment and conveyance
statement that the broker is agent for whom

the zoning classification of the property

a satement requiring broker to escrow deposit money

a statement that the real estate recovery fund exists to reimburse a person

A statement that access to a public road may require issuance of a highway occupancy permit from DOT
Term
Mortgage contingency
Definition
a common contingency on a purcahse aggreement. It states that the amount of mortgage loan, maximum interest rate and minimum term, a mortgage committement date and nature and extent of assistance that the broker will render to the buyer. If the mortgage cannot be obtained under those terms the sales agreement is voidable
Term
Common contingencies
Definition
Zoning variance, certifications for room, plumbing, heating, well, septic,
the sale of another property
the approval or disapproval of another person
Term
Radon
Definition
Invisible, undetectable to the unaided gas which is cancer causing
Term
UFFI
Definition
Urea Formaldehyde Foam Insulation
Term
Wood Infestation
Definition
presence or historical presence of termites, carpenter ants etc.
Term
PITI
Definition
Principle interest tax and insurance. used to calculate total montly housing expense
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