Term
| How many sections does CBS1 (Residential) have |
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Definition
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Term
| What type of ownership is Joint Tenancy |
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Definition
| Right of survivorship means if one person passes, full ownership goes to the other person(s) on title. |
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Term
| What type of ownership is Tenants in Common |
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Definition
| Each person on title owns a portion or percentage which he or she can in turn will to their heirs. |
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Term
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Definition
| Mutual Execution of this Contract. It means when both parties have signed the contract. |
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Term
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Definition
| Trade Fixtures are those inclusions that specifically apply to the business operations |
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Term
| What is a tenant estoppel statement |
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Definition
| documents outlining details and status of any lease currently in existence on the property |
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Term
| What is contained in a tenant estoppel statement |
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Definition
1) Commencement and termination dates of the lease
2) Confirmation the Lease is in full force and there are no amendments (other than those provided)
3) Specifics on advanced rents, rent concessions and deposits
4) The monthly rental rate
5) Affirmation that the parties to the Lease are not in default
6) The Lease is true, correct and complete |
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Term
| What types of loans can only be placed on residential and not commercial property |
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Definition
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Term
| When do you use the Colorado Foreclosure Protection Act (CFPA) Contract |
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Definition
| This contract must be used when sellers are in foreclosure or have the possibility to be in foreclosure and the purchase is an investor. The property must be residential, it is the seller’s principal place of residence, and the buyer is not to use the property as buyer’s personal residence. |
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Term
| What contract should be used for a short sale |
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Definition
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Term
| What is "Equity Skimming" |
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Definition
| An investor takes the property that is about to go or is in foreclosure from a homeowner in exchange for allowing the homeowner to stay in the property as a tenant. The un-expecting homeowner gives away his property and any equity within the property. |
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Term
| How long must a buyer give a seller to cancel a contract |
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Definition
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Term
| When is a Homeowner Warning form to be supplied? |
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Definition
| If the principal language of the seller is not English. It must accompany the contract when submitted to the seller |
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Term
| What is an Exclusive Right to Buy Contract |
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Definition
| This is the purchase contract. Broker as Agent or Transaction-Broker is involved and responsible for all aspects of purchasing of property. Broker receives payment upon sale for fulfilling contract duties |
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Term
| What is the purpose of a Licensee Buyout Addendum |
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Definition
| To give brokers and brokerage companies a contract addendum to purchase a listed property. In essence, to guarantee a sale if the property does not sell during the listing period. It is not a contract for a licensee to use if not part of a listing transaction. |
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Term
| When is the residential addendum used |
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Definition
| Attach this Addendum to a Land Contract if there is a residential structure on the Property. This Residential Addendum may also be included on a Commercial Contract that requires these Sections be addressed. |
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Term
| What are the two types of 1031 Exchanges |
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Definition
| Simultaneous Exchange and Non-Simultaneous Exchange |
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Term
| What is a 1031 Simultaneous Exchange |
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Definition
| In a simultaneous exchange, two investors trade their properties (must be a like-kind exchange i.e. realty for realty). As the properties will not have the same value, one of the investors will have to add money to create an equal trade. For the investor who receives the additional monies (boot), the boot will be taxable. |
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Term
| What is a 1031 Starker Exchange |
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Definition
| The seller/investor is exchanging for a new property even though the sale of his property and the purchase of the new property do not happen at the same time [as in a the simultaneous exchange]. The Investor is not allowed "to touch" the money from the first sale in order to guarantee that all monies from the first sale get invested into a new property. |
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Term
| Important Characteristics of a 1031 Exchange |
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Definition
1) The old property and the new property must qualify as 1031 property
2) Within 45 days of the closing of the seller's old property, the seller must prepare a form identifying no more than 3 potential properties that the seller may want to acquire.
3) Within 180 days of the closing of the old property (which is 135 days after the expiration of their 45-day period), the seller must purchase and close on one of the properties listed on the 45-day form.
4) The seller may not touch the money. Typically the money is held by the exchange company [Qualified Intermediary].
5) The holder of title to both the seller's old property and the seller's new property have to be the same, and
6) In general, the seller must equalize the debt on the old and new property. |
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Term
| When do you use the Post Closing Occupancy Agreement |
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Definition
| The Post-Closing Occupancy Agreement is offered as a tool for broker use when a residential transaction calls for a seller to remain in possession of a property (Seller Rent-Back) after closing. It is intended for short-term occupancies (1 to 30 days). |
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Term
| What are property inspection resolutions other than contract termination |
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Definition
1) The seller can repair the property prior to closing;
2) The seller can agree to pay a concession or contribution, for example, a portion of the buyer’s closing costs;
3) After closing, the buyer can make the repair without assistance from the seller;
4) The buyer and the seller can negotiate a modification to the sales price; or
5) At closing, the seller can escrow funds or pay a contractor (if allowed by the lender). |
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Term
| When is the Lead Based Paint Disclosure necessary |
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Definition
| Each party to any contract where the property was built before 1978 is REQUIRED to sign these disclosures. This includes tenants and landlords. |
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Term
| Punishment for not signing the Lead Based Paint Disclosure |
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Definition
| Failure to sign the disclosure subjects ALL PARTIES in the transaction to fines of up to $16,000 each and subjects them to treble damages. In other words, each buyer, seller AND broker in the transaction might be subject to $48,000 in fines. |
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Term
| When is a Counterproposal From used |
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Definition
| A Counterproposal is used when a Seller does not wish to accept a Contract to Buy and Sell as written |
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