Term
| No Brokerage Relationship |
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Definition
Duties owed by a licensee to a customer with whom there is no brokerage relationship are:
**Dealing honestly & fairly
**Disclosing all knwn facts materially affecting the value of the residential property which are not readily observable to the buyer; and
**Accounting for all funds entrusted to the licensee
No Brokerage Relationship Notice must be fully described and disclosed in writing to buyer or seller whom the licensee has no brokerage w before the showing of the property.
If notice is incorporated into another document....notice must be same size or larger, in a conspicuous place w all caps and in BOLD.
Not required but reccommended that form be signed and dated and retained for records |
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Term
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Definition
a central bank est. by congress 1913 to give country
**an elastic currency
**provide a system to discount commercial paper
**supervise the banking system
3 tools to influence interest rates are:
1)Reserve Requirement...increase/decrease reserves requried of member banks. Banks must reconcile daily (fastest method)
2)Discount Rate...increase/decrease interest rate on loans to banks ($ taken from loan upfront) (least effective)
3)Open Market Operations..purchase/sell gov securities (puts more money in or takes it out) (most effective) |
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Term
| Parts of the Federal Reserve System |
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Definition
est. 1913 by Congress
12 regional banks managed by Board of Governors
Independent of government
5 parts
board of governors(7members)(14yr terms)(chairperson appointed by president confirmed by senate for term of 4yrs)
12 federal reserve banks + their branches
federal open market comittee
federal advisory council
member banks |
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Term
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Definition
| authorized by the employer to perform a single act. the employment contract between the employer and agent establishes the limit of authority granted. |
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Term
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Definition
| has the principal's authority to act for him or her on a CONTINUING BASIS, but with authority limited to a specific trade or business |
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Term
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Definition
is authorized to act for and represent the pricipal in all matters, w/o limitation. this agency is generally authorized by a power of attorney.
All agents have limited authority and cannot perform any act on behalf of their principals NOT AUTHORIZED by the pricipals. For example, a broker cannot sign a contract that obligates hia or her pricipal unless the principal has given the broker a power of attorney authorizing the act. |
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Term
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Definition
| subagency is not a type of agency; it is an extension of another agency. In other words, a subagent is a party who has been granted authority to act on behalf of another agent. |
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Term
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Definition
| is the utilization of zoning ordinances to exclude certain types of people from a given community particularly low-income |
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Term
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Definition
| is the utilization of zoning ordinances to exclude certain types of people from a given community particularly low-income |
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Term
| expenses on a closing statement are |
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Definition
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Term
| purpose of the closing statement is to |
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Definition
| summarize and simplify the transaction |
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Term
| an ackknowledment of a deed |
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Definition
| can be taken by an officer of the state |
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Term
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Definition
also called legal notice, is achieved by recording documents in the public records. Documents are recorded in the Office of the Clerk of the circuit court in the county where the property is located
recording a document has the same LEGAL EFFECT AS SHOWING IT TO THE ENTIRE WORLD.
is the best EVIDENCE OF OWNERSHIP |
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Term
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Definition
of ownership is provided by physical possession. Being in possession of property and claiming ownership is called "actual notice"
Can be either expressed or implied |
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Term
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Definition
| a document that conveys title from one party to another. deeds are the mst common document used to transfer title. |
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Term
| the from for the closing statement is determined by the |
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Definition
closing agent.
unless financing is provided by federally regulated lender...then closing agent required to use the HUD-1 Uniform Closing Statement form |
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Term
| concening all FHA/VA mortgages |
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Definition
| borrowers must meet minimum requirements |
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Term
| equity of redemption may be excersied |
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Definition
| until the time of foreclosure |
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Term
| the monthly payment under FHA 203(b) may NOT include |
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Definition
| private mortgage insurance |
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Term
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Definition
Federal Housing Administration est. 1934
to provide sound lending practices, promote home ownership & upgrade housing standards
INSURES LOANS (they do not make loans)
FHA is part of HUD
*home improvement loans;
*the purchase of manufactured homes;
*the preservation of historic properties; and
*land development loans. |
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Term
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Definition
effective Jan 1, 2006
max nationwide basic mortgage limit is
1 family-$200,160
2 family-$256,248
3-family-$309,248
4-family-$384,936
max limit for high-cost areas
1 family-$362,790 and so on |
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Term
| FHA max loan-to-value percentage |
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Definition
properties sales price or appraised value, whichever is less, of $50k or less max loan-to-value ratio is 98.75%
Property price higher than $50k its 97.5%
FHA loans are underwritten in $50 increments. |
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Term
| RE Recovery Fund (475.482, F.S.) |
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Definition
est. for the purpose of reimbursing those persons or entities that have suffered monetary damages as a result of fraudulent acts committed by real estate licensees.
suit for damages must first e brought in a civil action...after judgement obtained, personal asset of licensee are used to satisfy. If insufficent recovery fund can be used.
single act up to $50k
multiple acts limited to $150k
FREC requires holder of the judgment to assign the judgment to the FREC so FREC can force repayment...they can place a lien on all properties and suspend licensee until repayment |
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Term
| parties involved in a deed of trust |
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Definition
beneficiary, trustee, trustor
deed of trust used in title theory states in place of a mortgage
trustee is a 3rd party who holds deed
trustor is the borrower
beneficiary is the lender
upon sastisfied debt, title returns to borrower by reconveyance deed |
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Term
| when a seller takes back a 2nd mortgage, it is entered on closing statement as |
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Definition
| a debit to the seller...(he is loaning money) |
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Term
| State Documentary Stamp Tax on DEED |
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Definition
normally PAID BY seller based on sales price of the property
Tax rate .70/$100 |
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Term
| State documentory stamp tax on PROMISSORY NOTES |
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Definition
normally buyer pays, based on new and assumed promissory notes (not paid when title taken "subject to" the mortgage
.35/$100 |
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Term
| State intangible tax on mortgages |
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Definition
Buyer usually pays. (not on subject to mortgage)
Paid on new morgages only.
rate of 2 mills ($.002) |
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Term
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Definition
Federal Home Loan Mortgage Corporation est. 1970
primarily purchase conventional loans
authorized to purchase all types of loans
FHLMC |
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Term
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Definition
Government National Mortgage Association est. 1968
GNMA
took over special assistance housing programs authorized by congress and acts to make low-yield, igh risk loans marketable
assists in financing of urban renewal and housing projects by offering below-market interest rates to low-income families |
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Term
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Definition
Federal National Mortgage Association (FNMA) EST 1938 as a gov owned corp for purchasing fha loans...now buys va loans
is publicly owned corp now...traded on stock exchange. |
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