Term
|
Definition
| It is up to the agent to make a decision on how he/she will market themselves: by price or by the agent's unique style or brand. |
|
|
Term
|
Definition
# What do you do?
# Where do you sell?
# What properties do you sell?
# What do you specialize in (your target properties, buyers, sellers)?
# What you don't or won't sell - geographical types of sellers, buyers, properties, other kinds of real estate (this is to help you refine your focus; it is not for publication)? |
|
|
Term
|
Definition
# What are your business values?
# What talents, specialties, and competencies do you bring from other fields?
# What are your benefits?
# How are you different from other real estate agents? |
|
|
Term
|
Definition
| Should be on the listing side |
|
|
Term
|
Definition
| It is about what you do each day every day |
|
|
Term
|
Definition
Showing houses is not hard. Writing contracts is not hard.
What is hard is the prospecting you must do on a regular basis to be successful.
Every single day you must be prospecting - talking to people about buying or selling houses. |
|
|
Term
| With the development of the multiple listing service, which of the following legal assumptions evolved? |
|
Definition
| all participating salespersons, through subagency represented the sellers of listed properties |
|
|
Term
| Which party or parties would two agents of competing firms that both belong to a MLS, most commonly have represented when MLS first came into existence? |
|
Definition
| Both agents would have represented the seller. |
|
|
Term
| Which of the following developments caused real estate professionals to use the Exclusive Right to Sell Listing Agreement? |
|
Definition
|
|
Term
|
Definition
| The geographical territory that is subject to a common set of laws and rules. |
|
|
Term
| In 1983, which of these organizations conducted a study and reported results indicating that real estate buyers were misinformed about agency relationships? |
|
Definition
|
|
Term
| Which of the following were reasons the Federal Trade Commission conducted an investigative study of the real estate profession? |
|
Definition
| a perception that consumers were being kept ignorant of "key facts" felt to be necessary for informed decisions in choosing a broker |
|
|
Term
| According to the results of a survey of real estate consumers released during the early eighties, which of the following were found? |
|
Definition
| Seventy-three percent of buyers of real estate erroneously thought the agent they were working with represented them, when they actually represented the seller. |
|
|
Term
| Which of the following was an overall conclusion derived from the Federal Trade Commission study? |
|
Definition
| There was very little understanding about whom the brokers represented and what their responsibilities were. |
|
|
Term
| Which organizations led an effort to clarify for consumers who real estate professionals did and did not represent in their real estate transactions? |
|
Definition
| real estate regulatory agencies and trade associations |
|
|
Term
| For real estate professionals who conducted business in multiple jurisdictions, which of the following impacted their agency practice? |
|
Definition
| regulatory agencies' varied responses to handling of agency representation and related disclosures |
|
|
Term
|
Definition
# understand the agency representation of the jurisdiction in which he/she is licensed;
# be aware of the internal policies of the firm with which he/she is licensed;
# be able to explain the agency representation requirements and policies to the clients and customers with whom they conduct business; and
# be able to disclose properly the agency representation to those parties they do not represent. |
|
|
Term
| Which of the following is a major concern of failure to properly and timely disclose agency representation? |
|
Definition
| buyers will disclose confidential information to the salesperson that doesn't represent them |
|
|
Term
|
Definition
|
|
Term
| It is sometimes possible to complete a proper listing presentation simply by utilizing the resources available_____. |
|
Definition
|
|
Term
| The most dependable source for the square footage of a building is the _____. |
|
Definition
|
|
Term
| For younger homeowners, the agent can demonstrate expertise by making a listing presentation _____. |
|
Definition
|
|
Term
| Above all, it is essential that the homeowner _____. |
|
Definition
| feels comfortable with the agent |
|
|
Term
| It is essential that the agent keep assuring the homeowner over and over that _____. |
|
Definition
| the agent understands the seller's situation |
|
|
Term
When in doubt about appropriate attire for a listing presentation, it's wise to
dress _____. |
|
Definition
|
|
Term
| It's best to sit down for a listing presentation at the homeowners' _____. |
|
Definition
|
|
Term
| The most common reason sellers hesitate to list a house with an agent is because they are concerned about _____. |
|
Definition
|
|
Term
| The word "fizzbo" is used to describe a _____. |
|
Definition
| seller minus use of an agent |
|
|
Term
| The best listing price for the property is arrived at after considering _________. |
|
Definition
|
|
Term
| The first offer that comes in on a property is very often _________. |
|
Definition
| the best that will be received |
|
|
Term
| Buyers who are pre-qualified for a mortgage have _________. |
|
Definition
| been told how much they can probably afford |
|
|
Term
| Homeowners who try to sell on their own without an agent may have less _________. |
|
Definition
|
|
Term
| A buyer is most likely to ask questions about a property _________. |
|
Definition
|
|
Term
| Before a lender is approached, a buyer's best advisor on financing is often the __________. |
|
Definition
|
|
Term
| Unlicensed office personnel can assist agents by ________. |
|
Definition
|
|
Term
| An agent should always be informed about the __________. |
|
Definition
| financing help the brokerage firm may be able to offer sellers or buyers |
|
|
Term
| On occasion, a real estate company has been known to lend fix-up money to a homeowner, secured by a junior mortgage that will be paid off when __________. |
|
Definition
|
|
Term
| If a listing presentation fails and the homeowner is not ready to sign a contract, the agent may have to __________. |
|
Definition
| say a cordial and polite goodbye and walk away |
|
|
Term
Promptly after listing property, it can be especially effective to hold an open house exclusively
for __________. |
|
Definition
| the brokerage's other agents |
|
|
Term
| An agent can assist in the buyer's mortgage process by furnishing selected comparable properties to the _________. |
|
Definition
|
|
Term
| It can be useful for an agent to go through the house with the __________. |
|
Definition
|
|
Term
| Toward the end of a listing presentation, an agent should be ready to give prospective sellers a written _____. |
|
Definition
|
|
Term
| After listing property, it is useful to start by canvassing _____. |
|
Definition
|
|
Term
| Even if nothing is happening, an agent should give the seller an update report _____. |
|
Definition
|
|
Term
| The listing price on property is set by the _____. |
|
Definition
|
|
Term
| Agents are cautioned against furnishing a seller with a(n) _____. |
|
Definition
|
|
Term
| The most common reason property fails to sell is because it is _____. |
|
Definition
|
|
Term
| Sellers who feel they were poorly advised have been known to sue for _____. |
|
Definition
|
|
Term
| An estimate of the seller's net proceeds should be provided ____. |
|
Definition
|
|
Term
| A listing contract should be signed by _____. |
|
Definition
|
|
Term
| When property is owned by a corporation, a valid listing requires _____. |
|
Definition
| the passing of a resolution by the board of directors |
|
|
Term
| After a listing has been signed, the seller should _____. |
|
Definition
| refer all inquiries to the agent |
|
|
Term
| The acronym BRRETA refers to Georgia's law regarding _____. |
|
Definition
|
|
Term
| Even more than for fraud, clients are suing agents for _____. |
|
Definition
| failure to perform agency duties properly |
|
|
Term
| The ending date of a listing term should be: |
|
Definition
| specified in every listing contract |
|
|
Term
| A real estate agent is considered the seller's: |
|
Definition
|
|
Term
| By law, the real estate agent is required to help the seller: |
|
Definition
| negotiate a sale for a price acceptable to the seller |
|
|
Term
| In the listing contract, the seller promises to reveal to the agent the: |
|
Definition
| major problems with the condition of the property |
|
|
Term
| Property can be more easily shown to prospective buyers if: |
|
Definition
|
|
Term
After a listing expires, the broker may still receive a commission if the property
is sold to someone who saw it during the term of the broker's listing.
This rule applies during a(n) ___________. |
|
Definition
|
|
Term
If a prospective buyer asks "Will the seller take less?", the seller's agent's best response
should be: |
|
Definition
| i am not allowed to discuss |
|
|
Term
If a prospective buyer asks "Will the seller take less?", the seller's agent's best response
should be: |
|
Definition
| report to the appropriate governmental agency |
|
|
Term
| Acceptable methods for officially giving the seller notice |
|
Definition
| hand delivery, mail, overnight delivery services and fax |
|
|
Term
|
Definition
| The seller always has the unquestioned right to terminate a listing, so does the broker. |
|
|
Term
|
Definition
| If the oral promise is not repeated in the written listing agreement, it is not valid. The written listing agreement constitutes the entire understanding between the parties. |
|
|
Term
| An agent in Georgia is considered to know: |
|
Definition
| only information of which the agent has actual personal knowledge |
|
|
Term
| The seller is free to sell on his or her own without paying commission when the listing takes the form of a(n): |
|
Definition
| non-exclusive seller listing agreement |
|
|
Term
|
Definition
| Any offer must be presented to the seller as soon as possible. Even oral offers, which are not binding, must be conveyed to the seller. |
|
|
Term
| If the buyer defaults on a sales contract, the seller is often entitled to receive: |
|
Definition
|
|
Term
| An agent is responsible for telling the buyer about neighborhood problems: |
|
Definition
| located within one mile of the property |
|
|
Term
|
Definition
| The agent may suggest several names but should not take on the responsibility of actually recommending them. |
|
|
Term
| The one single item that brings more buyer lawsuits than any other in Georgia is a problem with ____________. |
|
Definition
|
|
Term
|
Definition
Failure to disclose knowledge of adverse material defects about the property is fraud.
Fraud is a deliberate act. It is not an error or omission; it is not covered by agent's
Errors and Omissions insurance. |
|
|
Term
| A common solution, when an agent's actions result in a fine for failure to disclose, is for the fine to be paid by the____________. |
|
Definition
| agent and broker, in the same percentages as commissions are split |
|
|
Term
A clearance letter signifies that the property has no problems associated
with ___________. |
|
Definition
|
|
Term
| The plaintiff who sues for out-of-pocket expenses is seeking an award for ___________. |
|
Definition
|
|
Term
| A court award that goes beyond the plaintiff's out-of-pocket losses is known as ___________. |
|
Definition
|
|
Term
| When a court orders a sale cancelled, the process is known as ____________. |
|
Definition
|
|
Term
| The Latin term "caveat emptor" translates as ___________. |
|
Definition
|
|
Term
| In addition to lying, one can also misrepresent a problem by ___________. |
|
Definition
|
|
Term
| A property defect is considered "material" to the sale if ___________. |
|
Definition
| the buyer would not purchase if it were known |
|
|
Term
| The agent who suspects a defect in the property but is not sure should ___________. |
|
Definition
| disclose the possibility to prospective buyers |
|
|
Term
|
Definition
# fraud;
# negligent misrepresentation; and
# negligence. |
|
|
Term
| The agent who unknowingly lies to a client or customer could be guilty of ___________. |
|
Definition
| negligent misrepresentation |
|
|
Term
| The sellers are moving out because their son was murdered last month in an upstairs bedroom. This fact ___________. |
|
Definition
| need not be disclosed unless a buyer asks |
|
|
Term
| According to the federal Fair Housing Act, an agent cannot answer questions about the seller's ___________. |
|
Definition
|
|
Term
| Unless asked, a seller need not disclose that the property has |
|
Definition
|
|
Term
| Property disclosure statements are not usually provided by |
|
Definition
| banks with their foreclosed property |
|
|
Term
| A buyer's agent should advise the client to consider only property with (a) ___________. |
|
Definition
| seller's property disclosure statement |
|
|
Term
| Both selling and listing brokers gain some liability protection from the use of ___________. |
|
Definition
|
|
Term
| Property disclosure forms help limit liability of ___________. |
|
Definition
|
|
Term
| A broker should never ___________. |
|
Definition
| fill out a disclosure form |
|
|
Term
| A buyer's agent can limit his or her own liability by ___________. |
|
Definition
| making sure the buyer receives a disclosure statement before making an offer |
|
|
Term
| If a seller's disclosure statement is not provided, agents who are taking listings should ____________. |
|
Definition
| cross out the statement in the listing contract that refers to the disclosure form |
|
|
Term
| When a contract is being negotiated, the seller disclosure statement should be current as of the date of the ___________. |
|
Definition
|
|
Term
| Any change in the seller disclosure statement after an offer is made constitutes a ____________. |
|
Definition
|
|
Term
| If the buyer learns from the neighbors that the seller lied on the disclosure statement, the buyer can then ___________. |
|
Definition
|
|
Term
| When property is sold, any lease ____________. |
|
Definition
|
|
Term
| A seller's property disclosure statement is ___________. |
|
Definition
| furnished or not, at the seller's option |
|
|
Term
| Land can never be built on if it has been the site of a ____________. |
|
Definition
|
|
Term
| Buyers have a right to be alerted about existing ___________. |
|
Definition
|
|
Term
| Buyers need to know whether additions and alterations have been done with ___________. |
|
Definition
| proper building permits and inspections |
|
|
Term
| A CLUE report lists a particular property's __________. |
|
Definition
| past homeowners insurance claims |
|
|
Term
|
Definition
|
|
Term
| Failure to provide the required Federal lead paint booklet included with a sales contract can cost an agent ___________. |
|
Definition
|
|
Term
In order to take advantage of the home sellers tax exclusion, the
home seller must have ___________. |
|
Definition
| owned and occupied it for at least two of the five years before the sale |
|
|
Term
| Sales comparison approach |
|
Definition
| an estimate of value is obtained by comparing the subject property with recently sold comparable properties. |
|
|
Term
| The sales comparison approach is also known as the __________ or ____________ approach. |
|
Definition
|
|
Term
| The categories in which adjustments in comparable values must be made are the date of sale, physical features, property location, and ______________. |
|
Definition
| terms and conditions of the sale |
|
|
Term
| Which of these would NOT normally be considered in a market data appraisal? |
|
Definition
| interest rates on the mortgage loans on the comparables |
|
|
Term
| The sales comparison approach to value would be MOST important when estimating the value of a(n) ___________. |
|
Definition
|
|
Term
| A comparative market analysis ___________. |
|
Definition
| helps a seller and agent determine a realistic selling price |
|
|
Term
|
Definition
| Comparables are properties similar to a subject property. |
|
|
Term
| When making a market comparison appraisal, how many comparable properties should be used? |
|
Definition
|
|
Term
| Generally, when using comparable sales data, it is best to use sales data which is not more than _____ old. |
|
Definition
|
|
Term
| An appraiser is using the sales comparison approach to value. Which of the following homes will LEAST LIKELY be used as a comparable property? |
|
Definition
| sellers were undergoing foreclosure |
|
|
Term
| Physical property characteristics which are considered in collecting market data include size and location, age, design and construction, and _____________________. |
|
Definition
|
|
Term
| Nonphysical characteristics which are part of comparable data include date of sale, price, financing, seller motivation and ______________. |
|
Definition
| the length of time on the market |
|
|
Term
| The value of all real property (including residential property) is created, maintained, modified, or destroyed by the interplay of four great forces that affect human behavior: |
|
Definition
# physical or environmental forces
# economic activities and trends
# government regulations and actions
# social ideas and standards |
|
|
Term
| Forces created by government regulations and activities include ______. |
|
Definition
|
|
Term
The four forces which constitute the basic raw material for making an estimate of value
are ______. |
|
Definition
| social, environmental, governmental and economic |
|
|
Term
| The four characteristics required for an object (real property) to have value are |
|
Definition
| demand, utility, scarcity, and transferability. |
|
|
Term
| The value of real property |
|
Definition
is equal to the present
value of the future benefits forthcoming from the property. |
|
|
Term
| These are among the most important economic factors influencing value in the real estate market: |
|
Definition
# four agents of production;
# competition;
# supply and demand;
# anticipation;
# change;
# conformity;
# contribution;
# substitution; and
# highest and best use. |
|
|
Term
| Economic theory holds that for any good or service to be produced, expenditures must be made for the agents of production: |
|
Definition
# land;
# labor;
# capital; and
# coordination. |
|
|
Term
|
Definition
| The four characteristics required for value are Demand, Utility, Scarcity, and Transferability. |
|
|
Term
| A factor which contributes positively to value is ______. |
|
Definition
|
|
Term
| The homeowner is considering remodeling his or her kitchen. He or she could spend a fair amount of money. Before starting, he or she should consider the concept of ______. |
|
Definition
|
|
Term
| The principle of change holds that economic and social forces are constantly at work to affect real property values (i.e., the law of cause-and-effect). Which of the following principles of value is involved with the economic principle of change? |
|
Definition
|
|
Term
|
Definition
| If a parcel satisfies needs or wants, there is demand for that property. This is utility. |
|
|
Term
|
Definition
| The worth of an improvement is what it adds to the entire property's market value, regardless of the actual cost of the improvement. |
|
|
Term
| The value of real estate is NOT generally affected by ______. |
|
Definition
| the seller's asking price |
|
|
Term
| The market price of real estate is the ______. |
|
Definition
|
|
Term
| The market value of a parcel of real estate is _________. |
|
Definition
| an estimate of the most probable price it will bring |
|
|
Term
| The amount of money a property is estimated to sell for in the marketplace is its _________. |
|
Definition
|
|
Term
The four forces which constitute the basic raw material for making an estimate of value
are ______. |
|
Definition
| social, environmental, governmental and economic |
|
|
Term
| Employment trends and wage levels |
|
Definition
| Employment trends and wage levels are a factor in the interplay of four great forces that affect human behavior. |
|
|
Term
| Forces created by government regulations and activities include ______. |
|
Definition
|
|
Term
|
Definition
| When providing a cost approach and a market approach to a property, the cost approach should be higher (by a small amount) than the market approach. |
|
|
Term
| Gross living area of a residential building is considered to include any area _____. |
|
Definition
| heated and cooled with completed floor, wall and ceiling that is above grade |
|
|
Term
| In order to be counted as a bedroom, a room must have _____. |
|
Definition
| the two means of entry and exit |
|
|
Term
| The difference between a sun room and a sun porch lies in their: |
|
Definition
| heating and cooling arrangements |
|
|
Term
| Depreciation is from three different causes: |
|
Definition
| physical deterioration, functional obsolescence, and location obsolescence. |
|
|
Term
| The term "effective age" for a house refers to _____. |
|
Definition
|
|
Term
| Depreciation includes loss of value due to _____. |
|
Definition
|
|
Term
| Which form of depreciation is considered incurable? |
|
Definition
| social (external) obsolescence |
|
|
Term
| When an appraisal value is labeled "subject to," the _____. |
|
Definition
| property will be worth that amount only after specific repairs are made |
|
|
Term
| Reinspection of the property will be required after a(n) _____. |
|
Definition
|
|
Term
| A real estate agent's CMA is most similar to which appraisal approach? |
|
Definition
| sales comparison approach |
|
|
Term
|
Definition
| A sale between unrelated persons, with each trying to do the best for him-or herself, is considered arm's length. |
|
|
Term
| An appraisal is considered more reliable if the comparable properties match the subject property in _____. |
|
Definition
|
|
Term
| Fannie Mae requires an appraisal to include at least three _____. |
|
Definition
|
|
Term
| When it comes to location, Fannie Mae standards _____. |
|
Definition
| do not require that comparables be within a certain distance |
|
|
Term
| The "two in, one out" rule requires that _____. |
|
Definition
| at least one comparable will be selected from outside a same-builder subdivision |
|
|
Term
| Whether improvements are to be valued at "good" or "average" quality can be determined by the property's _____. |
|
Definition
|
|
Term
| In contrast to a CMA, an appraisal will include _____. |
|
Definition
| adjustments to comparables |
|
|
Term
| When it comes to location, Fannie Mae standards _____. |
|
Definition
| do not require that comparables be within a certain distance |
|
|
Term
| An appraisal is considered more reliable if the comparable properties match the subject property in _____. |
|
Definition
|
|
Term
| Fannie Mae requires an appraisal to include at least three _____. |
|
Definition
|
|
Term
| A buyer becomes an agent's client at the moment when the ____________. |
|
Definition
| buyer signs a written buyer brokerage agreement |
|
|
Term
|
Definition
| Agents may work WITH customers but have no agency relationship. |
|
|
Term
| The only thing that an agent can legally do for a customer is: |
|
Definition
|
|
Term
|
Definition
| A customer who inquires about stigmatized property is entitled to an honest answer. The agent is under no obligation to reveal the situation otherwise. |
|
|
Term
| Showing the buyer a FSBO property is _____. |
|
Definition
|
|
Term
| Someone acting as a dual agent is in a particularly difficult situation as regards _____. |
|
Definition
| confidentiality of the clients' information |
|
|
Term
| If the agent marked 'buyer agency' on the contract, but the buyer has not signed off on it and the home closes _____. |
|
Definition
| the broker may not share the commission with the agent |
|
|
Term
| If the buyers choose to sign a one day agreement and decide not to work with the agent any further, they are out of the agreement at the end of the day. They have seen a home with the agent that they eventually purchase. |
|
Definition
| They are contractually obligated to that agent for that transaction. |
|
|
Term
| Of the following statements - which is correct regarding the broker's authority and responsibilities? |
|
Definition
| The agent is not responsible for deadlines in the contract. |
|
|
Term
| What is the normal range for earnest money deposits? |
|
Definition
|
|
Term
| What is the most common mistakes that agents make regarding earnest money? |
|
Definition
|
|
Term
| What is the buyer's receipt for earnest money? |
|
Definition
|
|
Term
| If a buyer tells you that they cannot give an earnest money deposit yet, the agent should put _______ in earnest money blank in the contract. |
|
Definition
|
|
Term
| If you're the listing agent in a cash sale and the transaction is to close in two weeks, what amount do you ask for in earnest money? |
|
Definition
|
|
Term
| If a buyer is making a low offer on a property, he/she will need to _________ to make the seller pay attention to the offer. |
|
Definition
| put up more earnest money |
|
|
Term
| What amount of earnest money should the seller's agent always ask for? |
|
Definition
|
|
Term
| If a buyer offers cash earnest money, the agent should _____________. |
|
Definition
| make sure that the buyer changes it to a money order or a cashier's check |
|
|
Term
| If a party to a real estate transaction tenders __________ in cash in one transaction, that has to be reported to both the IRS and the Department of Homeland Security. |
|
Definition
|
|
Term
| What is the most common form of earnest money? |
|
Definition
|
|
Term
| What is the biggest problem with earnest money in the form of a personal check? |
|
Definition
| the broker disburses the earnest money before it has cleared the bank |
|
|
Term
| As a broker, if you get an earnest money check and you have no prior written agreement, you have to ____________________. |
|
Definition
| put it in an escrow account |
|
|
Term
| Only a(n) _________ can hold earnest money. |
|
Definition
|
|
Term
| Accepting _________________ as earnest money is not worthwhile. |
|
Definition
| an unsecured promissory note |
|
|
Term
| Whenever a real estate agent receives other people's money, it is __________. |
|
Definition
|
|
Term
| When a buyer gives money to the real estate agent, the agent is receiving it on behalf of the ________. |
|
Definition
|
|
Term
| The ___________ is the amount of cash a buyer will pay at the time of purchase. |
|
Definition
|
|
Term
| Fixed periodic payments made by a tenant to an owner for the possession and use of property is referred to as _______. |
|
Definition
|
|
Term
| The money that a tenant gives a landlord for default, damages, or cleaning is called _________. |
|
Definition
|
|
Term
| If a seller was supposed to do repairs and hasn't done them by the closing and gives the buyer money for the repairs instead of doing them himself, it would be considered____________. |
|
Definition
|
|
Term
|
Definition
Sellers cannot give buyers money to help them buy houses.
Mortgage fraud includes any form of deceit, trickery, breach of confidence or misrepresentation by which one party attempts to gain some unfair or dishonest advantage over another. |
|
|
Term
| What is the only correct way to do repairs after closing? |
|
Definition
|
|
Term
| A form of deceit by which one party attempts to gain some unfair or dishonest advantage over another would be considered ____________. |
|
Definition
|
|
Term
| Money for brokerage expenses must come from the _______________. |
|
Definition
| broker's operating account |
|
|
Term
| If the earnest money is a personal check, the broker will __________________. |
|
Definition
| hold the check until the agent puts the deal together |
|
|
Term
| Who has the right to disburse earnest money? |
|
Definition
|
|
Term
| Who typically holds the earnest money? |
|
Definition
|
|
Term
| Who would the buyer's agent want to hold the earnest money? |
|
Definition
|
|
Term
| A(n) ____________ is a person who deals in real estate for someone else for money. |
|
Definition
|
|
Term
| Only a(n) ________ can be a property manager. |
|
Definition
|
|
Term
| If a licensee owns rental property, his/her broker will need a copy of the ________. |
|
Definition
|
|
Term
| An agent is not allowed to use ____________ in the management of his/her own rental property. |
|
Definition
| the brokerage's office and equipment |
|
|
Term
| A real estate agent who is managing his/her own property must ___________ for any advertising of a rental property. |
|
Definition
| get the broker's approval of form and content |
|
|
Term
| When advertising his/her own property, an agent must include __________ in any advertisements. |
|
Definition
| notice that the landlord is a licensed real estate agent |
|
|
Term
| If the licensee is allowed by the broker to have a separate escrow account for his/her personal property management activities, it must use the same _______ as the brokerage account. |
|
Definition
|
|
Term
| 3 trust accounts for community management |
|
Definition
| earnest money / security deposit / rent |
|
|
Term
| Trust accounts must be registered with the _______________________. |
|
Definition
|
|
Term
| What are the three trust accounts that a property manager would need? |
|
Definition
| earnest money, security deposit, and rent |
|
|
Term
| Trust accounts must be in ________________. |
|
Definition
| an FDIC insured bank checking account |
|
|
Term
| Funds may be put in money market accounts if ___________________. |
|
Definition
| all parties give their consent |
|
|
Term
| A ________ is a separate record for each individual who has money in your account. |
|
Definition
|
|
Term
| If an agent has ten sales on the books that have not closed yet and he/she is holding earnest money on those sales, how many ledgers would he/she have? |
|
Definition
|
|
Term
| If you use a computerized ledger system, you must __________. |
|
Definition
|
|
Term
| The agent must have ____________ worth of records on trust account journals and ledgers accessible at all times. |
|
Definition
|
|
Term
| How often must salespeople with trust accounts do reconciliation? |
|
Definition
|
|
Term
| If a buyers tells the agent that they don't want to go through with the deal and they want to get his/her earnest money back, the agent should _________. |
|
Definition
| tell the buyer that he/she will have to talk to the broker |
|
|
Term
| If a broker disburses trust funds contrary to the terms of the contract that created the account, the Commission will consider the broker to have ______________. |
|
Definition
| demonstrated incompetence to act as a real estate broker |
|
|
Term
| What happens to the earnest money if the buyer's offer is rejected? |
|
Definition
| the check is returned to the buyer |
|
|
Term
| When does an acceptance of an offer occur? |
|
Definition
| when the seller's agent faxes back notification of acceptance |
|
|
Term
| If the sale does not close, the agent should attempt to get a signed written agreement, called a(n) __________________, agreeing to disburse the earnest money. |
|
Definition
| Termination and Release Agreement |
|
|
Term
| There is a ____________ in a Termination and Release Agreement that states that, upon both parties signing the agreement, they cannot sue the broker. |
|
Definition
|
|
Term
| The _________________ is the best protection the broker has in the event that a sale fails to close and it can be used as a receipt when returning earnest money. |
|
Definition
| Termination and Release Agreement |
|
|
Term
|
Definition
| proceeding in which property or money is given to the court to disburse properly |
|
|
Term
| What is the maximum amount you can claim in Georgia small claims courts? |
|
Definition
|
|
Term
| Courts consider __________ to be a punishment, making the contract inequitable and therefore unenforceable in the courts. |
|
Definition
|
|
Term
| How can you legally make something non-refundable in a contract? |
|
Definition
| by creating a liquidated damages provision |
|
|
Term
| Before interpreting the contract and disbursing the earnest money, the broker needs to__________________. |
|
Definition
| be absolutely certain they have a valid contract |
|
|
Term
| According to the GAR contracts, how long after the receipt of notice of the broker's intent to disburse do the parties have to object? |
|
Definition
|
|
Term
| If a property manager writes a check to the owner before the rent checks clear and one of them bounces, then ___________________. |
|
Definition
| the check given to the owner is someone else's money, which means they violated the law |
|
|
Term
| The Mortgage Fraud Act considers a pattern of mortgage fraud to have occurred as soon as how many properties have been involved? |
|
Definition
|
|
Term
| Georgia's Mortgage Fraud Act applies only to loans made on ___________. |
|
Definition
| one-to-four-family residential property |
|
|
Term
| Besides a deliberate lie, fraud can also result from ___________. |
|
Definition
|
|
Term
| One unexpected result of widespread mortgage fraud is ________________. |
|
Definition
| artificially inflated data on comparable sales figures |
|
|
Term
| Illegal flipping most often makes its money by buying property ___________. |
|
Definition
| with the use of fraudulent mortgages |
|
|
Term
| The parties MOST necessary for an illegal flipping would be a corrupt ___________. |
|
Definition
| real estate agent, appraiser, and lender |
|
|
Term
| Illegal flipping occurs whenever property is bought and then re-sold ____________. |
|
Definition
| quickly at an artificially high price |
|
|
Term
HUD now requires when a buyer is placing a new mortgage that the seller must
first ___________. |
|
Definition
|
|
Term
| Widow James, who wants to leave town right after her husband's funeral, calls a broker to say she'd like to sell her $300,000 house for $150,000 if someone will give her cash immediately. Investor Jones comes up with the money, buys the house, puts it on the market the next day and sells it for $290,000. What Jones has done is known as __________. |
|
Definition
|
|
Term
| Mortgage brokers who place fraudulent mortgages can sometimes avoid detection by ___________. |
|
Definition
|
|
Term
| HUD requires that an FHA mortgaged property cannot be re-sold within __________. |
|
Definition
|
|
Term
| Flipping can be legal when it is done by an investor who _____________. |
|
Definition
|
|
Term
| Georgia requires no license of ___________. |
|
Definition
|
|
Term
In addition to violating Georgia's Residential Mortgage Fraud Act, mortgage fraud is
a __________. |
|
Definition
|
|
Term
The real estate agent who is unknowingly caught up in a mortgage fraud
situation ___________. |
|
Definition
| may be held responsible if he/she should have suspected |
|
|
Term
| Well-known organizations and wealthy celebrities sometimes avoid being overcharged for property by using ___________. |
|
Definition
|
|
Term
| Fraud groups often look for identity theft victims in ____________. |
|
Definition
|
|
Term
| The lenders most commonly involved in mortgage fraud are ______________. |
|
Definition
| small mortgage brokerages |
|
|
Term
| In an attempt to curb mortgage fraud, loan closings now require the lender to keep on file the borrower's ____________. |
|
Definition
|
|
Term
| A straw seller will most likely give a buyer a ___________. |
|
Definition
| quitclaim deed. The quitclaim deed, which carries no guarantee that the signer even owns the property, is most often used by a straw seller. |
|
|
Term
Seniors are occasionally lured into signing documents that turn out to
be ____________. |
|
Definition
|
|
Term
| The original owner whose property has been stolen through fraudulent means can clear the confusion up with a ___________. |
|
Definition
|
|
Term
Crooks looking for property free of mortgages are most likely to target homeowners who
are ______________. |
|
Definition
| elderly. Seniors are most likely to own their homes free and clear, which makes both them and their property particularly vulnerable to fraud. |
|
|
Term
| When property has been flipped for several re-sales and foreclosure is threatened, fraudulent owners sometimes solve the problem by _________________. |
|
Definition
|
|
Term
| When conspirators form a shell corporation to buy flipped property, the eventual foreclosure can be postponed by the corporation ________________. |
|
Definition
|
|
Term
| When a falsely inflated contract is presented to the lender, the selling agent may be asked to change the MLS listing information to match in order to ___________. |
|
Definition
| mislead a legitimate lender's underwriter |
|
|
Term
If repairs are involved in a contract, they must be done before the closing for
a(n)____________. |
|
Definition
|
|
Term
| A provision in a purchase offer that should alert an agent to the possibility of fraud is a clause asking the seller to provide ____________. |
|
Definition
|
|
Term
| When the cost of legitimate future repairs is included in a mortgage loan, the money to cover that work should be ________. |
|
Definition
| placed in escrow at the closing |
|
|
Term
| The straw buyer who submits a mortgage application will need a false __________. |
|
Definition
|
|
Term
| A seller, who is not otherwise a criminal, may sometimes knowingly sign a contract that mentions a ____________. |
|
Definition
|
|
Term
| A form of mortgage fraud that often involves well-intentioned sellers is the presentation to the lender of a contract that doesn't mention a _____________. |
|
Definition
|
|
Term
In addition to federal and state regulation, mortgage fraud is now being pursued
by _____________. |
|
Definition
|
|
Term
| The buyer who wishes to qualify for a mortgage loan on a new home while the old one stands empty may present to the lender a false __________. |
|
Definition
|
|
Term
The most common form of mortgage fraud nation-wide involves falsely claiming
the ______________. |
|
Definition
| property will be occupied as a primary residence |
|
|
Term
| False documents involved in a "No Doc" loan application can sometimes be detected when the __________. |
|
Definition
| lender is authorized to obtain a copy of the borrower's tax return |
|
|
Term
| "No Doc" loans involve __________. |
|
Definition
| no verification of the borrower's claims |
|
|
Term
| Attorneys are sometimes alerted to possible straw buyers when __________. |
|
Definition
| the borrowers have a down and out appearance |
|
|
Term
| An agent who has doubts about a buyer's identity can quietly contact the __________. |
|
Definition
|
|
Term
| The parent who is furnishing all or part of the cash a buyer will need at closing is asked to provide the lender with a __________. |
|
Definition
|
|
Term
The straw buyer who needs to prove a fictitious down payment may sometimes use a
false __________. |
|
Definition
|
|
Term
| Innocent would-be investors can sometimes be lured into purchasing rental real estate by a crooked promoter who __________. |
|
Definition
| promises to take the entire responsibility for managing the property |
|
|
Term
| An investor wishes to obtain a no-down payment FHA loan, available only for owner-occupied property, even though the building being purchased is a four unit rental. To show he will no longer live at his present address, he could show the lending institution a __________. |
|
Definition
|
|
Term
| In a Ponzi scheme, each investor receives regular income from ___________. |
|
Definition
| money invested by subsequent participants |
|
|
Term
| To prevent a legitimate lending institution from learning the property is being flipped illegally, it is necessary to retain a crooked __________. |
|
Definition
|
|
Term
| A crooked appraiser can turn in a convincing report justifying a purchase price much higher than market value by using __________. |
|
Definition
| specially selected comparables |
|
|
Term
| The best neighborhood for illegal flipping of properties is one where __________. |
|
Definition
| many other properties have previously been flipped illegally |
|
|
Term
| Additional members of a fraud ring can sometimes be paid "legitimately" at closing when they collect __________. |
|
Definition
|
|
Term
| In some cases, "We can stop your foreclosure" offers are merely a ruse to obtain __________. |
|
Definition
| houses that can be flipped illegally |
|
|
Term
| A false HUD-1 form can indicate that property was __________. |
|
Definition
| bought at a certain price some years ago |
|
|
Term
| You advertise to rent your investment property. A renter shows up who seems to have all the right documentation. You make a deal. The monthly rent checks start coming in on time. But behind your back, the renter (using an alias with fake or stolen identification) goes to the local court and files a false "satisfaction of loan" document, complete with forged signatures and bank seals. This shows that the property ________. |
|
Definition
|
|
Term
| When property already has a mortgage against it, in order to place a new first mortgage on the property, the owner (or straw owner) might __________. |
|
Definition
| enter a false discharge document in the public records |
|
|
Term
| Bankruptcy affects an existing defaulted mortgage by __________. |
|
Definition
|
|
Term
| What is a big part of mortgage fraud? |
|
Definition
|
|
Term
Crooked landlords have been known to profit by taking advantage of the
FHA's ___________. |
|
Definition
|
|
Term
| If the housing market _______, fraud will _______. |
|
Definition
|
|
Term
| An act intended to deceive the other party in a contract is ________. |
|
Definition
|
|
Term
| The first page of every form in the forms package is labeled with _____. |
|
Definition
| the seal of the GAR and the words "2009 Printing" |
|
|
Term
| Changes to the GAR forms will _____. |
|
Definition
| be posted on the GAR website |
|
|
Term
| Printings of contracts typically last _____. |
|
Definition
|
|
Term
| When a broker buys a set of forms, the broker owns the forms. |
|
Definition
|
|
Term
| What do you do if you get an offer on an old set of forms? |
|
Definition
|
|
Term
| What does the copyright on the forms actually mean? |
|
Definition
| you cannot make changes to the forms |
|
|
Term
| It is permissible to "white-out" a portion of the form as long as the new wording is typed in the same font. |
|
Definition
|
|
Term
| The real danger of an offer on a form that has been changed is to _____. |
|
Definition
| the buyer or seller who gets this offer |
|
|
Term
| Only brokers are permitted to make modifications, other than pen and ink changes, to the GAR forms _____. |
|
Definition
| by customizing the form with their company name and/or logo |
|
|
Term
| A valid legal description is _____. |
|
Definition
| as recorded in the county land records |
|
|
Term
| Courts in Georgia have, on a fairly regular and consistent basis, declared contracts null and void in their entirety because _____. |
|
Definition
|
|
Term
| If you do not have a valid legal description of the property _________. |
|
Definition
| you do not have a valid contract |
|
|
Term
"Any descriptive words in a contract for the sale of land, which will lead unerringly to the
land in question, constitute the key which the law contemplates. But no amount of words
in such a contract which fail to lead definitely to the land therein will constitute a key.
If such words, when aided by extrinsic evidence, fail to locate and identify a certain tract of land, _____________________________." |
|
Definition
| the description fails and the instrument is void |
|
|
Term
| It is an acceptable method of property description to use surveys not yet done at the time of the contract as the basis of a legal description of the property. |
|
Definition
|
|
Term
| The purchase price should be written both in words and numbers. Some software programs do not automatically change the words if the number is changed so, the words and numbers may not match. If this is the case ____. |
|
Definition
| words are the controlling factor |
|
|
Term
| If the buyers do not make their contract conditional on the sale of their current home and their loan application is turned down, the contract is in default and they will not have their earnest money returned. |
|
Definition
|
|
Term
| The buyer who gets to the closing table and does not have sufficient monies (whether it is down payment or closing costs) _____. |
|
Definition
|
|
Term
| In the Homler v. Malas decision, the court held that the _____ for the financing contingency was an essential term that was necessary to enable the court to enforce the contract. Without such provision, the contract was too vague and indefinite to be enforced. |
|
Definition
|
|
Term
| There are three types of interest rates available. Which is the most recently added option? |
|
Definition
|
|
Term
| If a buyer wants to cancel the contract due to personal financial issues that preclude him or her from getting a new loan, then the seller should require _____. |
|
Definition
| a copy of the "turn down" letter |
|
|
Term
| Regarding paragraph 2 of the Financing Contingency Exhibit (F60), which covers the second loan to be obtained, the most appropriate time to check off this section would be for _____. |
|
Definition
|
|
Term
| License Law gives the _____ the authorization to hold the earnest money until the contract is binding. |
|
Definition
|
|
Term
| If the buyer's earnest money check bounces, the buyer has _____ banking days to make it good after receiving the holder's notice that the check has been returned. |
|
Definition
|
|
Term
| If the buyer's earnest money check is returned by the bank, the holder of the check must _____. |
|
Definition
| give written notice to both buyer and seller |
|
|
Term
| Any party who has signed the contract has given the _____ written permission to hold the earnest money for up to five banking days after the binding agreement date. |
|
Definition
|
|
Term
|
Definition
| a day the Federal Reserve Bank is open |
|
|
Term
| The buyer can use the seller's money _____. |
|
Definition
| entirely at their discretion |
|
|
Term
| The money that the seller gives the buyer is used to pay for _____. |
|
Definition
| warranty deed and owner's affidavit |
|
|
Term
| Surveys are not normally required in Georgia, therefore the buyer does not to have be concerned about the survey issue. |
|
Definition
|
|
Term
| If the name of the attorney or law firm that the buyer wants to use for closing is not on the lender's list, the transaction can be delayed until the name is added to approved pool of names. |
|
Definition
|
|
Term
| The closing attorney is NOT a negotiable item between the buyer and seller. |
|
Definition
|
|
Term
| Either the buyer or seller may unilaterally extend the closing date by no more than _____ for the seller to satisfy valid title objections. |
|
Definition
|
|
Term
The buyer has the total right to inspect all aspects of the property until the day of closing.
The right to inspect gives the buyer rights to ________. |
|
Definition
|
|
Term
| The buyer must agree to hold the seller and broker(s) harmless for any damages to the property by his/her inspector(s). |
|
Definition
|
|
Term
| If the requirements indicated on the inspection report have not been addressed and if the buyer does not elect to purchase the property in an "as-is" condition after the expiration of the Defect Resolution Period, the agreement is ____________. |
|
Definition
| given one more day until termination |
|
|
Term
| An acceptance of an offer is sent via fax to the appropriate broker's phone number. The offer will become valid at the time of successful completion of the transmission as recorded by the fax machine. |
|
Definition
|
|
Term
| The GAR Forms Committee has put a clause in the form that will extend the inspection period for "X" number of days to allow for inspections to be made that were not completed. You just need to pick "X" number of days that will protect your buyer. What happens is that if the closing date is delayed, the closing date ___________. |
|
Definition
| will automatically be extended |
|
|
Term
| The term "inspector" is defined in the Definitions paragraph of the Property Sold with Right to Request Repairs Exhibit. They call this section the ________. |
|
Definition
|
|
Term
| Hazardous substances would NOT be _________. |
|
Definition
|
|
Term
| There are four major things commonly found in Georgia that have been subject to class-action lawsuits. Which of the items listed below is NOT one of these four? |
|
Definition
|
|
Term
| If the seller neglects to make an affirmative disclosure (on the disclosure checklist) to the buyer of the existence of a product or item that has been part of a class-action lawsuit and the inspector puts it in the inspection report, the buyer can ___________. |
|
Definition
| ask the seller to replace or repair it in its entirety |
|
|
Term
| A home inspector may list an item as defective, even if it is working properly, because the item has been subject to a class-action lawsuit. |
|
Definition
|
|
Term
| Paragraph 11 states that the _______ shall be responsible for obtaining any Official Georgia Wood Infestation Report. |
|
Definition
|
|
Term
| If the buyer has selected the Due Diligence Period, then the buyer has "X" number of days to terminate the contract for any reason whatsoever. If the amendment is not signed and delivered, then the contract says the buyer ____________. |
|
Definition
|
|
Term
| The difference between F107 (Right to Terminate) and F100 (Right to Request Repairs) is that under the Right to Request Repairs, the amendment can only request defects be fixed and Under the Right to Terminate, _______________. |
|
Definition
| the amendment can request anything |
|
|
Term
| Paragraph 11 gives the Buyer the ability to warrant that they are or are not under contract to purchase other property at the same time as they have this contract. |
|
Definition
|
|
Term
| "As is" means that the buyer is agreeing to buy without asking the seller for any repairs to the property. This does not mean that the buyer cannot inspect the property. He/she can inspect any part of the building or property. The buyer just cannot _________. |
|
Definition
|
|
Term
| Buyer gets earnest money: |
|
Definition
# no binding agreement;
# contingency or condition not met;
# seller default;
# right to terminate; or
# closing. |
|
|
Term
| seller gets earnest money |
|
Definition
|
|
Term
| If the seller accepts the buyer's earnest money as liquidated damages, he/she ________ able to sue for additional damages. |
|
Definition
|
|
Term
| Of the following, which is NOT one of the circumstances under which the buyer gets his/her earnest money back? |
|
Definition
|
|
Term
| When there is an issue over the disbursement of the earnest money, it is the job of the _____ to sort it out. |
|
Definition
|
|
Term
| Regarding disbursement of earnest money, each party has _____ from receiving notice to file a written objection, listing the reasons why they do not agree. If no objection is received, the broker can go ahead and disburse. |
|
Definition
|
|
Term
| Which of the following is NOT one of the four manners in which disbursement of earnest money can occur? |
|
Definition
|
|
Term
| The "hold harmless" paragraph clearly protects a holder from claims against him/her for failing to perform in accordance with the express terms of the contract. |
|
Definition
|
|
Term
| Paragraph 14, section A is the disclosure of who the broker is or is not representing in the contract. So when you are filling the paragraph out, remember that what is being referred to are the duties of ___________. |
|
Definition
| the broker, and not that of the salesperson |
|
|
Term
| 14(A)(1) also goes to the extent of saying that if the broker does not represent either side (the buyer or the seller) in the transaction, then he/she would simply be a __________, and both parties would be treated as customers. In such a case, you would only do ministerial acts for both parties. |
|
Definition
|
|
Term
| 14(A)(2) is a disclosure of whether or not the broker is representing the seller. A common mistake here is that selling agents think that it asks whether the _____________ is representing the seller and that is not what it really says. |
|
Definition
|
|
Term
| 14(A)(3) asks the question "Is the broker representing the buyer or not?" So, if you are writing an offer and you do not have a signed buyer brokerage agreement then you would have to mark "_____." |
|
Definition
|
|
Term
| In 14(A)(4) the contract addresses working for both the buyer and seller in the same transaction. You must have a signed brokerage agreement and a signed listing agreement. In this case, it must be a(n) ________ sale. |
|
Definition
|
|
Term
| If you do have the ability to mark 14(A)(4) (that is, you are representing both sides in the transaction) then you have to make a choice on whether you are representing both sides as a ___________ or a designated agent. |
|
Definition
|
|
Term
| Dual agency is still legal in the State of Georgia. |
|
Definition
|
|
Term
| If the company policy manual permits designated agency, and you are going to do a designated agency in the case where you have a listing agreement, a buyer brokerage agreement and an in-house sale, then what you would do is write in the __________ representing the seller who is the listing agent. And, then you would write in the name of the ___________ representing the buyer in the blanks provided for in paragraph 14(A)(4)(b). |
|
Definition
| actual name of the salesperson / actual salesperson |
|
|
Term
| Paragraph 14(B) is the disclosure of the payment of the commission. What is, or should be, obvious from this paragraph is that if you are selling an unlisted piece of property and you do not have a signed buyer brokerage agreement, then you have ____________________. |
|
Definition
|
|
Term
| This contract contains no preprinted blank in the commission paragraph so there is no place for you to put the amount of the commission. |
|
Definition
|
|
Term
| The buyer gets his/her earnest money back upon ALL EXCEPT ___________ |
|
Definition
|
|
Term
| According to Georgia Agency Law, you only need to disclose a material relationship if you are a dual agent. Under the Code of Ethics you have to disclose a material relationship if it exists, period. |
|
Definition
|
|
Term
| What is a material relationship? |
|
Definition
| a relationship that impairs your judgment in a transaction |
|
|
Term
| If I am working with a buyer to sell my neighbor's home, the buyer has the right to know that the seller is my neighbor, even if that neighbor is not a personal friend. |
|
Definition
|
|
Term
| Paragraph 15 of the Georgia Purchase and Sale Agreement contract clearly and unmistakably says that as a real estate agent, "__________." |
|
Definition
| i know nothing about nothing |
|
|
Term
| Mold, for the last few years, has been a hot button topic in the minds of the public. So, if there is a property that has some type of mold in it, it will be labeled as __________. |
|
Definition
| outside a real estate agent's area of expertise |
|
|
Term
A buyer cannot decide after they bought and closed that they do not like the
neighborhood that they bought in or they do not like their new neighbors,
and decide that they want __________. |
|
Definition
| the broker to buy the house back from them |
|
|
Term
| A notice to the broker representing the party as a client, is also notice to the client. |
|
Definition
|
|
Term
| Notice is not really given until it is received. There is no exception to that rule. |
|
Definition
|
|
Term
| To meet the terms of the contract when notice is given, it must be done by any of the listed ways, EXCEPT by __________. |
|
Definition
|
|
Term
A notice to the broker representing the party as a client is also notice to the client.
It is called __________. |
|
Definition
|
|
Term
| A fax notice counts as written notice based on the sending fax machine printing a confirmation of the date, time, and telephone number the fax went through. |
|
Definition
|
|
Term
Occasionally parties make verbal agreements outside the contract and
they must be __________. |
|
Definition
| reduced to writing and made part of the contract |
|
|
Term
| The Georgia Appeals Court made some recent decisions that have been interpreted to mean that only those promises that were intended to survive closing _________. |
|
Definition
|
|
Term
| If the seller has repairs to make before closing and does not make them, is it all right if he/she verbally promises to make them after the closing in order to maintain the closing date? |
|
Definition
| no, the seller would no longer be obligated to make those repairs |
|
|
Term
| "Time is of the essence" means you do not have a reasonable amount of time to get it done. If it has to be done by noon on a given day, it has to be done by _________. |
|
Definition
|
|
Term
| If it is found that a party in the contract is not doing the things that they need to do as part of the contract, then he/she would not be cooperating. This would make him/her under default in this contract. |
|
Definition
|
|
Term
| An acceptance is an agreement to the last offer without making a single change, including a change to any blank, word, or number. |
|
Definition
|
|
Term
| When an exhibit is attached to the contract, if there is a conflict between the wording of the exhibit and any preprinted material in the contract, the __________. |
|
Definition
|
|
Term
| If a stipulation is added to the contract that conflicts with the wording in any exhibits or preprinted material in the contract, then the stipulation controls. |
|
Definition
|
|
Term
| The brokerage firm's license number must be on all contracts. |
|
Definition
|
|
Term
When the buyer makes an offer, they specify a time that they will keep their offer open for acceptance. When you counter, make sure you change the time limit for the acceptance.
If not ________. |
|
Definition
| it is open for the same timeframe as on the original offer |
|
|
Term
| The binding agreement date is ______________. |
|
Definition
| when you notify the other party that it is accepted |
|
|
Term
| Most real estate transactions include not only sales contracts, but _____. |
|
Definition
|
|
Term
| If a broker presents an offer, receives acceptance, and has a binding agreement, the seller's agent can attach a form that he/she had forgotten to include in the contract. |
|
Definition
|
|
Term
| The most frequently used preprinted exhibits are _____. |
|
Definition
|
|
Term
| A financing exhibit _____ what is being written on the contract. |
|
Definition
|
|
Term
| If you have local conditions, circumstances, or something that your company does all the time that you want put in the exhibit, you should ___________ before you use it. |
|
Definition
| have an attorney review the form |
|
|
Term
| What is the only legal way to change a binding agreement ? |
|
Definition
|
|
Term
| If an agent wanted to change something in a contract that has been signed and is binding, he/she would_____. |
|
Definition
| use an "Amendment to Agreement" form |
|
|
Term
| Because the amendment is a change in the contract, it must be _____, then returned to the originator of the contract with the date and time included. |
|
Definition
| accepted and signed by both parties |
|
|
Term
| Nearly every contract written has a(n) _____ amendment. |
|
Definition
|
|
Term
| If a buyer wants to change from a conventional mortgage to a FHA mortgage, the buyers agent must submit _____. |
|
Definition
| the FHA exhibit as part of an amendment |
|
|
Term
| If a seller wants to increase the price in a contract or amendment, he/she could use a _____form. |
|
Definition
|
|
Term
| An extra document intended to become part of a contract is known as a(n) _____ |
|
Definition
|
|
Term
| A written agreement to make some change in an existing contract is known as a(n) _____. |
|
Definition
|
|
Term
| An amendment becomes binding when it is _____. |
|
Definition
| signed and delivered back to the originating party |
|
|
Term
| The difference between an amendment and an exhibit is that one is _____. |
|
Definition
| part of the contract, the other makes a change afterwards |
|
|
Term
| A condominium _____ exhibit is used to create a valid document when the property involved is a condominium. |
|
Definition
|
|
Term
| A(n) _____is used to settle disputes when selling land by the acre. |
|
Definition
| "Survey Resolution Exhibit" |
|
|
Term
| A "Purchase and Sale Agreement" is used when houses for sale______. |
|
Definition
|
|
Term
| If there is a conflict between the printed matter, like a survey and the exhibit, the ____ overrides. |
|
Definition
|
|
Term
| A "Condominium Legal Description Exhibit" is used _____. |
|
Definition
| when a purchase and sale contract doesn't have room for a complete legal description |
|
|
Term
| If a "Survey Resolution Exhibit" is used, the buyer of land who doesn't trust the seller's survey _____. |
|
Definition
| has the right to order his or her own survey |
|
|
Term
| A "Survey Resolution Exhibit" _____. |
|
Definition
| provides a method for settling disputes about the amount of land involved in a sale |
|
|
Term
| Which exhibit is used when the buyer has property they must sell in order to buy? |
|
Definition
| "Sale or Lease of Buyer's Property Contingency Exhibit" |
|
|
Term
| If the buyer's ability to buy a house depends on his/her current property selling, they need to __________ before the new house closes. |
|
Definition
| make the contract contingent on their current home selling and closing |
|
|
Term
| Without a "Sale or Lease of Buyer's Property Contingency Exhibit," the buyer may ____ if their house doesn't sell. |
|
Definition
|
|
Term
| If a buyer does not make the purchase of a new house contingent on the sale of his/her current home which doesn't sell he/she would have a choice of either closing on the new home or _____. |
|
Definition
|
|
Term
| When the Georgia Association of Realtors (GAR) first began creating contracts in 1990, most were biased towards the______. |
|
Definition
|
|
Term
| Due to the increase of ____ in the real estate market, GAR began writing contracts that were unbiased. |
|
Definition
|
|
Term
| If there are ______ in a contract, it means the forms committee faced a decision where they couldn't keep it neutral. |
|
Definition
|
|
Term
| "Contingency" and "Contingency with Kickout Provision" are the options contained in the______. |
|
Definition
| "Sale or Lease of Buyer's Property Contingency Exhibit" |
|
|
Term
| How would an agent complete a "Sale or Lease of Buyer's Property Contingency Exhibit?" |
|
Definition
| select option A or option B and fill in the blanks |
|
|
Term
| The seller who accepts an offer contingent on the sale of the buyer's present home is wise to make sure the offer contains provision for a(n) _____. |
|
Definition
|
|
Term
| The buyer who has a home to sell before buying the next one would prefer a contingency clause _____. |
|
Definition
| without a kickout provision |
|
|
Term
| In the "Sale or Lease of Buyer's Property Contingency Exhibit" option 1A clearly favors the seller. |
|
Definition
|
|
Term
| Name three common contingencies. |
|
Definition
| financing, home inspection, and sale of current home |
|
|
Term
| An agent should have_______ before presenting an offer. |
|
Definition
| all the information verified |
|
|
Term
| An agent should not let a seller go to contract with a second buyer with any contingencies (e.g., financing and home inspection) when he/she: |
|
Definition
| already has a buyer under contract |
|
|
Term
| An "Amendment to Remove Contingency of Sale or Lease of Buyer's Property Amendment" would be used to: |
|
Definition
| create a binding agreement |
|
|
Term
| The seller's agent who is going to present an offer that includes a contingency for the sale of the buyer's present home should _____. |
|
Definition
| obtain all possible information about the market status of the buyer's home |
|
|
Term
| The buyer who has an accepted contract contingent on the sale of a present home with a kickout in the seller's favor: |
|
Definition
| must proceed to apply for a mortgage loan and arrange for home inspection promptly |
|
|
Term
| When a backup offer is presented, the buyer who already has a firm contract with a kickout must: |
|
Definition
| either agree to go ahead with the purchase without any contingencies or else drop out |
|
|
Term
| A seller is more likely to accept an offer with contingencies if: |
|
Definition
| the house has been on the market for a long time |
|
|
Term
| A seller would be well-advised to kick out a first contract only if the second one: |
|
Definition
|
|
Term
| When an agent is involved with a "Contingency with a Kickout Provision," it's not unusual to have: |
|
Definition
| a second contract offered |
|
|
Term
| Why would an agent use a "Back-up Agreement Contingency Exhibit?" |
|
Definition
| so the seller does not sell the same house twice |
|
|
Term
| The "Back-up Agreement Contingency Exhibit" states that the parties to the primary agreement have the right to: |
|
Definition
|
|
Term
| The buyer who wants to try for a house that is already under contract will write an offer that includes a(n) _____. |
|
Definition
| backup agreement contingency exhibit |
|
|
Term
| The buyer who makes a backup offer can reserve the right to _____. |
|
Definition
| cancel the backup contract at will |
|
|
Term
| When would the "Earnest Money Held by Seller Exhibit" be used? |
|
Definition
| anytime a seller holds earnest money |
|
|
Term
| A builder who works for a large, national corporation would prefer to hold______. |
|
Definition
|
|
Term
| The clause in an "Earnest Money Held by Seller Exhibit" form which states that if the buyer gives the builder earnest money, it is out of the agent's hands is called_____. |
|
Definition
|
|
Term
| If the buyer is going to give the builder a large amount of earnest money that will not go into an escrow account, then the ______must be in the contract. |
|
Definition
| "Earnest Money Held by Seller Exhibit" |
|
|
Term
| Which provision ensures that the buyer will get the earnest money back? |
|
Definition
|
|
Term
| An agent would want to make it clear in writing that he or she bears no responsibility if a buyer insists on _____. |
|
Definition
| depositing a large sum as earnest with a builder |
|
|
Term
| If the seller wants the earnest money, the agent would use the ______ form. |
|
Definition
| "Earnest Money Transfer to Seller Amendment" |
|
|
Term
| A "Termination and Release Agreement" is filled out and signed when _______. |
|
Definition
| earnest money is refunded or forfeited |
|
|
Term
| The "Termination and Release Agreement" does two things:_________. |
|
Definition
| releases earnest money and terminates the contract |
|
|
Term
| When is a "Notice to Unilaterally Extend Closing Date up to Seven Days" form used? |
|
Definition
| anytime either party needs to give notice to extend closing |
|
|
Term
| The "Purchase and Sale Agreement" allows the buyer or seller the ability to extend the closing date if _______. |
|
Definition
| the loan can't be closed in time or title objections haven't been satisfied |
|
|
Term
| Which form is used to prevent default when the closing is delayed past the closing date? |
|
Definition
| "Amendment to Change Closing/Possession Date" |
|
|
Term
| The "Amendment to Change Closing/Possession Date" form extends the closing date back _________ after it has already been extended. |
|
Definition
|
|
Term
| Sometimes when the closing dates are changed, it can ____________________. |
|
Definition
| alter the date of possession |
|
|
Term
| A "Temporary Occupancy for Buyer Prior to Closing Exhibit" allows _____ prior to closing. |
|
Definition
| the buyer to move in early |
|
|
Term
| When the buyer wants to move into the house early, it is a good idea for the seller to ______. |
|
Definition
|
|
Term
| Generally ______ is indicated by moving in, having the utilities put in the buyer's name, getting the key to the house, or letting the buyer put anything on the property. |
|
Definition
|
|
Term
| Should the seller stay in the home temporarily after closing, the form __________ must be in the contract. |
|
Definition
| "Temporary Occupancy Agreement of Seller After Closing Exhibit" |
|
|
Term
| When a contract fails to close, any earnest money deposit should be _____. |
|
Definition
| held in escrow until both parties have signed a termination and release agreement |
|
|
Term
| Charging the buyer rent for pre-closing occupancy _____. |
|
Definition
| motivates the buyer to go ahead with prompt settlement |
|
|
Term
| Most contracts provide that the buyer will have possession of the property _____. |
|
Definition
|
|
Term
| When a mortgage loan is made on the promise that the owner will occupy the premises personally, that mortgage would be considered in default if the _____. |
|
Definition
| property was rented for more than 60 days |
|
|
Term
| When an agent gives a Vendor List to the parties of a transaction, it is the responsibility of the ___________ to use the vendors. |
|
Definition
|
|
Term
| The Vendor List protects the _____. |
|
Definition
|
|
Term
| The "Broker's Authorization to Hire a Vendor" form makes the person who asked the broker to hire a specific vendor responsible for __________. |
|
Definition
| paying the vendor and their actions |
|
|
Term
| When the_________ an "Amendment to Remove Inspection Contingency Amendment" form is completed. |
|
Definition
| buyer elects the right to request repairs |
|
|
Term
| If a repairs amendment cannot be negotiated, then the contract_____. |
|
Definition
|
|
Term
| If the agent hasn't delivered a proper repairs amendment in a timely manner, the buyer will have purchased the house "as is." |
|
Definition
|
|
Term
| The__________ form is used when a buyer's inspection report requires an additional inspection(s). |
|
Definition
| "Notice to Unilaterally Extend Inspection Period" |
|
|
Term
| A copy of the________ must be attached to the "Notice to Unilaterally Extend Inspection Period" form for it to be effective. |
|
Definition
| original inspection report |
|
|
Term
| The "Amendment to Address Concerns with Property" form should be used if the buyer has purchased property that ___________________. |
|
Definition
| is subject to a right to terminate |
|
|
Term
| The "Amendment to Address Concerns with Property" form creates an agreement to ____. |
|
Definition
|
|
Term
| When the buyer wants to terminate, has a right to terminate, the __________ form would be used. |
|
Definition
| "Notice of Decision to Terminate Agreement" |
|
|
Term
| The "Notice of Decision to Terminate Agreement" form must be used with the ________ form. |
|
Definition
| "Termination and Release Agreement" |
|
|
Term
| The buyer's broker has until_______ to give notice to terminate to the listing agent and the seller. |
|
Definition
| midnight during that right to terminate period |
|
|
Term
| Faxing "Notice of Decision to Terminate Agreement" to the listing brokers office is not enough to terminate the agreement. |
|
Definition
|
|
Term
| If a buyer is allowed to make improvements to the property before closing and a contractor is injured on the job, who pays for the work related injuries? |
|
Definition
| the owner of the property |
|
|
Term
| According to the "Buyer's Authorization to Make Repairs and/or Improvements Prior to Closing Amendment," the buyer is responsible for_______. |
|
Definition
| any actions that happen on the property |
|
|
Term
| When it comes to a home inspection, a good real estate agent would _____. |
|
Definition
| suggest the names of inspectors |
|
|
Term
| Paying for desired inspections is usually the responsibility of the _____. |
|
Definition
|
|
Term
| The legal way to give money to the buyer for repairs after closing is to ____. |
|
Definition
| escrow the money with an escrow agent |
|
|
Term
| The __________ form allows the buyer to assign their right to buy to a new buyer. |
|
Definition
| "Assignment of Purchase and Sale Agreement Rights" |
|
|
Term
| An escrow agreement form is useful when _____. |
|
Definition
| the seller is giving the buyer money to complete repairs after closing |
|
|
Term
| In order to avoid liability for inadvertently making false statements, an agent can _____. |
|
Definition
| cite the source of the information |
|
|
Term
| The "Broker's Information Disclosure" form is used when _____ to have a record of the source of the information. |
|
Definition
| the agent needs to answer a question |
|
|
Term
| If the licensee gives information to someone and the agent attributes the source, that person cannot sue the agent unless he/she can prove that _____. |
|
Definition
| the agent knew the source was wrong |
|
|
Term
| The "Personal Property Agreement" form is used when the buyer is _____. |
|
Definition
| buying personal property from the seller for money |
|
|
Term
| When an agent writes into the contract the personal property items of significant value that are to be purchasable with the house, many lenders _________. |
|
Definition
| reduce the appraised value of the property |
|
|
Term
| If personal property items to be purchased with the house are included in the contract the buyer must _________________. |
|
Definition
| come up with an additional down payment |
|
|
Term
| Each item placed on the "Personal Property Agreement" should be _________. |
|
Definition
| identified as "best as possible" |
|
|
Term
| If the home/property sale isn't complete, then the "Personal Property Agreement" is not completed. |
|
Definition
|
|
Term
| The Land and Lot Contract, the Lease Purchase Contract, and the New Construction Contract are examples of the ____________ in the GAR forms package. |
|
Definition
|
|
Term
| Which of the six sales contracts included in the GAR forms package has arbitration language preprinted in it? |
|
Definition
| the New Construction Contract |
|
|
Term
| Personal property the buyer is purchasing from the seller should be listed _____. |
|
Definition
|
|
Term
| The arbitration agreement is already included on the standard _____. |
|
Definition
| new construction contract |
|
|
Term
| In case of a dispute, the buyer and seller can be required to go to arbitration only when _____. |
|
Definition
| they have previously agreed to do so in writing |
|
|
Term
| An "Amendment to Brokerage Engagement Amendment" form is used when the parties want to_________. |
|
Definition
| change an agency contract |
|
|
Term
| When the parties to a transaction want to subject the contract to anything, a ______form is used. |
|
Definition
| General Contingency Exhibit |
|
|
Term
| The buyer's original offer and the last counteroffer become a binding agreement when it has________________. |
|
Definition
|
|
Term
| After the parties reach a binding agreement, the clean copy of the contract________. |
|
Definition
| becomes a "conformed" contract |
|
|
Term
| The "Instructions to Closing Attorney/Commission Confirmation Agreement" form is part of the sales contract. |
|
Definition
|
|
Term
| The ________ form is done when the listing is taken, when the offer is taken, and the day before closing. |
|
Definition
| "Estimate of Net to Seller" |
|
|
Term
| The instructions to the Closing Attorney form specifies the _____. |
|
Definition
| commission to be paid to each broker involved |
|
|
Term
| When several counteroffers are involved, an agent often prepares _____. |
|
Definition
| a final clean copy of all terms and conditions agreed upon |
|
|
Term
| An estimate of the net to the seller is usually prepared _____. |
|
Definition
|
|
Term
| It can be prudent to base the estimate of buyer's costs on the calculations of _____. |
|
Definition
| several lending institutions |
|
|
