b. areas under lessor control will be maintained. d. all of the above. b. fourteen days. income up to b. assumptive-close. b. give all the information you have on the property. When water gets in where it shouldn't, it can damage personal possessions, undermine the home's structure, and even create a health hazard by causing mold growth. What's the Problem With Calling a Listing Agent to See a House? The listing broker pays the selling brokerage a portion of the earned commission, in exchange for bringing a buyer, if that buyer then submits an offer that the seller accepts. b. to a company that must b. expands the inventory of comparables to inform both buyers and sellers. Advertising that is designed to sell the office name would be d. all of the above, 29. Three different appraisers can come up with three different measurements. Other times the seller takes something that's considered part of the house. from taxation on the gain would be c. to act as a neutral depository. a. name tags. c. shifts the commission responsibility to the buyer. a. people tend to read from the upper left corner to lower right corner. d. lease option. a longer selling time than properties listed below the Competitive 67. Property sellers are usually required to disclose negative information about a property. out and signed by both buyers and sellers. You may also want to disclose electrical or plumbing repairs and any other problems you would want to know about if you were going to buy the home and live in it. Occupants of residential property are responsible under the terms c. 120 days after listing. d. convert client's money to broker's account. b. tell the buyer about the dual agency after writing the offer. When an agent is given the right to transact all types of matters on behalf of the principal, the agent serves as a 61. These agents usually represent different parties in the transaction. While most disclosure requirements are governed by the states, the federal government mandates one: the disclosure that lead-based paint may be present on any property constructed before 1978. Seller's agency occurs when a real estate broker, real estate agent, or Realtor represents an owner to sell their property. The broker and the seller will win because of "caveat emptor" Property flippers often deal with properties in poor condition. c. car signs. $25,000. c. home warranty plans and title insurance. "There are no states in which there is an obligation to disclose the death of a person who has deceased under natural conditions," said attorney Matthew Reischer, CEO of LegalAdvice.com. Institutional lenders include all, except b. disposing of garbage and other waste in a sanitary manner. 17. c. apply the Golden Rule. procure a buyer? a. estate for years. c. life insurance companies. If it's your first time selling a home or you're looking to get the highest price without the headache of doing everything yourself, consulting with a listing agent is a good idea. And how detailed do you need to be? d. all of the above, 47. b. is legal but unethical. This is acceptable so long as the real estate. IREM's professional designation "CPM" stands for An agent's authority may be granted by c. an agent of the seller. a. tenancy at will. An agent would not always be required to give an owner a copy of 4. Rational buying motives include Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. In most places, you dont have to provide copies of inspection reports, but doing so can save you a lot of trouble. A conditional offer is an agreement between a buyer and a seller that an offer will be made if a certain condition is met. The acronym IREM stands for A typical percentage lease would provide for rent as a Learn how a CMA helps buyers and sellers. a. property listed at prices below the price indicated by the Competitive When a home is listed, the real estate broker and the listing agent working under them act as fiduciaries for the seller. 42. a. gap loan. d. neither a nor b, 28. b. that a prior owner had AIDS. c. benefits. c. exclusive agency listing. d. all of the above, 97. Students also viewed **** LAST ONE 43 terms chet505 Chapter 17 Offers and Purchase Contracts 49 terms princesawilliams c. average percentage rate. When she's not combing her neighborhood for open houses, she's writing about technology, real estate or data. 28. The owner is out of town when the broker gets an offer from a buyer to purchase the building providing the seller agrees to take a purchase money . about An owner should be informed by the listing salesperson They want to disclose the existence of offers, but not the price, terms, or contingencies of the offer.. Which of the following is not one of the three elements of emotion? c. supervised by a principal. The 35 Steps to Building a House: Your Start-to-Finish Guide, 8 Documents You May Need For Tax Filings if You Sold a House. b. a periodic tenancy. 15-year fixed loans. d. all of the above, 37. b. I will make 20 telephone calls to homeowners every day. Salespeople advertising services for which a license is required If Brenda wants to keep themoney and NOT violate VA License Law, she could: Select one: A. The Civil Rights Act of 1964 covers prohibited discrimination as Knowing that before you enter the market can make it easier to settle on an offer once they start rolling in. A lighting fixture, the refrigerator or microwave, the fitted blinds: Any of these things could have gone out the door with the seller if nobody thought to discuss it in advance. a. actions. c. abiding by rules and regulations. a. loans from small lenders. c. address from the occupant's name. c. both a and b "Do you want a home with a fireplace?" b. merchandising the space and collecting the rents. "There are many risks involved in a house closing where some work is needed on the property that wasn't obvious on walk-through, particularly in winter or during a dry spell," said Bill Price, an Illinois business lawyer. So how much do you really need to disclose? b. a sublessee has no direct liability to the lessor. Making a decision on an offer in a time crunch can be stress-inducing, but dont let the hours run away with the offer. While you can always change your mind, take time to think about what youre comfortable disclosing to buyers. Physical arousal c. Objective experience c. rejection and forfeiture of deposit. After the close of escrow, the buyers discover a structural problem with the property, which the seller had not disclosed to anyone, including the broker. would be to 32. c. when the entry is during normal business hours after a "For Sale by Owner" ads. "Property Code, Title 2. Expenses only The broker associate professional is an 'authorized representative' of the Broker in the Brokage firm. b. ostensible authority. A grant deed, also known as a special warranty deed, is a legal document used to transfer ownership of real property. Conveyances, Chapter 5. A selling agent brings buyers to the table and represents the buyer. Other than by expiration of the lease term, termination may be made In comparing adjustable-rate mortgages, a borrower should consider Check them out below: 1. a. love. An extended coverage policy of title insurance covers all, except Buyers need to know if the home is in a special historic district because it will affect their ability to make repairs and alterations, and it might also increase the cost of those activities. The designation Accredited Management Organization (AMO) is given What potential buyers need to know about your home. Heres how to find a real estate agent in your area. d. neither a nor b. Even after you accept one buyers offer, the negotiation process is still far from over. A property manager wears many hats, among which are b. a guaranteed DVA loan. a. the home owner is age 55 or over. likely be a State of North Carolina. Market Analysis price. Some states, such as Michigan and North Carolina, require sellers to use a specific disclosure form. Taxpayers with an adjusted gross income of less than $100,000, can a. protect purchasers from fraud. If youve recently decided to put your home on the market, youmightfeel hesitant toreveal problems (minor thoughthey might be) whichcould discourage potential buyers. include damage resulting from the condition of the property or negligence of d. neither a nor b. "They want to disclose the existence of offers, but not the price, terms, or contingencies of the . b. when the tenant consents to entry. Yes, your real estate agent will deliver your offer to the seller through the seller's agent. Dual vs. If a broker is a little short of funds and "borrows" some money from his escrow account to pay monthly bills, this activity is called A selling agent is a buyer's agent. c. the constant turnover in real estate. But how can you possibly know what might influence a buyers decision? a. average property return. Many times that will encourage buyers to improve their offers.. If an unexpected issue crops up during the inspection or your home appraisal comes in low, you may encounter a delayed settlement where terms can be renegotiated. Measurements of the home. Do you really need to disclose it? b. the sale of a vacant lot. A dual agency b. to volunteer information so that they need not be asked. A real estate attorney might also be consulted. a. positive-choice close. When either the buyer or the seller makes a counteroffer, it voids all previous offers. You may get more than a price boost. A salesperson received an earnest money check from a buyer on the listing of a co-op broker. d. approximate percentage rate. b. blockbusting. Offers and counteroffers typically take place within a 24-48 hour window, but each round can add days to your timeline. a. net lease. d. seller's obligations. c. gross amount. d. all of the above, 38. They can help find a suitable listing, arrange for showings, and answer any questions the potential buyer may have. One such step is to file a report to the Consumer Financial Protection Bureau or with the U.S. Department of Housing and Urban Development (HUD). d. subordination. a. 21. b. percentage lease. When it comes to making a decision on multiple offer disclosure in other words, whether you should let buyers know that youve got competition over your home the choice is yours as the seller to make. a. commingling and is illegal. c. exclusive right-to-sell listing. If they sell the home next month, the maximum exclusion d. pension funds. 22. A safety clause in a listing provides for Government National Mortgage Association (GNMA). Inducing persons to list or sell by the fear that minority groups "Seller Disclosure Act, Act 92 of 1993," Page 3. If you think you've been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps you can take. All of the following are examples of fiduciary relationships EXCEPT, 9. 73. A real estate broker generally would be c. quote only the listing price, but present all offers. a. long-term savings. b. custom in the industry. While this can happen in any market for a competitively priced home, youre most likely to encounter it in a sellers market, where the housing stock is low and the demand for available homes is high. Theres still the appraisal and the inspection to consider. These Realtors (the buyer's agent and the listing agent) are referred to as "single agents" because they pledge their confidentiality to their clients. Short answer? To help you do this, we've compiled a list of the most common types of retail customers that you may encounter, along with tips on how to approach and sell to each one. When an owner sells a property, they are typically required to disclose information in a written document. However, many state a fee the seller will be charged if the agreement is canceled before . d. shrewd business and is legal. Residential tenant responsibilities also include $125,000. Wed love to give you a concrete answer. permission of the owner, would be a(n) 10. The sales person receives $2800 commission on her 35% share of the total commission on the sale of a property that sold for $160,000. a. a loan insured by FHA. d. seek an attorney's help to determine if it is legal. In most states, the maximum amount a broker may charge a seller is What was the commission rate? Institute of Real Estate Management. A property manager does not make policy or handle rentals. d. matters that would be revealed by a correct survey. A multiple offer scenario happens when two or more buyers make offers on a home at around the same time. b. both properties are in the same county. a. positive-choice close. Non-conforming loans Or the listing agent might execute an open listing with the seller, and the seller could also list with a variety of real estate agents, but this is uncommon. Michigan, for example, requires sellers to disclose evidence of water in a basement or crawl space, roof leaks, significant damage from floods, the type of plumbing system (e.g., galvanized, copper, other), and any known plumbing problems. b. unemployment compensation. Doing so can, in many cases, lead to more compelling offers as long as you act in a timely manner with respect to the buyers. 86. 7. A) Salespeople will not show Firm B's listings because of . General Provisions, State Disclosure Forms. "How would you use this workroom?" 2. practitioner should be a natural person, meaning the person must be an individual. c. None c. classified advertising. 81. c. all improved property. a. be in writing. d. neither a nor b. Emma's work has been featured in Huffington Post, NPR and XOJane. 21. d. narrative close. b. ask yourself if the end justifies the means. We also reference original research from other reputable publishers where appropriate. . If you lie on a seller's disclosure you risk being heavily fined or sued in court, or both. Sellers who willfully conceal information can be sued and potentially convicted of a crime. b. They include all, except Missouri also requires disclosure of a former meth lab in a home but neighboring Kansas, like most states, does not. The initials "APR" in a real estate ad stand for a. exclusive right-to-sell listing. 31. Other than by expiration of a lease term, termination may be made The relationship of selling time to list prices above or below the c. limited agency. "Seller's Disclosure Notice," Page 2. As to agent disclosure, an agent must disclose is not obligated to use diligence to d. any of the above, 100. "A buyer I know purchased a condominium, [and] the seller mistakenly forgot to give the buyer the last 12 months of meeting notes," said Ed Kaminsky, president and CEO of SportStar relocation in Manhattan Beach California. Accepting an offer doesnt mean the end of negotiations. Lets say yourhouse isinfested with termites. d. conventional authority. Pre-Qualified vs. While that agreement was still in effect, the sellerwithout informing the first brokerhired another broker from a separate firm under an exclusive right-to-sell listing for the same property. premises by the tenant. b. flood hazards. a. I will work harder next month. Ultimately, as the National Association of Realtors (NAR) points out in its Code of Ethics, the decision to disclose is up to the seller, and the listing agent must follow the sellers requests within legal and ethical bounds. a. identify the name of the broker employing them. c. elect. a. implied authority. If, in showing a property, the salesperson said, "In my opinion, this house is absolutely the greatest in the world," the salesperson Buyers need to know the home's repair history to have their home inspectors pay extra attention to problem areas so that they're aware of probable future issues. I completely disagree with this sentiment. If a listing is overpriced, the agent should suggest to the owners that they adjust the price to the current market. d. corporate property manager. 12. You can learn more about the standards we follow in producing accurate, unbiased content in our. c. holdover clause. d. a buyer works with more than one broker. a. referrals. c. both a and b Down Payment: What It Is and How Much Is Required, Conditional Offer: Definition, How It Works, and Types, Closing Costs: What They Are and How Much They Cost, Grant Deed in Real Estate: What It Is, Examples, and Types. d. neither a nor b, 71. Better Business Bureau. b. disclose. a. buyer's remorse. Under the seller's agency, a real estate agent agrees to promote the seller's best interests . In situations such as these, check to see how much protection your state's laws offer from disclosing information you would have had no way of knowing. d. neither a nor b, 14. would be c. estate at will. A lease clause whereby the tenant agrees to relieve the landlord c. "Why do you feel you need four bedrooms?" The seller will not be available for 5 days. Agencies engaged in the secondary mortgage market include the a. written agreement. price indicated by the Comparative Market 2. c. second trust deeds or mortgages. Lying on a seller's disclosure is illegal, as the undisclosed hazards could cause serious damage to an unknowing buyer. the broker has no authority to withhold any offers from the seller Correct Answer: the broker has no authority to withhold any offers from the seller Question 3 0 out of 2 points A broker has an exclusive-right-to-sell listing on a building. The buyer discovers the defects after closing and decides to sue the broker and seller. a. commercial banks. 84. 23. c. the roof does not leak and no doors or windows are broken. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. The purpose of the California Subdivided Lands law is to What Is Comparative Market Analysis (CMA) in Real Estate? b. a broker presents an offer on any listing. Knowing what a fixture is in real estate is crucial when buying or selling. a. by either party on destruction of the premises. Header Image Source: (Julia Kuzenkov / Pexels). Once you accept an offer from a buyer, you should let all other parties know that your property is under contract. This statement concerns Buck even recommends including a clause in the purchase contract that any square foot measurement quote is an approximation, and if this is a material issue for the buyers, its their responsibility to investigate it further. 82. 6%. If you need legal help with a real estate contract or negotiation scenario, please consult a skilled lawyer in your area. "Competition in the Real Estate Brokerage Industry. Do you want the highest price? residence to another residence providing A permanent loan taken out after the construction loan, is known Closing costs are the expenses that buyers and sellers incur to finalize a real estate transaction. d. neither a nor b, 13. form, that salesperson is using the most likely manages protection as to 22. a. complaining to the landlord about the habitability of the premises. 77. c. $ 50,000. The buyers attempted to rescind their agreement. a. the sale of a five-unit apartment property. Disclosure might be required. But youve never seen one, or they were missed by an inspection (or maybe there never was an inspection). b. generally have higher interest rates than conforming loans. d. none of the above, 57. d. Hold the check until the contract has been signed by all parties, 15. c. zoning changes. b. words. The fact that buyers often have second thoughts about buying is Similarly, a dry spell can conceal problems with a leaking basement.". a. at least 80 percent of the units have one occupant 55 or older. d. neither a nor b, 99. c. gross lease. d. all of the above. 5. Disclosure rules can affect anyone selling a home. b. debt relief. from all liability for injury or property d. any of the above. In the absence of an agreement, the landlord has a right of entry He has not met them previously. A listing agent can also be a selling agent, which means that the listing agent is either engaged in dual representation, which is a form of dual agency and legal in some states, or the legal relationship between the parties is transactional in nature. Although the listing agent is typically not the selling agent, this doesn't mean that the agent might not work in a dual agency capacity as a selling agent as well. c. an outside agent presents an offer on a broker' listing. Large high-rise buildings were made possible by the 92. require the buyer to withhold b. appreciation in value. of the Real Estate Commissioner A buyer's agent is a type of real estate agent, but their role compared to a listing/seller's agent is quite different. c. Buyer or seller b. rental ads for single-family homes. Duties of a property manager typically include A comparative market analysis (CMA) estimates a home's price based on recently sold comparable homes. He has previously written for Den of Geek US, TechnoLawyer, and Hustler. "Each state will have slightly different requirements for disclosure," said Jim Olenbush, a Texas real estate broker. c. tell the buyer about the dual agency before writing the offer. b. occupant's name and telephone number from the address. d. income must be at least 28 percent of total housing costs. without the owner's permission, would have a. The listing salesperson was told by a prospective buyer to present an offer of $150,000 with the promise that he would increase it to $152,000 if the seller rejected $150,000. What is the most likely outcome of this decision? c. negative motivation. That also means disclosing issues that have recently been repaired, Davis says. When a broker takes a listing, he is acting under what kind of agency? A buyer making an offer on a property writes an earnest money check to the broker. It refers to a buyer's responsibility for due diligence before purchase. is entitled to within Click on state for information, WHEN THE SELLER LIED ON THE PROPERTY DISCLOSURE STATEMENT. General Provisions.". b. complaining to a public agency about building defects. a. open listing. d. confirm. b. increase their security deposit to protect the landlord. 20. between parent and child without A standard home closing takes 48 days on average, according to Ellie Mae, and if youre in a time crunch, ongoing bidding wars and negotiations can prolong your overall days on market. Some states even go so far as to impose an affirmative duty on a seller if they know that their real estate is being haunted by the dead. d. all of the above, 25. 7. d. neither a nor b, 79. b. protect the environment. Seller's agents do what the name impliesthey list a property for sale. d. water quality. You may not be legally bound to tell potential buyers that the back porch door squeaks sometimes when it rains. d. any of the above, 98. As a co-host of The Ramsey Show, America's second-largest talk radio show, Rachel reaches 18 million weekly listeners with her personal finance advice.She has appeared on Good Morning America and Fox . The seller has just informed the listing agent that he does not want the property shown to any Orientals or other minority buyers. Surgeon General Regina Benjamin, MD, MBA, is serving as Zillow's . However, sometimes things aren't so clear-cut. Instead of using the term "listing" when dealing with an owner, Proposition 13. c. Proposition 60. b. may have a dual agency. At a minimum, residential landlords must ensure that a. the assignee is primarily liable under the lease in an assignment. c. leasing fees. a. selling the owner on a listing. c. both a and b Be sure you review what you need to disclose and how it should be worded with a real-estate attorney. b. pay for the ad in advance. "Title XXIX OWNERSHIP AND CONVEYANCE OF PROPERTY.". The seller was subsequently sued by the buyer for not disclosing these important notes.". A good listing agent, also called a seller's agent, is a seller's marketing expert during the selling process. b. physical and mental handicaps. "In winter, a roof that leaks or has old shingles may not be able to be inspected by the buyer or their home inspector. c. either a or b 54. This little piece of knowledge can provide you with a bit of confidence as you work your way through the process, and it's not difficult to differentiate between the two. c. both a and b a. include adjectives. d. principal agents. 70. d. Any of the above. 68. a. may only represent the seller. When Im the listing agent, I sign a contract with the seller where we agree on how to handle offers that come in [upfront], Shorey explains. c. universal agent. What should the broker do with the check? a. use of structural steel. If a previous occupant's child drowned in the swimming pool because the pool didn't have a safety fence, for example, the seller would need to disclose the death even if the safety issue has been remedied. ", National Association of Realtors. Ways to kill a sale include b. short-term loans until permanent loans can be arranged. Maybe a window leaks a little bit when it rains or the basement just barely floods every now and then. d. neither a nor b. They work for the seller and are also referred to as the "listing agent." Bill has helped people move in and out of many Metrowest towns for the last 36+ Years. ", Even when disclosure isn't requiredGeorgia, for example, doesn't require the disclosure of homicide or suicide unless the seller is directly askedsellers may want to err on the side of informing the buyer of a death on the property. 69. What is boot? Estate Managers. Full commission A seller's agent and a selling agent don't represent the same parties, although they sound a great deal alike and are easily confused. A valid listing of real estate must b. fear. One common problem area in disclosure? They decide to make an offer on one of his listings and they all return to the real estate office to write up the offer. a. evaluate. Heres how disclosing other offers could benefit you: It could push one of the buyers to make a higher offer. Sign it and pass it on to the seller c. customary authority. A realist is a Texas Real Estate Commission. d. both b and c. 88. d. saving loan. b. working with buyers and sellers of income residential property. a. special agents. b. conversion. Single Agency Relationships in Real Estate. Sometimes homebuyers don't realize until the move-in day that their new homes are missing something they assumed would be there. d. neither a nor b. c. Hold the check until the contract has been signed by all parties And if you're the buyer? Sellers arent obligated to respond to all offers, but a buyer might rescind their offer if they feel its being ignored. If a real estate agent used clients' funds for his own personal use, he would be guilty of Find top real estate agents in these similar cities, HomeLight has an A+ rating with the 26. If you really dont know the answer to a question the buyers are asking, just say you dont knowand put it on them to find out the answer. Agent inspection requirements apply to The broker and the seller know of major plumbing repairs needed on the seller's property. A property owner wishing to be contacted by persons who want to buy and not by agents who want a listing, would advertise for. c. floors, stairways and railings are in good condition. Caveat Emptor (Buyer Beware): What It Is, and What Replaced It, What Is a Lis Pendens? c. avoiding defacing or damaging property. d. government owned or managed housing. Some buyers have concerns or superstitions about purchasing a home in which someone has died. The requirements vary based on state and local laws. d. any or a combination of the above. b. by the landlord on the use of the premises for unauthorized purposes Once a broker has taken a listing, he can do all of the following EXCEPT. Californias Natural Hazards Disclosure Act requires sellers to disclose whether the property is in a seismic hazard zone and could thus be subject to liquefaction or landslides after an earthquake. 1.8K views, 68 likes, 8 loves, 36 comments, 3 shares, Facebook Watch Videos from Citi 97.3 FM: Watch tonight's edition of Eyewitness News on Citi FM with Umaru Sanda Amadu and Akosua Otchere.. d. is not required to disclose a dual agency. In showing property, an effective and professional sales technique A partnership or corporation under the RESA law may not be referred to as a real estate practitioner. However, an individual real estate practitioner may practice in a corporation or partnership. When an owner sells a property, they are typically required todisclose informationin a written document. "Consumers Should Be Aware of Dual Agency in Real Estate Transactions.". 25. b. specific advertising. c. an agent of the seller. c. motivating salespersons to greater success. No two multiple offer scenarios will be the same, but there are some common mistakes that all sellers can learn from and avoid: Determine your priorities before you list your home.
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