a. a procuring cause. Sellers should disclose past or present leaks or water damage. b. a minimum amount plus a percentage of the gross. a. may only represent the seller. A grant deed, also known as a special warranty deed, is a legal document used to transfer ownership of real property. b. subliminal rejection. d. pension funds. While you can always change your mind, take time to think about what youre comfortable disclosing to buyers. Why? The offers that appear in this table are from partnerships from which Investopedia receives compensation. Pre-Approved: Whats the Difference? For instance, New York State law requires that specific problems be disclosed to a purchaser in a statement unless the seller opts to pay a $500 credit to the buyer at closing. What was the commission rate? 39. 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. A couple makes an appointment with a broker to look at homes. 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. 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. Unit 11 Flashcards | Chegg.com 91. c. elect. a. steering. Proposition 58. d. Proposition 90. b. death of the salesperson. Header Image Source: (Julia Kuzenkov / Pexels). b. exclusive agency listing. Wrong answer! d. misrepresentation. Renting vs. So, once you make a counteroffer to a buyer, all earlier offers are off the table. If you lie on a seller's disclosure you risk being heavily fined or sued in court, or both. If you need legal help with a real estate contract or negotiation scenario, please consult a skilled lawyer in your area. a. price. If the home is at an increased risk of damage from a natural disaster or has known or potential environmental contamination, you may be required to disclose this information to the buyer. A salesperson works at a branch office managed by an associate broker of the firm. Occupants of residential property are responsible under the terms The 11 things your Realtor won't tell you but should out and signed by both buyers and sellers. At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. a. set forth duties imposed by law. d. net listing. b. The well-informed shopper Many modern shoppers will likely fall into this category. The handicapped can alter rental units for their reasonable use. d. none of the above. A real estate attorney might also be consulted. a. people tend to read from the upper left corner to lower right corner. 51. ", Department of Justice. 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. b. rental ads for single-family homes. d. stand on the street corners soliciting buyers for the property. d. saving loan. d. neither a nor b. a. present the offer and disclose the promise to increase the offer. 12. without the owner's permission, would have 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. Texas Real Estate Commission. b. the fact that most sellers become buyers and most buyers become a. exclusive right-to-sell listing. The Difference Between a Buyer's Agent and a Listing Agent A broker listed a property and in one week found a buyer for the property herself. a. Large high-rise buildings were made possible by the 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 . Newspaper leads for listings include a. positive-choice close. a. protect purchasers from fraud. 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. 25. When an agent is given the right to transact all types of matters on behalf of the principal, the agent serves as a d. neither a nor b, 79. The initials "APR" in a real estate ad stand for from all liability for injury or property b. that a prior owner had AIDS. State and local laws differ in their disclosure provisions. A divided agency, also known as an undisclosed dual agency, is prohibited if the agent acts for an adverse party without the principal's knowledge or consent. In general, sellers should disclose any known facts aboutthe physical condition of the property, existence of dangerous materials or conditions, lawsuits or pending matters that may affect the value of the property, and any other factors that may influence a buyers decision. c. show the amount of rent payment. To be valid, a lease must c. lawfully organizing a tenant association. There's another critical thing to check: Some local disclosure laws have loopholes. You can learn more about the standards we follow in producing accurate, unbiased content in our. d. neither a nor b, 13. a. estate for years. d. say whatever is necessary to get an offer. A seller's agent (sometimes called a "listing agent") lists a property for sale and represents the seller. d. 240 days after listing. Warren Christopher Freiberg is an attorney and freelance writer living in Chicago. of the Real Estate Commissioner The requirements vary based on state and local laws. Texas and Michigan, for example, require sellers to disclose whether the property comes with a long list of items, including kitchen appliances, central air conditioning and heating, rain gutters, exhaust fans, and water heaters. Jane, who has lived in her home for 6 years, got married last month 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.. You also need to know about the HOA's financial health and provide this information to the buyer to make an informed purchasing decision. c. exclusive agency listing. Resist the temptation, otherwise the buyers can come back later and say you lied or misled themabout a material issue. The seller will not be available for 5 days. The agent must disclose the agent's interest in a property that is for sale, or disclose when the licensee is making an offer on a property for the licensee's own account. offer received Conveyances, Chapter 5. Real Estate Agent vs. What is the most likely outcome of this decision? c. Get it signed by the buyer and the seller and turn it over to his broker d. periodic tenancy. d. I will significantly reduce my wasted time. b. occupant's name and telephone number from the address. d. neither a nor b. Stay Safe. Just remember: Dont be afraid of scaring them off with too much information. A multiple offer scenario happens when two or more buyers make offers on a home at around the same time. b. assumptive-close. 10 Common Types of Customers in Retail (and How to Sell to Them) 26. a. undisclosed spousal interests. "Buyers will always hear about things from the neighbors, and the surprise could cause them to back out of a purchase contract or wonder what else the seller is not telling them.". The broker associate professional is an 'authorized representative' of the Broker in the Brokage firm. d. special agent. 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. Knowing that before you enter the market can make it easier to settle on an offer once they start rolling in. The seller should make all disclosures in writing, and both the buyer and seller should sign and date the document. 43. d. all of the above, 29. Disclose nothing to buyers, including the existence of other offers. Knowing what a fixture is in real estate is crucial when buying or selling. a. b. by the landlord on the use of the premises for unauthorized purposes Technically, this agent is called the "buyer's agent" before a contract is signed, and thereafter they're designated as the "selling agent.". A real estate transfer disclosure statement is required for a. referrals. a. ask if everyone else is doing it. 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. ), 1. In most states, the maximum amount a broker may charge a seller is "In Texas, for example, deaths from natural causes, suicides, or accidents unrelated to the property do not have to be disclosed.". Two buyers purchase a home through a broker. c. electric elevator. b. give all the information you have on the property. When you receive multiple offers on your home, you have a few options as to how to proceed next: For more advice on each route, consult our guide to navigating multiple offers. c. avoid technical terms. Examples of personal advertising of a salesperson would be to d. neither a nor b. Sellers are legally required to disclose these issues, but by fully documenting them on the disclosure statement, sellers are better protected from future legal action (say, if a buyer was to sue the seller post-sale for undisclosed issues). a. providing higher rates to lower producers to keep them in real estate. "Multiple Listing Service (MLS): What Is It. b. specific advertising. between parent and child without Lying on a seller's disclosure is illegal, as the undisclosed hazards could cause serious damage to an unknowing buyer. Still, they're especially likely to affect propertyflippers, who buy properties to upgrade them and resell them for a quick profit. b. expands the inventory of comparables to inform both buyers and sellers. Disclosure might be required. "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. b. selling the buyer on an offer. The best test as to whether an action is ethical is to a. long-term savings. c. commission agreement. They work for the seller and are also referred to as the "listing agent." b. the units are solely occupied by disabled persons. The idea of the endless chain refers to If the seller signs the agreement, they can no longer share the specific terms of that offer with other interested buyers without facing potential legal trouble. State of North Carolina. 60 days after listing. The buyer discovers the defects after closing and decides to sue the broker and seller. General Provisions.". Generally, the listing broker cooperates with another brokerage when that competitor represents the buyer. Depending on your market, and the guidance of your agent, you might decide these negatives outweigh the benefits: It can scare away buyers. The buyers attempted to rescind their agreement. Disclaimer: Information in this blog post is meant to be used as a helpful guide, not legal advice. Steve and Hans Wydler co-lead the Wydler Brothers real estate team affiliated with Long & Foster in Bethesda and McLean, and are authors of " Inside the Sell: Top Agents Reveal Unspoken Secrets and. 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. Many times that will encourage buyers to improve their offers.. d. neither a nor b, 28. Depending on the market you're selling in, your agent may advise a different listing price strategy. "Property Condition Disclosure Statement," Pages 2 - 3. b. assumptive-close. Market Analysis price. ", 46. All of the following are examples of fiduciary relationships EXCEPT, 9. c. both a and b The form may be more or less comprehensive than what state law requires. d. responsible for sharing commissions. $25,000. 75. Texas law requires sellers to disclose active termites or other wood-destroying insects, termite or wood-rot damage in need of repair, previous termite damage, and previous termite treatment. protection as to all, except The relationship of selling time to list prices above or below the a. special agents. Independent Real Estate Managers. A broker may not take net listings unless the principal requires a net listing and the principal appears to be familiar with current market values of real property. a. B) associate broker managing the office. Texas Constitution and Statutes. Closing costs are the expenses that buyers and sellers incur to finalize a real estate transaction. "Seller Disclosure Act, Act 92 of 1993," Page 3. About the Author: The above Real Estate information on real estate commission and agent bonuses were provided by Bill Gassett, a Nationally recognized leader in his field.Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. b. unemployment compensation. known as b. by the tenant for the landlord's failure to repair. Just remember that the listing agent, also known as the "seller's agent," represents the seller. a. to stay close to prospective buyers who view the home. 2. is entitled to within damage resulting from the condition of the property or negligence of Buying a Home: 8 Disclosures Sellers Must Make - Investopedia b. complaining to a public agency about building defects. False information like that isnt only unethical, but can potentially get a seller into legal hot water. Expenses only Non-institutional lenders include all, except a. restricted mobility. b. using high-pressure tactics. A tenant who remains after the expiration of an estate for years An owner should be informed by the listing salesperson c. both a and b The seller has just informed the listing agent that he does not want the property shown to any Orientals or other minority buyers. 83. c. leasing expert. If the home is governed by a homeowners' association (HOA), you should disclose that fact. 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. b. costs to sell. It's their job to market the property and get it sold properly. b. fear. 62. c. second trust deeds or mortgages. 2. a. an employee of the owner. An agent's authority may be granted by Counteroffers void previous offers. The seller was subsequently sued by the buyer for not disclosing these important notes.". d. all of the above, 94. Understanding the differences between a selling agent and a listing agent is important, because you'll want to know what to call the respective agents in a transaction, particularly if you're selling or buying your first home. If the buyer later discovers that a repair job was botched, you could be on the hook for additional repairs. a. total housing costs cannot exceed 28 percent of gross income. 24. b. renegotiable-rate mortgages. But youve never seen one, or they were missed by an inspection (or maybe there never was an inspection). Even if youve had an appraiser check out your home, you may have no idea how many square feet it truly is because, as it turns out, theres no single agreed-upon way to measure a home. c. whether the ARM has an overall interest rate cap. Transaction agents generally can't represent either party and must remain neutral. if made within 180 days of the tenant the landlord is called a reassessment for tax purposes, is c. address from the occupant's name. They bring buyers to the table. However, many state a fee the seller will be charged if the agreement is canceled before . Are There Fees for Canceling a Real Estate Agent Contract? - Realtor.com d. none of the above, 57. a. love. A buyer who expects to remain in a home for only a few years would 28. Check for loopholes in the local disclosure laws. How Real Estate Agent and Broker Fees Work, 8 Reasons to Choose a Real Estate Agent Over "For Sale By Owner". The salesperson makes a change in the listing price of a listing contract without the knowledge or consent of the seller. d. neither a nor b. sales? 34. b. protect the environment. d. Any of the above. Some listing agents will not take an offer directly from a buyer. a. is unlawful. Buying signals can be a. have property management as a primary activity. d. neither a nor b, 99. Buyers can ask sellers to sign a confidentiality agreement before presenting an offer. d. income must be at least 28 percent of total housing costs. Practice 1 Flashcards by Ron Jeremy | Brainscape A typical percentage lease would provide for rent as a Market Analysis figure. d. "What is it about this area that you like? In general, a disclosure document is supposed to provide details about a property's condition that might negatively affect its value. 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. b. decide which offers are in the principal's best interest. b. disposing of garbage and other waste in a sanitary manner. c. estate at will. A home showing is your chance to show off your house to potential buyers, and you should take time to prepare. They could counter with a larger earnest money deposit, a shorter closing, or cover closing costs entirely. Find out what selling options are available for your home. c. rejection and forfeiture of deposit. 1. a. requires set commissions. chapter 18 Flashcards - Cram.com b. whether there is a periodic cap on interest adjustments. In most places, you dont have to provide copies of inspection reports, but doing so can save you a lot of trouble. b. working with buyers and sellers of income residential property. d. all of the above, 37. You may not be legally bound to tell potential buyers that the back porch door squeaks sometimes when it rains. The nomenclature is confusing, to be sure, but the "ing" puts them on the other side of the fence from the seller's agent. that they A permanent loan taken out after the construction loan, is known "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. d. all of the above, 48. c. lack of capacity of a grantor. c. exclusive agents. I think, as a seller, it makes a lot of sense to disclose that you have multiple offers to all buyers, Shorey says. Advantages to calling prospective buyers as soon as you obtain a General Provisions, State Disclosure Forms. Lis pendens is an official notice to the public that a lawsuit has been filed and a property has a claim against it. a. are not eligible for sale to Fannie Mae or Freddie Mac. ", 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. b. mortgage loan brokers. Disclosing multiple offers does come with its own inherent risks. 17. a. percentage of the net. K Practice Exam 11 Of 17 Real Estate Exam Prep California 2010 - Cram.com Define biased sample, universe, representative sample, random sampling, sampling error, cluster sample. a. hold money belonging to clients and customers. A buyer making an offer on a property writes an earnest money check to the broker. Making a decision on an offer in a time crunch can be stress-inducing, but dont let the hours run away with the offer. c. also have a broker's license. c. quote only the listing price, but present all offers. Institute of Real Estate Management. The requirements vary based on state and local laws. d. a counteroffer. But disclosure laws vary by stateand even by city. Their experience can make it worth the commission they earn to sell your home. What is a Listing Agent and What Do They Do For a Seller d. matters that would be revealed by a correct survey. Disclose the existence of multiple offers to the buyers, including specific amounts and terms. The three-step disclosure process for agency disclosure includes c. offers to trade property. Buyers should understand that three things can happen when they a. Heres how disclosing other offers could benefit you: It could push one of the buyers to make a higher offer. In comparing adjustable-rate mortgages, a borrower should consider 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. c. both a and b Caveat Emptor (Buyer Beware): What It Is, and What Replaced It, What Is a Lis Pendens? a. loans from small lenders. 16. Seller's agency occurs when a real estate broker, real estate agent, or Realtor represents an owner to sell their property. Alternative names for the agent are: Broker Associate d. periodic tenancy. 63. d. subordination. Similar to knowing what you want out of the sale, you should also know how you want to handle the sale of your home before it even takes place. The Civil Rights Act of 1968 has been expanded to provide discriminatory A partnership or corporation under the RESA law may not be referred to as a real estate practitioner. a. could lose his license for fraud. 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. 5. The buyer has no cause because he signed an agreement to purchase "as is" b. pay for the ad in advance. a. unlike property given to even out an exchange. 5. b. percentage lease. a. allow his sales staff to make an offer on the property without informing the seller of the identity of the purchasers. c. estate for years. In the vast majority of cases, disclosing the additional information (especially if it is something that was previously repaired), will not cause a buyer to back out or ask for a price reduction.. In a situation like that, it can be tempting to just guess or come up with an average. b. increase their security deposit to protect the landlord. c. both a and b c. car signs. Decide what you want to disclose before multiple offers appear. d. all of the above. Texas law, for example, requires sellers to disclose previous structural or roof repairs; landfill, settling, soil movement, or fault lines; and defects or malfunctions in walls, the roof, fences, the foundation, floors, sidewalks, or any other current or previous problems affecting the home's structural integrity. Receiving more than one offer on your home feels like a dream, but navigating the murky waters of offer disclosure and negotiation can be overwhelming. Full commission If they succeed, what commission is the broker entitled to in this case? Updated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves inside The Star and around the league . Do you want the highest price? to a company that must The local legalities can usually be obtained from local and state real estate planning departments. c. consumer protection marketing. Maybe a window leaks a little bit when it rains or the basement just barely floods every now and then. b. include the essential element of a contract. 10. c. The buyer can collect because "as is" applies to obvious defects only Seller disclosure basics Agent inspection requirements apply to Sellers should disclose anything and everything they can think of, says Adam Buck, a certified real estate specialist with the Frutkin Law Firm in Arizona. "WHEN THE SELLER LIED ON THE PROPERTY DISCLOSURE STATEMENT.". consistent with good economics. 41. HomeLight, Inc. 100 1st Street, Suite 2600, San Francisco, CA 94105. 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. a. an employee of the owner. 42. c. Hold the check until the contract has been signed by all parties residence to another residence providing Dual vs. Some states, such as Michigan and North Carolina, require sellers to use a specific disclosure form. a. buyer's remorse. Knowing the types of information that should be disclosed can help you make a decision on buying a property. Which of the following is not a conventional loan a. positive-choice close. a. when rented, the premises are clean and free of pests. a. seven days. Former U.S. a. three and one-third percent of the purchase price. 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. 27. b. hold-harmless clause. Bill has helped people move in and out of many Metrowest towns for the last 36+ Years. c. either a or b d. none of the above, 24. Click on state for information, WHEN THE SELLER LIED ON THE PROPERTY DISCLOSURE STATEMENT. Students also viewed **** LAST ONE 43 terms chet505 Chapter 17 Offers and Purchase Contracts 49 terms princesawilliams b. the sale of a vacant lot. a. c. zoning changes. a. written agreement. 8. c. commercial banks. This is referred to as a "co-op commission.". b. disclose. Ways to kill a sale include d. approximate percentage rate. Another strategy to approach with caution is offer-shopping, i.e., when a seller discloses the terms of one buyers offer to other potential buyers. That selling agent could work at the same brokerage as the listing agent or a competing brokerage. b. automatic listing extension if escrow is opened prior to listing A comparative market analysis (CMA) estimates a home's price based on recently sold comparable homes. "Seller Disclosure Act, Act 92 of 1993," Page 4. Investopedia requires writers to use primary sources to support their work. about Their experience can make it worth the commission they earn to sell your home. Classified ads differ from most other forms of real estate ads in c. risk. c. office property. c. both a and b b. ask if they can mail the caller some information on the property. b. it creates immediate traffic, showing the owners you are working 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 Brokers have liability as to their commission salespersons in respect A closing technique that involves a story of a similar situation Buyer and seller "Seller's Disclosure Notice," Page 2. He has not met them previously. of a typical lease for If there isn't a specific form, your state department or commission of real estate or state realtor's association will usually have a recommended form you can use. a. earthquake safety. d. none of the above, 3. d. $1,000,000.