First Tuesday Real Estate Practice Flashcards

First Tuesday Real Estate Practice Flashcards licensed activitiesDealing by DRE licensees with members of the public to offer, contract for and render real estate brokerage services for compensation.advance cost sheetAn itemization of the costs incurred to properly market a property for sale which are to be paid by the owner.listing agreementA written employment agreement used by brokers and agents when an owner, buyer, tenant or lender retains a broker to render real estate transactional services as the agent of the client fee-splittingWhen fees made to a broker are split vertically with employed agents or split horizontally among other brokers Open ListingAn employment entered into by a broker to render real estate services on a best-efforts basis for a fee to be paid if they achieve the client's objective of the employment before the client or another broker independent of the broker first meet the objective, such as locating a buyer or a property factAn existing condition which is presently known or readily knowable by the agent forecastAnalysis of anticipated changes in circumstances influencing the future income, expenses and use of a property.exclusive right-to-sell listing agreement A written employment agreement by a broker and a seller of real estate employing and entitling the broker to a fee when the property sells during the listing period general dutyThe duty a licensee owes to non-client individuals to act honestly and in good faith with upfront disclosures of known conditions which can adversely affect a property's value.real estate-owned (REO) propertyProperty acquired by a mortgage holder through foreclosure.projectionAn opinion about an income property's future performance based on its performance during the preceding 12-month period, adjusted for presently known trends.home energy auditAn audit conducted by a Home Energy Rater evaluating the energy efficiency of the home.Alquist-Priolo MapsMaps which identify earthquake fault areas available from the State Mining and Geology Board and the city or county planning department unilateral fee instructionsInstructions signed only by the seller which authorize escrow to pay the broker fee from their net proceeds of the

sale

exclusive agentAn agent who is acting exclusively on behalf of only one party in a transaction.Agency Law DisclosureA form containing real estate agency codes which establish the conduct of real estate licensees when representing others in a real estate transaction, which is delivered to all parties in sales transactions other than for five or more unit residential properties option to buyAn agreement granting an irrevocable right to buy property within a specific time period.dual agentA broker who represents both parties in a real estate transaction seller's agentAn agent representing the seller. Also known as a listing agent.guaranteed sale listingA variation of the exclusive right-tosell listing in which the broker agrees to buy the property if the property does not sell during the listing period.trust fundsItems which have or evidence monetary value held by a broker for a client or others when acting in a real estate transaction.agency confirmation provisionA provision in all purchase agreements and counteroffers disclosing the agency of each broker in the transaction.turnover rateThe rate at which a broker loses and replaces agents.fiduciary dutyThat duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over their principal by the slightest misrepresentation, concealment, duress or undue influence."as-is" clauseAn unenforceable provision stating the buyer accepts the property without a full disclosure of known conditions.Properties are sold "as-disclosed," never "as-is." negative fraudDeceitfully withholding or failing to disclose information to someone.multiple listing service (MLS)A subscription available to real estate brokers which pools preliminary information on property listings for publication.Transfer Disclosure Statement (TDS)A mandatory disclosure prepared by a seller and given to prospective buyers setting forth any property defects known or suspected to exist by the seller, generically called a condition of property disclosure title conditionsEncumbrances such as liens, conditions, covenants and restrictions and easements which affect title to property.finder's feeThe fee paid to an individual who solicited, identified or referred a client to a broker, agent or principal.conflict of interestWhen a broker or agent has a positive or negative bias toward a party in a transaction which is incompatible with the duties owed to their client.

estimatePrediction of future amounts which have not yet actually occurred.best effort obligationObligations under an open listing requiring the agent to take reasonable steps to achieve the objective of the client but requiring no affirmative action until a match is located at which point due diligence is required buyer's agentAn agent representing the buyer. Also known as a selling agent.home inspection report (HIR)A report prepared by a home inspector disclosing defects in improvements on a property and used by the seller's agent to complete a TDS and assure prospective buyers about a property's condition.restraint on alienationA limit placed on a property owner's ability to sell, lease for a period exceeding three years or further encumber a property, as permitted by federal mortgage policy exclusive agency listingA listing agreement employing a broker as the sole agent for the seller of real property under terms entitling the broker to a fee if the property is sold through any other broker, but not if a sale is negotiated by the owner without the services of an agent.unilateral employment agreementAn oral or written employment agreement obligating the broker to use their best efforts to fulfill the client's real estate goals without imposing a due diligence duty on the broker until a match is located, commonly called an open listing.opinionA statement by an agent concerning an event or condition which has not yet occurred based on readily available facts risk reduction programOffice procedures implemented and actively overseen by a broker to mitigate risk of liability by ensuring the broker's employees conduct themselves as the broker expects.California Home Energy Rating SystemCalifornia state system used to create a standard rating for energy efficiency and certify professional raters.subagentAn individual who has been delegated agency duties by a broker employed by a client, not the client themselves.restorationThe return of funds and documents on a rescission of a purchase agreement sufficient to place the buyer and seller in the position they held before entering into the agreement.withdrawal-from-sale clause KA provision in an exclusive listing agreement which calls for a broker fee to be earned and payable when the seller withdraws the property from sale, makes the property unmarketable, transfers ownership or, without the broker's consent, further leases the property net listingA type of listing setting the agent's fee as all sums received exceeding a net price established by the owner.