PA Modern Real Estate Practice Unit 13,14,15,16 and 17 14th edition

PA Modern Real Estate Practice Unit 13,14,15,16 and 17 14th edition Flashcards Seller's Property DisclosureThe form a seller may use to disclose property conditions in which they are obligated to note any deficiencies in the property. Applies only to one to four family dwellings.Special Flood Hazard Area (SFHA)Defined by FEMA as the area that will be inundated by the flood event having a 1% chance of being equaled or exceeded in any given year. The 1% annual chance flood is also called the base flood or 100-year flood.AgencyA strict, defined legal relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal). Governed by both common law and statutory law.Environmental hazardsLicensees should make known to clients of potential issues with environmental health hazards, which render properties unusable for the buyer's intended purpose. Licensees should obtain advice from state & local authorities responsible for environmental regulations whenever the

following conditions might be present: toxic waste dumping,

underground storage tanks, contaminated soil or water, nearby chemical or nuclear facilities and health hazards such as radon, asbestos or lead paint.Homeowners Insurance PolicyA standardized insurance policy that covers a residential real estate owner against financial loss from fire, theft, public liability, and other common risks.Broad standardized insurance policy plus additional coverage such as damage from freezing of plumbing, etc.DisclosureFiduciary duty of an agent to disclose all facts or information that might affect the principal's position in a transaction. All relevant information or material facts that an agent knows or should have known. Sellers are required to disclose latent defects of which they are aware. Buyer's agent must disclose deficiencies of a property as well as provisions in a sales contract and financing terms that may affect the buyer's decision to purchase.Special AgentOne limited in authority to transact a single business affair or a specific series of business affairs or to perform restricted acts for the principal. (Representing a buyer or seller in one real estate transaction) PITIPrincipal, Interest, Taxes, Insurance Procuring CauseThe actions by a broker which result in the owner being able to make a sale.

Multiple Listing Service (MLS)A listing service whereby local members of the Board of REALTORS agree to share listings and commissions on properties sold jointly. Members of the public may have access to the MLS, but not to all of the features and content.Independent ContractorA licensed agent that receives compensation from an employer, but works as an independent contractor under a contract agreed to by both parties that covers obligations & responsibilities of both parties along with terms of compensation. Employer can control what you do but not how it is done. Employee must derive income from 90% production not hours worked.Types of HousingSingle-family detached houses, apartment buildings, condominiums, cooperatives, Planned unit developments (PUD's), mixed use developments (MUD's), converted use properties, factory built housing, retirement communities, manufactured housing, modular homes, time shares.Home InspectionA licensed home inspector evaluates the structural and mechanical condition of a property such as the roof, heating/AC systems, electrical system and plumbing. May recommend hiring a specialist if a concern arises such as an electrician, plumber, etc. A satisfactory home inspection is often included as a contingency by the buyer when purchasing a home..AccountingAgent must be acountable for all funds received on behalf of the principal.Dual AgencyA situation in which a person or firm has an agency and fiduciary relationship to both parties-seller and buyer-of a transaction. Must be agreed to by both parties in writing.Do Not Call RegistryA federal program managed by the FTC that allows homeowners to register their residential phone numbers in order to eliminate with some exceptions unsolicited phone calls from telemarketers.It must be rechecked every 31 days; after inquiry up to 3 months; for established relationships up to 18 months after closing. If consumers ask you not to call you must Stop up to 5 years.Mortgage terms and payment plansMortgage terms and payment plans are two of the biggest factors when deciding whether to own or rent a home. FHA & VA loans offer low down payments & lower credit score requirements. PA Housing Finance Agency & Local community reinvestment programs sponsor many additional mortgage programs.Errors and Omissions InsuranceReal estate insurance equivalent to malpractice coverage.Cover liability for errors or negligence. Does not cover fraudulent claims, criminal activities, or violations of civil

and antitrust laws.BrokerageA real estate broker acts as a point of contact between two or more people in negotiating the sale, purchase, or rental

of property. A broker is defined as a person or complany licensed to buy, sell, exchange, or lease real property for others and to charge a fee for these services. A broker is also considered a salesperson.