PA State Real Estate Exam Flashcards

PA State Real Estate Exam Flashcards How is commission specifiedbetween the broker and the seller What type of survey isn't used in PArectangular server all exclusive contracts of employment must be... in writing PrincipalThis is the one being represented by an agent. In the real estate industry the principal is also known as "the client".This is usually, but not always, the one who will pay the agent for his/her services.Home Inspectors are prohibited from offering to perform additional repairs within 12 months after inspecting the property Appraisers must be certified by the...State Board of Certified Appraisers to engage in this activity when is a broker entitled to commissionwhen seller accepts an offer from a ready,willing, able buyer FHA 1974added sex CustomerThe one who enters into a real estate contract with the principal through the efforts of the principal's agent. A customer is a 3rd party to an agency relationship. The principal is the 1st party, the agent/licensee is the 2nd party. Everyone else in the world would be a 3rd party; a

customer.Example: M decides to sell her home for

$300,000. M enters into a "listing" agreement with licensee Z to sell her home. M is the 1st party and Z is the 2nd party. Any person who comes forward to buy the home is a customer; a 3rd party.redliningrefusing to make mortgage loans for reasons other than economic qualifications Modular homeshomes that are pre-made, or factory built Most common antitrust violationsprice fixing, group boycotting, allocation of customers/markets, and tie-in agreements Fair Housing Actgroup of laws prohibiting discrimination of everything else; administered by HUD Flood insurancemust be purchased as a special policy, may never be added to a homeowners policy. Mandatory in flood hazard zones When is sales commission paidwhen sale is complete by delivery of the sellers deed

Reconciliationanalyzing and weighing the three approaches: sales

comparison, cost, and replacement approach Equitydifference between the amount owed on the property and market value to be entitled to a sales commission (3) licensed brokerprocuring cause of saleemployed by the buyer or the seller under a valid contract

Blockbusting aka Panic Sellingunlawful act of encouraging ppl to sell or rent their homes by claiming that the entry of a prospective protected class will have some sort of negative impact on property values Converted use propertiescommercial properties that have been converted to other uses Housing for Older Persons Act (HOPA)Two types of housing can be restricted: if all units are occupied by persons of 62 and older or if 80% of the units are occupied by at least one person 55+ Clayton actprohibits exclusive tie-in sales, price discriminations and mergers and acquisitions that unfairly restrain trade Broker of record is responsible for..all activities performed by an affiliated licensees who enforces unfair trade practices and consumer protection law acting as a watchdog to maintain a free and open marketplace Antitrust Section in the Attorney General's office RELRA and State RE Commission Rules and Regs are laws..that govern how licensees provide real estate services in PA Civil rights act of 1864prohibits discrimination of race and color How many days must an app for credit be accepted/rejected within 30 days of completion; if denied, creditor must provide the specific reason for rejection must need (blank) to advertise a property in print or onlinewritten authority of owner/seller FHA 1968race color religion and origin Designated agencyprocess that accommodates an in-house sale, 2 different affiliated licensees are involved. broker is still a dual agent but 2 agents represent opposite sides in a property sale FHA 1988added familial status, disability Real estate counselors must be..licensed real estate brokers Sherman Antitrust lawsprohibits contracts or conspiracies that create monoploies How much capital gain need to be taxable for single persons, married couple 250k, 500k Sales comparison approachestimate of value is obtained by comparing the subject property w recently sold comparable properties Antitrust lawscollection of federal and state government laws that regulates the conduct and organization of business corporations, generally to promote fair competition for the benefit of consumers.prevents brokers from applying uniform commission rates Appraisalprocess of estimating a property's market value, based on established methods, and professional opinion Brokeragebusiness of bringing parties together what can a broker do regarding commission rates may set the minimum rate acceptable for their firm subagentagent of an agent; also an agent of the principal Steeringtelling buyer where to buy/discouraging them from other places