AK Real Estate flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Fiduciary duty of loyalty

A licensee must place the principal's interests above the licensee's own and avoid self-dealing, undisclosed profit, or conflicts of interest without informed consent.

Dual agency written consent

A broker representing both buyer and seller in one transaction must obtain informed written consent from both parties and treat them fairly without favoring either side.

Material fact disclosure

A licensee must disclose facts that could affect a reasonable person's decision to buy, sell, or lease, regardless of which party the licensee represents.

Confidentiality after termination

The duty to keep a former principal's confidential information secret continues after the agency relationship ends, unless disclosure is required by law or authorized.

Statute of frauds

A legal rule requiring certain real estate contracts, including purchase and sale agreements and leases over one year, to be written and signed to be enforceable.

Earnest money

A buyer's good-faith deposit held in trust and applied to the purchase price at closing or returned or forfeited according to the contract terms.

Contingency clause

A contract provision making the buyer's obligation conditional on an event such as financing, inspection, appraisal, or sale of another property.

Loan-to-value ratio

The loan amount divided by the property's value or purchase price, expressed as a percentage; higher LTV generally means greater lender risk.

Discount points

Prepaid interest paid at closing to reduce the mortgage interest rate; one point equals one percent of the loan amount.

PITI payment

The total monthly housing payment consisting of principal, interest, property taxes, and hazard insurance, often collected through an escrow account.

Amortization

The gradual repayment of a mortgage through scheduled payments that cover accrued interest and reduce principal over the loan term.

Fee simple absolute

The most complete ownership estate, giving the owner unlimited duration and broad rights to use, transfer, encumber, and devise the property.

Easement appurtenant

A right to use another's land that benefits a neighboring parcel and transfers automatically with ownership of the benefited dominant parcel.

Tenancy in common

Co-ownership by two or more persons with undivided interests that may be unequal and pass by inheritance; no right of survivorship applies.

Race-notice recording

A recording system protecting a later purchaser who takes without notice of prior claims and records first; Alaska follows this approach.

Nonconforming use

A land use that lawfully existed before a zoning change but no longer complies with current rules; it may continue under limits.

Variance

An administrative approval allowing a property owner to deviate from a zoning standard because of unique hardship, without changing the permitted use.

Phase I environmental site

A due-diligence report reviewing records, site conditions, and historical uses to identify potential contamination; it does not include soil sampling.

Sales comparison approach

An appraisal method estimating value by comparing the subject property with recently sold similar properties and adjusting for differences.

Capitalization rate

A rate expressing the relationship between a property's net operating income and value; value equals net operating income divided by cap rate.

Highest and best use

The reasonably probable, legal, physically possible, financially feasible use that produces the greatest value to the property.

Broker name in advertising

Alaska advertising rules require real estate ads to identify the brokerage name; misleading or false claims about services or properties are prohibited.

Fair housing protected classes

Federal law prohibits discrimination based on race, color, religion, sex, national origin, familial status, or disability in housing sales and rentals.

Seller's property disclosure

A written statement in which the seller reveals known material defects and conditions affecting the property, helping buyers make informed decisions.

Commission calculation

The commission equals the sale price multiplied by the agreed commission rate; it is typically split between the listing and cooperating brokers.

Proration of property taxes

At closing, property taxes are divided between buyer and seller based on the closing date, often using actual days in the tax year.

Acre conversion

One acre equals 43,560 square feet, and one square mile section equals 640 acres; these conversions are common in land valuation.

Net to seller

The seller's proceeds equal the sale price minus commissions, closing costs, liens, and other agreed deductions.

Alaska Real Estate Commission

The state regulatory body that licenses real estate brokers and salespersons, adopts regulations, investigates complaints, and imposes discipline.

Broker supervision duty

An Alaska broker must supervise licensed salespersons and unlicensed assistants, review documents, and ensure trust funds and advertising comply with law.

Alaska security deposit limit

For most residential tenancies, an Alaska landlord may not require a security deposit exceeding two months' rent; it must be returned with an accounting.

Alaska recording notice

Recording a deed or mortgage in the appropriate district recorder's office gives constructive notice to later purchasers and lenders.