Bermuda Real Estate Exam flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Real Estate Licensing Act 2017
- Bermuda statute requiring agents, brokers, and salespersons to be licensed by the Real Estate Licensing Board; practising without a licence is an offence.
- Conveyancing Act 1983
- Principal Bermuda statute governing contracts for sale, conveyances, and title; it sets formalities such as the requirement for written, signed instruments.
- Bermuda Land Registry
- Registry where deeds, mortgages, and other instruments affecting Bermuda land are recorded; it registers documents rather than conclusively guaranteeing title.
- Development Applications Board
- Body established under the Development and Planning Act 1974 that determines applications for planning permission and subdivision in Bermuda.
- Fiduciary duty of loyalty
- Agent must place the principal's interests above the agent's own, avoid conflicts and secret profits, and disclose all material information relevant to the transaction.
- Dual agency
- Acting for both buyer and seller in the same transaction; permitted only with informed written consent from both parties and fair treatment of each.
- Apparent authority
- Authority that arises when a principal's words or conduct lead a third party reasonably to believe the agent is authorised, binding the principal.
- Effective cause of sale
- The agent whose efforts substantially bring about the transaction; may support a commission claim even where another agent later completes the deal.
- Exclusive listing
- Listing giving one broker the right to commission regardless of who procures the buyer during the listing term, subject to the agreement's terms.
- Open listing
- Non-exclusive listing in which the seller may appoint several agents and pays commission only to the agent who procures the buyer.
- Contract for sale of land
- Written agreement signed by the party to be charged, stating parties, property, price, deposit, completion date, and any conditions.
- Deposit as stakeholder
- Deposit held by a neutral third party pending completion; forfeitable on buyer default but generally refundable if a contractual condition fails.
- Joint tenancy
- Form of co-ownership with unity of title, interest, time, and possession; on death the survivor takes the whole by right of survivorship.
- Tenancy in common
- Co-ownership in distinct, transferable shares with no right of survivorship; each owner may dispose of their share by will or sale.
- Title investigation
- Purchaser's solicitor's examination of the chain of title, encumbrances, easements, covenants, and charges, with requisitions raised before completion.
- Condominium Act 1970
- Bermuda statute governing condominium ownership; unit owners hold their units and share common property as tenants in common.
- Loan-to-value ratio
- Loan amount divided by the appraised value of the property; a key underwriting measure of mortgage risk and required down payment.
- Power of sale
- Lender's contractual and statutory remedy on default allowing sale of the mortgaged property after required notice, with proceeds applied to the debt.
- Mortgage priority
- Ranking of registered mortgages according to the order of registration in the Land Registry, not the date the loan was agreed.
- Debt service ratio
- Total monthly debt obligations divided by verified monthly income; lenders cap this ratio when approving a mortgage application.
- Sales comparison approach
- Valuation method adjusting prices of recent comparable sales for differences in location, size, condition, age, and sale date to indicate subject value.
- Capitalisation rate
- Net operating income divided by property value; used to convert income into an indication of value for investment property.
- Net operating income
- Effective gross income minus operating expenses, excluding mortgage interest, depreciation, and capital expenditure; the basis for income capitalisation.
- Highest and best use
- Legally permissible, physically possible, financially feasible use that produces the highest value; a standard valuation premise.
- Material change of use
- Development requiring planning permission under the Development and Planning Act 1974 when a property's use changes in a planning-relevant way.
- Bermuda Plan
- Planning document setting zoning, density, height, setback, and use controls that guide decisions of the Development Applications Board.
- Planning enforcement notice
- Notice requiring an owner to remedy unauthorised development, including restoration; non-compliance can lead to prosecution or court action.
- Stamp duty on transfer
- Tax payable on transfers of Bermuda real property, normally by the purchaser, at rates varying by value and purchaser status; required before registration.
- Land tax
- Annual tax on Bermuda land ownership under the Land Tax Act, assessed by reference to annual rental value and property use class.
- Non-resident purchaser duty
- Higher stamp duty rate and possible licence requirement applying to certain acquisitions of Bermuda property by non-residents.
- Customer due diligence
- AML requirement to identify the customer and beneficial owner, verify identity from reliable sources, and understand the purpose of the transaction.
- Suspicious activity report
- Report filed with Bermuda's Financial Intelligence Agency when a licensee knows or suspects money laundering or terrorist financing; tipping off is prohibited.