GA RE Broker flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Georgia Real Estate Commission
- The state agency that licenses and regulates Georgia real estate brokers and salespersons, adopts rules, and may reprimand, suspend, revoke, or fine licensees for violations.
- Sponsoring broker requirement
- A Georgia salesperson must be affiliated with a sponsoring broker and may not accept compensation for brokerage services except through that broker or the broker's firm.
- Commingling of trust funds
- Illegal practice of mixing client escrow or earnest money with the broker's personal or business funds; trust funds must be held in a separate designated trust account.
- Georgia CE requirement
- Licensees complete 36 hours of continuing education per four-year cycle, including at least 3 hours of license law, and renew annually by the last day of their birth month.
- Designated agency
- Arrangement in which the broker appoints one affiliated licensee to represent the buyer and another to represent the seller, each owing full fiduciary duties to that client.
- Dual agency disclosure
- A broker representing both buyer and seller in the same transaction must obtain the informed written consent of both parties before acting as a dual agent.
- OLD CAR duties
- The fiduciary duties an agent owes a client: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care; confidentiality continues after the agency ends.
- Statute of frauds
- Legal rule requiring real estate contracts to be in writing and signed by the party to be charged in order to be enforceable in court.
- Due diligence period
- Contract period during which the buyer may inspect the property and terminate the purchase agreement for any reason, typically receiving the earnest money back.
- Counteroffer effect
- A counteroffer rejects and terminates the original offer; the original offer cannot later be accepted unless the original offeror revives it.
- Specific performance
- Equitable remedy compelling a party to complete a contract; commonly sought for land because each parcel is treated as unique, making money damages inadequate.
- Liquidated damages
- A contract clause setting a predetermined amount, often the earnest money, that the seller may keep if the buyer defaults without a legal excuse.
- P&I payment formula
- Monthly payment equals loan amount times the monthly rate divided by one minus one plus the monthly rate raised to the negative number of payments.
- Discount points
- Prepaid interest equal to one percent of the loan amount per point, paid at closing to reduce the note interest rate over the loan term.
- Loan Estimate timing
- Under TILA-RESPA integrated disclosure rules, the lender must deliver the Loan Estimate within three business days after receiving the borrower's application.
- Closing Disclosure timing
- The borrower must receive the Closing Disclosure at least three business days before consummation of the loan, allowing time to review final costs.
- Deed of trust parties
- In Georgia, the borrower is the grantor, the lender is the beneficiary, and a trustee holds title with power to sell nonjudicially if the borrower defaults.
- Georgia transfer tax
- Georgia charges one dollar per one thousand dollars of consideration, rounded up to the next thousand, usually paid by the seller at closing.
- Proration at closing
- Allocation of expenses between buyer and seller as of closing; annual items use a 365-day year, and monthly items use the actual days in the month.
- Housing expense ratio
- Ratio of the borrower's monthly housing payment to gross monthly income; conventional guidelines commonly use 28 percent as a benchmark.
- Total debt ratio
- Ratio of all monthly debt obligations, including the proposed housing payment, to gross monthly income; conventional guidelines commonly use 36 percent.
- Trust account reconciliation
- The broker must reconcile trust account records monthly, keep records at least three years, and account for all funds belonging to others.
- Fixture test
- An item becomes real property when annexed to the realty, adapted to its use, and intended as a permanent improvement; trade fixtures installed by tenants remain personal property.
- General warranty deed
- Deed containing covenants of seisin, right to convey, against encumbrances, quiet enjoyment, warranty, and further assurances, giving the grantee the broadest protection.
- Quitclaim deed
- Deed that conveys only whatever interest the grantor may have, with no warranties; commonly used to clear title defects or release claims.
- Easement appurtenant
- An easement that benefits a dominant parcel and burdens a servient parcel; it passes with the land when either parcel is transferred.
- Easement in gross
- An easement benefiting a person or entity rather than a parcel of land, such as a utility company's right to run lines across property.
- Sales comparison adjustments
- Adjust the comparable's price toward the subject: subtract when the comparable is superior, add when it is inferior; adjustments reflect the value of the difference.
- Cost approach formula
- Value equals replacement cost new minus accrued depreciation plus land value; used for special-purpose properties with few comparable sales.
- Capitalization rate method
- Value equals net operating income divided by the capitalization rate; the cap rate is derived from market sales of similar income properties.
- Gross rent multiplier
- Sale price divided by gross monthly rent; a quick screening tool for income property that ignores operating expenses and financing.
- Prescriptive easement
- A right acquired by open, notorious, adverse, and continuous use of another's land for the statutory period, which in Georgia is 20 years.