ID Real Estate flashcards

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

Fiduciary duties

A real estate agent owes the principal duties of care, obedience, loyalty, disclosure, accounting, and confidentiality; these duties generally exceed those owed to a customer.

Federal fair housing protected classes

The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, or disability; HUD interprets sex to include sexual orientation and gender identity.

Statute of frauds

A legal rule requiring certain contracts, including real estate sale contracts and leases over one year, to be in writing and signed by the party to be enforced.

Loan-to-value ratio

The loan amount divided by the property's appraised value or purchase price, whichever is lower; lenders use LTV to measure financing risk.

Capitalization rate

Net operating income divided by property value; it converts income into an estimate of value and reflects the investor's required return.

Gross rent multiplier

Sale price divided by gross monthly rent; it is a quick income-property comparison tool and does not account for operating expenses.

Sales comparison approach

An appraisal method that estimates value by adjusting the sale prices of recently sold comparable properties for differences such as location, size, condition, and amenities.

Cost approach

An appraisal method that estimates value as replacement or reproduction cost new minus depreciation plus land value; it is most useful for new or unique properties.

Income approach

An appraisal method that estimates value by capitalizing a property's net operating income, typically using the formula value equals NOI divided by cap rate.

Quitclaim deed

A deed that transfers whatever interest the grantor may have in the property without warranties; the grantor does not guarantee title or defend against claims.

General warranty deed

A deed containing covenants of seisin, quiet enjoyment, against encumbrances, further assurance, and warranty forever; it gives the broadest title protection to the grantee.

Easement appurtenant

An easement that benefits a particular parcel of land and passes automatically with ownership of that dominant parcel; it is not personal to the owner.

Adverse possession

A doctrine allowing a person to acquire title by open, notorious, exclusive, hostile, and continuous possession of another's land for the statutory period.

RESPA Section 8

A federal law provision prohibiting kickbacks, fee splits, and unearned fees for referrals of settlement services in federally related mortgage transactions.

Lead-based paint disclosure

Federal law requires sellers and landlords of pre-1978 housing to disclose known lead-based paint hazards and provide buyers or tenants the EPA pamphlet before obligation.

30/360 proration method

A closing calculation that treats every month as 30 days and every year as 360 days; it is commonly used on licensing exams unless the problem states otherwise.

Idaho Real Estate Commission

The state agency that licenses and regulates Idaho real estate brokers and salespersons under Idaho Code Title 54, Chapter 20, and enforces license law.

Idaho community property

Idaho is a community property state; property acquired during marriage with community funds is generally owned equally by both spouses, while separate property remains separate.

Idaho Property Condition Disclosure Act

Idaho law requiring a seller of residential real property to deliver a written property condition disclosure to the buyer before transfer, subject to statutory exemptions.

Idaho transfer tax

Idaho does not impose a state real estate transfer tax; the county recorder charges recording fees when deeds and deeds of trust are recorded.

Idaho nonjudicial foreclosure

Idaho deeds of trust are commonly foreclosed nonjudicially by a trustee who records a notice of default and conducts a public sale after the statutory period.

Idaho agency disclosure

Idaho requires brokers to disclose the offered agency relationship in writing before a buyer or seller signs; dual agency requires informed written consent from all parties.

Idaho license requirement

Idaho law requires a license from the Idaho Real Estate Commission to engage in real estate brokerage for compensation; unlicensed persons may not perform licensed acts.

Idaho homestead exemption

Idaho law protects equity in a homeowner's primary residence from certain creditors; the exempt amount is set by statute and adjusted periodically.

Idaho recording

Idaho deeds, deeds of trust, and other real property interests are recorded with the county recorder where the property is located to provide constructive notice.

Idaho dual agency

Idaho permits dual agency only with the informed written consent of all parties; the broker must disclose the limited representation before acting for both sides.

Idaho earnest money

Idaho purchase and sale agreements state who holds earnest money and when it is refundable; brokers must handle trust funds according to the agreement and licensing rules.

Idaho deeds of trust

Idaho uses deeds of trust for most mortgage financing; the trustee holds legal title and may foreclose nonjudicially if the borrower defaults.

Idaho marital property presumption

Property acquired during an Idaho marriage is presumed community property unless it is traceable to separate property or changed by agreement; title alone does not control.

Idaho statute of frauds

Idaho requires real estate sale contracts and leases longer than one year to be in writing and signed by the party to be charged.

Idaho license renewal

Idaho real estate licenses are renewed every two years through the Idaho Real Estate Commission; continuing education must be completed during each renewal cycle.

Idaho buyer agency

Idaho buyers may engage a broker as their agent under a written buyer-broker agreement; the broker then owes fiduciary duties to the buyer rather than the seller.