Jamaica REB Salesman Exam flashcards
Jamaica REB Salesman Exam · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Fee simple estate
- The most complete freehold interest in land, of indefinite duration, inheritable and freely transferable. It is the standard estate conveyed in a Jamaican residential sale.
- Highest and best use
- The legally permissible, physically possible, financially feasible use that produces the greatest value. It sets the premise for market value in any appraisal.
- Dual agency
- An agency where one agent acts for both vendor and purchaser. It requires full written disclosure and the informed consent of both parties before it may proceed.
- Fixture versus chattel
- A fixture is affixed to land and passes with it; a chattel remains personal property. Degree of annexation and intention of the parties decide the category.
- Exclusive right to sell
- A listing giving one agent the right to commission however the sale arises during the term, including a sale introduced by the owner personally.
- Torrens system
- A land registration system where the register is conclusive evidence of title. Dealings are registered rather than merely recorded, giving certainty to purchasers.
- Caveat
- A notice lodged with the Registrar of Titles by a person claiming an interest in land. It prevents registration of a dealing without notice to the caveator.
- Registration of Titles Act
- Jamaican legislation governing registered title, indefeasibility of title, dealings, and caveats. It is the core statute for verifying ownership of registered land.
- Real Estate Board
- The statutory body that licenses dealers, developers, and salesmen and investigates complaints. It may suspend or revoke a licence for improper conduct.
- Strata title
- Ownership of an individual unit together with a share of common property, managed by a strata corporation that maintains common areas and levies contributions.
- Land Acquisition Act
- Jamaican law setting out compulsory acquisition by the Crown, the notice procedure, and the landowner's right to claim compensation for land and injurious affection.
- Statute of Frauds
- Requires a contract for the sale of land to be evidenced in writing and signed by the party to be charged or their authorised agent.
- Counter-offer
- A reply that changes the terms of an offer. It destroys the original offer, so the original offeree can no longer accept it.
- Deposit as stakeholder
- A deposit held by the vendor's attorney as stakeholder, payable to the vendor only on completion or on the purchaser's default, and refundable if the vendor defaults.
- Good and marketable title
- Title free from encumbrances and defects that would affect a reasonable purchaser, shown to the purchaser's attorney during the requisition period before completion.
- Specific performance
- A court order compelling a party to complete the contract. It is a common remedy in land sales because each parcel is treated as unique.
- Conditions precedent
- Contract terms that suspend completion until an event occurs, such as loan approval or planning permission. If unsatisfied, the contract may lapse.
- Market value definition
- The estimated amount for which property should exchange on the valuation date between a willing buyer and seller in an arm's length transaction after proper marketing.
- Capitalisation rate
- Net operating income divided by property value. A lower rate implies a higher value for the same income, reflecting lower perceived risk.
- Net operating income
- Gross rental income less vacancy allowance and operating expenses, before debt service, income tax, and depreciation. It is the numerator in the income approach.
- Gross rent multiplier
- Sale price divided by gross annual rent. Applied to a subject property's gross rent, it gives a quick indication of value.
- Cost approach
- Value equals replacement or reproduction cost of improvements less accrued depreciation plus land value. Used where no active market exists, such as special-purpose buildings.
- Reconciliation
- The valuer weighs the approaches used, selects the most reliable indication, and states the final opinion of value with assumptions and the valuation date.
- Equity of redemption
- The mortgagor's right to recover the property on payment of principal, interest, and costs. Any term that clamps this right is void.
- Power of sale
- A mortgagee's remedy on default, exercisable after statutory notice, requiring good faith to obtain a proper price and accounting for any surplus.
- Loan-to-value ratio
- Loan amount divided by the lower of appraised value or purchase price. A higher ratio generally means higher pricing or mortgage insurance.
- Debt service coverage ratio
- Net operating income divided by annual debt service. Lenders commonly require a ratio above 1.0, often 1.2 or higher for investment property.
- Amortisation
- Repayment of a loan by level instalments covering interest and principal, so the balance reduces to zero at the end of the term.
- Fiduciary duty
- The agent's duty of loyalty, full disclosure of material facts, confidentiality, obedience to lawful instructions, and accounting for all client monies.
- Client money account
- A designated trust account for deposits and client funds, kept separate from the brokerage's operating funds and accounted for promptly to the client.
- Secret commission
- An undisclosed payment or benefit received by an agent from a third party in connection with a transaction. It is a breach of fiduciary duty.
- Conflict of interest
- A personal or financial interest that may influence the agent's advice. It must be disclosed in writing and managed, with consent where required.