Real Estate Transaction Agent Examination flashcards
Real Estate Transaction Agent Examination · Build recall with a focused review session.
33 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Statute of Frauds
- A legal rule requiring certain contracts, including real estate purchase agreements and listings in most jurisdictions, to be in writing and signed by the party to be charged to be enforceable.
- Procuring Cause
- The broker whose efforts initiate an uninterrupted chain of events culminating in the sale; used to resolve commission disputes between cooperating brokers, not to establish agency.
- Dual Agency
- A brokerage representing both buyer and seller in the same transaction; permitted only with informed written consent of both principals and prohibited if undisclosed.
- Tenancy in Common
- Co-ownership in which each owner holds a distinct, divisible share with no right of survivorship; shares may be conveyed or devised independently.
- Joint Tenancy
- Co-ownership with equal undivided interests and right of survivorship; on death of one joint tenant, the interest passes to surviving joint tenants outside probate.
- Race-Notice Recording
- A recording statute under which a later purchaser prevails only if it records first and takes without notice of prior unrecorded interests; the majority rule in the United States.
- Easement Appurtenant
- An easement benefiting a dominant parcel and burdening a servient parcel; it runs with the land and transfers automatically with the benefited property.
- Marketable Title
- Title free from reasonable doubt and from encumbrances a reasonable buyer would object to; distinct from insurable title, which may contain defects an insurer accepts.
- Exclusive Right to Sell
- A listing in which the broker earns the agreed commission regardless of who procures the buyer, including the seller; the most protective listing for the broker.
- Exclusive Agency Listing
- A listing in which the broker earns commission if the broker or another broker procures the buyer, but the seller retains the right to sell without paying commission.
- Open Listing
- A non-exclusive listing permitting the seller to engage multiple brokers; only the broker who procures the buyer earns commission, and the seller may sell directly.
- Buyer Broker Agreement
- A written agreement establishing the buyer as the broker's principal, defining duties, compensation, term, and agency relationship before property showings.
- Counteroffer
- A response that changes the terms of an offer; it operates as a rejection terminating the original offer and creates a new offer subject to acceptance.
- Contingency
- A contract condition that must be satisfied for the contract to proceed; common examples include financing, inspection, appraisal, and sale-of-buyer's-home contingencies.
- Earnest Money
- A deposit demonstrating buyer good faith and consideration for the contract; its disposition on default is governed by the contract and escrow instructions.
- Specific Performance
- An equitable remedy compelling a breaching party to perform the contract; frequently granted for unique real property where damages are inadequate.
- Liquidated Damages
- A contractually fixed sum payable on breach; enforceable only if reasonable and a genuine estimate of anticipated loss, not a penalty.
- Lead-Based Paint Disclosure
- Federal requirement for sales and leases of pre-1978 housing to disclose known lead hazards and provide the EPA pamphlet and opportunity for inspection.
- Agency Disclosure
- A written statement identifying whom the licensee represents and the duties owed; typically required at first substantive contact or before an offer.
- Material Fact
- Information that could affect a reasonable person's decision to buy, sell, or lease; licensees must disclose known material facts to all parties.
- Stigmatized Property
- Property affected by events such as a death, crime, or alleged haunting that may deter buyers; disclosure duties vary by state statute.
- Loan Estimate
- A standardized disclosure delivered within three business days of a mortgage application showing estimated interest, payments, closing costs, and loan terms.
- Closing Disclosure
- A standardized form delivered at least three business days before loan consummation, showing final loan terms and actual closing costs.
- RESPA Section 8
- Prohibits kickbacks, referral fees, and unearned fee splits among settlement service providers; affiliated business arrangements require disclosure and no required use.
- Escrow Trust Account
- A segregated account holding client funds such as earnest money; requires accurate ledgers, timely deposits, and monthly reconciliation; commingling is prohibited.
- Owner's Title Policy
- Title insurance protecting the property owner against covered defects existing at closing; the lender's policy separately protects the lender up to the loan amount.
- Proration
- Allocation of expenses such as property taxes, rent, and HOA dues between buyer and seller as of the closing date, based on contract terms and local custom.
- Commingling
- Mixing client funds with personal or brokerage funds in one account; prohibited and a common ground for license discipline.
- Confidentiality Duty
- A fiduciary obligation not to disclose a principal's confidential information without consent; it survives termination of the agency relationship.
- Unauthorized Practice of Law
- Providing legal advice or drafting legal documents beyond statutory forms; prohibited for licensees and a ground for discipline.
- Fair Housing Act
- Federal law prohibiting discrimination in the sale, rental, and financing of housing based on race, color, religion, sex, national origin, familial status, or disability.
- Blockbusting
- Inducing homeowners to sell by suggesting that members of a protected class are moving into the neighborhood; a prohibited discriminatory practice.
- Steering
- Directing buyers toward or away from neighborhoods based on protected class characteristics rather than objective criteria; a fair housing violation.