KS 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 licensee owes clients duties including obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care; these are often remembered by the acronym OLD CAR.

Offer and acceptance

A valid real estate contract requires a definite offer, unqualified acceptance, consideration, competent parties, and a lawful purpose; mutual assent creates the agreement.

Statute of Frauds

A state law requiring certain contracts, including real estate sales and leases longer than one year, to be in writing and signed by the party to be charged.

General warranty deed

A deed in which the grantor warrants title against all defects arising before and during the grantor's ownership, including quiet enjoyment, right to convey, and further assurances.

Special warranty deed

A deed in which the grantor warrants title only against defects created by or through the grantor, not against defects that existed before the grantor acquired title.

Quitclaim deed

A deed that transfers whatever interest the grantor may have without any warranty of title; it provides no guarantee that the grantor owns the property.

Marketable title

Title that is free from reasonable doubt and defects that would cause a prudent buyer to hesitate; sale contracts commonly require delivery of marketable title at closing.

Constructive notice

Notice imputed by law from properly recording a document in the public records, whether or not a person actually examines those records.

Loan-to-value ratio

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

Discount points

One discount point equals 1% of the loan amount; borrowers may pay points to reduce the interest rate, and lenders may charge them to increase yield.

PITI payment

A borrower's monthly housing payment including principal, interest, property taxes, and homeowners insurance; it is commonly used in qualifying and affordability calculations.

Sales comparison approach

An appraisal method that estimates value by comparing the subject property with recently sold similar properties, adjusting for differences in location, size, condition, and features.

Capitalization rate

Cap rate equals net operating income divided by property value or price; it measures an income property's unlevered return and is used in the income approach.

Gross rent multiplier

GRM equals sale price divided by gross monthly rent; appraisers use it to estimate value for income properties by multiplying the subject's rent by a market GRM.

Federal fair housing classes

Federal fair housing law prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability in the sale or rental of housing.

Blockbusting

An illegal practice of inducing homeowners to sell by suggesting that members of a protected class are moving into the neighborhood, often to profit from panic selling.

Kansas Real Estate Commission

The Kansas Real Estate Commission is the state agency that licenses and regulates real estate brokers and salespersons under the Kansas Real Estate Brokers' and Salespersons' License Act.

Kansas salesperson sponsorship

A Kansas salesperson must be affiliated with and sponsored by a licensed Kansas broker; the salesperson's license is not active without a qualifying broker.

Kansas salesperson requirements

Kansas salesperson applicants must be at least 18, have a high school diploma or equivalent, complete KREC-approved prelicense education, pass the exam, and affiliate with a broker.

Kansas Brokerage Relationships Act

Kansas law defines agency and transaction-broker relationships and requires licensees to provide required brokerage-relationship information; agency relationships are established by written agreement.

Kansas transaction broker

A Kansas licensee who assists a buyer and seller without representing either as an agent; the transaction broker must treat both parties honestly and disclose known adverse facts.

Kansas residential assessment rate

In Kansas, residential property is assessed for property tax at 11.5% of its appraised value, subject to applicable exemptions and the county's mill levy.

Kansas commercial assessment rate

In Kansas, commercial and industrial property is assessed for property tax at 25% of appraised value; the tax is computed using the county mill levy.

Kansas agricultural assessment rate

In Kansas, agricultural land is assessed for property tax at 30% of its appraised value, and the resulting assessed value is multiplied by the local mill levy.

Kansas property tax formula

Kansas property tax equals assessed value times mill levy divided by 1,000; assessed value equals appraised value times the property's statutory assessment rate.

Kansas mill levy

A Kansas mill levy is the property tax rate per $1,000 of assessed value; a 100-mill levy produces $100 of tax on each $1,000 of assessed value.

Kansas homestead exemption

The Kansas Constitution protects a homestead, generally 160 rural acres or one urban acre plus the dwelling, from forced sale except for taxes, mortgages, and certain specified debts.

Kansas deed recording

Kansas deeds should be acknowledged and recorded with the county register of deeds; recording provides constructive notice of the interest to later purchasers and lenders.

Kansas register of deeds

The elected county official who records deeds, mortgages, and other real estate documents in Kansas and maintains the public record used for title searches.

Kansas county appraiser

The county official responsible for appraising taxable property in Kansas and determining its appraised value for the annual property tax assessment roll.

Kansas license renewal

Kansas real estate licenses are renewed on a biennial cycle administered by KREC; licensees must satisfy the commission's renewal and continuing-education requirements to remain active.

Kansas continuing education

Kansas real estate licensees must complete continuing education required by KREC during each renewal cycle; failure to meet the requirement can prevent license renewal.