OH Real Estate flashcards
OH Real Estate · 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.
- Fiduciary duty of loyalty
- Requires an agent to act solely in the principal's best interest, avoid self-dealing, and not acquire secret profits from the transaction.
- Dual agency
- An agency relationship in which one licensee represents both buyer and seller in the same transaction; Ohio requires informed written consent from both parties.
- Duty of confidentiality
- An agent must not disclose a principal's confidential information, such as motivation or financial limits, without authorization, and the duty may survive termination.
- Material fact disclosure
- A licensee must disclose known facts that could affect a reasonable buyer's decision, such as latent defects, regardless of which party the licensee represents.
- Agency by ratification
- An agency relationship created when a principal accepts the benefits of acts performed by someone who was not previously authorized to act as agent.
- Compensation and agency
- The source of a licensee's commission does not by itself create or determine agency; agency depends on the agreement and disclosure of representation.
- Duty of reasonable care
- Requires a licensee to use the skill, diligence, and knowledge that a reasonably competent real estate professional would use in similar circumstances.
- Statute of Frauds
- Requires real property sale contracts and leases longer than one year to be in writing and signed by the party to be charged.
- Earnest money
- A deposit given by a buyer to show good faith; it is held in trust and applied to the purchase price or disbursed according to contract terms.
- General warranty deed
- A deed containing covenants of title, including seisin, right to convey, quiet enjoyment, warranty, and freedom from encumbrances.
- Residential property disclosure
- Ohio sellers of most one-to-four family dwellings must provide a disclosure form describing known material defects before the buyer is bound.
- Contingency clause
- A contract provision making a duty conditional on a specified event, such as inspection, financing, appraisal, or sale of the buyer's home.
- Option contract
- An agreement in which a buyer pays for the exclusive right to purchase property within a set period, while the seller must sell if the option is exercised.
- Loan-to-value ratio
- The loan amount divided by the property's value or purchase price, expressed as a percentage; higher LTV generally increases lender risk.
- PITI payment
- The total monthly housing payment consisting of principal, interest, property taxes, and homeowners insurance; it may also include mortgage insurance.
- Discount point
- A fee equal to one percent of the loan amount paid at closing to reduce the interest rate, often called a buydown.
- Amortization
- The gradual repayment of a loan through scheduled payments that cover both interest and principal over the loan term.
- Debt-to-income ratio
- Total monthly debt obligations divided by gross monthly income; lenders use it to evaluate a borrower's ability to repay.
- Loan Estimate
- A standardized federal disclosure provided within three business days after a mortgage application, showing estimated loan terms, closing costs, and payments.
- Private mortgage insurance
- Insurance that protects a lender against borrower default, commonly required on conventional loans when the down payment is less than twenty percent.
- Ohio Division of Real Estate
- The state agency within the Department of Commerce that licenses, regulates, and disciplines Ohio real estate brokers and salespersons.
- Salesperson sponsorship
- An Ohio real estate salesperson must be affiliated with and supervised by a licensed broker to engage in real estate brokerage activity.
- Trust account commingling
- Mixing client or transaction funds with the broker's personal or operating funds; Ohio prohibits this and requires separate trust records.
- Ohio continuing education
- Ohio real estate licensees must complete continuing education during each three-year renewal cycle, including required core law hours.
- Unlicensed brokerage
- Performing acts that require an Ohio real estate license, such as listing or negotiating property for compensation, is prohibited and subject to penalties.
- Dual agency consent
- Ohio permits a licensee to represent both parties only after both buyer and seller give informed written consent to the dual agency relationship.
- Highest and best use
- The reasonably probable use that is legally permissible, physically possible, financially feasible, and maximally productive, producing the highest property value.
- Sales comparison approach
- A valuation method that estimates value by comparing the subject property with similar recently sold properties and adjusting for differences.
- Capitalization rate
- A rate used in the income approach; value equals net operating income divided by the capitalization rate.
- Tenancy in common
- Co-ownership in which each owner holds a separate, undivided interest with no right of survivorship; interests may be transferred or inherited.
- Joint tenancy
- Co-ownership with right of survivorship, meaning a deceased owner's interest passes automatically to the surviving joint tenants.
- Cost approach
- A valuation method that estimates value by adding land value to the depreciated replacement cost of improvements.