OK Real Estate flashcards

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

Oklahoma Real Estate Commission

The Oklahoma Real Estate Commission is the state agency that administers the Oklahoma Real Estate License Code, investigates complaints against licensees, and imposes discipline after hearings.

Provisional sales associate

An Oklahoma license category for a new licensee who must work under a supervising broker and complete required post-license education within the first year of licensure.

Sales associate compensation

In Oklahoma a sales associate may not accept payment directly from a client; commissions and fees must flow through the supervising broker who holds the license.

Unlicensed assistant limits

Unlicensed assistants may perform clerical and ministerial tasks such as answering phones or delivering documents, but may not negotiate, show property for compensation, or quote commission terms.

Commission disciplinary powers

After an administrative hearing the Oklahoma Real Estate Commission may reprimand, suspend, revoke, or fine a licensee who violated the License Code or Commission rules.

Transaction broker

An Oklahoma broker who assists both parties without advocating for either side; duties include honesty, accounting, reasonable care, and disclosure of material facts.

Single agent fiduciary duties

The fiduciary obligations owed by an Oklahoma single agent: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care, commonly recalled by the acronym OLD CAR.

Agency disclosure timing

Under Oklahoma's Broker Relationships Act the broker must disclose the agency relationship in writing before the buyer or seller signs an offer or listing agreement.

Confidentiality after termination

A broker's duty to keep a former client's confidential information secret continues after the agency relationship ends and after the transaction closes.

Material fact disclosure

Licensees must disclose known material facts that could affect a party's decision, such as structural defects or planned zoning changes, while Oklahoma does not require disclosure of psychological stigma.

Statute of Frauds

A rule requiring that contracts for the sale of real property, and leases longer than one year, be in writing and signed by the party to be charged.

Residential Property Condition Disclosure

Oklahoma law requiring a seller of one-to-four unit residential property to deliver a written disclosure or disclaimer statement before the buyer's offer is accepted.

Liquidated damages

A contract clause allowing the seller to keep the buyer's earnest money as agreed damages if the buyer defaults, instead of suing for actual damages.

Contingency clause

A contract condition such as a financing or inspection contingency that must be satisfied within a stated period, or the party may terminate and recover earnest money.

Legal description

Oklahoma real estate contracts must contain a sufficient legal description, such as lot and block, metes and bounds, or a government survey reference.

Tenancy in common

Co-ownership in which each owner holds a separate undivided interest that may be unequal, may be sold without consent, and passes to heirs at death.

Joint tenancy

Co-ownership with right of survivorship that requires the four unities of time, title, interest, and possession; a deceased owner's share passes to the survivors.

Easement appurtenant

An easement that benefits a dominant parcel and burdens a servient parcel, runs with the land, and passes automatically when either parcel is sold.

Nonconforming use

A use of property that lawfully existed before a zoning ordinance was adopted and may continue even though it does not meet current zoning requirements.

Race-notice recording

Oklahoma's recording system under which a later purchaser prevails only if it takes without notice and records before the earlier conveyance is recorded.

PITI

The four parts of a monthly mortgage payment: principal, interest, property taxes, and hazard insurance, often collected with mortgage insurance and HOA dues in escrow.

Loan-to-value ratio

The loan amount divided by the lesser of the purchase price or appraised value, expressed as a percentage; higher ratios generally require mortgage insurance.

Discount points

Fees paid at closing to buy down the mortgage interest rate; one point equals one percent of the loan amount.

Closing Disclosure timing

Under TRID rules the lender must deliver the Closing Disclosure at least three business days before closing and the Loan Estimate within three business days of application.

Sales comparison approach

A valuation method that estimates value by adjusting the sale prices of recently sold comparable properties for differences from the subject property.

Capitalization rate

The ratio of a property's net operating income to its value; value equals net operating income divided by the capitalization rate.

Gross rent multiplier

The sale price divided by the gross monthly rent; the multiplier times the subject's monthly rent estimates the value of income property.

Highest and best use

The reasonably probable use that is legally permissible, physically possible, financially feasible, and maximally productive, producing the highest value for the site.

Commingling

Illegally mixing client funds such as earnest money or security deposits with the broker's personal or operating funds instead of holding them in a trust account.

Fair housing protected classes

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, sex, national origin, familial status, and disability.

Steering

Directing prospective buyers or tenants toward or away from particular neighborhoods based on race, color, religion, sex, national origin, familial status, or disability.

RESPA Section 8

A federal prohibition on giving or receiving fees, kickbacks, or things of value for referrals of settlement service business in federally related mortgage loans.