UT Real Estate flashcards
UT 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 Duties to a Client
- Care, obedience, loyalty, disclosure, accounting, and confidentiality are owed to the client; honesty, fairness, and disclosure of material facts are owed to all parties in a transaction.
- Limited Agency
- Utah's term for dual agency, in which one brokerage represents both the buyer and the seller in the same transaction after both parties give informed written consent.
- Agency by Ratification
- A principal who accepts the benefits of an agent's unauthorized act approves that act retroactively, creating an agency relationship that did not exist when the act occurred.
- Statute of Frauds
- A rule requiring real property contracts, including listing agreements and leases longer than one year, to be in writing and signed by the party to be charged.
- Counteroffer
- A reply that changes the terms of an offer; it rejects and terminates the original offer, which can no longer be accepted by the original offeree.
- Liquidated Damages
- A stated sum the parties agree will be the remedy for breach; earnest money is treated as liquidated damages only when the contract expressly says so.
- Joint Tenancy
- Co-ownership with right of survivorship that requires the unities of time, title, interest, and possession; a deceased joint tenant's share passes to the surviving owners.
- Easement by Necessity
- An implied easement created when a parcel has no access to a public road, allowing the owner to cross adjoining land; it ends when the necessity ends.
- Section
- A one-square-mile unit of the Public Land Survey System containing 640 acres; a quarter section contains 160 acres and a quarter-quarter section contains 40 acres.
- Nonconforming Use
- A use that lawfully existed before the current zoning ordinance was adopted and may continue, but generally cannot be expanded and is lost after abandonment.
- Variance
- Authorization to deviate from a zoning ordinance because of a hardship unique to the property; a use variance permits a different use, an area variance permits dimensional relief.
- Highest and Best Use
- The legally permissible, physically possible, financially feasible use that produces the greatest net return; it underlies the appraisal approaches and market value estimate.
- Principle of Substitution
- A buyer will pay no more for a property than the cost of acquiring an equally desirable substitute; this principle is the basis of the sales comparison approach.
- Capitalization Rate
- Net operating income divided by property value; value equals net operating income divided by the cap rate, so a higher cap rate indicates a lower value.
- Loan-to-Value Ratio
- The loan amount divided by the property's value or purchase price, whichever is less, shown as a percentage; higher ratios mean greater lender risk.
- Discount Points
- Prepaid interest paid at closing to obtain a lower note rate; one point equals one percent of the loan amount and is usually paid by the borrower.
- Deed of Trust
- A three-party security instrument naming the trustor, trustee, and beneficiary; on default the trustee may sell the property nonjudicially, as is common in Utah.
- General Warranty Deed
- Conveys the broadest warranties: seisin, right to convey, and against encumbrances, plus quiet enjoyment, warranty, and further assurances against all prior owners.
- Constructive Notice
- Recording a document with the county recorder gives the world legal notice of its contents whether or not anyone actually examines the record.
- Delivery and Acceptance
- A deed transfers title only when the grantor intentionally delivers it and the grantee accepts it; recording a deed does not by itself pass title.
- Estate for Years
- A leasehold with fixed beginning and ending dates that ends automatically without notice to either party; the tenant's interest is personal property.
- Assignment and Sublease
- An assignment transfers the tenant's entire remaining lease interest and creates privity with the landlord; a sublease transfers less and the original tenant remains liable.
- Triple Net Lease
- The tenant pays base rent plus property taxes, insurance, and maintenance, giving the landlord a relatively predictable net income from the property.
- Steering
- Directing prospective buyers or tenants toward or away from particular neighborhoods because of a protected class characteristic; it violates fair housing law.
- Reasonable Accommodation
- A landlord must change rules, policies, or procedures when necessary to give a person with a disability an equal opportunity to use and enjoy the dwelling.
- Price Fixing
- Competitors agreeing on commission rates or fees is a per se antitrust violation; commissions are negotiable and cannot be set collectively by brokers.
- Principal Broker
- The Utah licensee responsible for supervising a brokerage and for the acts of affiliated sales agents and associate brokers, including trust accounts and transaction records.
- Real Estate Recovery Fund
- A Utah fund that may reimburse consumers for losses caused by a licensee's fraud or conversion when a judgment against the licensee cannot be collected.
- Commingling
- Depositing client or transaction funds in a broker's personal or general business account instead of a dedicated trust account, which is grounds for discipline.
- Utah Agency Disclosure
- Utah requires a licensee to give a prospective buyer or tenant a written agency disclosure before showing property or signing an agency agreement.
- Property Condition Disclosure
- A Utah requirement that sellers of one-to-four unit residential property deliver a signed written disclosure of known defects before transfer.
- REPC
- The Real Estate Purchase Contract, a standardized Utah form that sets deadlines and contingencies; it is a private form, not one required by statute.