WY Real Estate flashcards

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

Designated broker

The Wyoming broker responsible for supervising an office and its affiliated salespersons and associate brokers, and the party through whom the brokerage's compensation must be paid.

Commingling

Mixing client or transaction funds with the broker's personal or business funds, or failing to keep trust funds in a separate account; prohibited in Wyoming and grounds for discipline.

Associate broker

A Wyoming broker-level licensee who elects to work under another broker rather than operate an independent brokerage, keeping broker qualifications but supervised like a salesperson.

Unlicensed brokerage

Providing or offering real estate brokerage services for compensation without a Wyoming license; both a statutory violation and a basis for denying a license.

Continuing education

Wyoming requires 24 hours of Commission-approved continuing education during each two-year license cycle as a condition of license renewal.

Fiduciary duties

The duties an agent owes a principal: loyalty, obedience, disclosure, confidentiality, accounting for funds, and reasonable care and skill in the transaction.

Dual agency

Representing both the buyer and the seller in the same transaction; permitted in Wyoming only after both parties give written informed consent.

Material adverse fact

A condition or defect that significantly affects the value or desirability of the property; Wyoming licensees must disclose known facts of this kind to the parties.

Customer

A party to a transaction whom the licensee does not represent; the licensee owes honesty, fairness, and disclosure of known material adverse facts, but not full fiduciary duties.

Confidentiality after termination

The duty not to reveal a former principal's confidential information continues after the agency relationship ends, unless the information becomes public or the principal consents.

Ministerial act

A clerical or administrative task, such as delivering a document or providing a list of service providers, that a licensee may perform without creating an agency relationship.

Statute of frauds

The rule requiring 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 good-faith deposit by the buyer, typically held in the broker's trust account, applied to the purchase price at closing or disbursed per the contract's default terms.

Deed of trust

A three-party security instrument in which the borrower conveys title to a trustee to secure a lender; Wyoming's usual mortgage substitute and the basis for nonjudicial foreclosure.

Quitclaim deed

A deed that transfers whatever interest the grantor may have, without warranties; commonly used to clear title defects or transfer property between family members.

Constructive notice

Notice of an interest in land imputed to the world because the document was properly recorded with the county clerk of the county where the property is located.

Race-notice recording

A recording system in which a later purchaser for value prevails only if it takes without notice of the prior interest and records before that interest is recorded; Wyoming follows this rule.

Easement appurtenant

An easement that benefits a particular parcel of land, the dominant estate, and passes automatically with transfers of ownership of that parcel.

Prior appropriation

Wyoming's water rights doctrine under which the first person to put water to beneficial use holds the senior right, all administered by the State Engineer.

Joint tenancy

Concurrent ownership with the right of survivorship, so a deceased co-tenant's share passes to the surviving co-tenants rather than through the decedent's probate estate.

Mechanic's lien

A statutory lien against real property securing payment for labor, materials, or professional services that improved the property, filed within the statutory period after furnishing them.

Assessment ratio

The percentage of fair market value at which property is taxed in Wyoming: 9.5 percent for residential property and 11.5 percent for commercial and industrial property.

Loan Estimate

The standardized RESPA disclosure that must be delivered or placed in the mail within three business days after the lender receives a mortgage loan application.

Closing Disclosure

The final RESPA settlement statement that the borrower must receive at least three business days before consummation of the mortgage loan transaction.

Nonjudicial foreclosure

Sale of property under the power-of-sale clause in a deed of trust without court action; Wyoming requires newspaper publication once a week for four consecutive weeks before the sale.

LTV ratio

The loan amount divided by the lesser of the purchase price or appraised value; private mortgage insurance is generally required above 80 percent on conventional loans.

PITI

The four components of a monthly housing payment: principal, interest, property taxes, and hazard insurance; escrow accounts collect one-twelfth of annual items each month.

Comparative market analysis

A licensee's opinion of likely sale price based on comparable active, pending, and sold listings; it is not a USPAP appraisal and must not be presented as one.

Highest and best use

The use that is legally permissible, physically possible, financially feasible, and produces the greatest return, forming the standard test underlying real property valuation.

Sales comparison approach

A valuation method that adjusts the prices of recently sold comparables for differences from the subject, adjusting each comparable toward the subject's characteristics.

Gross rent multiplier

Sale price divided by gross rent; a quick income-approach screening tool used to compare investment properties before a full income analysis.

Broker recordkeeping

Wyoming brokers must keep transaction files, agency disclosures, and trust-account records for at least three years and make them available to the Commission on request.