Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
27 Cards in this Set
- Front
- Back
Fair Housing Act of 1968 concerns what
|
Race, color, religion, sex, handicap, or national origin in connection with selling, renting, leasing, financing, or advertising
|
|
Violations of the Fair Housing Act of 1968 include
|
Refusal to sell or rent
False statements concerning the availability of housing Stating different terms or conditions lenders: deny loans or specifying different terms |
|
Federal truth in lending law
|
-Part of the consumer credit protection act of 1968 regulation z
Disclosure of all financial charges: interest rate, prepayment penalty, late payment penalty and when it begins, APR -Does not regulate interest rates -consumers should compare financing costs |
|
Equal Credit Opportunity Act
|
-Enacted in 1974
-prohibits discrimination based on: race, religion, age, sex, marital status, national origin, and recipient of public assistance -Make credit equally available -Regulation B |
|
Community Reinvestment Act of 1979
|
Require lenders to meet their communities needs first
Credit for low and moderate income neighborhoods |
|
Real Estate Settlement Procedures Act 1974
|
-To assist home buyers and understanding settlement procedures and related costs
-Good faith estimate or exact amount -Standard form settlement -"settlement costs and you a HUD guide for home buyers" - no kickbacks for referring settlement closing business -Impound escrow : advanced payment of interest, property tax and insurance premium, reasonable amount -Does not apply to commercial properties |
|
Pros of homeownership
|
Investment: value appreciation
Tax advantages: interest payments, property tax, capital gain tax exemption |
|
Cons of homeownership
|
-High transaction costs: time, points and loan application fee, legal fees, title insurance, recording fee, commission
-Need down payment -Must pay property tax -Maintenance |
|
Tax considerations expenses at buying
|
-points: deductible
-closing costs: increase basis - title insurance premium, attorneys fee, appraisal fee |
|
Tax considerations expenses at selling
|
commission
Title insurance premium Attorneys fees Deductible for computing gains from sale |
|
Gain on sale
|
Selling price - selling expenses = net sales price
Net sales price - adjusted basis = realized gain LTCG Original cost + closing costs paid at buying + permanent property improvements = adjusted basis |
|
Capital gains on home sale
|
Exemption:
500,000 single 200,000 20% tax rate loss not deductible (capital gains) qualification: primary residence, minimum 2 years during the last five years prior to selling |
|
Broker as an agent
|
Managing broker to seller
Representation Responsible misrepresentation No authority to sign sales contract |
|
Listing agreement
|
Contract of employment
Listing price Commission Duration of agreement |
|
Duties of managing broker and broker
|
Delivery of offers
Loyalty to principal (seller) -No conflict of interest -No referral fee Delivery of information Disclosure requirements of problems -physical conditions Pre-qualification of a buyer |
|
duties of a broker
|
broker as an agent
Duties of a managing broker and broker Commission Franchisor brokerage company, franchise managing broker, independent managing broker |
|
Open listing
|
Hire several brokers
Its own sells, no commission Procurement cause (agent who sells) |
|
Exclusive agency listing
|
Only 1 broker
Owner can sell with no commission |
|
Net listing
|
Net amount needed
Commission on top of required amount Can be illegal |
|
Multiple Listing Service
|
Monthly fee
Share listing and other information online Selling (50%) exclusive right to sell No responsibility for members Can be withdrawn from MLS Cannot fix commission rate |
|
Buyers closing costs
|
Appraisal fee
Points and loan application fee Title insurance premium recording fee Attorney's fee impounds (escrow) -property tax and insurance premium |
|
Seller's closing cost
|
Loan balance
Commission Attorney's fee Transfer tax Termite Inspection fee Unpaid Property tax |
|
Title insurance
|
Protect against losses from a bad title
One time premium Title insurance company - investigate records - examine title Covered risk: someone owning as interest, any defect in the title, undetectes lien, anything resulting in an unmarketable title Exclusion: eminent domain, police power Two types of policy: buyer's, lender's |
|
Estate for years
|
State for a stated term
No prior notice |
|
Estate from year to year
|
Estate from period to period
Month to month; 30 days Year to year; 60 days No definite termination date |
|
Estate at will
|
Indefinite duration terminated by will of either party
|
|
Types of leases
|
Fixed rent: gross vs net
Index lease Percentage lease Agricultural lease: cash, crop share |