real estate notes

Fiduciary Duties

C: Confidentiality

L:Loyalty

O:Obedience

T: Trust

D: Disclosure

A: Accounting

D: Do care

Statute of Frauds

Requires certain contracts to be in writing to be enforced in a court of law

(Anything that conveys interest)(anything that takes more than a year to complete)

Statute of limitations

A law that limits legal recourse against one another

Sherman Anti-Trust Act

Is a law that prohibits interference with the free flow of trade and commerce

Prohibits: price fixing, boy cutting, territory, tying agreements

Definition of Agency

Relationship where one party (called the principle) empowers another party (called a agent) to perform a service

Principal

Also called a client. Is a person or entity that does the empowering of the agent

Agent

Person or entity that was empowered to perform the service

Sub-Agent

Is a person or entity that is under the person or entity that was empowered to perform the service.

Sales people are always agents of their broker, sub agents to anyone that hires their broker

Fiduciary duties are owed to whom

Agent to principle

How are agency relationships created?

Expressed: it is written or oral stated

Implied: where you lead someone to believe (your their agent)

Ostensible: when a third party does something that creates an agency responsibility

Offeror

Person that makes the offer or is giving

Offeree

Person that receives the offer

Counteroffer

Anytime there a change made to an offer a counter voids the original offer and changes the legal position

Unilateral contract

One sided contract. Promise for an act

Bilateral contract

Two sided contract. Promise for a promise

Equitable title/ Equitable interest

This is the interest that goes to the buyer once they have a fully executed and delivered purchase agreement. (Buyer has a interest in total but no deed yet

Lein

A monetary claim on property that is collateral for a debt owed

1866 Civil Rights Act (Federal fair housing laws

This law prohibits discrimination on race

Jones vs Uyer building company (brought this act to life)

Complaints still have to be taken to federal court

No limits on penalties in this law

Federal fair housing act of 1968

Prohibits discrimination on Race, Color, National origin, religion, sex(gender)

Also added in 1988 familial status and persons with disabilities

Eminent Domain

Government has the right to take privately held property for public use provided just compensation is paid

Easemenrs

Converts an interest in land Grants permission to use someone else’s land not revocable, must be in writing

Tenancy in common

Has 2 or more people who share a fractional interest. If no fractions are provided on the deed the court will assume equal fractions to all

What is a rescission?

The act of nullifying a contract

A bilateral contract is one in which

Both parties promise to do something in exchange for the other party’s performance

The entity responsible for the licensing of real estate professionals in Michigan is the

Bureau of Professional Licensing

How is the director of LARA selected?

Appointed by the Governor

Who conducts investigations of alleged real estate licensee misconduct?

Department of Licensing and Regulatory Affairs (LARA)

If a salesperson is discharged from employment with a broker, the broker must deliver or mail the salespersons license to LARA within

Five days

The amount of the brokers compensation is agreed upon in a

Service provision agreement

The interest in real estate that does not include the right to possess is considered

An encumbrance

“Real estate” includes such things as

Fences, sidewalks, and piers on a parcel of land

An “improvement” is

A structure intended as a permanent attachment to land

The physical limits of land are

The center of the earth and infinite space above the earth

An encumbrance is most broadly defined as

Another’s interest in a real property that limits the interests of the freehold property owner

Which of the following can legally levy real property taxes?

A tax district

What is a tax levy?

The action a taxing jurisdiction takes to impose a tax.

What is a tax deed?

A conveyance instrument for a property that is sold to enforce a tax lien

A homeowner receives a tax bill that includes an amount for the library district, taxed at $1.00 per $1,000, and the fire protection district, taxed at $2.00 per $1,000. How much does the taxpayer have to pay for these two items if the property's taxable value is $470,000?

$1410

What is blockbusting

where real estate agents or developers induce panic selling among homeowners by spreading rumors or threats about racial minorities moving into the neighborhood.

What is the significance of the Jones v. Mayer Supreme Court decision?

It provides that anyone seeking to buy or rent a residential property who feels victimized by a racial discrimination may take legal action under the 1866 Civil Rights Act.

Redlining

involves lenders denying creditworthy individuals housing loans in certain neighborhoods, often based on racial or ethnic demographics.

What is the purpose of a home warranty?

Protect the homeowner against costs arising from major system failures

A legal description of a property is one which

Accurately located and identifies the boundaries of the property and distinguishes it from all other properties

A property manager refuses to rent to a married couple. The married couple has legal recourse under:

Elliot-Larson Civil Rights Act