Alabama Real Estate Exam Questions and Answers 2023 with complete solution
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Course
Alabama Real Estate
Institution
Alabama Real Estate
Alabama Real Estate Exam Questions and Answers 2023 with complete solution
Special or Specific Agency
The Principal gives the agent authority to do one specific thing-sell property. They enter into a contract that stipulates how the task will be done-multiple listings of the property, commissio...
alabama real estate exam questions and answers 2023 with complete solution special or specific agency the principal gives the agent authority to do one specific thing sell property they enter into a
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Alabama Real Estate Exam Questions and Answers 2023
with complete solution
Special or Specific Agency
The Principal gives the agent authority to do one specific thing-sell property. They enter
into a contract that stipulates how the task will be done-multiple listings of the property,
commission paid etc.
General
Principal and agent enter into a contract giving the agent the authority to conduct
several activities-show property to renters, check references and negotiate leases.
Designated agency
A dual agent cannot fully represent both parties so the agent designates another agent
in their office to respresent either party-usually the buyer.
Nonagency
transaction or facilitative-the agent faciliates the transaction by showing properties and
assisting with paperwork. Both parties are on their own when it comes to their interests.
Listing contract
it is not between the agent and the seller but between the seller and the broker
Exclusive Right to Sell
Most advantageous type of listing-gives the broker the sole right to market a property.
Regardless of who finds a ready, willing and able buyer, the broker receives a
commission.
Exclusive Agency
agent markets the property but if the principal sells it then the agent does not receive a
commission
Open listing-general
gives the right to market the poperty to a number of brokers. The principal can sell it
themselves and only the broker that brings a ready, willing and able buyer recieves
commission.
Net listing
broker receives the difference between the selling price and the price that the owner
wants
Multiple listings
Multiple listing systems or services are marketing tools. Allows brokers to share listings
and commissions.
Buyer agency
binds the broker to look out for the buyers best interests. With a dual agency the broker
is not able to tell the buyer if the property is overpriced or if another property is better.
Exclusive buyer agency-exclusive right to represent
gives the broker the exclusive right to help a buyer find a property. The broker is paid a
commission even if the buyer buys a property during the time period of the agreement
without the brokers help.
Exclusive Agency Buyer Agency
,does not guarantee a commission. The broker is given exclusivity over other agents to
find a property for the buyer, but if the buyer finds a property he does not have to pay
the broker a fee.
Open buyer agency
buyer enters into an agreement with a number of brokers to find a property. only the
broker that finds the property that the buyer purchases receives a commission. no
commission is paid if the buyer finds his own property.
Termination of agency
PERFORMANCE- happy seller and happy buyer at closing
expiration of the listing, mutal agreement,
RENUNCIATION- resignation of the agent
REVOCATION-principal firing agent
Real estate settlement procedures act (RESPA)
a federal law requires certain disclosures such as a standard Good Faith Estimate
(GFE) that explains key loat terms and escribes a best estimate of closing costs
Mandated disclosures
presence of lead paint in homes built before 1978. A seller does not have to test for lead
paint, but must disclose the fact if known.
if property is in a flood zone as designated by the Federal Emergency Management
(FEMA)
the need for the buyer to purchase flood disaster insurance, b/c the current owner has
received flood disaster insurance from the federal govt
other disclosures
some states require disclosures of sex offenders due to Megan's Law
Property stigmas
seller and seller's agent need to be honest about anything int he history of the property
that could hinder the sale; such as criminal acts or deaths that are associated with the
property.
Fiduciary responsiblities of agents
loyalty, obedience, disclosure, confidentiality and resoanable care and diligence and
accountablility
fiduciary notes
disclosure responsibilities are for both buyer-agent and seller-agent.
The agent has a fiduciary responsibility to disclose any relationships or fees he has that
affect the seller or buyer. The agent must also disclose any known financial issues the
buyer might have.
Standards for commission
there is no standard percentage for commission. Any attempt to standardize
commission rates among brokers is considered price fixing according to federal law
Bundle of Rights
Occupy, use and enjoy your property including the land, water and air. Right to employ
the property in productive ways such as farming or leasing and to sell, bequesth, give or
lease the property in part or in total.
Sole Owner
an individual's ownership of property is called sole ownerhsip or tenancy in severalty.
No one else has an iterest int hat particular property except that individual
, Joint Tenancy
Right of survivorship, if one dies, the other tenants automatically take ownership of the
deceased's share.
The person's heirs do not inherit the interest.
Four requirements: Unities of time, title, interest and possession.
Tenancy in Common
No right to survivorship.
Most often used form of co or joint ownership.
Interests does not have to be 50/50
Each tenant holds ownership in severalty, which means that each tenant may dispose
of that interest as he or she chooses without the consent of the other. One tenant may
put a second mortgage on his itnerest, sellt he itnerest, or leave it to a third party in his
will.
Owning as a married couple
tenancy by the entirety-owned by two parties ina marriage, they each have undivided
and equal interest and the right of survivorship. If divorced, tenancy by entirety is
replaced by tenancy in common.
Community property- no right of survivorship. A spouse may leave his or her half to the
surviving spouse, to a child, or to anyone he/she wishes.
Trusts
a legal arrangement in which the owner (trustor) conveys the ownership of the
propertyto the trust, thus giving another (trustee) the power to manage the poperty/trust
for the benefit of a third party (beneficiary)
Living trust-inter vivos
a trustor creates the trust to be effective during his or her lifetime
testamentary trust
a trustor leaves instructions in his or her will about establishing a trust that will not be
effective until after he or she dies
condo ownership
a deed changes hands.
buyer owns a specific unit as well as interests in common areas, pays taxes and a
homeowners fee
Co-op
owns shares in the underlying corporation and therefore does not get a deed. Pays fees
that include maintenance and property taxes.
A potential buyer must pass a board interview and review of finances in order to buy
into a co-op
Planned unit developments (PUD)
combination of residential, commercial and industrial properties in a single project
designed and built by a single developer.
Single family homes can be a PUD. Property owner owns the land under and around it.
Timeshares
person owns a fractional ownership
fee simple interest
Partnerships (general and limited)
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