Ch. 16 & 17

Question	Answer
Real Estate Seller Disclosure Act	all sellers are required buy this law to inform a prospective buyers of all known material defects in a home for sale (read page 154)
Property Disclosure Statement	must be given to a prospective buyer prior to the signing of a written agreement that would, subject to any negotiated incidents, require the buyer to accept a transfer of the residential real property
agreement of sale	purchase contract, purchase agreement, sales contract, offer to purchase agreement
ademdom	covers anything that happens that isn't in a contract
acquisition cost	purchase price and the closing costs
earnest money deposit	accompanied with agreements of sale; is advanced money put up in earnest by the buyer with the agreement of sale to make a good faith offer
liquidated damages	the earnest money deposit is at risk and may be forfeited, in the event of default by the buyer
down payment	the total amount of cash put into the sale
real estate agent important information	pg 165, 168
counteroffer	by law represents total rejection of the original offer
swing loan	is a temporary loan that can be used to make a down payment or pay the closing costs needed for the settlement of the new home as the result of the cash that has not been released from the sale of the old home; aka gap or bridge loan
right of first refusal	the first buyer may 1. refuse to purchase the new home without any penalty 2. buy the property without the contingency provision of a purchase that is based upon the sale of the old home
Special agency	represents client in one specific or limited range of transactions or business activities; agent CANNOT bind principal to any contracts; representing a buyer or a seller
General agency	can bind client to contracts within agency agreement; usually is used in property management
All agency agreements in Pennsylvania	are between the broker (company) and the consumer. When a salesperson or associate broker gets a consumer to sign an agency agreement the Sales person or associate broker are doing so in the name of their employing broker (company).
Dual Agency	the company and the licensee represent BOTH PARTIES; may only be done with the written consent of both parties; represented by the same agent
Designated agency	type of dual agency but reduces the conflicts and liability of dual agency for an in-house transaction; broker of record may appoint another licensee in the company to work with and act as an advocate for one of the parties
Open Listing	any number of brokers working to find a ready, willing, and able buyer for the seller's property; broker's working for this seller are working independently without knowledge of the others and without the cooperation of the other brokers; if seller finds a buyer themselves, they don not have to pay any commission at all; FSBO
Exclusive Agency Listing	the seller hires only one broker to find a buyer but reserves the right to sell the property themselves and not pay a commission; somewhat more acceptable to brokers
Exclusive Right to Sell	only one broker; even if the seller sells the property themselves, they must pay the broker's commission; most common an preferred type of listing; cannot exceed 1 year to see property
Net Listing	minimum NET about of proceeds; broker must add their desired commission to that net amount; not common and has strong potential for creating a conflict of interest especially sellers that are not fully aware of their property value
Buyer Agency	owe the buyer the fiduciary obligations listed in COAL DC and work to help the buyer find a suitable property, prepare an offer to purchase, represent them in the negotiation process, assist them in obtaining financing and any other activities necessary to bring the transaction to satisfactory close
Multiple listing service (MLS)	will make other licensees aware of availability of the property for sale and the details about the property giving rise to the posibility
coop sale	another member of the MLS may have a buyer who might be interested in the listed property on your listings
subagent	a broker not in the employ of the listing broker
Entitlement to a commission	was there: 1. an agreement or contract authorizing representation? 2. active real estate license 3. was the agent the procuring cause of sale
Procuring cause	described as the agent taking steps to initiate, continue and complete a sale of the property
read chapter 16 packet for lingering notes/ paragraphs to be studied as well	the law of agency ch. 16 packet

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	Created by Laila Enchante about 8 years ago