Real Estate Agency and Valuation Practices

A sales tactic where a salesperson uses fear and intimidation to pressure a buyer into making a quick decision. They may exaggerate problems, make unrealistic claims, or create a sense of urgency.

A practice where real estate agents, often racially motivated, encourage homeowners in a particular neighborhood to sell their homes at a lower price than market value, often exploiting their fears about demographic changes.

A legal relationship where one party (the agent) acts on behalf of another party (the principal), with the principal's consent and authority.

The legal duty of an agent to act in the best interests of their principal, placing the principal's needs above their own. This includes being honest, transparent, and loyal.

A payment or compensation made to the agent for their services. It could be commission, fees, or other forms of remuneration.

The broker should not hold the check until the agreed-upon date but should cash it immediately, unless a proper escrow arrangement is set up.

In a construction loan, the lender typically releases the final payment to the builder once the construction work is completed and all required inspections are passed.

An agent should not make any changes to an accepted offer without the explicit consent of both the buyer and the seller.

The date the claim was recorded is the most important factor in determining priority for a claim.

Mortgage insurance on an FHA loan protects the lender in the event of the borrower's default. The loan is insured against the borrower failing to make payments.

The "given date" in an appraisal of an income-producing property reflects the market conditions prevailing at that specific point in time. It influences the property's value.

A grant deed transfers full ownership of the property, but the condition in this case creates a specific restriction. The title can be forfeited if the property is used for selling alcoholic beverages.

A deposit receipt states that the seller will take back a second trust deed secured by a note for $11,400, payable in monthly installments of at least $240.00, including 7% interest per annum starting March 15, 1979. If the first payment is due on April 15, 1979, how much of the first payment will go towards reducing the principal?

An appraiser, when evaluating a property using different appraisal approaches (e.g., cost, market, or income), does not simply average the results. Instead, they analyze each approach, weigh their relevance to the property, and then may select the most appropriate approach for the specific property.

Lawson purchased raw land in 1963 and divided it into four lots. Twenty-five years later, he sold each lot for $10,000. The adjusted basis for each lot was $2,000. To calculate Lawson's long-term capital gain, you subtract the adjusted basis from the selling price for each lot.

Using a deposit receipt, a seller agrees to take back a second trust deed, which secures a note for a specific amount. The second trust deed requires monthly payments, including interest. The challenge is to figure out how much of the first payment goes towards reducing the principal.

An appraiser uses multiple approaches to value a property: cost, market, and income. They don't just average these results. Instead, they critically examine each method to determine its relevance and choose the most suitable approach for the specific situation.

A property owner splits a piece of land into smaller lots. Later, they sell each lot for a profit. To calculate the profit (capital gain), we subtract the adjusted basis of each lot from the selling price.

An appraiser uses multiple methods, such as cost, market, and income, to determine the value of a property. They don't just average these results. Instead, they analyze each method and select the most suitable approach for the specific situation.

A property owner divides a large piece of land into smaller lots. Later, they sell these lots. To calculate the profit (capital gain) for each sale, you subtract the adjusted basis of each lot from the selling price.

Mutual funds offer a pool of investments that can be accessed through shares purchased by investors. This makes them a suitable source for large-scale funding needs.

An "open-end" provision in a mortgage allows the borrower to borrow additional funds on top of their existing mortgage. This can benefit the borrower when they require extra money for renovations, expansion, or consolidation.

A California title insurance policy protects the policyholder against losses resulting from forgeries or defects in a property's chain of title. This means the policy covers problems with how the property's ownership has been legally transferred over time.

A standard policy doesn't protect against known defects, so the insured is still at risk for any issues they were aware of before getting the policy.

Broker Green had a duty to disclose the lack of sewers to Jones, even though Jones didn't ask. This is because Green knew about the inaccurate listing and had a responsibility to provide truthful information to potential buyers.

The principle of "caveat emptor" (buyer beware) doesn't apply here because Green had a duty to reveal the truth, especially since he knew the listing was incorrect.

Joint tenancy allows several individuals to own a property together with equal rights and responsibilities. Ownership passes directly to the surviving joint tenants upon the death of one owner.

The vacant lot owned by Ames, Barnes, and Crandal is held in joint tenancy. This means they share equal ownership rights and responsibilities, and upon the death of one owner, the property automatically transfers to the surviving joint tenants.

Recording a deed first does not guarantee ownership. To have a valid claim to a property, both co-owners must agree and transfer ownership to Carr.

An easement is a legal right to use another person's land for a specific purpose, but it does not give the easement holder ownership of the land.

An estate for years is a leasehold estate for a definite period of time, usually stated in the lease agreement.

A chattel real is a type of personal property that is closely related to real estate, such as a leasehold interest. So Crown is essentially renting real property, which also qualifies as personal property.

Real property is land and anything permanently attached to it. A bearing wall is a structural element that is permanently attached to the house.

A condominium unit is considered real property because the owner has a fee estate, while a rented apartment is personal property because the tenant only has a leasehold interest.

The Truth-in-Lending Act aims to provide consumers with clear and understandable information about the terms and conditions of credit, including the interest rate, fees, and total cost of borrowing.

Property refers to the rights or interests a person has in an item they own. It encompasses both real property (land and buildings) and personal property (movable possessions).

When general prices drop, the value of money increases. This is because the same amount of money can buy more goods and services.

In a Cal-Vet loan, the State of California, as the lender, pays the points (prepaid interest).

A straight note with the same term and interest rate involves more interest than an installment note. This is because with a straight note, the entire principal amount is paid at the end of the term.

The primary protection for a lender on a purchase-money second trust deed is the equity of the borrower. This is the difference between the property's value and the outstanding debt.

Capitalization is a method used to determine the value of an asset by dividing its annual net income by the desirable rate of return. It's a common tool in real estate valuation.

To earn $200 per month with an 8% return, you would need to invest $30,000. This is calculated by dividing the desired monthly income ($200) by the annual interest rate (8%) and multiplying by 12 months.

Generally, an individual can't deduct a loss on the sale of residential property unless it was used for business purposes and showed a profit for the three-year period preceding the sale.

A grant deed and a land contract of sale can differ in terms like the interest conveyed, signatures required, and designation of the purchase price.