Module A Agency and Property Disclosure

grantee

A person who receives a conveyance of real property from a grantor.

What doesn't need to exist for a transaction broker in a transaction?

A property

What is typically the first form signed in an agency agreement situation by a buyer in South Carolina?

Acknowledgement of Receipt of Disclosure of Brokerage Relationship

The transfer of title to real estate is called

Alienation

Granting Clause

An example would be "I hereby grant and convey unto John Jones all of (legal description of property), together with all the appurtenances and rights to said premises..."

How are gifted properties taxed by the recipient?

No taxation

Brokers should know, and be able to explain, basic:

Real estate law

The critical difference in tort liability between the average person and skilled professionals is known as:

Standard of care

Mud Tunnels

Subterranean termites maintain their nests in the ground and build pencil-sized "mud tubes" to connect the nest to a food source.

Subagency

The agency role of a broker is extended to one or more additional brokers, who also become a fiduciary of the principal and are empowered to act on his or her behalf. The subagent shares any commission with the original broker. This agency chain can extend through multiple agents in the case of multiple-list services.

To whom is the subagent to be loyal?

listing agent

Estoppel

prevents a person from claiming a right or interest that is inconsistent with the person's previous statements or acts.

Without the acknowledgement

the deed between the grantor and grantee is valid. However, the acknowledgement is required for the deed to be recorded. A deed without an acknowledgement, therefore, tends to endanger a person's claim to a property.

the South Carolina statute does not require

the owner to disclose a stigmatized property to a potential buyer.

Fiduciary comes from the Latin word "fides" which means:

trust

South Carolina Wind and Hail Underwriting Association (SCWHUA)

was established to ensure that residents living on the beach and some coastal areas of South Carolina would have a means of purchasing wind/hail insurance on their homes. At that time, most standard insurance companies had quit providing such coverage.

Witnessed Will's requirements

•Must be in writing •Signed by testator or someone else in the testators presence w/testators permission •witnessed by 2+ persons present together (Signature or acknowledgement verified by testator and be aware it's the testators will)

When would be the best time that a licensee in South Carolina should consider giving their clients a copy of the Agency Relationships in South Carolina brochure?

"At first practical opportunity"

What does the acronym ARELLO stand for?

Association of Real Estate License Law Officials

The sudden decrease of land by flowing water or waves often caused by hurricanes and other storms is ____________.

Avulsion

What was the main reason that general contractors switched from stucco to EIFS?

Easier to install Wouldn't crack like traditional stucco

An agency that is created because the agent's actions can imply their intentions to create such a relationship is an:

Implied agency

What is another way to describe caveat emptor?

Let the buyer beware

Americans live

Over 200 million U.S. residents live within 100 miles of an ocean, and over 50% of all Americans live on just 10% of the total land area across the continental U.S.

What does the buyer at a tax sale receive as the main type of paperwork?

Tax deed

Mud-like Patches

Termites may excavate wood so that only a very thin layer of wood is left on the surface. When this layer is broken, they will cover the holes with mud-like material.

What is one of the most common misconception about agency?

The agent who is showing you a property automatically represents you

special warranty deed that is a bargain and sale deed without covenants

This form of deed is common in foreclosures, tax sales, and land sales. The bargain and sales deed does convey after-acquired title.

When a blanket offer of subagency is given, when does the subagency relationship actually develop?

When an offer to purchase is given through the subagent

disclosure statement

tells the buyer about any known defects in the seller's home. Defects come in all shapes and sizes. A "defect" includes any issue that lowers the value or attractiveness of a property that a potential buyer would want to know about.

Per the National Oceanic and Atmospheric Administration (NOAA) back in 2012, how many people lived in coastal counties per square mile?

319

U.S. population base lives within coastal counties

52%

deed

A document that transfers ownership of property from one party to another.

deed of conveyance or deed

A living owner makes a private grant by means of a

What is the main part of the home typically covered the most on page three of the disclosure form?

Heating and cooling system

What is on the first page of the disclosure form?

Overview of the document, instructions on how to fill out the form

What has traditionally been the most common type of agency?

Seller agency

Consideration

The deed must be accompanied by valuable (monetary) or good (love and affection)

devise

The property transferred by the will is the

Damaged wood

Wood may appear crushed at structural bearing points and will resonate with a hollow sound when tapped with a hammer.

Sinkholes

a large surface crater caused by the collapse of an underground channel or cavern; often triggered by groundwater withdrawal

intermediatary

also known as a transaction broker

Deed restrictions

are limitations spelled out in the deed.

Listing agents often find themselves in lawsuits because a listing agreement requires the broker to exercise his or her:

best efforts

maker of the will

called the testator (if male) or testatrix (if female)

A person or business that purchases a commodity or service is a(n):

customer

habendum clause

describes the type of estate being conveyed and includes any covenants to the title if they exist. It usually follows the granting clause and reaffirms the extent of ownership that the grantor is transferring.

Aspergillus fungus

is a mold that spreads through the air and can cause serious pulmonary and bloodstream infections in people with weakened immune systems.

Agency by Ratification

is an agency relationship that is created because the principal approved of an agents unauthorized action after the action occurred.

The Superb Financial Responsibility Fund

must be used for compensating third parties for actual costs for bodily injury and property damage caused by accidental releases from underground storage tanks containing petroleum or petroleum products. The Superb Financial Responsibility Fund must not be used for reimbursing claims for punitive damages.

The most common example of a general agent is a

property manager

Title

refers to ownership of a property. It may be a partial interest in a property or full ownership the owner has the rights associated with ownership, including possession and transfer rights.

Misrepresentation

relates to making an erroneous statement regarding some material feature of the property or a flat out failure to disclose an important feature of the property.

grant deed is risky for buyers

since it does not provide a warranty of seizen like a warranty deed. As you'll recall, a warranty of seizen states the grantor has legal title or possession.

A quitclaim deed

transfers real and potential interests in a property, whether an interest is known to exist or not. The grantor makes no claim to any interest in the property being conveyed and offers no warrants to protect the grantee.

imputed notice

under this concept, an offer is presumed to have been delivered to the principal when it is delivered to the agent

What were some of the benefits associated with asbestos in the construction of properties?

All of the above

General Warranty Deed Covenants

Breached at time of conveyance - seisin (I own what I say I own) - right to convey (I have authority to convey) - against encumbrances (no physical or title) Breached at possession - quiet enjoyment (no 3P lawful claim) - warranty (will defend against 3P) -Further Assurances (perform acts to perfect title)

What is the most common type of asbestos that was used in the construction of U.S. properties?

Chrysotile

A participant in an action or transaction especially having control is a(n):

Principal

conveyance

When the transfer uses a written instrument, the transfer is called

Stucco and EIFS

are common exterior cladding systems used on homes and businesses. These systems look similar, but have very different attributes.

Per the National Oceanic and Atmospheric Administration (NOAA) back in 2012, how many people lived in inland county regions?

61

What is an example of a property for sale that is noted for having a public stigma?

A home where a murder took place that was covered by the television news

Which types of housing units are exempt from lead-based paint disclosure laws?

All of the above

John is the listing agent for Susan. Susan went to John, even though he is not familiar with her neighborhood, because they are old friends and she trusted him. Before John agreed to a listing price for Susan's home, he spent a few days researching the local MLS to find the selling price of other properties in Susan's area. This action by John would be an example of which of the traditional common law agency duties?

Care

Which party below is the most likely to formally establish an agency relationship at present or in the past even though there is no formal contract in place?

Courts

Where is the most common type of asbestos in the U.S. typically found?

Drywall compound, Plaster, Vinly Floor tiles

SECTION 44-2-10

Essentially, a homeowner is responsible for the integrity, safety, and proper maintenance of any USTs located on the property.

What organization played a major role in 1983 in researching and reporting about real estate agency?

FTC

A ____________ is a relationship in which one party places trust, confidence, and reliance in and is influenced by another who has a duty to act for the benefit of the other party.

Fiduciary relationship

An oral authorization is acceptable under the law, but bear in mind that in many states a real estate agent may not sue for a commission unless there is a written commission agreement.

Most courts will not allow Oral evidence

What's the best answer when a client asks the listing broker about a potential material fact that the agent does not have knowledge about?

The agent should reply with "I don't know" The agent should ask the seller before replying to the client

Swarmers

The appearance of a swarm of "flying ants" indicates a nest is nearby. A "swarm" is a group that leaves their nest to establish a new colony. Finding swarmers indoors often means that there is a termite infestation within the house. At first glance, swarmers and ants look similar but can be distinguished by certain physical features.

Flood insurance

The average flood premium is about $600 annually, but the rates go up to nearly $6,000 for the highest-risk coastal properties

Constructive Notice

The knowledge that the law presumes a person has about a particular fact irrespective of whether the person knows about the fact or not. (Recording).

While there are a number of specific types of deeds, a ___________ is most often used to transfer interest in real estate in South Carolina

general warranty deed

holographic will

is completely handwritten, dated, and signed by the testator. This type of will does not require witnesses to be valid. South Carolina statute does not recognize holographic wills unless they are created and are valid from another state.

The Superb Account

must be used for payment of usual, customary, and reasonable costs for site rehabilitation of releases from underground storage tanks containing petroleum or petroleum products.

In the early ______, NAR changed their policies. The policies of REALTOR® Multiple Listing Services and the REALTOR® Code of Ethics were amended to make seller agency optional and to recognize the possibility of buyer agents.

1990's

Which agent(s) of the seller can be responsible for ensuring compliance under the lead-based paint disclosure rule?

All of the above Listing broker, selling salespeople, buyers broker

Lead-Based Paint Law Provisions

Allow homebuyers a 10-day period to conduct a lead-based paint inspection or risk assessment at their own expense if desired. The number of days can be changed by mutual consent. "Protect Your Family From Lead in Your Home."

South Carolina Residential Property Condition Disclosure Statement

The homeowner is the one responsible for completing the form, NOT the agent. If the agent does know of any defects, regardless of statements made by the owner, the agent is required to disclose that information to a potential buyer. "no representation"- does not mean don't know

The "Superb Account" and the "Superb Financial Responsibility Fund"

are created to assist owners and operators of underground storage tanks containing petroleum and petroleum products to the extent provided for in this chapter but not to relieve the owner or operator of any liability that cannot be satisfied by the provisions of this chapter.

most common misrepresented statements

are regarding the conditions of foundations and building structures. Coming in second is the misrepresentation of property boundaries, HVAC (heating and air conditioning) systems, the roof, and pest infestations.

Gifts

are taxable under the Internal Revenue Code and the tax amount must be paid based on the home's fair market value. The IRS has a maximum amount that a person can gift to another per year. After that value is reached, the additional amount is taxed. However, there are credits and other considerations that may limit or eliminate the amount to be taxed.

To be legally valid, delivery of the deed requires that the grantor

be competent at the time of delivery intend to deliver the deed, beyond the act of making physical delivery Validity of the grantee's acceptance requires only that the grantee have physical possession of the deed or record the deed.

Agency by Estoppel

is an agency relationship that is created because the principal's action caused a third party to believe that an agency relationship exists.

Stachybotrys chartarum

is commonly known as "black mold." This mold is a greenish-black fungus that requires a moist environment in which to grow and is commonly found in flood-damaged buildings.

approved will

is on pre-printed forms meeting the requirements of state law.

Statutory dedication

is similar to dedication for deed. In this situation though, the developer would not deed the community areas to the local authorities. Instead, the developer would include dedicated areas to the public when he or she submits the paperwork for the approval of the development.

Accession

is the gain or loss of property through forces of nature, labor, or the addition of new materials. Involuntary accession is a result of the natural forces of nature and involves four geological processes: erosion, accretion, avulsion, and reliction.

Reliction

is the gradual increase of land when water levels around a river or lake recede. The area where the water once was is now land added to the adjacent property's boundaries.

Erosion

is the gradual loss of soil due to rain, wind, and other environmental factors. Erosion could affect a small or large area of a property or the whole property such as a waterfront home becoming submerged. Property owners affected by erosion lose the title to the property since the property no longer physically exists.

Accretion

is the opposite of erosion and is the gradual increase of land by natural forces near a body of water. An example of accretion would be sand or soil washing up from water onto the shoreline of a waterfront property. This "new" land becomes the property of the waterfront property owner.

grantor

is the person who transfers the title to real property

Avulsion

is the sudden decrease of land by flowing water or waves often caused by hurricanes and other storms. The "lost" land is typically moved to a neighboring property area. The original owner of the land still has title to the land that moved, but he or she must claim the land. If it is not claimed, it eventually becomes part of the new land and property it is now attached to.

nuncupative will

is typically made orally on a testator's deathbed and written down by a witness. Nuncupative wills are usually not recognized as valid for the transfer of real property.

Dedication by deed

is when a developer uses a quitclaim deed to dedicate the use of certain streets and other areas in the community to the public.

full covenant and warranty deed

offers the greatest protection of any deed. With this type of deed, the grantor gives certain covenants or warranties that promise the grantee will have ownership of the property that is unchallenged.