SC Unit II - Agency
average flood insurance premium
$600
How many days does the buyer have to test for lead-based paint according to Federal law?
10 days
What is the period of time requirement for adverse possession in SC?
10 years
Loyalty
100% to principal
How many Americans live within 100 miles of an ocean?
200 million
What percent of claims against real estate agents arise from defects of property sold that impact the value of the property?
75%
What does an agent present after a substantive contract has been verbally confirmed?
Acknowledgment of Receipt of Disclosure of Brokerage Relationship form to the new client in person or electronically
Agents common law duties
COALD -Care -Obedience -Accounting -Loyalty -Disclosure
What organization played a major role in 1983 in researching and reporting about real estate agency?
FTC (Federal Trade Comission)
Federal lead-based paint disclosure laws apply to what type of residential housing?
Homes built prior to 1978
organization founded in 1995 that protects the interests of the real estate buyer
NAEBA National Association of Exclusive Buyer Agents
fiduciary duties
OLDCARD obedience loyalty disclosure confidentiality accounting reasonable care and dilligence
Care
Reasonable care and skill
What program in SC helps owners mitigate for wind damages associated with storms?
Safe Home Program South Carolina
What 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?
The South Carolina Wind and Hail Underwriting Association (SCWHUA)
probate
a court proceeding that settles a decedent's estate
Agency by estoppel
agency not created as an actual agency by a principal and an agent but that is imposed by law when a principal acts in such a way that leads a third party to believe that another is the principals agent and then the third party is injured by relying on and acting in accordance with that belief
How does a sinkhole form?
area forms underground where water drains and collects, usually form because of dry grounds and heavy rains
most commonly used type of asbestos in the U.S.
chrysotile (95%)
characteristics of radon
colorless, odorless and tasteless gas naturally occurring
holographic will
completely handwritten, dated and signed by testator does not require witnesses SC does not recognize them unless created and valid from another state
types of stigmatized properties
criminal debt murder/suicide phenomena public
Accounting
custodial care and record keeping of all money handled on behalf of principal
What are 3rd parties called?
customers
types of termites
damp wood dry wood subterannean
stigmatized property examples
death of an occupant murder suicide serious illness haunted
what must ultimately happen in order for a deed to be valid?
delivered and accepted by the grantee
Escheat
dies without will and without heirs property "escheats" to the state
Respondeat superior
doctrine making employee liable for wrong of an employee
Where can chrysotile asbestos be found today?
drywall compound plaster vinyl floor roofing tar brake pads and shoes fire blankets HVAC duct connectors
When did the NAR change their policies?
early 1990's
Who orders the preliminary title report?
escrow officer
type of agency that allows the buyer to reserve the right to purchase a property directly from the seller without the use of an agent:
exclusive agency
What type of agency agreement is the broker guaranteed a commission regardless of whether or not the buyer agent handled the transaction?
exclusive right to represent
most common disaster in the U.S.
flooding
examples of material facts
flooding basement problems with HVAC square footage of home environmental hazards termites easements and encroachments
type of deed that is risky for buyers
grant deed
Benefits to the broker in a buyer agency agreement:
greater client loyalty absence of liability of the acts of the listing broker avoidance of conflict of interest
Which form of consultation suggests that the agent is more of a consultant?
hourly rate
What is the company interested in most when working with a relocation client?
how efficiently agents work and follow the corporate relocation package benefits
material fact
issue that would be useful for a reasonable person to know when making a decision
Caveat Emptor
let the buyer beware, buy at your own risk
beach migration
long term chronic erosion
what can breathing radon cause
lung cancer
risks of prolonged inhalation of asbestos
lung cancer, mesothelioma
nuncupative will
made orally on deathbed and written down by a witness
executor/executrix
male/female designated by testator to oversee the settlement of the estate
main concerns of a fiduciary relationship
managing money or property for another
title irregularities that could negatively affect or cloud clear ownership and could potentially void pending sale:
mistakes (incorrect address, legal descriptions, etc.) forgery or fraud secret spouse easements and encroachments zoning violations
witnessed will
most common in writing, signed by testator with two witnesses includes signed acknowledgement from witnesses stating will is true and voluntary
common signs of termite infestation
mud tunnels mud like patches swarmers damaged wood
Disclosure
must provide the proper disclosure of material information
Can a team imply they are a separate entity from the brokerage of which it is employed>>
no
Can the broker in charge delegate supervisory duties to team members/leaders in SC?
no
Does SC statute require owner to disclose a stigmatized property to a buyer?
no
Does standard homeowners' insurance typically cover flooding in the US?
no
Obedience
obligation to obey principals instructions
approved will
on pre-printed forms meeting state requirments
fiduciary
one often in a position of authority who obligates himself to act on behalf of another
How can an owner avoid being a victim of adverse possession?
periodically inspecting the property evicting any trespassers found
biggest risk of USTs
petroleum or other hazardous substances can corrode and seep into soil over time and contaminate drinking water, also could cause fires or explosions
vicarious liability
principle responsible for acts of agent if the agent is following instructions of the principal
What can team names not include?
realty real estate realtors
What type of fee is most commonly used to week out buyers who are not serious in their commitment/may be just shopping around?
retainer fee
What happens to a homeowner who does not pay property taxes?
risks losing home to tax sale
Who is responsible for completing and delivering the SC Residential Property Condition Disclosure Statement form?
seller
Best companies to target when initiating contact for relocation employees?
small to medium size, with 10 or fewer people relocating every two years
other pests that must be disclosed to potential buyers
snakes, fire ants, spiders, bats, bees, bedbugs
asbestos was originally used for
sound absorption tensile strength resistance to fire and heat affordability
How to remove or contain asbestos
spot repair encapsulation enclosure removal
Where can you find the signature of the grantor?
testimonium clause
What is the tax amount due on a gift based on?
the homes fair market value
Conveyance
transfer of title to real estate using written instrument
Needs of the over-55 buyer may include:
vacation homes downsizing from current home access to recreational and cultural activities
dedication by a developer can be:
voluntary or involuntary
Do agents have to disclose the erosion rates of beachfront properties?
yes
Do you have to disclose asbestos related facts to potential buyers?
yes
do sellers and landlords have to disclose known lead based paint hazards?
yes
does an acknowledgment have to be notarized?
yes
Can an Acknowledgement of Receipt of the Disclosure of Brokerage Relationships be sent electronically?
yes, if first contact is made electronically or via telephone