UNIT 11 REAL ESTATE COURSE

Equal Credit Opportunity Act (ECOA)

The Equal Credit Opportunity Act (ECOA) is a law for lenders that prohibits them from discriminating against race, color, religion, national origin, sex, marital status, age or dependency on public assistance in the granting of credit to consumers.

The Georgia Fair Business Practices Act

The Georgia Fair Business Practices Act, or FBPA, is designed to protect the public by focusing on deceptive advertising. This act deals mostly with fraudulent or otherwise misleading advertisements. An actual transaction must occur in order to prosecute someone for breaking this law. The advertising must have an impact on the public as a whole.

What is the name of the act that covers a wide scope of deceptive practices, and under which it is not necessary for an actual consumer transaction to take place?

The Georgia Uniform Deceptive Trade Practices Act

Georgia Uniform Deceptive Trade Practices Act

The Georgia Uniform Deceptive Trade Practices Act, or UDTPA, is very similar to the FBPA except that the UDTPA covers a much wider scope of deceptive practices. With this law, it is not necessary for an actual consumer transaction to take place.

Real Estate Settlement Procedures Act (RESPA)

The Real Estate Settlement Procedures Act (RESPA) was created to ensure that the buyer and seller in a residential real estate transaction involving a new first mortgage loan have knowledge of all settlement costs.

What is the name of the federal law that restricts interstate commerce?

The Sherman Antitrust Act

Sherman Antitrust Act

The Sherman Antitrust Act is a federal law restricting interstate commerce and has been in effect since 1890. Like all antitrust laws, this law was designed to restrict any monopolistic practices.

Truth in Lending Act

The Truth in Lending Act requires lenders to disclose to buyers the true cost of obtaining credit so that the borrower can compare the costs of various lenders.

What could happen if you go against the Sherman Antitrust Act?

The disciplinary actions for violations of the Sherman Antitrust Act can include prison terms and very large fines. In the case of a corporation violation, the fine can be in the millions of dollars

Security deposits must be held in trust for the tenants in _____________ account specifically for that purpose.

a separate escrow

Under antitrust laws, the following parties can be held liable:

brokers, agents, real estate boards, companies, associations, multiple listing services.

Georgia also assesses a(n) _____________ on long-term notes secured by real estate.

intangible recording tax

Under antitrust laws, which of the following parties cannot be held liable?

lawyers

If a borrower has less than a 20% down payment, the lender may require that the borrower purchase....

private mortgage insurance (PMI). Payment for PMI can be a one-time premium, but typically it is a percentage added to monthly payments. When the loan balance is paid down to 80% of the total, the PMI payment will be dropped.

If a lease contains no expiration or termination date, the law considers the tenancy to be a tenancy at will. Terminating a tenancy at will requires...

sixty (60) days' notice from the landlord or thirty (30) days' notice from the tenant.

There is a safety clause, often called an "extender" or "carryover" clause, which provides...

that a broker is still entitled to a commission for a set period of time after the listing has expired, if the property is sold to someone the broker introduced to the property during the time he or she had it listed. The time period set is usually 60-90 days but is negotiable between broker and seller.

When buying a piece of real property, it's crucial for the buyer to verify that the seller is the sole and rightful owner of the property and there are no problems with the

title

The main purpose of the Truth in Lending Act (1968) is

to require lenders to disclose to buyers the true cost of obtaining credit.

In completing a lease or a written offer to buy, sell, lease, rent, or exchange real property, the licensee must include:

-A description of the property involved. -The method of payment. -Any special stipulations or addenda the offer requires. -Whatever dates are necessary to determine whether the parties have acted timely in meeting their responsibilities under the lease, offer or contract.

In any contract or lease for the use or rental of real property as a dwelling place, a landlord or a tenant may not waive, assign, or transfer any of the rights, duties or remedies relating to the:

-Duties of the landlord to keep the property in good repair and make improvements. -Liability of the landlord for failure to repair or improve the property. -Rules regarding collection, safekeeping and return of security deposits.

The Sherman Antitrust Act prohibits:

-Price Fixing- Collusion between brokers and sales people with competing companies to set commission rates is illegal. -Group Boycotts- Licensees should never "get together" and boycott a company because of their business practices. -Division of markets by location or price.

If the tenant gives proper notice and vacates without owing any rent or damages, the landlord must return the security deposit to the tenant within ___ days.

30

Terminating a lease which contains no expiration or termination date will require how many days' notice from the landlord to the tenant?

60 days

A title search

A title search involves tracing the chain of ownership of the property. In Georgia, the search covers 50 years. The searcher looks to see that no one else besides the seller has any claim or right to the property. The searcher also checks that there are no defects in the seller's title, such as taxes owed on the property or the right of other people to use part of the property as a driveway.

Intangible recording tax

Georgia also assesses an intangible recording tax on long-term notes secured by real estate. The tax for recording the note is at the rate of $1.50 for each $500.00 or fractional part of the face amount of the note.

While legal descriptions can include different ways of describing properties, only the metes-and-bounds method or the short-form description are to be used in .....

Georgia. A sales contract or listing form is not enforceable unless it contains a legal description.

Which of the following is the legal description required to be used on listing and other real estate forms in Georgia?

Metes-and-bounds description

Net listings

Net listings occur when the seller has an amount of money that he wants to earn from the sale of the property, and he authorizes the broker to market the property for any price he'd like and basically, "keep the change." In Georgia this type of listing is illegal.

Puffing

Puffing is exaggerated or superlative comments or opinions not made as representations of fact and thus not grounds for misrepresentations.

Real estate transfer tax

Real estate transfer tax is an excise tax on transactions involving the sale of real property where title to the property is transferred from the seller to the buyer. The real estate transfer tax is based upon the property's sale price at the rate of $1 for the first $1,000 or fractional part of $1,000 and at the rate of 10 cents for each additional $100 or fractional part of $100.

Regulation Z

Regulation Z requires that the consumer be fully informed of all finance charges, as well as the true annual interest rate, before a transaction is consummated.