theory and practice: Real Estate Practice : Lesson 3555
- 07/28/14 12:52 AM
Does the general warranty deed provide the greatest protection for a buyer?
We call it a general warranty deed because the seller or grantor is bound by law to honor definite warranties and covenants.
Usually, your state will require that certain words be used that are codified by a legislative act which imply the warranties in a general warranty deed.
The warranties are explicitly written into the deed with specific intentions; for an express purpose to honor the deed.
Some of the words we look for are 'convey and warrant' and 'warrant generally'.
The canonic warranties are five:
theory and practice: Real Estate Practice : Lesson 3554
- 07/28/14 12:50 AM
A fixture is personal property that's been appended to a building, property or some land in such a manner that it actually becomes part of the real property.
Usually, it's considered that if an item has been included as a permanent part of a building it's considered a fixture, like plumbing.
Laws govern the distinction.
We have what we call legal test for determing whether or not an item is a fixture or personal property.
These tests may include:
1. How permanent is the thing that's attached to the property? Usually this is referred to as the method of annexation.
theory and practice: Real Estate Practice : Lesson 3553
- 07/28/14 12:49 AM
Do you use the broker protection clause?
It usually says that a property owner will pay the listing broker a commission if, after a specified number of days after the expiration of the listing, the owner sells the property to someone the broker showed the house to or introduced to the seller.
Can this clause protect a broker who was the procuring cause of the sale from losing a commission because the home was sold after the listing agreement expired?
How long does the clause usually last and when may and when may it not be enforced?
theory and practice: Real Estate Practice : Lesson 3552
- 07/28/14 12:48 AM
Escheat is a way in which the state can get their hands on privately owned private property or real estate when an owner dies without any heirs or a will that presents some kind of final disposition for the personal property or real estate.
Sometimes it goes to the state and sometimes it stays in the county where the owner died.
The state basically just doesn't want the property to be abandoned and left without an owner or without any final disposition.
Have you had to deal with escheat?
theory and practice: Real Estate Practice : Lesson 3551
- 07/28/14 12:46 AM
Some public sentiment regards that the very best agents among us are the ones that allow their clients to flake out whenever they want to.
Usually it's because the client isn't happy with the way you deal with them.
What kind of situations have you had like this and what do you require, by the way of an explanation, from your client before you allow them to run ?
Would you insist that they give you the chance to make things better first, or just tear up the contract ?
theory and practice: Real Estate Practice : Lesson 3550
- 07/28/14 12:44 AM
Do you do more than gather listings?
What's your track record of actually selling houses?
Clients demand agents with a good track record for sales.
Agents who sell houses.
Agents who can sell houses in a lousy, downturned market.
Agents who represent commercial clients, too !
I'm not a salesperson, although a broker.
Just a simple, little 'ol info-tech manager for a brokerage, immersed in geekdom,
fair housing issues and real estate education.
For many years.....
What's your story?
theory and practice: Real Estate Practice : Lesson 3549
- 07/28/14 12:40 AM
What kind of liability are we up against when we state our opinions?
Salespeople, brokers and company employees have to be careful with the statements they make to clients, customers and others in our profession.
Should we be certain that the party to whom we direct our statements understand whether the statement is an opinion or fact?
When is a statement of opinion permissable?
When can the question of deception arise in a statement of opinion?
How about statements of fact?
Should a statement of fact be considered an accurate statement, and when if not always?
theory and practice: Real Estate Practice : Lesson 3548
- 07/28/14 12:35 AM
What we call an estate in land is a term used primarily to define the extent of an owner's interest in real property.
In it's general sense, an estate in land also defines the quantity, nature and degree of the ownership.
There are a bunch of different types of estates but not all interests in real estate are estates.
To be considered an estate in land the interest has to allow possession to take place as we speak or at some time down the road and has to be continuous in some way.
An example might be the owner of
theory and practice: Real Estate Practice : Lesson 3547
- 07/28/14 12:34 AM
What kind of an employment agreement do you have with your broker?
Should the employment agreement define your obligations and responsibilities?
There really are only two alternatives to working for a brokerage:
A salesperson has to be either an independent contractor or an employee.
What would impact the organization of a salespersons responsibilities when they're treated as an independent contractor?
As an employee?
How does it affect the broker's responsibility to withold taxes or pay the saleperson?
How do you view your position with your company and how does your broker treat you?
theory and practice: Real Estate Practice : Lesson 3546
- 07/28/14 12:32 AM
Before a salesperson is compensated, doesn't an agreement have to exist between the broker and the salesperson regarding the amount or type of compensation with the company?
Do you share the commission from the transaction or receive a fixed salary?
To be entitled to a commission one must be licensed, a procuring cause of the sale, and employed by your seller, or buyer, under a legitimate, binding, and legally acceptable contract.
What kind of commission plans have you experienced in your career as a real estate professional?
100%, splits of varying degree, 50/50, graduated, compensated with service charges ?
theory and practice: Real Estate Practice : Lesson 3545
- 07/28/14 12:30 AM
I'm not talking about whips and chains here, although I know some of you might be disappointed.
Discipline is serious business for any brokerage.
Violation of the code of ethics can result in some bad news including damage to the companies reputation, the destruction of the well-earned confidence of it's customers and clients, it's credibility and the image of the company.
Heavy fines, penalties, and worst of all, prison sentences can round out the flogging. Needless to say, the operation of the company would be disabled, possibly beyond measure, which could result in it's collapse.
theory and practice: Real Estate Practice : Lesson 3544
- 07/28/14 12:20 AM
I know your sick of hearing about it.
But it doesn't hurt to keep the old armour polished.
We all know that there are many different types of situations that could lead to a conflict of interest and possibly a RESPA violation, the Real Estate Settlement Procedures Act, and we don't want that to happen, by golly.
The most common conflicts of interest I can think of are those that involve accepting gifts from our suppliers or vendors, or having some ownership in one of those 'other companies' involving those suppliers and vendors.
I suppose the bottom line is
theory and practice: Real Estate Practice : Lesson 3543
- 07/28/14 12:17 AM
Listening to your client or customer shouldn't be difficult.
I know that it can be.
It's hard for me at times.
I sometimes fail to hear what's embedded in the meaning of the language that's being transmitted to me.
Sometimes I can jump ahead and predict what the client's going to say next, like a bad movie script.
We ignore their body language and get sidetracked.
Tolerating what they're saying is important.
If what they're conveying to you is unclouded and lucid then it makes listening a great experience.
Look for clarity.
What are some problems you've encountered when listening to your clients
theory and practice: Real Estate Practice : Lesson 3542
- 07/28/14 12:16 AM
Do you linger around after you've gotten your buyer and seller to shake hands?
How long should one linger around before the contract's been signed?
Isn't the best advice "Go In...get it over with.....and get out"?
You shouldn't run like the house is on fire...doesn't walking away, after everyone's signed, a bit too quickly arouse negative sentimentality or mawkishness?
You've left the taste of insincere pathos in your clients mouth.
Can social conversation kill the deal before the contract's signed?
theory and practice: Real Estate Practice : Lesson 3541
- 07/28/14 12:14 AM
A feeling of pride is automatically aroused in your client or your customer when you smile.
People who can't smile can't make others happy.
Smiling can give you better odds of closing the sale.
When your customer or client tells you he doesn't like the house smiling is usually the last thing on your mind and on your face.
Your beaten, frustrated, rejected. But what should you do?
You should bear those pearly whites and smile with all your heart.
That tells your buyer that you understand what their feeling and you can
theory and practice: Real Estate Practice : Lesson 3540
- 07/28/14 12:13 AM
When you listen to your client or your customer you can sense their pride.
They know they're being heard.
The advantage is that you're learning and understanding their needs and removing many of the obstacles that might stand in the way of the cooperation you need.
You're discovering their hopes, aspirations and cherished desires.
It helps you guide your thought process in a positive direction.
Listening can place you in the best position with your client or customer because you're demonstrating to them that you care about them, that you understand and appreciate their feelings, their problems, their conflicts,
theory and practice: Real Estate Practice : Lesson 3539
- 07/28/14 12:11 AM
I had a sales meeting tonight and we were talking about how stupid the gas prices still are. Not to mention how it's still driving the cost of everything through the roof.
One agent suggested that the big oil companies are still conspiring to pirate the economy.
I thought for a second and wondered:
What if we boycotted the big oil companies?
What would happen?
So I came up with the "Dead" M.E.A.T." formula. Here it is:
I told the agent that,
theory and practice: Real Estate Practice : Lesson 3538
- 07/28/14 12:08 AM
Is is generally recognized that the disadvantages of any property tax are less obvious than the advantages? Taxation is never popular and there is no perfect tax. Economists have seen that any property tax advantages may also incorporate disadvantages at the same time (huh!). Because this form of taxation is pretty easily understood and transparent, the quality of the tax being inconsistent and lacking a harmonious uniformity can become amplified in the public point of view. This can be a problem and is.
One of the perceived inconsistencies in the public mind is both that of the assessment which is
theory and practice: Real Estate Practice : Lesson 3537
- 07/28/14 12:06 AM
Are the advantages of property tax clear to you? Here are a few I've put together for your consideration:
1. It's the best form of locally generated revenue for local governments.
2. It's technically possible to maintain and administer under any ruling authority.
3. The revenue is a predictable source of income for the government.
4. It's cheap to administer.
5. The 'cost to maintain' yeild ratio is usually 2 percent or less.
6. It can become progressive if it's designed properly.
7. It's almost impossible to evade or avoid.
8. Collection success rates of around 95% are possible.
theory and practice: Real Estate Practice : Lesson 3536
- 07/28/14 12:05 AM
Let's just say, for simplicities sake, that property tax, as most of us understand, is an annual tax on real property.
It's founded on the concept of market value which, in it's most commonly perceived characteristic, is in proportion to the estimated value of the goods taxed, otherwise known as 'ad valorem' tax which is latin for 'according to value'.
The base for the tax may be for the land only, the land and the buildings attached to it, or any substitution of the order of these factors.
Let's, for the purpose of this explanation, restrict property tax to annual property taxes and exclude capital gains,