theory and practice: Real Estate Practice : Lesson 4020 - 04/06/15 01:31 PM
When a real estate agent considers himself an employee or an independent contractor the consideration will have an impact on whether or not the broker will have to pay social security or income taxes.
Take your time. The solution is posted below the wildlife photo.
Is this true or false ?

A. True
A broker won't have to pay social security or income taxes if the salesperson is an independent contractor.
(6 comments)

theory and practice: Real Estate Practice : Lesson 4019 - 04/06/15 01:18 PM
It is extremely importaqnt that all real estate agents understand the concepts of contract law, agency, and property laws.
Is this true or false or is this something which only concerns a member of the legal profession ?
Take your time. The solution is npoted below the wildlife photo.

A. True
All real estate agents have an obligation to have a fundamental understanding of the laws that apply to contracts, agency and property  laws.
(2 comments)

theory and practice: Real Estate Practice : Lesson 4018 - 04/06/15 01:12 PM
What is traditionally considered to be the last step in a real estate transaction ?
Take your time. The solution is posted below the wildlife photo.
 
A. The closing
Closing is generally considered to be the last thing that takes place in any real estate transaction.
All monies are excvhanged, title transfer takes place and the deed is handed over.
Another term for closing is escrow or 'going to settlement.
(0 comments)

theory and practice: Real Estate Practice : Lesson 4017 - 04/06/15 01:08 PM
When a salesperson is acting as an employee and is not acting as an independent contractor that salesperson has the right to advertise property under their own name.
Is this true or false ?
Take your time. The solution is posted below the wildlife photo.

A. False
If the salseperson is an employee of the brokerage the salesperson may not advertise property in their own name.
The salesperson has an obligation to recognize any responsibilities that may be assigned by the principal broker of the brokerage of which the salesperson is employed.
(0 comments)

theory and practice: Real Estate Practice : Lesson 4016 - 04/06/15 01:06 PM
A broker has the right to exercise the decision to control the number of hours an independent contractor would have to work in addition to the work schedule that the independent contractor would be required to comply with.
Is this true or false ?

A. False
The broker would have not have the right to dictate the number of hours the independent contractor has to work, nor their work schedule.
The could could control the amopunt of compensation the independent contractor would receive.
(0 comments)

theory and practice: Real Estate Practice : Lesson 4015 - 04/06/15 01:03 PM
When a real estate salesperson is paid in a lump sum by the broker or their employer and that same licensee or salesperson is responsible for paying their own taxes, we refer to this person as an employee.
Is this true or false.
Remember to take your time. The answer is posted below the wildlife photo.

A. False.
If the agent / salesperson is responsible for paying their own taxes we refer to them as an independent contractor.
(0 comments)

theory and practice: Real Estate Practice : Lesson 4014 - 04/06/15 01:00 PM
A buyer became a client of a broker and decided that he wanted to purchase a house that the broker has listed with his company.
It's not ok for the broker to show the buyer / client the house that he has listed for sale.
True or false ?
Take your time. The solution is posted below the wildlife photo.

A. False
It is ok for the broker to show the house to the buyer / client, but both the buyer and the seller have to be made aware of what's going on and agree to allow the broker to … (0 comments)

theory and practice: Real Estate Practice : Lesson 4013 - 04/06/15 12:38 PM
A buyer became a client of a broker and decided that he wanted to purchase a house that the broker has listed with his company.
It's not ok for the broker to show the buyer / client the house that he has listed for sale.
True or false ?
Take your time. The solution is posted below the wildlife photo.

A. False
It is ok for the broker to show the house to the buyer / client, but both the buyer and the seller have to be made aware of what's going on and agree to allow the broker to … (0 comments)

theory and practice: Real Estate Practice : Lesson 4012 - 04/06/15 11:41 AM
When a real estate broker is hired by someone to sell their home the broker has an obligation to comply with the directions of any interested buyer.
Is this true of false ?
Take your time. The solution is posted below the wioldlife photo.

A. Absolutely false.
The real estate broker hired by the seller is only required to recognize and comply with all of the lawful instructions of the owner / seller.
(0 comments)

theory and practice: Real Estate Practice : Lesson 4011 - 04/06/15 11:38 AM
When we speak of confidentiality we consider it to be part of the fiduciary duty of care from the five common-law  fiduciary duties of care, obedience, accounting, loyalty and disclosure.
True or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
Confidentiality is a characteristic of the fiduciary duty of loyalty.
(0 comments)

theory and practice: Real Estate Practice : Lesson 4010 - 03/30/15 12:17 AM
The owner decides to abandon the property he has listed with a brokerage.
This will terminate the relationship that the broker has with the owner.
True or false ?
Take your time. The solution is posted below the wildlife photo.

A. False
 Abandoning the property will not terminate a broker-seller agreement.
If the seller / owner declares bankruptcy the relationship could be terminated.
(6 comments)

theory and practice: Real Estate Practice : Lesson 4009 - 03/30/15 12:15 AM
When a real estate broker acts as the agent for the seller the broker has an obligation to disclose confidential information about the seller to the buyer if it helps the chances of closing the deal.
True or false ?
Take your time. The solution is posted below the wildlife photo.

A. False
When a real estate broker is acting on belhalf of a seller the broker has an obligation to remain faithful to the interests of the seller.
Disclosing confidential information in order to gain procurement of a sale is inappropriate.
(2 comments)

theory and practice: Real Estate Practice : Lesson 4008 - 03/30/15 12:14 AM
In a real estate transactionn, when one speaks of a fiduciary relationship their typically referring to a relationship that will allow another person to act on behalf of another with the additional privilege and grant of legal power  for the other persons affairs.
Is this true or false ?
Take your time. The solution is below the wildlife photograph.

A. False
A fiduciary relationship is one which represents an agent's reloationship to the principal or the one that hires the agent.
(0 comments)

theory and practice: Real Estate Practice : Lesson 4007 - 03/30/15 12:12 AM
A house was built on top a pile of manure.
The ceilings of the home we're also poorly constructed and poorly attached to any supporting members or beams.
This would be considerd an example of a stigmatized property ?
True or false ?

A. False
If the house was constructed on top of a pile of manure and the ceiling construction was garbage, this would be considered an example of latent defects in the property.
(0 comments)

theory and practice: Real Estate Practice : Lesson 4006 - 03/30/15 12:10 AM
A buyer inquired as to whether or not a city landfill was going to be constructed on an adjacent lot in a new subdivision.
The seller's agent replied that she didn't know even though the agent was fully aware of the fact and failed to disclose this to the prospective buyer.
If the seller's agent had disclosed this fact to the potential; buyer it would have been considerd to be representative of an uneccessary disclosure.
True or false ?

A. False
Failure to disclose the fact that a new city landfill is going to be constructed on the adjacent property is an example … (0 comments)

theory and practice: Real Estate Practice : Lesson 4005 - 03/30/15 12:08 AM
A buyer paid $460,000 for the house.
The lot was valued at $65,000.
The mortgage was for $200,000.
After all is said and done, how much equity does the homeowner have in the place ?

A. $260,000
First of all, the value of the lot has nothing to do with the calculation, so let's hope you don't figure it with eithyer a simple mathematical addition or subtractioin.
Therefore, let's just subtract the value of the loan from the cost of the home (460k-200k) and we see that we've got $260,000 in equity in the house.
Remember, the market value of the … (0 comments)

theory and practice: Real Estate Practice : Lesson 4004 - 03/30/15 12:07 AM
Homeowner's purchase homkeowner's insurance because they know that homeowner's insurance will replace old furniture and roofs when these things need replacing.
True or false ?

A. False
Homeowner's insurance doesn't cover replacement because of age, although it does cover financial losses created because of fire, vandalism or burglary.
There are many different varieties to the formula when considering underwriting an homeowner's insurance policy.
In some cases, supplemental policies which cover appliances and HVAC may be considered.
(0 comments)

theory and practice: Real Estate Practice : Lesson 4003 - 03/30/15 12:05 AM
A homeowner's house was constructed in such a way so that the floor of the house was built nearly two feet above a one hundred year old flood mark.
The homeowner wants to apply for a federally related home loan.
The lender must require flood insurance.
True or false ?

A. False
The lender could exempt the homeowner from any flood insurance requirement because of the level of the flood mark and the it's age.
(0 comments)

theory and practice: Real Estate Practice : Lesson 4002 - 03/30/15 12:03 AM
A mortgage broker told a homeowner that he could deduct the appraisal fee from his annual gross income for income tax purposes.
Is this true or false ?

A. False
It could be considered a fraudulent misrepresentation of facts regarding the loan from the beginning of the loan process.
Loan discount points may be deducted from a homeowners income, however, for income tax purposes. 
The most important thing to remember about points being 100 percent deductible is that points are paid to obtain a specific type of loan. The loan has to be a loan to build, buy or improve (example : add a room) your … (0 comments)

theory and practice: Real Estate Practice : Lesson 4001 - 03/30/15 12:01 AM
A homeowner insurance policy contained a provision for coinsurance along with coverage that insured the home for total replacement cost.
The home burned down and the homeowner had to settle for the present cash value of property damaged in the fire.
True or false ?

A. False
Because the homeowner policy insured the home for total replacement cost, the homeowner can make a claim which covers the full costs of replacement or repairs resulting from any damages to the property whatsoever. No deduction for depreciation is taken into consideraration because the home is insured for total replacement cost.
(0 comments)

 
Most real estate fraud-related articles and Department of Justice Press Releases published here are taken from the public record, which normally include press releases and court documents related to each entry and case. Any other type of record, i.e. newspaper reports, are only published after consent has been obtained from the original publisher. Nothing will be published that has not been verified via the public record or consent provided.The use of the names or initials of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the United States Marshals Service is governed by 18 U.S.C. sec. 709, which prohibits their unauthorized use in a manner calculated to convey the impression that such use is approved, endorsed, or authorized by that component, unless written permission has been received from the head of the respective component. Where initials are found within this blog site they are not used in a manner calculated to convey the impression that such use is approved, endorsed or authorized by that component. Please see the Department of Justice Legal Policies at:http://www.justice.gov/legalpoliciesPlease contact David with any questions.
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