AGENCY & REPRESENTATION
The practice of nurturing prospects over time through consistent communication until they are ready to transact.
What is "Nurturing"?
The estimated amount a seller will net after paying commission, closing costs, and loan payoff is shown on this document.
What is a net sheet?
The legal doctrine requiring that contracts include something of value exchanged between parties.
What is consideration?
The process of selecting comparable sales slightly superior and inferior to the subject property.
What is bracketing?
The document that legally transfers title from one party to another.
What is a deed?
A consumer who has not signed a brokerage agreement but is working with an agent is legally considered this.
What is a customer?
The price at which a property actually transfers ownership.
What is sale price?
A clause stating that time deadlines in a contract are strictly enforceable.
What is a time-is-of-the-essence clause?
The appraisal approach that estimates value based on the cost to rebuild the property minus depreciation.
What is the cost approach?
The proportional division of property expenses such as taxes or HOA dues at closing.
What are prorations?
A brokerage relationship created without a written agreement through the actions of the parties.
What is implied agency?
The number of months it would take to sell current inventory at the present rate of sales.
What is months of inventory (or absorption rate)?
A clause requiring disputes to be resolved outside of court.
What is an arbitration clause?
A reduction in value due to outdated design, floor plan, or layout inefficiencies.
What is functional obsolescence?
A public record that shows the history of ownership transfers for a property.
What is the chain of title?
When an agent represents one party but owes limited duties to the other party in the transaction.
What is designated agency?
When comparable properties are adjusted to reflect differences in features, this process is being performed.
What are pricing adjustments?
A contractual clause allowing the seller to continue marketing the property while under contract with contingencies.
What is a kick-out clause?
The difference between the contract price and appraised value when the appraisal comes in low.
What is an appraisal gap?
A legal claim or restriction attached to a property that may affect its value or transferability.
What is an encumbrance?
Information that would influence a reasonable person’s decision to buy or sell property is considered this.
What is a material fact?
The economic principle stating that a property’s maximum value is achieved when it is similar to surrounding properties.
What is the principle of conformity?
A written notice that one party has failed to perform under the terms of the contract.
What is a notice of default?
A permanent improvement that increases property value is known as this.
What is a capital improvement?
A restriction placed on property use by a homeowners association or developer.
What are covenants, conditions, and restrictions (CC&Rs)?