Broker's Review: Brokerage

RESA LAW RA 96490 states that 

"a real estate broker is an agent of a party in a real estate transaction to offer, advertise, (1) ______, promote, (2)_____ and negotiate a sale"

T or F: Real Estate broker is not limited to those licensed?

What are the real estate transactions handled by real estate brokers?

Real Estate Transactions:
sales or purchase: (1)____________

(2)___________: barter or exchange of real property, personal or business assets such as share of stocks 

lease: (3)_____________

(4)___: pledge of real property as collateral for loan 

(5)_____: land owners and developers partner together for a project

the act/ practice whereby a natural or judicial person, on behalf of a principal and for or in exception of commission or fee, negotiates the sale, purchase, lease, exchange, or mortgage of real estate

What are the essential elements of agency?

Essential Elements of Agency

(1) ______- mutual consent of both parties
(2)______- legal implementation of purpose agency

What are the general steps in brokerage? (5)

What is the--- "authority given by the seller/ buyer, lessor/ lessee, owner/ borrower for the broker to negotiate the sale, lease, exchange or mortgage or real estate, for a certain period of time, (1)________, for a stipulated rate of (2)_______?"

What are the two kinds of listing (1. as of form) and as of (2. exclusiveness)

What is the safest form of listing contract?

authority given to two or more brokers to negotiate a transaction

authority given to only one broker to negotiate the transaction

What are the two types of exclusive listing?
(1)_______- a listing wherein, although only one broker is authorised, said broker is not entitled to commission if the principal himself closed the transaction
(2)_______- a listing where the sole authorised broker is entitled to commission if the principal himself closed the deal

What are the types of functions of a broker?

Function of Broker:

(1)_______: authority given be a purchaser for the broker to look for a buyer and negotiate the sale

purchase agency: (2)

exchange agency: (3)

(4): authority given by the owner of a rental property for the broker to secure tenants or an authority given by a prospective tenant for the broker to look for a space to be rented 

(5): authority given by a borrower for the broker to negotiate and secure a loan to be secured by real estate, or authority given by a financial institution for the broker to procure borrowers

As to Basis of Compensation:

(1)________: once where the compensation of the broker depends on mark-up
(2)________: one where the compensation of the broker is prestipulated percentage of the consideration or load obtained

The contents of listing contract refers to...?

What are the sources of listing?
personal contracts, (1)_____, membership in clubs and associations, fellow real estate practitioners, (2)_____, (3) advertisements, internet

Factors consider in listing/ also tips for buying real estate:
price quotation of the owner--check its (1)_______ by market data

title is (2)_____ from any condition or annotation (liens and encumbrances), which may constitute legal obstacles to its disposition. Conduct title verification or (3)______

person giving authority is the (4)________. The registered owner/s could be dead already (estate tax must be paid first)

verification whether the property or portion thereof will be affected by (5)_______.

information on whether or not arrangement have been made for moving out (6)_______.

property must be outside (7)_______ for priority development covered by urban land reform 

verification, in case of agricultural land, whether disposition is valid under (8)_______. check legal use of land

What are the restrictions on use which might affect the value of property?
subdivision restriction
(1)________
(2)________
NAPOCOR lines (15-20 meters from the center restriction on use)
legal use of the property (land classification and zoning)
(3)_______

Sharing on the expenses related to sale:

BIR taxes (DST, CGT, CWT, VAT, estate tax, assessor)

(1)__________(realty tax, business tax, transfer tax, assessor)

registration (reg. of deeds)

(2)

notrial fees, survey and relocation 

subdivision of title if portion only of the property is to be purchased

lawyer's fee, if applicable 

extrajudicial settlement expenses, if applicable 

broker's fee

Compare a prospect from a suspect?

Why do people buy real estate?

occupancy

(1)_______

(2)________

people in the first class will usually pay (3)____  than those in the second and the lowest price of all paid by the speculator who is interested in quick turnover and profit

What are the factors considered in qualifying prospects?

need

(1)

(2)

What is--"the orderly written/ oral explanation of facts and figures that make a given property attractive to a purchaser" 

-can be in the form of description of property such as its physical character, legal, location neighborhood, lot plan, location, vicinity map, photocopies of titles and tax declaration, etc.

What is the scope of presentation or briefing? 

property identification and description

(1)________

(2)________: present and potential income, durability of income stream, return on investment 

(3)________: maps, pictures, visual aids (incest in laptop for better presentation)

(4)________: reservation, down payment, monthly amortization, expenses of sale to be shouldered by the seller and the buyer especially tax aspect 

(5) financing available in case of installment

What is under identification and description?
location, lot and block, (1)______, (2)_____, lot area, registered owner, type of property, (3)_____, zoning classification, price and terms, (4)______

What is under income or investment properties? 

present and potential income, (1)______, (2)______

What is the process showing the property and pinpointing of its physical qualities and other benefits and advantages to arouse the desire to possess or own it. Generally no tripping no closing.

What is the preparation for demonstration?

(1) preparation of checklist of the ________ and _________ which may be the object of prospects inquiry 

(2) anticipation of possible _______

(3) organization of ____________ to be emphasized 

(4) appointment with prospect and notice of ________

(5) selection of ideal _______ to create favorable impression of the neighborhood

What is ---"the process of reconciling the opposing views of the parties to a transaction as to price and terms"?

What are the items that should be covered in negotiation? 

a. price and terms

b. (1)__________(local taxes, BIR taxes, informal settlers, relocation/ subdivision expenses, conversion/ change in use, documentation and registration plus representation expenses)

c. (2)

d. pro-rating of insurance premiums and utilities 

e. pro-rating of (3)_________

f. items including or excluded in sale, telephone, furniture, fixture

What are the common difficulties during negotiation?

a. Hesitancy of prospect to express (1)______, thereby leaving the broker without any opportunity to answer or overcome it 

b. presence of supposed advisors of the prospect who give negative remarks which tend to (2)_________

c. failure or inability to analyze prospect's (3)______

d. prejudice on either seller and buyer because of differences in (4)_______, _______, ______

e. misrepresentation of the (5)_______ or _____________

f. disagreement in sharing of (6)________

g. too much taxes imposed on the (7)_______ (withholding tax, documentary stamp tax, value-added tax, business tax in some cases)

h. problem on (8)________ and _______ at the title

What is the---"process where, thru the mediation of the broker, the minds of the parties meet"?

What are the general steps in closing? 

(a) persuading the prospect to submit a written offer to purchase (1)_____________

(b) securing (2)________ of the offer to purchase, or assisting the seller in preparing a counter offer

(c) drafts of agreement for consideration of the parties