Legal Aspects in Real Estate Mgmt

The authority of the Broker to negotiate the sale lease, purchase, mortgage or exchange

of real property for a fee and under certain terms and conditions within a specific period

of time is known as:

• Contract of Sale

• Contract to Sell

• Authority of Sale

• Authority to Sell

It is that price at which the willing seller will sell and the willing Buyer will buy,neither of the

parties under abnormal pressure.

• Fair Market Value

• Exchange Value

• Appraisal value

• Sound Value

It is that price at which the willing seller will sell and the willing Buyer will buy,neither of the

parties under abnormal pressure.

• Earnest Money

• Option

• Option Money

• Downpayment

This is one whereby the listing Broker is not entitled to a commission in case the property

owner negotiates the sale of the property. The property owner can sell the property

himself and is not oblige to pay the broker’s commission.

• Multiple Listing

• Exclusive Agency Listing

• Net Listing

• Open listing

A natural or juridical person who has both the willingness and the capacity to buy real

properties is called as a:

• Buyer

• Prospect

• Seller

• Suspect

Is defined as an amount accompanying an offer to purchase a property. It also refers to

a part of the purchase price advanced by the Buyer to the Seller as a token of good

faith for a perfection of the Contract.

• Earnest Money

• Option Money

• Option

• Downpayment

Refers to the money given to the Seller by the Buyer in consideration of the right to

purchase or lease a property within a specified period and at an agreed contract price.

• Option

• Earnest money

• Option money

• Downpayment

The compensation of the Broker depends on the overpriced obtained by the buyer. An

agreement by which the broker may retain as compensatio to his services all sums paid

over and above the net price to the owner is known as:

• Net listing

• Open listing

• Multiple Listing

• Exclusive listing

It is one wherein only one broker is authorized to negotiate.

• Exclusive listing

• Multi-listing

• Listing

• Exclusive agency

Refers to that portion of trust assumed by the broker as an agent for the principal.

• Fiduciary Relationship

• Trust agreement

• Escrow

• Real Estate Mortgage