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Practice English Speaking&Listening with: Know your Keywords for the Real Estate Exam!

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Hi, this is Joe from PrepAgent. I'm here with my friend Daniel. How's it going, Daniel? It's going good. Your test is coming up soon,

isn't it? Yes, sir.

Okay, so I think you said next Tuesday, right?

That's correct. Alright, so we don't have a lot of time,

but we're going to get you passed, and I wanted to use a little bit of a different technique

that we've used in other webinars.

We just go through questions. What I do with a lot of people as you're studying for their exam,

I tell them make sure you know key words and what I mean by that is when you see a word,

you're able to identify that word using another very short word.

For example, real property - immovable. Things of that nature.

Okay. And the reason I like to do that because remembering that word is much easier than remembering a big long sentence or

a big paragraph. You agree?

I do agree. And so that's our goal today as we go through

this is now those key words when you do the questions on your exam or even in the practice exam questions,

you're able to identify key concepts much quicker. Then, after you have all these key words down,

doing those questions will just come much easier to you, and you'll get it done much faster, and you'll pass your exam.

Perfect. Good. So what I did today is I put together a lot of words here

and we're going to try and fill them out as best we can.

Kind of similar to the webinar. I did with Irene. I don't know if you saw that one. Did you see that one?

Yes, I believe so. Right. So it's a very similar concept, but it's a little more organized. And by the way,

I'm going to have this outline on my website for anybody who wants it, for all the members.

So if you want to get this, you can get it there.

But for now, let's begin.

Now, what's the one I just mentioned? Let's start with that one.

Real property: immovable. Good.

So let's bang out some of the easy ones here. So, do you know bundle of rights?

Yes, these are the rights that an owner has when they own property.

Alright, so here's a great example.

You kind of understand it, but the definition you just gave is not really going to help you pass the exam.

What I was looking for is the right to use, to sell, to possess, to encumber, and

to do whatever you want with it, but I wanted those key phrases.

I have a have an acronym. What's your acronym? Share with us. Deep C.

okay,

I hope my spelling isn't that bad.. just the letter C after deep. Excellent. Good.

Okay, so what does it stand for?

Disposition,

exclusion, enjoyment, possession, and control.

Exclusion

Get a little spell check going here.

Okay.

So good, so I always say the right to use, possess, enjoy,

but it means the same thing either way.

You're using the right concept - short key words to understand what the meaning of the word is

So let's get down to this: real property, immovable, personal property, what do you got?

Movable. Boom.

Good. Now, the answer may not be movable on your exam just so we understand the concept here,

but you'll see something like a chair, like, you know, that's chair. That's moveable, ah, personal property, boom.

Good.Got it.

By the way,

what's this one?

I know that it's personal property. Why?

Because, you...

chattel is like cattle and cattle moves. You've listened to my other webinars. Yes. I'll totally...that sounds like

cattle.

Cattle is cows and cows moooooove.

Once again, sounds ridiculous for us as adults to say that, but when you pass your exam, you'll be fine.

You'll have no problem that you said that.

Right, cattle cows move, chattel real is a fancy word for personal property. Okay, fixture...fixture.

Fixture's attached to real property.

Okay, but there's a one-word name that should come up that should encompass the whole concept.

Maria, yeah good, and I really like how you're understanding what I'm getting at, and

hopefully are we listening to this is understanding as well.

Maria is

one word, okay. Does it define what a fixture is? No,

but it gives a real good hint that'll kind of trigger you on the path of...what does Maria stand for?

Method,

adaptability,

relationship,

intention, and agreement.

Excellent, and that's the point of the key word, so you said fixture: Maria, boom, everything else.

And this is much better than if I say what's a fixture if you say well a fixture is something in the

contract where it could be written in and it's attached by certain methodology, blah blah blah.

You're not gonna remember that. You will remember Maria.

Right. And we dived into why,

like what what does method mean, what does adaptability mean.

Yeah, very deeply, and I'll try to explain in key words.

So a method is just how you attach it. Nail against the wall, okay.

Adaptability again well that will be like a pool covering.

Does a pool covering go with the land?

No.

Why not?

Why you say does it doesn't?

Because it could be removed. However, it's adapted to that property.

So you can't? Right, maybe pool covering's not the best example. Maybe a better one would be blinds on a window.

Got it, yeah. Because they're removable,

but they're adapted to that property. Relation, we're talking about landlord-tenant. Intention has to do with the agreement while why it was there.

Excuse me, intention is why it was there. An agreement supersedes everything, that's that contract. When you write a purchase, contract

you will see a section that says fixtures where you write it in. The agreement essentially supersedes everything else.

But that's essentially the short answer for you of what those five things are about without getting too much into it.

So if a seller wants to take a fixture with them, they have to denote it in the contract.

Well, no a fixture is...

goes with the property. They would have to say yes, yes,

I'm sorry yes, so the seller wanted to [inaudible] with them in the contract. Got it. Okay. Yes, okay here

Here we go. Trade fixture.

Trade fixture is

personal property and

it runs with the person.

There's a key word we're looking for here, though.

For business. Business. Good.

But you were absolutely right, trade fixture is personal property, fixture is personal that becomes comes real property.

A trade fixture is a fixture that's not personal property. Can you give an example of that?

Dentist's chair.

Why?

Because it belongs to the business. If the dentist leaves,

leaves the space where he's conducting is practice, he's taking his chair with him.

Exactly. And on my end if I'm

taking over that space, I don't want a big, gnarly dentist's chair in the middle of the room.

You know, what the dentist's chair doesn't want to leave it there, that thing's expensive. So, personal property, goes with them.

Riparian rights,

one word.

River.

Is river really the definition of reparian rights?

No. So why is it a good keyword?

Because the definition will have the word river in it. No.

Because riparian rights has to do with owning property by a moving body of water a watercourse

Okay, an example is a river,

so it could be a stream, creek, things of that nature as well. And it has to do with a moving water as

opposed to littoral rights,

which is when you're abutting a lake or an ocean.

Got it, okay.

All right, so you get it? We're obviously not going to hit every word so

I may skip around a little bit here,

but hopefully you're really getting the

concept and why this will really help you get the questions and make it much easier to take in a lot of material.

One of the things we spoke about on the phone is learning another language, because I try and make that parallel and

do you remember we spoke about when I said somebody who has to learn another language, or if you go to another country

where you don't know the language, what you do?

You look for the key words.

Exactly. What we're talking about here applies to anybody who's had to learn another language.

If I go to a latin country and I don't know Spanish,

I don't know everything that they're saying, but I listen for words like comida, which is food, caminar, hich is walk.

You know, I listen for the key words so I can understand the greater scope of what's going on.

And same thing here. Real estate's a new language.

Okay, so appurtenances.

What's appurte...

Stay with the land, they run with the land. Good.

Keep it real simple.

All right, so let's skip down a little more here, so,

so you get to other concepts here.

Estate for years.

Um

that is

an estate for a fixed period of time.

Good. You've been studying, man. I can tell you're gonna do...

Okay, estate at sufferance.

Deadbeat tenant. Not only have you been studying, sounds like you've been studying my stuff.

You got the best stuff, Joe. Thank you. Thank you, okay.

Title.

That's about ownership.

Okay.

Good.

And you're doing so well, it almost sounds like we rehearsed this, but can you please verify for anybody listening,

we did not rehearse, you're just you're getting it. We have not rehearsed this. No.

I'm waiting for you to get some wrong here.

Though take that compliment as a vote of confidence that you're going to do fine on your exam. You'll be selling in no time.

Okay, so title's ownership. Okay, so

Severalty.

By yourself. Good.

So that's somebody owns property on their own.

Current estate then would be

with more than one person. Good, and I was going to say with others, but same, what you said would work just fine, okay.

Joint Tenancy.

That's with more than one person,

but you can't,

no survivorship.

There is a right of survivorship. There is a right of survivorship. Oh, that's excellent that you said that. What I was looking for

time, title, interest, possession, t-tip.

Okay. But you respond although you said as well.

Going right along, community property.

That's with,

when you own property with a spouse,

marriage. Good.

Alright, encumbrances. That's a big one. You've got to know what an encumbrance is because that encompasses a lot of things.

Right, um, I know that it's a

burden. Good. Excellent. Let's start there. So that...and once again if you understand that,

that it's a limitation on your property,

then it will also help you to understand many other concepts, for example, examples of encumbrances. What's an example of an encumbrance?

Lien.

Good. What's a lien?

It's money owed on the property. Can you give me an example of a lien?

Mechanic's lien. What's that?

it's

if you hire somebody to do work on your property and

they have yet to be paid.

They believe the mechanic, the person who's doing the work will put a lien to get paid. Is that a voluntary lien or involuntary lien?

Involuntary.

I don't understand. Why would anybody have a voluntary lien? That's involuntary. That sounds ridiculous to volunteer to have a lien. Why would somebody volunteer

to have a lien?

If they

need to borrow money. Excellent. And they have to pay it back.

So a loan is example of a voluntary lien. A mechanic's lien's an involuntary lien.

Is that loan a general or specific lien?

The mechanic lien? The loan, the loan from the bank. The trust in your mortgage.

It's a

general lien.

Okay, you were doing great. I finally got you.

Okay, let me ask you, do you own a house or do you rent?

I rent, unfortunately. That's okay. So somebody owns their house. If they don't pay, what do they lose?

Someone owns their house, they don't they don't pay they lose, they lose their house. They lose anything else?

No. specific lien.

General lien would be if they come after things above and beyond that property.

Okay, does that makes sense? Taxes. Don't pay your taxes, you're in trouble. They're coming after everything.

That's a general lien. Exactly. Okay, like judgment liens when the court is coming after you things of that nature.

Okay, but a loan is a

specific lien, which is why they had that problem years ago not to get practice [inaudible] people walking away from their homes.

Because they knew they'd only lose their home and the money situation was such that they said fine.

Okay, police power.

That's all about keeping people safe.

Good the general welfare. Can you give me an example of police power?

Zoning. Good.

The police power is a government power, correct?

Correct.

Let's write that in.

What are the government powers?

Government powers are P.E.A.T., police power,

eminent domain,

taxation, and it's cheap [inaudible]. Good. Can you give me an example of the zone?

A zone is

R1, for single family.

Okay, and R3 would be multi-family residential.

Excellent. What's a variance?

A variance is when,

is when you, when you need to apply for something to,

to get accepted because you look - You have to put that in one word.

And you see where I'm going, I think this is a really good exercise for us to get you passed the exam,

because the other thing that's happening when you can put in one word, you're demonstrating true understanding.

And you can probably sense it in your own voice correct?

It's like the more you're

talking, the more it's not concise between you understanding. Like when I said variance you're like

it's just thing, we've gotta accept... something's not right...

So if you could put in one word, what would you put it as?

Exception. Excellent. See when you say that with confidence, you're like boom that's what it is and know what it's all about.

Got it.

Okay down zoning.

Downzoning is

commercial to

residential. And what I recommend for people who are listening and for you as well, Daniel, is when you do this on your own.

write it out. Just do all this and write out. The act of writing

will help you remember.

People with ADD always use that technique, at least they should,

because it keeps you focused on a task

when you're trying to do this rather than just looking at a piece of paper and hoping that it syncs in.

I know what you're thinking. I don't have ADD. You will when you study real estate law. Yeah, you know.

It's kind of, I mean, if you don't have ADD, you will when you look at this stuff, right.

I mean this stuff is not the easiest. Pretty monotonous. Am I right?

I mean you seem like a pretty focused guy, but when you looked at this you're like, oh man bird ,squirrel! God help me.

Like whoa, kitten video gotta watch that now. So yeah, okay.

Grandfather clause, when you're grandfathered in. Multifamily residential.

Leave that example R3. Encroaching.

Uh, trespassing. Bam! Or trespass.

Liens.

Money owed.

Lien, money, lien, money, lien, money, lien, money, lien, money. We went over

a general lien, a specific lien, a mechanic's lien, lease pendants.

This is, um, Liz's law...

it's a pending pending lawsuit. Good.

So basically when you're trying to solve a property, if somebody files lease pendants, that's bad news,

because based on what's happening they're saying you don't have the right to sell it. They're suing you over title. Ownership.

So they can't relinquish the property. It's bad if that ever happens. The owner can't, the owner can't relinquish,

because someone's doing that. Because somebody's saying you're not the owner.

Got it. [inaudible] legally filed. Sadly,

it happens a lot when divorced people, you know, one former spouse wants to sell until the other comes in. That's just an example, there's many

examples, but that's a very easy example. You know the former spouse comes in says hey, you can't sell that without me,

I'll follow a lease pendants. Got it. And then the poor buyer, who's expecting a new home is like. What, what just happened?

Okay, okay injunction.

That's when you need to

stop or

prevent something from happening. You're on the right path.

I'm looking for a specific party.

A specific party?

I'll just tell you, I was looking for the court.

But you got the court involved and that's a key part of an injunction.

Okay.

Okay, it's a court order to stop.

All right.

Cloud on title.

Means that there's something affecting the title. Rght just take something's cloudy. Yeah, blurry.

Going back to that

example, would be, you know, the change in names.

For example, a woman gets married and, but the title's under her former name,

[inaudible]

Is it easy to clear up? Sure, you know, but, it is still something that needs to be taken care of.

It's still cloudy. Yes.

Evident domain.

That's when the big, powerful government comes to town and takes your property.

For what? For improving

resources.

Public use.

All right, so it's a good way to... I'm saying the same thing you're saying. I'm just putting it in...

more... because I've looked at this for years now.

But you essentially have the right idea.

Okay, so you can't really know what inverse condemnation is if you don't know what condemnation is.

Compensation. Bam! Excellent. You're gonna kill it, good.

Now just so we're clear for everybody listening, what Daniel is doing here is not going to get him passed the exam

He's still got a few questions,

but what this did is it gives him the foundation to get past exam.

Him learning the question is going to come a lot faster a lot easier,

so my point is you don't just do this and finish. Look at it kind of like

stretching and doing all the exercises and working it out before you do like the heavy lifting.

It really sets you up correctly. Maybe that's not the best example,

but you get the idea. My hope is Daniel, after you go back and do questions, you're gonna be like, this is so much easier now.

That's the hope. It will be. I'm gonna make it happen. I'll tell you what, I'll guarantee you, even if this doesn't help,

it's not going to hurt you knowing the vocabulary.

Definitely not. But I believe it will help and make everything go a lot faster. The other reason

I do this is when you do multiple choice questions, how do you do them?

So take me through your thought process, you look at a multiple choice question, what happens?

First, I read it all through and then I scan for words that

would trigger a response.

Okay, so what you're essentially doing though when you read the whole thing through first, you're reading wrong information.

Like the wrong answers. You're reading irrelevant information in the question.

So what I would do, is scan for these keywords first.

So you see real property, immovable, bam. You could circle that,

maybe after that, read through to make sure, but you're on the right path right off the bat.

You see real property, immovable. Personal property, movable.

Condemnation, you know, compensation or something related to that.

Because what I don't want you doing is second-guessing yourself over answers that really aren't

correct and your sitting there thinking about it, thinking about it, and mull over it. You know what happens.

They're meant to trick you. And they do. And so this helps to make sure you don't get tricked as easily

because this is honing on the correct information and

when you take your actual exam, it's

one thing to look over all the questions, but when you're practicing

and you're sitting over mulling over wrong information while you're doing practice test, practice questions,

that's not good. Because you're spending a lot of time taking in information that will not be correct on your test.

Got it. Okay. Did that make sense? Yes, sir. All right. Okay. Here we go.

So we were saying condemnation's compensation. So what's inverse condemnation then?

That's when you need to

sue because you weren't properly

compensated. Yeah, so what's the deal here? Eminent domain they take your property for public use?

Example, they expand the highway and the highway goes in your property and

they need to purchase your property because the community needs that highway. It sucks for you

but that's what it is. You shouldn't have bought a house close to the highway.

But what they will say is like listen, we know your houses valuable, we'll give you money.

Condemnation. However, if you're sitting here saying that highway's ruining my house, and you give me nothing, you file for inverse condemnation.

And that's how that works, okay. Escheat. What's that?

That's

someone dies and they don't have a will,

they don't have heirs,

and the government takes away the property.

Exactly.

Okay, testate versus intestate. Dying with or without a will. Which ones which?

Intestate means

without a will.

You sure about that?

No?

Yes.

Don't sound so sure.

All right. Here we go. Intestate's condition of the state of a person who dies owning property whose values greater than the sum enforceable

without having made a valid will.

That's what I said good. You didn't sound calm.

You sounded very insecure. Okay, deeds. Yes. What's that?

Deeds is how to convey ownership.

It's more than that.

Transfer ownership? It's the evidence of the transfer.

Evidence of the transfer.

Yeah.

What's ownership?

Ownership is title. Good. Excellent.

And what I also want people to notice as we're doing this,

when, if you listen to my other webinars ,and I told Daniel this before we got into this, we do questions

we hit what five questions, maybe six?Six concepts.

If everybody notices just how many concepts we've gone over in the short period of time we've been doing this already.

So by doing this method of filling out this outline and writing things in, you're going to cover a lot more material in a much

shorter mirror of time, because once again, you're not wasting your time on irrelevant information.

So I really recommend this, that people do this as they start their studying.

Brilliant, Joe. Thank you, title is, review it one more time for me?

Ownership.

Therefore a chain of title would be...

The record of ownership. Okay, good.

So that's the keyword, but what actually is it. Do you understand what it is.

The chain of title, it means everyone who's

owned it before you. Yeah, more or less. Like you owned it, sold to me. I sold to whoever. Why is that important?

Because there could be

liens on the previous owners.

Which would affect the title, right? Right. which would affect my ownership as the new owner.

Who checks that?

The

escrow company?

There's an insurance you'll get.

A title insurance company. Yeah, that's their whole role. When you talk about title insurance, the main premise of title insurance is

to make sure the ownership is clear and marketable title.

So everything transfers correctly.

When you hear the word abstract, what do you think of?

A summary.

Good.

Impounds, give me an example that.

I don't know.

Taxes and insurance. Basically if you get a loan, who gets paid first: taxes or the loan people?

Taxes.

So they're going to create an impound account to make sure it's collected so that it gets paid, because they know that doesn't get paid

they're not getting paid.

And that's what impound accounts are all about.

Escrow, one word that should come up.

Middleman. Close.

Neutral. Neutral

party. You know, what you said is fine, too. The key thing is that one word in your mind,

whatever that word is for everybody studying, whatever word works for you, to segue to a larger whole.

So when you study this you look up escrow. You're going to see a big paragraph. Your exercise when you do

this is, what one word could I find that will really define

this larger concept for me?

Think of it almost like what hint would I use?

The idea is the less you have to memorize the better off you are.

Amen. Amen.

Misrepresentation.

Fraud. Oh, no, there's a big difference between those two things as well.

Not sure.

Wedges Rocks

Misrepresentation is

not on purpose. Fraud you knew what you were doing. You have misrepresentation is whoops, my bad.

What's the big difference? Well, if

there's intention, insurance won't back you up if you get sued.

And I don't want to segue into actual practice, but that's...when people tell me

what...

is on this exam is not relevant,

I don't like that, because a lot of the stuff is relevant. For example, if you get sued for fraud,

you should know you're in big trouble. Whereas misrepresentation, insurance may back you up with your errors and omissions.

Hmm when it's fraud

they're not backing you up because that shows you had an

intention to cause harm.

Mm-Hmm.

Okay, RESPA.

I know that it has to do with one-to-four...one-to-four family dwellings.

I like that. Good.

And...

What's the gist of RESPA? Like why is it even there? Just like what's the gist of it?

To provide information about

property.

Yeah it's basically so people know what they're getting themselves into. The reasons one-to-four and because business as larger ones,

they should know better...theoretically.

And the RESPAs, big time you see it is to prevent kickbacks. So let's write kickbacks here.

Here's, what is trying to prevent? I'm selling somebody on a property and

I tell you, "You're my client. You should use this loan officer."

You trust me. You like me. You think I'm a good guy. So why do you think I told you to use that loan officer?

Because you're gonna get money from them.

Well, no. That's what's bad.

So if you think I'm a good guy. You think I'm referring to them [if they don't want it to happen]

Right, because they're good at what they do. If you trust me, you're saying, "Joe,

I trust you if you say that guy's good, I believe he's good.

I believe in you, so, you know, I'll go with it. You'd be pretty pissed if you found out,

I don't even know the guy, but the only reason I referred him because he gave me 500 bucks.

Wouldn't you feel violated and annoyed if your like you didn't even know him?

Why...you know, you're getting money off my back, and I didn't know it. That's what RESPA is. Yes, I'd be angry. Yeah.

Okay, ten improvement allowances. Oops. I accidentally wrote this in.

Abandonment.

That's when the tenant leaves his unit, his or her unit. There is a key word here.

That's when tenet leaves the unit voluntarily.

Okay-okay. Sublease.

That's when you transfer possession

but you're still responsible. Excellent

Possession but not

responsibility.

A lot of people are familiar with this in your everyday life. Once again, real estate exam material in everyday life practice.

I rent a property. I'm going away for a few months. I sublet it to my friend. However, I'm still responsible to the landlord.

Okay, steering and

blockbusting panic sell and panic pedaling all have to do with discrimination.

All have to do with people saying those people, in one way or another.

But what's the difference between the two?

Steering is when you push people towards a certain neighborhood. Good.

And this one is...

selling. Yeah, so steering is essentially if I'm in a car driving, you know, I said

"Daniel, you shouldn't buy here because you're one of those people and your people live over here. You should live here.

It's totally good for you." Steering. Panic, pedaling, or blockbusting, if I go to you,

"You know what, you should sell. You know why? Those people are moving to town. You don't wanna live by them,

do you?" Okay that would be

blockbusting, panic pedaling, or panic selling.

Okay, a valid contract.

The four centrals of a valid contract.

They are...you have to be competent and capable.

There needs to be a mutual consent.

You have to be...

there has to be some kind of compensation or consideration.

And

It all must be legal.

Bam, good. Is there an acronym for that one? Not really because there's no vowel. Oh yeah.

So I think...

so kind of need a vowel for those acronyms to work. This is true.

Yeah, so unfortunately it just...

is what it is.

Okay

voidable contract.

Voidable means that it's valid unless you exercise a right to void it.

What's an example of...give me one word?

If it's signed by a minor.

I'm looking for one that's a little more... the minor one has a lot of if, ands, or buts behind it. Right.

If you're under duress. Good, so my feeling...does duress define a voidable contract? No.

But if you know voidable duress, in my head at least, for me that triggers everything else.

Okay he's under duress. That means he's forced to buy it

but he still has an option to buy these, but just because I'm being forced to buy

it doesn't mean I shouldn't be able to buy it. The example

I always used is if I hold a gun to your head and said "Buy the property! Buy the property!" and you buy it,

do you have to buy the property? No, However, you may say what?

You may say, "Oh, well. It's a good deal. I might as well go for it."

Yeah, you may say "Joe the gun was completely unnecessary. That was a little...

I was totally into this property. You went a little overboard man."

So me going crazy shouldn't stop you from getting a beautiful property

Right. Okay.

Bilateral contract.

Promise for a promise. Bam.

Which would make a...

That's like a wanted poster.

You said the promise for a promise here. What would be the equivalent here? One promise.

Promise we're going to act.

But, so that's what you're saying, it's one promise. There's only one promise.

Mmm-Hmm.

Two promises.

Give me an example of a bilateral contract.

A listing agreement. Perfect.

Unilateral.

The wanted poster.

Okay, or like a lost dog or lost cat or something. Can you give me a real estate example?

Any contract that has the word option in it by definition's unilateral.

Got it. Because you can see why. The word option directly contradicts the word promise.

Right, you either can or you... So if there's an option, by definition, I'm not promising to do anything.

I'd write it in the contract as a matter of fact that I don't know what I'm going to do.

I want the option to go either way. Okay.

See a lot of that...like you didn't think of it

you were thinking lost dog, but once I said that you're like oh, that makes total sense. That's

right, that's right there, option. Yeah, lease option, listing with an option, things of that nature.

Got it. Executed contract.

Means both parties have signed.

Good. Statue of frauds.

It's about...it needs to be in writing and contracts need to be in writing.

That I'm unclear on.

Statute of frauds has to do with writing. Statute limitations has to do with timeframes.

Okay.

Oh, so like if it's if it's more or less than a year or something like that?

Can you give an example of a real estate contract that doesn't need to be in writing?

An estate for years. A lease under one year would be an example.

A least under one year. Yeah.

Novation is latin for...

new.

You can almost go reverse on this one.

Reverse, old? No, I was going to say if you look at what you said about bilateral.

What I'm getting at here is a listing is a

bilateral...

Uh-huh, oh I gotcha ...employment contract.

Contract.

Yeah, who's the employer?

The employer is the seller.

Who do they employ?

They're employing the

brokerage.

Wait a minute. Hold on. The seller never even meets the broker. He meets the agent who got their license to pass this test. Why are you saying

the broker?

Because the agent is...the

agent works the broker and all listing agreements are held with the brokerage. Excellent. Good.

So the seller is hiring the broker. You know, people think the agent, really the agents just work on the brokers behalf.

Right. How do you know? Because when the money's paid, it doesn't go to the agent, it goes to the broker and the broker allocates it according

to whatever agreement they have.

What are they hiring the broker to do?

They're hiring the broker to find a buyer.

Excellent. The key point there, you're not hired to sell a house.

You're hired to find a ready, willing, and able buyer. Good stuff.

Different types of listings here, right? Yes, sir. Exclusive listing. What does that mean?

It means that only one broker can sell the home. You're only allowing one broker to sell the home.

But the owner can also sell it. No, don't go there yet.

Okay, let me stop you.

Exclusive listing is there. Now there's two different types of exclusive listings. The next one is what you're talking about.

So there's two different types. In fact, I probably should have went like this

Ah, the old indent. Yes. Now, what you were about to describe is an exclusive agency listing.

Yes, which is the one broker and the owner.

Good. So everyone can sell it. But owner can sell.

Mm-Hm

So thus that broker would have to prove that they're the procuring cause of the buyer in order to get paid.

Is this a bad idea because essentially you're competing with the owner.

That's why the common one you see in real estate is

exclusive authorization and right to sell. And you see this written on top of the

listing agreements. People don't notice it because they don't know what means, but it's right there.

And what does this mean?

That means that the owner cannot sell the house, only the broker can.

Not

find a buyer. Not find a buyer, yes. So,

how would you say this then? To really...because remember where you know it now,

but when you're taking your test and there's all these concepts, what's like one or two words,

maybe three, that would really help you remember what you just said.

They have to...no need to provide proof.

Right. And sometimes you hear the word procuring cause.

Uh-Huh.

Okay.

Net listing which is illegal in most states is

what?

That's if you agree with the seller to sell the home at a specific price and

then any amount of money that you get above that price, the broker gets to keep. Why is it a horrible idea?

And be borderline [inaudible] states. Not just horrible, it's sometimes not even allowed.

It creates an opportunity for a secret profit? You're getting too fancy on me.

There's a couple...you wanted 500 grand for your house, right? Yes.

You say, "get him that listing" and you say "Joe, anything over 500 grand

you get to keep." I just want my five hundred grand. You sell it for a

million dollars, you could double up, and you keep five hundred grand yourself.

And I think...you say that's a great idea, and you tell me, "Any money above and beyond five hundred grand, you go."

Sounds good, right?

Mm-Hmm. But, here's the problem. Buyer comes in for five hundred grand.

Ah, so you're left with nothing. So what will I do? I will magically make that guy disappear. I just won't present it.

Why? Because I'm not going to make any money off that. So that's not fair to use the seller because

legally, I should be presenting that because it satisfies your need as the seller and

you know, my fiduciary duty says I should present that to you, but there's an inherent conflict of interest there.

Why does it even exist?

It doesn't in a lot of states. And they understand, there's word for illegal things, too. That's like saying why is blockbusting exist?

Or steering exist? You know, there's things that aren't allowed.

So that's that net listing.

Okay, puffing.

That's when you exaggerate.

Actual fraud.

That's when you're lying on purpose. Intention.

We're gonna do these...

Let's do these two last ones, and then we'll be done. It's been an hour.

Value. The four essential elements of value.

STUD. What does that stand for?

Scarcity.

Whether or not it can be transferred, transferability. Yeah, fancy word for selling it. How useful it is.

Good. Does anybody even want it. Man, excellent.

Good, so you got that. Plottage, so we'll end on this one.

Hmm.

That means

multiple units? Too fancy. You ever to go...have you been to a wedding recently?

Yeah, my wedding. Congratulations.

Whenever you hear these speeches, I don't know about your wedding, but a lot of these weddings, you hear the same speech,

which is,

which is,

Individually you guys are wonderful, but together you guys

are amazing! You know, and the idea is this concept. One plus one equals three.

Got it. And for those of you who don't know what I mean, who are saying, "one plus one equals two, not three,"

what I'm trying to get at is the

individual pieces put together are

worth a lot more than they are separately.

So plottage is when you combine the units and the value increases.

Does that make sense?

Yes. I'm sure somebody gave a speech of that nature of your wedding, correct? Something about... No, I made sure they didn't.

Well, that's too bad. It's good speech.

Okay, so it's been an hour at this point.

Hopefully, you learned a lot, and you not only learned a lot, but you learned a way to move forward before your exam and

you can nail this down and then go back to doing your questions.

The other reason I like to do this...do you work out? Do you exercise?

Yes as much as I can. When you exercise...

As long as I'm motivated. Right, you don't do one thing. People say I want to become fit or I

want to become a good athlete. They don't do one thing, they do multiple things to achieve that goal. And my point is, yes,

It's a multiple-choice test, but it doesn't mean you just do multiple-choice practice exams to prepare. You want to learn your vocabulary,

maybe do some fill in the blank, things that may even be just a little bit harder than multiple choice,

but more importantly what I was getting at today, not only could this be a little harder the multiple choice, it

focuses on the correct information. I can't say that enough. When you do multiple choice, the problem multiple choice problems,

especially when you in beginning of studying, you're looking at wrong information.

Especially in the beginning, that's just damaging to your progress.

Does that make sense? Yeah, and that's why on my website I have some fill-in-the-blank, some mix-and-match,

learning exercises where you're not looking at wrong information all the time.

And I hope everybody understands that so it scares you and the first thing people do is they look at multiple choice questions.

Because you're reading over and over again, every option, over and over, and although you may know real property: movable.

You're gonna be thinking real property, well I read something about a chair, and there's a dog and what was it you know?

You know in the heat of the moment, you're like, I know I read it, but which one is the correct one?

And that's why it's so important this exercise we did today.

Brilliant. Thank you, very much. Good. All right, so with that being said, this is Joe, PrepAgent.com and

good luck, Daniel. We're going to talk again before you take your exam, and if you guys have any comments,

please make it at the bottom, below the YouTube...

below the video on YouTube. That'd be great.

Thank you. Thank you, Joe. All right. Bye.

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