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Related Flashcards
Related Topics
Cards In This Set
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Yes - sale or lease of business and goodwill; includes the business's stock, trade fixtures, and trade name, as well as a non-competition agreement and lease assignment
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If real property is involved in the sale, the agent usually treats the sale of the business and sale of the land/building as ____________________
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two separate and concurrent transactions with two concurrent and contingent escrows.
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The essential elements of a business opportunity sale are as follows:
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1. A bill of sale, 2. Financial Statements (balance sheet & profit and loss statement)
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A Bulk transfer is
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transfer of a major portion of a business's inventory that is NOT sold to CUSTOMERS. the buyer must give public notice 12 business days before the transfer occurs(Notice of intent to sell bulk) published in general circulation newspaper, intent to let sellers creditors file a claim
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If Bulk sale rules not followed
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Sale is valid but VOID against creditors so they may attach inventory for debt
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The expectation of continued public patronage is
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Goodwill
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Number of times inventory is sold per year is
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Turnover
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One who preserves the value of an investment property while generating income as an agent for the owners
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Property Manager
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How is a property manager normally compensated?
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Usually, a property management firm is paid by a percentage of the rents collected(more rental units as low as 1%, higher end resorts to 25%)but can be paid by percentage of income, salary, or fee.
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The Property Management Escrow account is for
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Security deposits
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The Property Management Account is for
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Current rent and management
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A contract provision permitting an adjustment of certain payments either up or down to cover certain contingencies. designed to protect the lessor's investment position against a reduction in the rate of return over the term of the lease by increasing the yield during periods of inflation
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Escalator Clause
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Functions of a Property Manager (7)
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Property Manager's first responsibility
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To realize the: Maximum Profit on the property that is consistent with the owner's instructions.
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The Property Manager has a
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Fiduciary Responsibility to the Owner
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