champions school of real estate principles 2 quizlet

homeowners who are at least 62 years of age can borrow against the equity in their property. The loan becomes due upon the sale of the property or the death of the owner. Aninformationsystemthatmeasures,processes,andcommunicatesfinancialinformationaboutanidentifiableeconomicentityh. Eminent Domain SUMMARYPreviousBalance$876.34Payments/Credits$800.00Transactions$1,009.56LateCharge$30.00FinanceCharge$29.67NewBalanceMinimumPayment$18.00. + result to numerator legal. grantee gives to the grantor, most common, best type of deed to have. Type of lease often used to attract tenants to facilities that might be hard to rent during tough economic times, lease where the landlord pays regular charges such as taxes, insurance, utilities and repairs - the tenant only pays rent, lease in which the tenant pays rent plus taxes, insurance, repairs, utilities, etc, competent parties, let and take agreement, adequate consideration, legal purpose, description of property. Describe the differences in producer and consumer surplus, and in overall social welfare, that would occur in each of the following scenarios. Value, Income, Return. the process of creating a new mortgage loan, the processor will build a file to make an underwriting decision, evaluating a borrower's loan application to determine the risk involved for the lender. Suggests that value is maximized when there is reasonable degree of homogeneity, or sameness, in a neighborhood, Uniform Standards of Professional Appraisal Practice, Standards that have been established by the Appraisal Standards Board of the Appraisal Foundation, The value of a subject property is increased by the value of surrounding properties, URAR (Uniform Residential Appraisal Report), The most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale, If a type of property in a market area is too abundant, it has reduced value. Grantor implies ownership or the right to transfer title but does not provide a warranty of title, deed with no guarantees, warranties or covenants. Conversely, increased competition tends to bring prices down, Demand,Utility, Scarcity, Transferability characteristics of value in a property, The most commonly misunderstood appraisal concept, Net/Gross Adjustments may not exceed what %, The actual age of the property in years. the grantor owns the property, has right to convey it to grantee, has not previously conveyed it to another. ratio of borrowers total recurring monthly debts. cannot exceed 36% of the borrowers income, conventional loans that conform to fannie mae and freddie mac standards for purchase. Theprocessofgeneratingandcommunicatingaccountinginformationintheformoffinancialstatementstodecisionmakersoutsidetheorganizatione. borrower retains ownership, but is subject to the lein, fixed income investment- money mortgage companies use to make loans, mortgage notes repaid by sale of notes through the secondary market, hybrid of commercial and residential loans, evaluating borrowers loan application to determine risk, file built on credit information and to be used in underwriting. Sales Price monthly rent, the process of estimating the value of an income-producing property by capitalization of the annual net income expected to be produced by the property during its remaining useful life, an estimate of value based on current construction costs, less depreciation, plus land value, estimate of value by examining and comparing actual sales of comparable properties, part of income capitalization. limits how much a payment can increase/ decrease. offers the greatest protection of any deed. He has been offered three possible 4-year contracts. Loss in desirability of style, layout or function, loss of value of a property caused by factors outside of the property itself;over supply, consequent drop in demand. permanent and absolute tenure of an estate in land w freedom to dispose at will. rate doesn't change between offer and closing. a type of seller financing where in the owner retains title to the property while the purchaser takes possession of the premises and pays the principal. \text{Travel Expenses}&&\$600&\$19,000\\ purchase price is affected by the expectation of future appeal and benefits, value is influenced by the cost of acquiring a substitute or comparable item, value is maximized when there is a degree of homogeneity in a neighborhood, lower-priced properties in the area will cause a decline in value, higher-priced properties will raise value, most probable price in a competitive and open market, based on the assessed value of the property, may be affected by social, economic, governmental and environmental influences, The appraisal will NOT include this in the appraisal, Best method to value properties. The evidence an individual has of his or her right to possess land. tax-free capital gain of up to 250k if they lived there 2 out of the last 5 years. accretion, alluvion, erosion, reelection, avulsion, grantor promises to warrant and defend title, but only against claims which may have arisen during his or her period of ownership, deed with no guarantees or warranties. the most probable price a property should bring in a competitive and open market under fair conditions requisit to a fair sale. b. Texas State Portion Real Estate Exam part 2.docx. almost all parcels of land have the potential to appreciate in a rising market, personal advantages of owning real estate, hedge against inflation, higher than avg rate of return, leverage - use of borrowed money to make money, investing in real-estate (personal advantages), tax shelter, favorable capital gains, and tax shelter and deferred taxation, lack of liquidity, risk, expense and need for management, main reason for incentive to investment in real estate, 100% partnerships organized, limited & general partnership, or corporation raising funds for the purchase of real estate investment - under state and federal security laws, 3 types of real estate investment syndications, limited, general partnership or corporation under jurisdiction of state and federal security laws, real estate mortgage investment conduits (remic), seller/buyer residential temp lease. promotes home ownership. The title company has how many days after they receive the contract and earnest money in which to issue a title commitment? lender acquires property under foreclosure. Get your Real Estate License Education on a Mobile Web App. when the value added by an improvement exceeds the costdo not over improve. Comprehensive Environmental Response, compensation, and Liability Act. DUST; demand, utility, scarcity, transferability. gradual loss of land near border of stream or river. Type of asset-backed security that is secured by a mortgage or collection of mortgages. Copy of most recent property survey protect consumers from fraud in the sale or lease of land, CERCLA comprehensive environmental response compensation and liability act. The interest rate and monthly payment change every month, 3 months, 6 months, 1 year, 3 years, 5 years or 7 years, what the lender uses as an instrument for measuring changes in interest rates, The percent added to the index in order to calculate the payment interest rate, Is equal to the margin plus the index and is usually to the nearest one-eighth of a percent. CFPB implemented. purchases "pools" or mortgages. The most probable price a property should bring in a competitive and open market. enacted by Congress in 1977 revised 1995, Passed 1974 ensures that all consumers are given an equal chance to obtain credit, U.S. federal law designed to protect consumers in credit transactions by requiring clear disclosure of key terms of the lending arrangement and all costs. price a wiling seller will sell for & price willing buyer will buy. | Life | Annual Rate | . & \text{f. The ability to earn enough income to}\\ lender has evaluated the borrower in the underwriting process. supplement to the body of a will; later addition to a will, individual who receives property from person who died intestate, Texas Promulgated Contracts-CHAMPIONS STUDY, Chinese 1: Chinese Hanzi to English and Pinyin, Champions School Principles of Real Estate II, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. Activitiesofmanagementengagedtospendcapitalinwaysthatareproductiveandwillhelpabusinessachieveitsobjectivesf. Earn or renew your Loan Originator license. no obligation o extend credit. small investors to invest in larger commercial properties. Ethics} & \text{d. The process of generating and communicating}\\ \text{7. These are the 4 rights of land. the most probable pice a property should bring in a competitive and open market under all conditions requisite to a fair sale. Formerly known as the Federal National Mortgage Association (FNMA), Fannie Mae is the largest investor in home mortgages today. Financial accounting} & \text{$\quad$obtain adequate funds for beginning}\\ most conveyances are voluntary. they are bonded, much like a bank statement and it shows all cash received, expenses during a reporting period. It is prudent to improve property when the value added by the improvement exceeds cost of the improvement. permits additional borrowing on the same note and mortgage, owner retains title of property while purchaser takes possession while paying principle. Let and take agreement A code of conduct that addresses}\\ Passed by Congress in 1980. addition or amendment to an existing will. not related to va. 30 year fixed rate loan, financial and administrative resource that helps provide essential services and affordable housing based on income, right of govt to control the way land is used, area of land separating one land use from another. A house may be well-maintained and been updated over the years; therefore, the appraiser might determine that a 20-year-old house might have an age of 10, According to HUD, a home has a life expectancy of, The appraisal of commercial income properties, I = income, R = return on investment and V = value (V =I R), (R= I V), (I =V X R), Term use in the appraisal report to describe the property being appraised, The market in which borrowers and lenders come together to create and negotiate the terms of a mortgage transaction, The practice of refusing to provide financing in a particular location, The detailed process of evaluating a borrower's loan application to determine the risk involved for the lender, The legal procedure under which property may be sold to satisfy an unpaid promissory note, The process of creating a new mortgage loan. How do I get a Texas Real Estate License? Once the loan is closed it is sold to another lender. Ethicsd. covering more than one parcel of real estate, Texas Promulgated Contracts-CHAMPIONS STUDY, Principles Real Estate II- Practice Exam 2, Champions School of Real Estate-Principles of, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. legal procedure where secured property is sold to pay unpaid note. Conventional-loans that have no federal guarantees or insurance increase in value in a parcel of land due to the activities of the owner/ developer, meathod of raising funds for the purchase of a real estate investment, allows for the indirect investment in mortgages through the sell of securities, additional capital or property included in transaction, gives tenant possession without ownership, renews its self automatically for like periods of time, tenant occupies w permission for unspecified time, begin with lower payments at a fixed rate, and increases, tenant pays rent owner pays taxes utilities ect. the value of a commodity if influenced by the cost of acquiring a substitute or comparable item. most reasonable price a property should bring in a competitive open market. 7. initial truth in lending disclosure. Fraudulentfinancialreportingaccountinginformationintheformoffinancialstatementstodecisionmakersoutsidetheorganizatione. Property and lender information ese are non-conforming loans. Ethics10. 5. two largest are Freddie Mac and Fannie Mae, may be organized as limited or general partnerships, all or part of the rental is based on the gross receipts of the tenant's business, a lease with definite beginning and ending dates, when a lease agreement comes to the end of the lease period and terminates, lease that renews itself for like periods of time automatically, when a lease ends and the tenant doesn't leave. allows funding of the repairs through a series of draws. Loss of value of a building from its reproduction cost, resulting from wear and tear over time. right of govt to exercise the right of eminent domain, govt acquires property for public satisfaction, occupation of land for statutory time, possesion is aquired from owner, any property weather real or personal that can be inherited, state in which a person dies leaving a valid wil, handwritten will, legal, easily contested. method of financing which preserves the low, existing interest rate on the original note. value of a commodity is influenced by the cost of acquiring a substitute or a comparable item. Collateral Dependent Loans (hard money loan), borrower receives funds secured by the value of a parcel of real-estate. in 1968 was established as private company,operates with private capital on a self sustaining basis to enhance the flow of funds in the secondary market. ___________ 3. % of the lesser of the appraised value or sales price that lender will lend. Terms of each contract are as follows: As his adviser, which contract would you recommend that he accept? Mr. Manning, a former neighbor of Margaret's, claims that he and Margaret were "common law" married, and that it had been Margaret's dying wish to leave the house and all of its contents to him. They prepare you for life as a Realtor. sending monthly payment statements, and collecting monthly payments, maintaining records and balances. Champions School provides the education needed to become a licensed Real Estate Agent, Broker, Loan Originator, Home Inspector, or Appraiser. The process by which the government exercises its right of eminent domain. generally 5-10% range with fees. the interest rate a Reserve Bank charges eligible financial institutions to borrow funds on a short-term basis. Neighborhood description This ensures you quickly get to the core! Gross Rent Multiplier. decreases over time, norm paid by buyer. 2 categories Residential Loans are divided into: If a residential property contains ____ or more living units, the sale is considered a commercial Money that has value apart from its use as money. Whether you need Qualifying Education (QE) to start your career, Sales Agent Apprentice Education (SAE) to build your . Theabilitytoearnenoughincometoattractandholdinvestmentcapitalg. help meet the credit needs of ALL the community. stating the exact nature of the estate being granted, metes& bounds, lot& block, govt survey system. This type of deed most often used to clear up a cloud on the title and also used to grant an easement. (2) The Cost Approach, ", Texas Department of Savings and Mortgage Lending, Texas Appraiser Licensing and Certification Board. AMWilson001 Champions Principles of Real Estate 2 Terms in this set (91) appraisal value of a property maybe affected by social, economic, govt and environmental influences Loan-to-Value Ratio (LTV) The percentage of value or sales price that a lender is willing to finance. Match the terms that follow with the appropriate definitions. grantor promises uninterrupted use of the property, grantor is responsible for any doccumentation needed to ensure title transfer. A value for existing properties method for comparing similar properties to the subject property. The lender transfers title back to the borrower when the loan is repaid. The tax and insurance is held in an escrow account, is partially amortized loan with a final payment substantially larger than the others. NOTE: leases for more than one year must be in writing, defines the rights and obligations of both landlord and tenant in the leasing of residential and commercial properties, Leadership in Energy and Environmental Design; a building certification for properties that are "green", servicing a property and its equipment in order to prevent mechanical failure and keep property values high, Building Owners and Managers Association; an organization that advocates on the part of building owners and managers, the property manager's employment contract with the owner, deterioration of a property due to delayed maintenance, the transfer of a tenant's rights and liabilities to another, the rent the property could currently command on the open market, the renal income as stipulated by the parties in a lease, Institute of Real Estate Management; affiliate of NAR and offers educational programs, International Council of Shopping Centers, lists all cash that came into and all expenses incurred by a property during the reporting period, advocacy on the part of building owners and managers, any property, real or personal, that is capable of being inherited, title acquired through hostile, actual, continuous occupation of the land fo the statutory period, evidence of an individuals' right to possess land, document that conveys an interest in real estate from one party to another, document that transfers ownership from the government to an individual. quiz 14.docx. Assets that are easily converted to cash. & \text{$\quad$productive and will help a business}\\ periodic tenancy, you've done nothing and the appreciation of the land value assists in the increase, 2 Types of REITS (real estate investment trust), Equity and Mortgage. when an individual acquires title from the rightful owner through hostile, actual, and continuous occupation of the land for the statutory period. 40 pages. Became private 1968, Federal Home Loan Mortgage Corporation (FHLMC) in 1970 for the purpose of purchasing mortgages in the secondary market, Government National Mortgage Association (GNMA), or Ginnie Mae, Was established in the United States in 1968 to promote home ownership wholly owned government association that operates the mortgage-backed securities program designed to facilitate the flow of capital. Sending monthly payment statements and collecting monthly payments, maintaining records of payments and balances, collecting and paying taxes and insurance (and managing escrow and impound funds), remitting funds to the note holder, and following up on delinquencies. The measure of the money supply that includes M1 along with forms of money that are less easily converted to cash. Activitiesofmanagementengagedto7. exists for the purchase and sale of existing mortgages to investors, provides a steady supply of funds to keep making loans, began in 1938. largest investors in home mortgages in the secondary market, began in 1970. purchases mortgages in the secondary market, buyers set more realistic pricing goals, better understanding of ability to pay, avoid showing property buyers cant afford, seller reassured buyer has sufficient income and credit to close the deal (is the best), % of the lesser appraised value or sale that the lender will lend, Found in conventional loans. special form of insurance which is designed to allow lender to increase the LTV. Percentage of the Lesser of the appraised value or sales price that the lender will lend. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: FixedElementVariableElementActualTotalPerMonthPerCustomerServedforMayRevenue$5,000$160,000EmployeeSalariesandWages$50,000$1,100$88,000TravelExpenses$600$19,000OtherExpenses$36,000$34,500\begin{array}{lrrr} Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. insures most protection, any changes to the ownership of real property. ie. sum of the energy used over the ENTIRE assemblation, distribution and life and disposal of product. The TREC residential contract forms are: Drafted by the Broker Lawyer Committee 2. loss value caused by factors outside of the property (demand, zoning, condemnation, highways), for income-generating rental properties, neighborhood-specific, GRM = Sales Price/Monthly Rent, Property acquired by lender through foreclosure, Borrowers and lenders come together to create mortgage, Mortgage bankers, mortgage brokers, and correspondent lenders, The detailed process of evaluating a borrower's loan application, The consummation of a real estate transaction, signed and paid. a type of appraisal review. What is the probability that Bob receives no tweets during his lunch hour? transferring funds to a title co for disbursement when loan is approved. & \text{$\quad$economic entity}\\ An individual who inherits property by intestate succession acquires title by descent, A gradual increase in land area when water gradually withdraws, Fee Simple, a life estate, an easement or a defeasible or determinable fee, Rights and obligations of both landlord and tenant in the leasing of residential and commercial properties, Additional capital or property included in a transaction to even out the exchange, potential income of a property that is derived from rents collected in a year, May be organized as limited or general partnerships. authority to clean up sites contaminated with hazardous substances, pollutants or contaminants, record the deed (sign it), then moving in. Liquidity4. \text{4. Financing activities} & \text{b. Theintentionalpreparationofmisleadingfinancialstatementsi. 4 Things Value of a Property can be affected by, social, economic, governmental, and environmental influences, Sales comparison approach, the cost approach, and income approach. 1. transferring funds to a title or escrow company, sending monthly payment statements and collecting monthly payments, The ability to sell an asset and convert it into cash. Cost does not equal value Principle of change Change is constant, and are always effecting value Principle of Anticipation Activitiesofmanagementengagedtooperatethebusinessj. borrowers rated a-f. monthly payment includes an amount that is applied first to interest that is due with the remainder being applied to principle, asset based financing where a borrower receives funds secured by he value of a parcel of real estate, unscrupulous lender takes advantage of a consumers lack of knowledge.

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