champions school of real estate principles 2 quizlet champions school of real estate principles 2 quizlet

equalize air pressure between rooms in a house by adjusting air flow in supply and return ducts. payment plan allows a borrower to pay only the interest for a specified number of years, typically for 3 to 10 years, making it possible for a borrower to have smaller monthly payments for a period of time, Contributions to buyer's closing cost that are limited to 6% of the sales price, USDA Rural Development Guaranteed Housing Loan program, Insured by the U.S. Department of Agriculture. (Most reliable), Reduction in value from deterioration or obsolescence. 3. result write on top of denominator, divide biggest whole number to both numerator and denominator, to get smallest fraction, based upon tax rate and assessed value of property, length x width x height 27 cu ft = 1 cu yd, Champions School of Real Estate-Principles of, Champion School of Real Estate-Law of Contrac, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Alexander Holmes, Barbara Illowsky, Susan Dean. ___________ 2. \text{Employee Salaries and Wages}&\$50,000&\$1,100&\$88,000\\ initial truth in lending disclosure. 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. Operating income and expense statements However, as per the new report from the Gewos Institute for Urban, Regional and Housing Research, the sales boom may be coming to an end in the observable future. final step in the appraisal process, in which the appraiser weights the estimates of value from sales comps, cost and income approaches to arrive at a final estimate of market value of the subject property. The mortgages are sold to a group of individuals (a government agency or investment bank) that securitizes, or packages, the loans together into a security that investors can buy. they are bonded, much like a bank statement and it shows all cash received, expenses during a reporting period. Agreements that combine the sale of securities with an agreement to buy the securities back at a later date. homeowners who are at least 62 years of age can borrow against the equity in their property. Copy of most recent property survey 2. A letter from a title insurance company in which it commits to issuing a title insurance policy on the insured subject to certain conditions and requirements. Financialaccountingobtainadequatefundsforbeginning8. Adequate consideration RevenueEmployeeSalariesandWagesTravelExpensesOtherExpensesFixedElementPerMonth$50,000$36,000VariableElementPerCustomerServed$5,000$1,100$600ActualTotalforMay$160,000$88,000$19,000$34,500. 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. estimate of value based on current construction costs. a deed is considered to be delivered and accepted when it is delivered into escrow. He has been offered three possible 4-year contracts. deemed as low risk loan, Residential Mortgage Loan Originators (RMLO), Must be certified licence holders and is mandated by the SAFE ACT (TX dept of savings and mortgage lending), purchase price is affected by the expectation of future appeal and benefits, value of a commodity is influenced by the cost of acquiring subsitute or comparable item, value of properties around yours goes up; so does yours, The Value of more expensive home placed in a neighborhood of less expensive homes will drop in value. Sketch of floor plan (2) The Cost Approach, uniform residential appraisal report aka fannie mae form 1004, Freddie mac form 70. value of subject property is increased by value of surrounding properties, absolute adjustments made to the comparable, considering those that are +/-, if similar properties in the market are selling at prices that yield and investor a return of x%, potential rate of return(income, return on investment, value), certain rate of return (income, return on investment, value), subdivision that includes locally owned commodities and common facilities. Servicemen's Readjustment Act (GI Bill of Rights), Was signed into law by President Franklin D. Roosevelt on June 22, 1944. is comprehensive program provided returning World War II service men and women with many medical bene ts, educational bene ts and low-interest loans to help the veteran assimilate back into civilian life, A special form of insurance which is designed to allow lenders to increase LTV ratio. (Zoning example). & \text{\$876.34} & \text{\$800.00} & \text{\$1,009.56} & \text{\$30.00} & \text{\$29.67} & \text{ } & \text{\$18.00}\\ \hline Providing Top Quality Real Estate License Education in Texas for Over 30 Years! 8. The Loan Estimate form combines elements of the Good Faith Estimate and the initial Truth In Lending disclosure into one. Financingactivitiesb. * whole # by denominator Principles of real estate II (Champions) 5.0 (7 reviews) Term 1 / 127 Functional obsolescence Click the card to flip Definition 1 / 127 Refers to the loss in desirability of the style, layout or function of an element of a property over time Click the card to flip Flashcards Learn Test Match Created by Margaretcoltman Terms in this set (127) commercial property is depreciated over how many years? possible polluted who may be held liable under CERCLA for the contamination of a property or resource. The USPS has a monopoly on every type of mail or package. history or list of all owners back to the sovereignty of the soil, you want this one. The tax and insurance is held in an escrow account, is partially amortized loan with a final payment substantially larger than the others. interest rate a reserve bank charges eligible financial institutions to borrow money short term. permits additional borrowing on the same note and mortgage, owner retains title of property while purchaser takes possession while paying principle. 9. Neighborhood description gradual loss of land near border of stream or river. person designated to execute the terms of a will. Financial accounting} & \text{$\quad$obtain adequate funds for beginning}\\ d. Supply falls and demand is constant. 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} the only limitations to title are those listed in the deed. 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. original conveyance o land by the sovereign, resulting document from an investigation of all documents recorded during the history of a property. the percentage of value or sales price that a lender is willing to finance. addition or amendment to an existing will. The process of producing accounting}\\ The process by which the government exercises its right of eminent domain. It also offers continuing education courses for. Increased competition will bring prices down. whichever one is lower LTV Loan-to-Value Ratio used in most real estate transactions. preserves low, existing intrest rate on the original note. The loss in value of a property caused by factors outside of the property itself. The relationship between the amount of rent a specific property can command, and the value of the property to the owner. | 4 years | |. ___________ 6. history or list of all owners back to the sovereignty of the soil. Cost approach Analysis Consists of 79 local affiliates, 16,000 member companies and organizations, and more than 162,000 LEED Professional Credential holders. Principles of Real Estate 1. Adger Corporation is a service company that measures its output based on the number of customers served. Terms of each contract are as follows: As his adviser, which contract would you recommend that he accept? Dodd-Frank Wall Street Reform and Consumer Protection Act of _______. 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. operates mortgage backed securities program designed to facilitate the flow of capitol into the housing industry. lese in which payments begin at a lower, fixed rate but gradually increase as the lease matures. The Property Report contains information about the subdivision and is required to be delivered to a purchaser before the signing of a purchase agreement. A value for existing properties method for comparing similar properties to the subject property. A legally enforceable declaration of how a person wishes his or her property to be distributed after death, one who benefits from something; a person who is left money or other property in a will or the like. used when a notable number of rental properties are in the area, applies only to income-generating rental property, 1. The lender transfers title back to the borrower when the loan is repaid. sets monetary policy. Having enough cash available to pay}\\ The consummation of a real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are disbursed by the lender. protect consumers from fraud in the sale or lease of land, CERCLA comprehensive environmental response compensation and liability act. state law requires law, real estate contracts and leases over a year to be in writing. Certified General Appraiser, person who is authorized by Texas Appraiser licensing and certification board to gain legal RE appraisal Experience under the sponsorship of a certified general or certified residential appraiser, the document that pledges the property at security for repayment, legal procedure whereby the secured property may be sold to satisfy the unpaid promissory note. it can be money, personal property, ie $10, grantor promises the grantee interrupted use of the property, A deed with no guarantees or warranties - it offers the buyer the least protection - can be used to correct or cure a defect or cloud on title. grantor fully warrants good clear title to the property. \text{1. 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. Once the loan is closed it is sold to another lender. qualifies borrower based on proposed home payment and gross monthly income. improve but don't over improve; improve property when the value added by the improvement exceeds the cost of the improvement. Minimum withdrawal in Texas on HELOC (Home Equity Line of Credit). protection up to purchase price, norm paid by seller (buyers benefit). person, corporation or firm, not in banking, that provides its own funds for mortgage financing. looks like a deed. requires an application. Texas Qualifying Education (Pre-Licensing), Texas Sales Agent Apprenticeship Education (SAE), Texas Continuing Education (CE), Real Estate Professional Assistant Certificate, "I cannot say enough good about Champions School. ___________ 12. CFPB implemented. Loss of value of a building from its reproduction cost, resulting from wear and tear over time. 1. the absence of competition will cause prices to increase in the marketplace. must be done in some way, when a person dies intestate acquires property under provisions of the Texas statue, formal judicial proceeding to prove or confirm the validity of the will, gradual increase in land through natural force. Appraiser's estimate of the age of the property based on its ongoing maintenance and upgrades. Over 90% of our business is driven by word-of-mouth referrals from Real Estate Brokers, Sales Agents, Mortgage Loan Originators, Home Inspectors, and Appraisers. Analysis of market data ___________ 10. 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. Accounting2. power of sale under a mortgage in default.