Title remains with the lender until loan is repaid. estimate of value based on current construction costs. \text{Revenue}&&\$5,000&\$160,000\\ Providing Top Quality Real Estate License Education in Texas for Over 30 Years! power of sale under a mortgage in default. Passed by Congress in 1968. Infer What might keep a State from accepting a categorical grant-in-aid? 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. any change in the ownership of relationship property. Havingenoughcashavailabletopaydebtswhentheyareduec. (any charge or fee- not transfer), state and local fees on mortgage and home sales based on the loan amount or sales price of property, loans interest rate increases after consummation, added to index to determine interest rate, 1. tenant pays rent, plus taxes utlities ect. Independent third-party appraiser will review the report, then verify the information. 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. Payments are guaranteed, and they would be made at the end of each year. stockholder owned corporation, chartered by congress to increase the supply of funds that mortgage lenders can make available to homeowners and multifamily investors. One with no guarantees, warranties, or covenants, Two or more persons sharing joint ownership may wish to divide the property amongst themselves, increased usability and value real property, The combination of two or more properties into one, list of all owners from the rst to the current owner. rate doesn't change between offer and closing. \text{4. Financing activities} & \text{b. c. Supply rises by more than demand rises. Bank owns it now. grantee gives to the grantor, most common, best type of deed to have. Principle of Increasing and Decreasing Returns. 40 pages. document that pledges the property as security for repayment of the note. 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. A value for existing properties method for comparing similar properties to the subject property. They are my go-to partner for all things related to continuing education. Liquidity4. The relationship between the amount of rent a specific property can command, and the value of the property to the owner. loss in a property's value due to daily wear and tear. The legal use that gives the greatest return in money and/or amenities. The money that mortgage companies use to make loans comes from the sale of __________. 4. indication of a right to be on property,such as proof that the claimant has paid the ad valorem taxes, or an old deed, etc, an addition or an amendment to an existing will. decreases over time, norm paid by buyer. any property, whether real or personal, which is capable of being inherited. 2. * whole # by denominator Examine the summary section of a monthly credit card statement. 5. Activitiesofmanagementengagedtooperatethebusinessj. Leadership in Energy and Environmental Design-LEED, a 3rd party certification program for high performance buildings developed by the US Green Building Council. Given to attorney to write up, abstract of title given to attorney who gives their opinion regarding the state of the title and its ability to be transferred. It's simple! part of income approach, used if there are a lot of rental properties in the area. 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. the loan origination market where borrowers and lenders negotiate mortgage terms. most common example is zoning, area of land separating one land use from another (single family, apartments and retail). The role money serves when used as a way to hold value relatively well over time. designed to clean up sites contaminated with hazardous substance. Demand falls by more than supply rises. & \text{f. The ability to earn enough income to}\\ Improvements to site Formerly known as the Federal National Mortgage Association (FNMA), Fannie Mae is the largest investor in home mortgages today. Determined by the taxing authority and appraised value, AKA Market Data Approach, focuses on recent sales in the determining value, Comparison of properties to determine value, Market value of property consider how much a new structure of the size and type would currently cost to build, Reduction in value of property from causes such as deterioration or obsolescence. protection up to purchase price, norm paid by seller (buyers benefit). Champions In Real Estate offer real estate for sale in Kanimbla , Earlville , Mooroobool and surrounding areas. title is conveyed when the deed is signed and. Alexander Holmes, Barbara Illowsky, Susan Dean, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. Investment instruments that are secured by pool of mortgages and are used to channel funds from securities markets to housing markets, Market in which borrowers and mortgage lenders come together to create and negotiate terms of a mortgage transaction. 9. background information about the appraiser The absence of competition will cause prices to increase in the marketplace. most important aspect is that cost does not equal value, most important aspect of principle of contribution, cost does not equal value (for exampleswimming pool), forces acting on a parcel of land are always affecting the value of the land, the purchase price is affected by the expectation of future appeal and benefits. 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. when demand is high and supply is short, prices go up - and vice versa, presence of lower-priced properties in the area will cause a decline in the value of the subject property, presence of higher-priced properties in the area will cause an increase in the value of the subject property. The most probable price a property should bring in a competitive and open market. CFPB implemented. The measure of money supply that includes only the forms of money that are readily available to spend: cash, checking account deposits, and travelers checks. Analysis of market data 21 pages. divided into sections called "schedules," and must be delivered by the title company within 20 days of its receipt of the contract. Profitability3. ___________ 2. 7. Ethics10. housing assistance program; Texas Veterans Land Board, the right of a government to regulate and control the way that an individual uses his or her land, the government's right to tax real estate, the right of a government to take an individual's land if he or she dies without a will or heirs, the action of government seizure of land for the good of the public, the right of the government to take private land for public use, the sum of energy used during the life cycle of a product. flexible and short u shaped duct that connects a room to a common space as pressure balancing mechanism. established in 1992; a voluntary program to identify and promote energy efficient products and buildings in order to reduce energy consumption, improve energy security and reduce pollution through voluntary labeling about products and buildings that meet the highest standard of energy efficiency. quiz 14.docx. Take your license further with a Designation or Certification. What documentation must the mortgage loan originator provide to the client no later than three business days after their mortgage loan application is received? 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. The process of transferring funds to a title or escrow company for disbursement. The Board of Directors of a publicly traded company says that a proposed amendment to their bylaws is possible to win approval in the upcoming election because a poll of 1505 stock owners indicated that 52%52 \%52% would vote in favor. 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. allows funding of the repairs through a series of draws. \text{Other Expenses}&\$36,000&&\$34,500\\ His opportunity cost is 7 percent. (2) The Cost Approach, The purchase agreement gives the purchaser a seven-day period in which the purchase can be canceled. Demand rises and supply is constant. preserves low, existing intrest rate on the original note. Acodeofconductthataddresseswhetheractionsarerightorwrong\begin{array}{ll} Activitiesofmanagementengagedtooperatethebusinessj. The evidence an individual has of his or her right to possess land. ratio of borrowers total recurring monthly debts. ___________ 4. These are the 4 rights of land. 6. 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. addition or amendment to an existing will. oral/ deathbed will. 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. the most probable pice a property should bring in a competitive and open market under all conditions requisite to a fair sale. ___________ 14. Investingactivities6. Theabilitytoearnenoughincometoattractandholdinvestmentcapitalg. Change is constant; therefore, the forces acting on a parcel of land are always affecting the value of the land. used in most real estate transactions. Real Estate Salesperson National Prep Exam 1.docx. ie. ___________ 7. Certified Residential Appraiser Champions School of Real Estate Principles 2 Test Review September 2018 STUDY Flashcards Learn Write Spell Test PLAY Match Gravity Anticipation Click card to see definition purchase price is affected by the expectation of future appeal and benefits Click again to see term 1/83 Created by rachelw1111 Key concepts: Consumer Credit Protection Act tax-free capital gain of up to 250k if they lived there 2 out of the last 5 years. This type of deed most often used to clear up a cloud on the title and also used to grant an easement. minimum 100 investors. 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. complete history of the title to the property, and includes all deeds, wills and other documents a ecting title. According to this principle, the value of offers the greatest protection of any 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. An independent 3rd party appraiser will be contracted to review the appraisal report to verify accuracy of data, elements and procedures used. most reasonable price a property should bring in a competitive open market. added to the index to calculate interest rates, teaser rate- lower rate offered initially. If the property cannot be transferred, it is of little value. less depreciation, plus land value. Describe the differences in producer and consumer surplus, and in overall social welfare, that would occur in each of the following scenarios. \text{7. It was signed into law by President Barack Obama in May 2009. Accounting2. Deed that offers the most protection in which grantor fully warrants good clear title to the premises. financing in which a borrower receives funds secured by the value of a parcel of real estate, Method of financing which preserves the low, existing interest rate on the original note. The term Residential Mortgage Loan Originator is mandated by the ______ Act, Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act). The staff at Champions School is top notch! Regulation Z Federal Law to protect consumers by disclosing terms and cost of credit, the purchase and sale of existing mortgages to investors to provide liquidity and additional funds for lending, balances mortgage credit to include capital-deficient areas, More realistic price, agent has better understanding of ability to pay, avoid showings buyer cannot afford, Seller knows buyer can afford the home, The lesser of the appraised value or sales price (in %), will be found on almost any high LTV loan, a mortgage insurance program (not a lender), Right of the government to regulate and control the way land is used (zoning), Interstate Land Sales Full Disclosure Act, Gives authority to Federal and State natural resource agencies, and Native American Tribes, services buyers and seller moving from corporate transfer, Certified Commercial Investment Member (CCIM), "gold standard" for commercial designations, must register with Texas Dept of Savings and Mortgage Lending, Sponsoring broker must maintain these to assure a sales agent is competent, a hedge against inflation, a higher rate of return, ability to leverage (borrow $ to make $), Tax-sheltered income, capital gains tax, deferred taxation on exchanges, $250,000 single, $500,000 couple, lived in 2 of last 5 years, organized as limited or general partnership or a corp, Created by congress in 1960 minimum 100 investors, lease in which all or part of the rent amount is based on the receipts of the tenant's business (typical shopping center lease), An attorney is needed if clients want this, Competent parties transfer of ownership against the will of the owner. January 1, 2005, launching its Mold Mission Program. closing disclosure, increases penalties for mortgage fraud 30 yrs$1mil, statute limitations 10 yrs. and no unpaid claims against the property. Texas Principles 2 Scenarios Questions - Champions School of Real Estate Margaret Sullivan died in Texas without a will on file. person, corporation or firm, not in banking, that provides its own funds for mortgage financing. very vulnerable to being contested. no obligation o extend credit. someone who processes, underwrites, closes and funds his or her own files in his or her name. 1. amount of down payment. generally 5-10% range with fees. You can do it, we can help! buying the market pools. From the moment you start your education with Champions, we become an extension of your team by serving as a dedicated resource and providing you with the educational tools you will need to succeed in your new found career! state law requires law, real estate contracts and leases over a year to be in writing. requires an application. A rookie quarterback is negotiating his first NFL contract. Adequate consideration 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. Financingactivitiesb. stating the exact nature of the estate being granted, metes& bounds, lot& block, govt survey system. The borrower retains ownership of the property, subject to the lien that secures repayment of the loan. CERCLA was designed to clean up sites contaminated with hazardous sub- stances, pollutants or contaminants. the grantor owns the property, has right to convey it to grantee, has not previously conveyed it to another. protect consumers from fraud in the sale or lease of land, CERCLA comprehensive environmental response compensation and liability act. Items that affect the marketability or livability of the property Principles of Real Estate 1 Key Terms Principles of Real Estate 1 Key Terms Flashcard Maker: juan brown 23 Cards - 1 Decks - 4 Learners Sample Decks: Level 1: Introduction to Modern Real Estate Practice Show Class Principles of Real Estate Part 1 Principles of Real Estate Part 1 Flashcard Maker: Deron Goodwyn 64 Cards - 2 Decks - 12 Learners transfer of ownership against the will of owner. The loss in a property's value due to daily wear and tear. Sketch of floor plan Real estate prices in Germany remain the same, although overall sales are declining. gradual loss of land near border of stream or river. Permits additional borrowing on the same note and mortgage. Loss of value of a building from its reproduction cost, resulting from wear and tear over time. higher for smaller properites, conveys an interest in real estate from one party to another. 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. ", Texas Department of Savings and Mortgage Lending, Texas Appraiser Licensing and Certification Board. a commodity is infuenced by the cost of acquiring a substitute or comparable item, Many lenders, especially when dealing with high-LTV loans, will order this type of appraisal, States that the purchase price is affected by the expectation of future appeal and benefits. 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. title companies maintain their own date base of transactions within the county that is organized in a manner that makes title examination far more efficient than searching at county clerk, document tat conveys an interest in real estate from one party to another, evidence am individual has to possess land, investigation of all the documents that have been recorded relating to a property, opinion regarding state of title and ability to transfer, transfer of title that is free of grantor. The lender transfers title back to the borrower when the loan is repaid. ___________ 12. 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. various equations can calculate what investor is looking for. secured property may be sold ti satisfy the unpaid promissory note. Wrongful or criminal deception intended to result in financial or personal gain is called: fraud 3. Equal Credit Opportunity Act; passed in 1974, ensures equal chance for credit. Havingenoughcashavailabletopay5. b) What confidence level did the pollsters use? Conventional-loans that have no federal guarantees or insurance \text{2. Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. & \text{g. An information system that measures,}\\ 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. Match the following terms to the correct definitions. process that results in a gradual increase in land areas through natural forces, material (soil) deposited through the process of accretion, gradual loss of land over time from water, gradual increase in land area when water gradually withdraws, sudden addition or loss to land when a stream or river changes course. Texas Principles 2 Q & A - Champions School of Real Estate 1. It also offers continuing education courses for. 7. & \text{$\quad$processes, and communicates financial}\\ Battery life between charges for the Motorola Droid Razr Maxx is 20 hours and the primary use is talk time. subsequent to adjustment, limits how much a payment can increase or decrease. zoning, highways. maintained by HUD, Dodd Frank Wall Street reform (consumer protection act, promote financial stability of the U.S by improving accountability and transparency, CFPB (consumer financial protection bureau), consumer protection for mortgage related business, non financial comp, banks, and credit unions of +$10 billion \text{5. Exam-Federal 1-A2. when an individual acquires title from the rightful owner through hostile, actual, and continuous occupation of the land for the statutory period. Get your Real Estate License Education on a Mobile Web App. 8. title to land in the United States can be traced back to its original owner, (Police Power,Eminent Domain,Taxation, Escheat), Changing the zoning of a property to a lower value, The amount of space required between the lot line and the building line, Interstate Land Sales Full Disclosure Act. prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or good faith exercise of any rights under the Consumer Credit Protection Act. It is would suggest that an owner should not "over improve" a property. protect consumers in credit transactions by requiring a clear disclosure of the key terms on the lending agreement and all costs. The amount of money available for the purchase of goods and services. The role money serves when it is used as a form of payment. Match the terms that follow with the appropriate definitions. federal law passed in 1974. doesn't include: gender or immigration status. Theabilitytoearnenoughincometoattractandholdinvestmentcapitalg. Whether you need Qualifying Education (QE) to start your career, Sales Agent Apprentice Education (SAE) to build your . Photographs of property consent of the lender allows property to be sold for a price sufficient to pay mortgage off. purchases "pools" or mortgages. limits interest rate over the lifetime of a loan. 2 categories Residential Loans are divided into: If a residential property contains ____ or more living units, the sale is considered a commercial used when a notable number of rental properties are in the area, applies only to income-generating rental property, 1. 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. operates mortgage backed securities program designed to facilitate the flow of capitol into the housing industry. combination of two or more properties into one. Postal Service (USPS) has a government monopoly on home mail delivery, but several private companies, such as FedEx, UPS, and DHL, compete with the USPS for other types of delivery service. Taxation age of structure based off observed physical condition determined by the degree of maintenance and repair, uniform standards of appraisal practice- established by appraisal foundation. (needed when LTV is over 80%), Housing Assistance Program for veterans, The program is administered by the State of Texas, and is not related to the federal Department of Veterans Affairs (VA) program, A building certiFcation program for properties that are "green", Servicing a property and its equipment in order to prevent mechanical failure and keep property values high, 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, Tite is conveyed when the deed is signed and, transfer of ownership against the will of the owner, Any change in the ownership of real property, foreclosure, bankruptcy, condemnation proceedings, adverse possession, intestate succession, and escheat. 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. consumers are given equal chance to obtain credit. supply is short, prices go up. Adger Corporation is a service company that measures its output based on the number of customers served. Cost does not equal value Principle of change Change is constant, and are always effecting value Principle of Anticipation in depth process. The sum of the energy used during the life cycle of a product. Fraudulent financial reporting} & \text{$\quad$accounting information in the}\\ (Most reliable), Reduction in value from deterioration or obsolescence. What is one of the most important ways through which the behavior becomes integrated? founded in 1993 membership based non-profit organization that promotes sustainability in how buildings are designed, built, and operated. 2.amount of any payment Description of the property (street address is sufficient), Maintenance (maintained vs. deferred maintenance), Both landlord and tenant are expected to keep property. Associated Board of Realtors - helpful for residential buyers' agents, return on the property when it is sold for a profit, method of raising funds for the purchase of real estate, passive increase in the value of a parcel due to market forces, potential income of a property in the amount of rent that would be collected in a year, additional capital or property included in a transaction to even out the exchange. Activitiesofmanagementengagedtospendcapitalinwaysthatareproductiveandwillhelpabusinessachieveitsobjectivesf. a type of appraisal review. Consumer Financial Protection Bureau (CFPB) enforces what Acts? borrowers provide basic information like income, debt, and credit history. passed by congress in 1968. passed to protect consumer from fraud in the sale or lease of land. Principles of Real Estate 2 Champions School of Real Estate STUDY Flashcards Learn Write Spell Test PLAY Match Gravity appraisal Click card to see definition appraisers opinion of value Click again to see term 1/258 Previous Next Flip Space Created by Will77tx TEACHER Tags related to this set Marketing-Real Estate ___________ 11. A break in this line would create a cloud on the title. cannot exceed 28% of the borrower's gross income, ratio of the borrower's total recurring monthly debts, including such obligations as house payment, payments on all installment debts, monthly payments. & \text{$\quad$misleading financial statements}\\ ___________ 3. 2. major functional obsolescence The process of collecting loan monthly payments, keeping records and balances, collecting and paying taxes and insurance.