Create flashcards for FREE and quiz yourself with an interactive flipper. gradual loss of land near border of stream or river. (Zoning example). \end{array} Activitiesofmanagementengagedtooperatethebusinessj. & \text{$\quad$information about an identifiable}\\ We are equipped to help anyone who is seeking an exceptional Real Estate education regardless of schedule or location. Highly recommended and I will continue to use Champions! Accounting2. 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. underwriter approval. 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. Title remains with the lender until the loan is repaid. the absence of competition will cause prices to increase in the marketplace. Shorter version of the appraisal report for underwriting, rather than requiring a full appraisal report, which includes interior inspection. When Calculating the LTV (loan-to-value) ratio, the lender will use the sales price or appraised Value? Financialaccountingobtainadequatefundsforbeginning8. Competent grantor, identified grantee, consideration, conveyance, legal description, signed and delivered, a contract between the title company and the insured, RESPA (Real Estate Settlement Procedures Act), Regulation X, disclose cost, fees of settlement, Origination charges, Services you shop for, services you don't shop for (sum is Total Loan Costs), Final Loan terms and closing costs - Compare with Loan Estimate, Closing date, name of Settlement agent, Property address, Commission = (Amount of Sales) x (Commission Rate), Yearly Interest = Interest Rate (%) x Principle, loan x interest, then divide by 12 for monthly interest, subtract from payment to find principle paid, Principles Real Estate II- Practice Exam 2, Principles of Real Estate 2 Champions MATH SE, d.Theprocessofgeneratingandcommunicating, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Alexander Holmes, Barbara Illowsky, Susan Dean, Don Herrmann, J. David Spiceland, Wayne Thomas, social studies end of war and consitution. RESPA real estate settlement procedure act, regulation x. requires residential mortgage loan originators to provide borrowers with timely disclosures of of nature and costs of real estate, final respa-tila integrated disclosure rule, 3 pg loan estimate for tax purposes- determined by tax authority- not reliable estimate of market value, sales comparison approach "market data approach", compares subject property charectoristcs with those of comparable properties which have recently sold. It basically insures the difference between the borrower's down payment and LTV. For more than a decade, the German real estate market was in a dramatic growth phase. 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. 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. \end{array} 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. Developers are required to provide each purchaser with a disclosure document (Property Report). The Property Report contains information about the subdivision and is required to be delivered to a purchaser before the signing of a purchase agreement. 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. Economic obsolescence & \text{$\quad$whether actions are right or wrong}\\ If Market is flooded values will be flat. the legal use that gives the greatest return in money or amenities. loss of desirability of the style, layout or function of an element of property over time, Losses of property value caused by forces or conditions beyond the borders of the property. decreases over time, norm paid by buyer. generally 5-10% range with fees. Principal of contribution the value of a property is equal to the sum of the contributory value of each of its component parts. Managerialaccountingandcontinuingtooperateabusiness9. Rental survey Increased competition will bring prices down. ___________ 1. loans including refinance transactions secured by a first or subordinate lien on residential real property that is improved with a new home, payment applied to interest not principal, scheduled variations in regular periodic payment amounts not caused by charges to the interest rate, payment 2x of that of regular periodic payment, interest rate increases after consummation but the rates that will apply or periods,are not known at consummation, interest rate changes after consummation but the rates that will apply or periods,are known at consummation. \text{3. Infer What might keep a State from accepting a categorical grant-in-aid? 5. Theintentionalpreparationofmisleadingfinancialstatementsi. only legal for personal property. The grantor promises to warrant and defend title, but only against claims which may have arisen during his or her period of ownership. ___________ 4. Cost does not equal value Principle of change Change is constant, and are always effecting value Principle of Anticipation Take your license further with a Designation or Certification. 2. The loss in a property's value due to daily wear and tear. Once the loan is closed it is sold to another lender. Site description 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. The Special Information Booklet and the Loan Estimate form, RESPA manages closings on ______federally-related financing, one-to-four family residential properties with, Survivorship rights of a policyholder's spouse, lists all cash that came into and all expenses incurred by a property during the reporting period, Any property, whether real or personal, that is capable of being inherited. many lenders, especially high LTV loans, will order a field review of the appraisal. Activitiesofmanagementengagedtoobtainadequatefundsforbeginningandcontinuingtooperateabusinessd. Our focus has always been on providing you with an excellent education experience regardless of what stage of your Real Estate career you are in. funds the secondary market. Learning the principles and laws of real estate is Champions focus. Passed by Congress in 1968. 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. Theprocessofgeneratingandcommunicatingaccountinginformationintheformoffinancialstatementstodecisionmakersoutsidetheorganizatione. interest rate a reserve bank charges eligible financial institutions to borrow money short term. & \text{g. An information system that measures,}\\ 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 role money serves when it is used as a form of payment. passed to ensure that banks would serve the needs of the community in which hey were chartered. largest investor in home mortgages. ENERGY STAR program was established in 1992 under this Act. & \text{i. TILA (Truth in Lending), RESPA ( Real Estate Settlements Procedures Act), FCRA (Fair Credit Reporting Act, ECOA (Equal Credit Opportunity Act), A federal law passed to ensure that banks would serve the needs of the community in which they were chartered to do business and prohibits redlining. reviews cover a checklist of items as they analyze the appraisal report. & \text{$\quad$processes, and communicates financial}\\ The USPS has a monopoly on every type of mail or package. A supply curve usually has a negative x-axis intercept because, a) price elasticity of supply is usually negative, c) the firm will not supply goods for free. 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. These are non conforming loans. Also known as a real estate lien notes the borrower's unconditional promise to repay, and includes the amount borrowed, payment amount, due date and rate of interest. 5. small investors to invest in larger commercial properties. grantor fully warrants good clear title to the property. when an individual acquires title from the rightful owner through hostile, actual and continuous occupation of the land for the statutory period. a. 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. Accounting} & \text{a. 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.