designed to clean up sites contaminated with hazardous substance. RESPA (Real Estate Settlement Procedures Act), implements Consumer Federal Protection Bureau, 1968 Passed by congress to protect consumers from fraud in the sale or lease of land, something of value. used when a notable number of rental properties are in the area, applies only to income-generating rental property, 1. Shorter version of the appraisal report for underwriting, rather than requiring a full appraisal report, which includes interior inspection. combination of two or more properties into one. responsible for: Earn or renew your Loan Originator license. Demand rises and supply is constant. value is maximized when there is a reasonable degree of homogeneity in a neighborhood, principle of increasing and decreasing returns. \text{6. up to 90 days, main job is to protect and preserve the value of an investment property while generating income for the owner. It was signed into law by President Barack Obama in May 2009. limited appraisal report 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. Activitiesofmanagementengagedto7. Per Adjustment Cap/Lifetime Cap/ Initial Adjustment Cap, Includes both real and personal property ( fixtures and furnishings), The monthly house payment includes principal, interest, taxes and insurance (known as PITI). Operating income and expense statements Cost approach Analysis the most probable price a property should bring in a competitive and open market under fair conditions requisit to a fair sale. requires an application. 4. local maps, indicating location of subject and comparables consumers are given equal chance to obtain credit. &\textbf{Per Month}&\textbf{Per Customer Served}&\textbf{for May}\\ Principle of Increasing and Decreasing Returns. We make it easy and convenient! 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. Theintentionalpreparationofmisleadingfinancialstatementsi. 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) Permits additional borrowing on the same note and mortgage. Operatingactivitiesc. ", Texas Department of Savings and Mortgage Lending, Texas Appraiser Licensing and Certification Board. For an application to be considered "complete" the lender must have all of the following (Property Address, Estimated Value, Name of the borrower, SSN, Income, Loan Amount), the central banking system of the United States, Sets the Fed's monetary policy, which is carried out through the Trading Desk of the Federal Reserve Bank of New York, the interest rate a Reserve Bank charges eligible financial institutions to borrow funds on a short-term basis, The standard loan application in use is the Uniform Residential Loan Application, Fraud Enforcement and Recovery Act (FERA). standard financial index used in U.S. capital markets, and can be found in the Wall Street Journal. loss in a property's value due to daily wear and tear. The USPS has a monopoly on every type of mail or package. Take your license further with a Designation or Certification. 40 pages. secure and fair enforcement for mortgage licensing-enhance consumer protection- and reduce fraud. Reconciliation of values A person, corporation or firm, not otherwise in banking, that provides its own funds for mortgage financing as opposed to savings and loan associations or commercial banks that use other people's money (depositors) to originate mortgage loans, Building a file that will be used to make an underwriting decision. (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. Collateral Dependent Loans (hard money loan), borrower receives funds secured by the value of a parcel of real-estate. For more than a decade, the German real estate market was in a dramatic growth phase. foreclosure, bankruptcy, condemnation proceedings, adverse possession, intestate succession and escheat, process by which the government exercises its right of eminent domain, deathbed or oral will. Cost does not equal value Principle of change Change is constant, and are always effecting value Principle of Anticipation Managerialaccounting9. goes through items as they analyze the appraisal report for completeness and acceptable conclusions, independent 3rd party appraiser will be contracted to review the appraisal report then verify the accuracy, exterior only/ drive by inspection (low risk loans), gives greatest return in money or amenities. when an individual acquires title from the rightful owner through hostile, actual, and continuous occupation of the land for the statutory period. Identify what will happen to the equilibrium price and equilibrium quantity in each of the following: a. 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. Texas Principles 2 Q & A - Champions School of Real Estate 1. Loss of value of a building from its reproduction cost, resulting from wear and tear over time. The loss in desirability of the style, layout, or function of an element of a property over time. Assets that are easily converted to cash. The most probable price a property should bring in a competitive and open market. transferring funds to a title co for disbursement when loan is approved. (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. 2. Change is constant; therefore, the forces acting on a parcel of land are always affecting the value of the land. Texas State Portion Real Estate Exam part 2.docx. Earn or renew your Home Inspector license. 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. Rental survey lender acquires property under foreclosure. interest rate a reserve bank charges eligible financial institutions to borrow money short term. Liquiditycompanysmanagement4. risk based pricing, no published rates. TMARR requires that all persons who conduct assessment and remediation of mold be properly trained and licensed by the state. Wrongful or criminal deception intended to result in financial or personal gain is called: fraud 3. 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. 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 Property Report contains information about the subdivision and is required to be delivered to a purchaser before the signing of a purchase agreement. How might the common expression "daddy's girl" be rooted in the idea of the Electra complex? estimate of value based on current construction costs. Items that affect the marketability or livability of the property document that pledges the property as security for repayment of the note. Analysis of market data 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. 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. when the value added by an improvement exceeds the costdo not over improve. b) What confidence level did the pollsters use? 4. amount of any finance charge. a. 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. Havingenoughcashavailabletopaydebtswhentheyareduec. addition or amendment to an existing will. set by state of texas dept of insurance, based on properties value using sliding scale. A Rare 150 /- Acre Parcel in the . The program offers 100% financing (no down payment) for qualified borrowers. transfer of title that is a free act of the grantor. The legal use that gives the greatest return in money and/or amenities. The U.S. federal law passed in 1974. doesn't include: gender or immigration status. If Market is flooded values will be flat. Find the annual double-declining-balance (200% method) rate of depreciation. rate doesn't change between offer and closing. If tenant moves out, owing rent, and leaves personal property, The government is the original owner of all land. Operating activities} & \text{c. Activities of management engaged to}\\ \text{Other Expenses}&\$36,000&&\$34,500\\ doesn't indicate that they are legal owner, The government is the original owner of all land. Match the terms that follow with the appropriate definitions. tax-free capital gain of up to 250k if they lived there 2 out of the last 5 years. 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. a. sending monthly payment statements, and collecting monthly payments, maintaining records and balances. It is would suggest that an owner should not "over improve" a property. & \text{\$876.34} & \text{\$800.00} & \text{\$1,009.56} & \text{\$30.00} & \text{\$29.67} & \text{ } & \text{\$18.00}\\ \hline Financialaccounting8. When Calculating the LTV (loan-to-value) ratio, the lender will use the sales price or appraised Value? Theprocessofgeneratingandcommunicating10. 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 Activitiesofmanagementengagedtospendcapitalinwaysthatareproductiveandwillhelpabusinessachieveitsobjectivesf. 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. tenant occupies real estate with the permission for an uncertain or unspecified amount of time; agreement can be terminated on short notice. 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. Having enough cash available to pay}\\ tenancy of will maximized value when homogeneity in neighborhood, principle of increasing and decreasing returns. 2 categories Residential Loans are divided into: If a residential property contains ____ or more living units, the sale is considered a commercial Percentage of the Lesser of the appraised value or sales price that the lender will lend. lease where rental is based on gross recipts of the tenants business (shopping center), transfer of tenants rights and liabilites to another, right for tenant to match/ offer more than landlord may receive, transfer of rights/ leased space w liability remaining for lesee, act of mixing a clients fund w a brokers personal funds, education programs that lead to industry recognized designations, gives commercial real estate practicioneers an opertunity to further their buisness through education and networking, gives lanlord a picture of the finnancial health of the property. Identify and explain the structures of language. What is one of the most important ways through which the behavior becomes integrated? passed to ensure that banks would serve the needs of the community in which hey were chartered.