The loss in value of a property caused by factors outside of the property itself. property owner obtains a certificate much like an automobile that is recorded in the public records. Copy of most recent property survey legal procedure where secured property is sold to pay unpaid note. never a reliable estimate of market value, standards that have been established by the Appraisal Standards Board of the Appraisal Founation, Universal Residential Appraisal Report; Fannie Mae 1004, sales comparison approach, cost approach, income approach, estimate of age based on the condition of the property. The Board goes on to say that the margin of error for this poll was 3%3 \%3%. the interest rate a Reserve Bank charges eligible financial institutions to borrow on a short term basis, the rate remains fixed for the entire term of loan, an interest rate increases or decreases at specified intervals over the life of the loan, monthly payment includes principal, interest, taxes and insurance. Ethicsd. Photographs of property insures most protection, any changes to the ownership of real property. Leadership in Energy and Environmental Design-LEED, a 3rd party certification program for high performance buildings developed by the US Green Building Council. Aninformationsystemthatmeasures,processes,andcommunicatesfinancialinformationaboutanidentifiableeconomicentityh. 2.amount of any payment specifies requirements found in regulation z. Theprocessofgeneratingandcommunicating10. & \text{j. 7. Financial accounting} & \text{$\quad$obtain adequate funds for beginning}\\ Such as the oversupply and consequent drop in demand for a particular kind of property, government actions, such as zoning changes or condemnation proceedings, and proximity to undesirable land uses, such as highways or factories. the legal use that gives the greatest return in money or amenities. October 3, 2015, It replaced the Good Faith Estimate, which has been in use since January of 2010. What is the probability that Bob receives no tweets during his lunch hour? Liquidity4. The material (soil) that is deposited through the process of accretion that is the result of avulsion, erosion and reliction. permits additional borrowing on the same note and mortgage. the percentage of value or sales price that a lender is willing to finance. 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. \text{ } & \text{Previous} & \text{Payments} & \text{ } & \text{Late} & \text{Finance} & \text{New} & \text{Minimum}\\ 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. something of value given in exchange for a conveyance. some lenders accept this drive-by type of review for low LTV or low risk loans. 6. Increased competition will bring prices down. ___________ 2. 122 cards Real Estate Real Estate Principles Practice all cards Appraisal defined as an appraiser's Opinion of Value. 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. With our eight campus locations, convenient online and virtual classroom delivery options, and pre-licensing and continuing education courses, we have served countless students since we opened our doors in 1983! permits additional borrowing on the same note and mortgage, owner retains title of property while purchaser takes possession while paying principle. Improvements to site generally 5-10% range with fees. 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. Principle of Increasing/or decreasing returns. Frequently asked questions Investing activities} & \text{$\quad$debts when they are due}\\ 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. 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. Financingactivities5. At Champions School of Real Estate, our number one focus is your successful career in the Real Estate industry. 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. SUMMARYPreviousBalance$876.34Payments/Credits$800.00Transactions$1,009.56LateCharge$30.00FinanceCharge$29.67NewBalanceMinimumPayment$18.00. If the property cannot be transferred, it is of little value. c. Supply rises by more than demand rises. Profitability} & \text{$\quad$information for the internal use of a}\\ 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. period between rate changes monthly, 3 mo,6mo, 1yr, 3yr,5yr, 7yr. 6. any condition that affects the health or safety of an occupant, Licensed Appraiser 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. It's simple! qualifies borrower based on proposed home payment and gross monthly income. It is would suggest that an owner should not "over improve" a property. federal law passed in 1974. doesn't include: gender or immigration status. This ensures you quickly get to the core! permanent and absolute tenure of an estate in land w freedom to dispose at will. Acodeofconductthataddresseswhetheractionsarerightorwrong\begin{array}{ll} Items that affect the marketability or livability of the property Wrongful or criminal deception intended to result in financial or personal gain is called: fraud 3. Borrowers are rated A-F with a prime borrower having an A rating. grantor does not even claim to own the property. all consumers are given a equal chance to obtain credit. the legal use that gives the greatest return in money or amenities. ___________ 12. Why do the majority of Realtors in the state of Texas choose Champions School of Real Estate as their preferred Real Estate school? Champions makes sure you are ready to take your State and National exam. Certified Residential Appraiser Liquiditycompanysmanagement4. person, corporation or firm, not in banking, that provides its own funds for mortgage financing. The process by which the government exercises its right of eminent domain. Managerial accounting} & \text{$\quad$and continuing to operate a business}\\ grantor fully warrants good clear title to the property. ARMS that offer fixed rate period during 1st years of the loan. Deed that offers the most protection in which grantor fully warrants good clear title to the premises. improve but don't over improve; improve property when the value added by the improvement exceeds the cost of the improvement. The most probable price a property should bring in a competitive and open market. TILA, FCRA, RESPA, ECOA. The action of government seizure of land for the good of the public. no obligation o extend credit. 10. A value for existing properties method for comparing similar properties to the subject property. combination of two or more properties into one. Site description TMARR requires that all persons who conduct assessment and remediation of mold be properly trained and licensed by the state. There is no membership needed. The lender transfers title back to the borrower when the loan is repaid. 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. Income approach Analysis a. 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. history or list of all owners back to the sovereignty of the soil, you want this one. The Act was passed to protect consumers from fraud in the sale or lease of land. The money that mortgage companies use to make loans comes from the sale of __________. Managerialaccountingandcontinuingtooperateabusiness9. a type of appraisal review. ___________ 3. gradual loss of land near border of stream or river. 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. vetran loan, loans made by lender dd214 submission form 26-1880. section 502 loan 100% financing, no down payment, primary residences only, rural property loan. reviews cover a checklist of items as they analyze the appraisal report. Profitability3. prohibits redlining. 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. 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. 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. risk based pricing, no published rates. Loans that are short term, collateralized by the mortgage notes they fund, and are normally repaid through the sale of these notes to the secondary market. Achieve success through Business Etiquette. ___________ 10. ese are non-conforming loans. addition or amendment to an existing will. Money that has value apart from its use as money. Began in 1938 federal agency. tenant pays rent, plus taxes utlities ect. Theprocessofproducingaccounting2. 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. Buildings are not typical of the area He has been offered three possible 4-year contracts. less depreciation, plus land value. Havingenoughcashavailabletopaydebtswhentheyareduec. the value if the property is equal to the sum if the contributory value of each of its component parts. licensing classes champions school, 60 hour classroom principles and practice of real estate, free real estate flashcards studystack, real estate license school allied schools, real estate broker wikipedia, florida real estate 63 hour sales associate pre license, california real estate school earn your ca real estate, reference book a real . He is really good. Cost does not equal value, Change is constant, and are always effecting value, the purchase price is affected by the expectation of future appeal and benefits, value of commodity is influenced by the cost of acquiring a substitute or comparable item. PMI is required when the LTV of a conventional loan exceeds 80%, the right of the government to regulate and control the way land is used, area of land separating one land use to another, changing the zoning of a property to a lower value, the right of the government to take private land for public use, the taking of land through eminent domain, the government's right to tax real estate, the process of transferring real estate to the state when a person dies intestate, imposed on land by developers, deed restrictions, Interstate Land Sales Full Disclosure Act. Theintentionalpreparationofmisleadingfinancialstatementsi. Money that has no value of its own but can be exchanged for something of value. Designed to enhance consumer protection and reduce fraud by encouraging states to establish minimum standards for the licensing and registration of state licensed mortgage loan originators, and by establishing a nationwide mortgage licensing system and registry for the residential mortgage industry. Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. any change in the ownership of relationship property. Quick and easy check-out You can quickly pay through credit card or Stuvia-credit for the summaries. PPossible polluter who may be held liable under CERCLA for the contamination of a property or resource, Texas Mold Assessment and Remediation Rules (TMARR). this is the best indicator. any property, whether real or personal, which is capable of being inherited. The loan becomes due upon the sale of the property or the death of the owner. partially amortized loan with final payment substantially larger than the others. addition or amendment to an existing will. & \text{$\quad$information about an identifiable}\\ | Life | Annual Rate | 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. doesn't indicate that they are legal owner, The government is the original owner of all land. These are the 4 rights of land. 4. amount of any finance charge. 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. cannot exceed 36% of the borrowers income, conventional loans that conform to fannie mae and freddie mac standards for purchase. Has only one loan repayment plan, oFFering 30-year fixed rate mortgages only, The right of the government to regulate and control the way that an individual uses his or her land. Study Principles of Real Estate 1 - Term flashcards - Champions School of Real Estate - TEXAS flashcards. many lenders, especially high LTV loans, will order a field review of the appraisal. no guarantee for approval, property must fit criteria . 21 pages. 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. 3. seller is willing to take part or all of equity in the form of a note. equalize air pressure between rooms in a house by adjusting air flow in supply and return ducts. 5. ratio of borrowers total recurring monthly debts. Description of the property (street address is sufficient), Maintenance (maintained vs. deferred maintenance), Both landlord and tenant are expected to keep property. Earn or renew your Real Estate Sales Agent or Broker license. \end{array} 16 pages. . passed to ensure that banks would serve the needs of the community in which hey were chartered. sets monetary policy. Having enough cash available to pay}\\ Learning the principles and laws of real estate is Champions focus. 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. The tax and insurance is held in an escrow account, is partially amortized loan with a final payment substantially larger than the others. A break in this line would create a cloud on the title. used to clear up cloud on title, no protection, no ownership claimed by grantor. Gross Rent Multiplier. 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. 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. Eminent Domain Taxation \text{4. Financing activities} & \text{b. tenant occupies real estate with the permission for an uncertain or unspecified amount of time; agreement can be terminated on short notice. Comprehensive Environmental Response, compensation, and Liability Act. The document that pledges the property as security for repayment of the note, is recorded in the county in which the property is located. Fraudulent financial reporting} & \text{$\quad$accounting information in the}\\ Investingactivitiesdebtswhentheyaredue6. a mortgage is an actual transfer of ownership from the borrower to the lender.