Anything that is widely accepted in exchange for goods and services. 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. 30 Credit Hours (TREC) This Real Estate Pre-Licensing course is approved by TREC and must be completed in order to get a Real Estate license in Texas. The relationship between the amount of rent a specific property can command, and the value of the property to the owner. He is really good. ___________ 13. The market wherein loan originators, such as mortgage bankers and brokers, can sell their loans and thus, recover cash for originating more loans. Fraudulentfinancialreportinga. 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. used in most real estate transactions. designed to clean up sites contaminated with hazardous substance. 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. 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. Principal of contribution the value of a property is equal to the sum of the contributory value of each of its component parts. 4. local maps, indicating location of subject and comparables grantee gives to the grantor, most common, best type of deed to have. ARMS that offer fixed rate period during 1st years of the loan. Cost approach Analysis 122 cards Real Estate Real Estate Principles Practice all cards Appraisal defined as an appraiser's Opinion of Value. protection up to purchase price, norm paid by seller (buyers benefit). Property and lender information ___________ 4. His opportunity cost is 7 percent. Suggests that value is maximized when there is reasonable degree of homogeneity, or sameness, in a neighborhood, Uniform Standards of Professional Appraisal Practice, Standards that have been established by the Appraisal Standards Board of the Appraisal Foundation, The value of a subject property is increased by the value of surrounding properties, URAR (Uniform Residential Appraisal Report), The most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale, If a type of property in a market area is too abundant, it has reduced value. 4 Things Value of a Property can be affected by, social, economic, governmental, and environmental influences, Sales comparison approach, the cost approach, and income approach. final rule mandates the use of 2 disclosures that help the consumer in understanding the key features, costs and risk: 3 pages loan estimate & closing disclosure forms. & \text{$\quad$attract and hold investment capital}\\ The Board goes on to say that the margin of error for this poll was 3%3 \%3%. Formerly known as the Federal National Mortgage Association (FNMA), Fannie Mae is the largest investor in home mortgages today. usually have a initial cap that is higher than the adjustment cap. 4. A principal owes his agent compensation, reimbursement, indemnification and performance Procuring Cause of Sale The effort that results in the sale of property - the act of bringing a ready, willing and able buyer to a seller resulting the sale of the seller's property Exclusive right to sell 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. very likely to be contested. Describe the differences in producer and consumer surplus, and in overall social welfare, that would occur in each of the following scenarios. Payments are guaranteed, and they would be made at the end of each year. the legal use that gives the greatest return in money or amenities. 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. Identify the term that best fits the following description - to force out or push out. Theabilitytoearnenoughincometoattractandholdinvestmentcapitalg. partially amortized loan with final payment substantially larger than the others. & \text{$\quad$information about an identifiable}\\ \text{2. Type of asset-backed security that is secured by a mortgage or collection of mortgages. What is the probability that Bob receives no tweets during his lunch hour? Once the loan is closed it is sold to another lender. combination of two or more properties into one. (2) The Cost Approach, 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. increase in value in a parcel of land due to the activities of the owner/ developer, meathod of raising funds for the purchase of a real estate investment, allows for the indirect investment in mortgages through the sell of securities, additional capital or property included in transaction, gives tenant possession without ownership, renews its self automatically for like periods of time, tenant occupies w permission for unspecified time, begin with lower payments at a fixed rate, and increases, tenant pays rent owner pays taxes utilities ect. founded in 1993 membership based non-profit organization that promotes sustainability in how buildings are designed, built, and operated. Taxation estate for years The measure of the money supply that includes M1 along with forms of money that are less easily converted to cash. 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. the most probable pice a property should bring in a competitive and open market under all conditions requisite to a fair sale. ", "Amazing staff and instructors that can help streamline the process of licensing or your continuing education. when the value added by an improvement exceeds the costdo not over improve. 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. Champions School of Real Estate is proud to be one of the most respected Real Estate schools in Texas! 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. minimum 100 investors. period between rate changes monthly, 3 mo,6mo, 1yr, 3yr,5yr, 7yr. Economic obsolescence Investing activities} & \text{$\quad$debts when they are due}\\ transfer of ownership against the will of the owner. whichever one is lower LTV Loan-to-Value Ratio Photographs of comparables value added to improvement exceeds the cost of improvement. can be voluntary or involuntary. Here is what they had to say! \text{SUMMARY} & \text{Balance} & \text{/ Credits} & \text{Transactions} & \text{Charge} & \text{Charge} & \text{Balance} & \text{Payment}\\ \hline A lower interest rate is offered by the lender during the first year or more of the loan. If the house is 20 years old, The appraiser's estimate of the age of the house based upon its ongoing maintenance and upgrades. Infer What might keep a State from accepting a categorical grant-in-aid? when an individual acquires title from the rightful owner through hostile, actual, and continuous occupation of the land for the statutory period. lese in which payments begin at a lower, fixed rate but gradually increase as the lease matures. \text{9. \text{4. Financing activities} & \text{b. Calculate the new balance. Unlimited number of times. Activitiesofmanagementengagedto7. 6. consumers are given equal chance to obtain credit. Examine the summary section of a monthly credit card statement. PreviousPaymentsLateFinanceNewMinimumSUMMARYBalance/CreditsTransactionsChargeChargeBalancePayment$876.34$800.00$1,009.56$30.00$29.67$18.00\begin{array}{|c|c|c|c|c|c|c|c|} \hline 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. Value, Income, Return. insured against loss resulting from defects of the title, types of changes in the ownership of the property, changes in property may be: involuntary or voluntary, transfer of title with the grantor's consent, given by the grantor or grantee. 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. Rural Property <25% built up Adequate consideration Money that has value because the government has ordered that it be accepted in payment of debts. secure and fair enforcement for mortgage licensing-enhance consumer protection- and reduce fraud. Identify what will happen to the equilibrium price and equilibrium quantity in each of the following: a. used to clear up cloud on title, no protection, no ownership claimed by grantor. Acodeofconductthataddresseswhetheractionsarerightorwrong\begin{array}{ll} (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. . Became private 1968, Federal Home Loan Mortgage Corporation (FHLMC) in 1970 for the purpose of purchasing mortgages in the secondary market, Government National Mortgage Association (GNMA), or Ginnie Mae, Was established in the United States in 1968 to promote home ownership wholly owned government association that operates the mortgage-backed securities program designed to facilitate the flow of capital. origination, loan processing, underwriting, close, fund, servicing, Residential Mortgage Loan Originator (term mandated by the SAFE act), Consumer Financial Protection Bureau; signed into law in 2010. (3) The Income Approach. Financingactivities5. 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 The presence of lower-priced properties in the area will cause a decline in the value of the subject property. \text{Travel Expenses}&&\$600&\$19,000\\ purchase price is affected by the expectation of of future appeal and benefits. Real Estate Mortgage Investment Conduit (REMIC), Allows for the indirect investment in mortgages through the sale of securities. any change in the ownership of relationship property. insures the difference, Police Power Change is constant; therefore, the forces acting on a parcel of land are always affecting the value of the land. the most probable price a property should bring in a competitive and open market under fair conditions requisit to a fair sale. Real estate prices in Germany remain the same, although overall sales are declining. Operatingactivities7. Wrongful or criminal deception intended to result in financial or personal gain is called: fraud 3. It increases the penalties for a federal conviction for mortgage fraud to a maximum of 30 years in prison and a ne of up to $1 million. The role money serves when used as a way to hold value relatively well over time. 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.