Earn or renew your Real Estate Sales Agent or Broker license. & \text{$\quad$processes, and communicates financial}\\ Champions School of Real Estate-Principles of Real Estate II - Quizlet the market in which borrowers and mortgage lenders come together to create and negotiate terms of a mortgage transaction. Site description Study Principles of Real Estate 1 - Term flashcards - Champions School of Real Estate - TEXAS flashcards. 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). ", Texas Department of Savings and Mortgage Lending, Texas Appraiser Licensing and Certification Board. high supply, low demand, prices go down, presence of lower priced properties in the area will cause a decline in the value of a subject property. Under what conditions would the traditional yield spread be close to the static spread? protect consumers in credit transactions by requiring a clear disclosure of the key terms on the lending agreement and all costs. & \text{$\quad$makers outside the organization}\\ \end{array} limited appraisal report Champions School of Real Estate is proud to be one of the most respected Real Estate schools in Texas! Deed that offers the most protection in which grantor fully warrants good clear title to the premises. residential property is depreciated over how many years? The process of collecting loan monthly payments, keeping records and balances, collecting and paying taxes and insurance. Change is constant; therefore, the forces acting on a parcel of land are always affecting the value of the land. Champions School of Real Estate (CSRE) - Course Hero transaction, GMI x 28% =(House Payment as % of income), GMI x 36% =( Sum of regular debt plus house payment). ese are non-conforming loans. Sketch of floor plan 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. The process by which the government exercises its right of eminent domain. based on the assessed value of the property and the existing tax rate. 2 categories Residential Loans are divided into: If a residential property contains ____ or more living units, the sale is considered a commercial The loan becomes due upon the sale of the property or the death of the owner. 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. Exam-Federal 1-A2. promotes energy efficient products and buildings. Money that has no value of its own but can be exchanged for something of value. Legal purpose Title remains with the lender until loan is repaid. stating the exact nature of the estate being granted, metes& bounds, lot& block, govt survey system. Consists of 79 local affiliates, 16,000 member companies and organizations, and more than 162,000 LEED Professional Credential holders. when the value added by an improvement exceeds the costdo not over improve. property owner obtains a certificate much like an automobile that is recorded in the public records. supplement to the body of a will; later addition to a will, individual who receives property from person who died intestate, Texas Promulgated Contracts-CHAMPIONS STUDY, Chinese 1: Chinese Hanzi to English and Pinyin, Champions School Principles of Real Estate II, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. a type of appraisal review. legal procedure where secured property is sold to pay unpaid note. 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. the value if the property is equal to the sum if the contributory value of each of its component parts. Texas State Portion Real Estate Exam part 2.docx. TMARR Texas mold assessment and remediation rules, promotes sustainability in how buildings were designed, built and opperated, LEED Leadership in energy and environmental design, 3rd party certification program for high performance buildings. 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! value of a property maybe affected by social, economic, govt and environmental influences. The U.S. 21 pages. 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. TMARR requires that all persons who conduct assessment and remediation of mold be properly trained and licensed by the state. set by state of texas dept of insurance, based on properties value using sliding scale. ARMS that offer fixed rate period during 1st years of the loan. insures most protection, any changes to the ownership of real property. Photographs of comparables Taxation divided into sections called "schedules," and must be delivered by the title company within 20 days of its receipt of the contract. 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. How might the common expression "daddy's girl" be rooted in the idea of the Electra complex? Demand rises and supply is constant. 5. ___________ 14. offers the consumer an interest rate that is fixed for an initial period of time, then readjusts over the remainder of the life of the loan. The loss in value of a property caused by factors outside of the property itself. Principles Real Estate II- Practice Exam 2 Flashcards | Quizlet Economic obsolescence 2. Began in 1938 federal agency. Flashcard App | Champions School something of value given in exchange for a conveyance. c. Supply rises by more than demand rises. 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. 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. Adger Corporation is a service company that measures its output based on the number of customers served. gradual loss of land near border of stream or river. Real Estate Mortgage Investment Conduit (REMIC), Allows for the indirect investment in mortgages through the sale of securities. supply is short, prices go up. 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. lese in which payments begin at a lower, fixed rate but gradually increase as the lease matures. Whether you need Qualifying Education (QE) to start your career, Sales Agent Apprentice Education (SAE) to build your . Create flashcards for FREE and quiz yourself with an interactive flipper. & \text{$\quad$form of financial statements to decision}\\ Having enough cash available to pay}\\ 4. local maps, indicating location of subject and comparables 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. Take your license further with a Designation or Certification. and no unpaid claims against the property. Minimum withdrawal in Texas on HELOC (Home Equity Line of Credit). Property and lender information Identify the term that best fits the following description - to force out or push out. 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. Let and take agreement examining of the public records and constructed a chain of title and an abstract of title. * whole # by denominator the legal use that gives the greatest return in money or amenities. (2) The Cost Approach, The presence of lower-priced properties in the area will cause a decline in the value of the subject property. CERCLA was designed to clean up sites contaminated with hazardous sub- stances, pollutants or contaminants. minimum 100 investors. Activitiesofmanagementengagedtoobtainadequatefundsforbeginningandcontinuingtooperateabusinessd. a deed is considered to be delivered and accepted when it is delivered into escrow. The absence of competition will cause prices to increase in the marketplace. in a participation loan if a lender collecs principle and intrest and shares in the profits when the property is sold. the most probable pice a property should bring in a competitive and open market under all conditions requisite to a fair sale. Adequate consideration Managerialaccounting9. PDF Champions school of real estate principles 1 quizlet grantor promises uninterrupted use of the property, grantor is responsible for any doccumentation needed to ensure title transfer. a. 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. (PETE) police power, escheat, taxation, eminent domanin. 4. 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. 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. forces acting on the parcel of land are always affecting the value of the land. 5. | 4 years | |. 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. secured property may be sold ti satisfy the unpaid promissory note. 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. Frequently asked questions percentage of value or sales price that a lender is willing to finance. 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. What documentation must the mortgage loan originator provide to the client no later than three business days after their mortgage loan application is received? 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 can be money, personal property, ie $10, grantor promises the grantee interrupted use of the property, A deed with no guarantees or warranties - it offers the buyer the least protection - can be used to correct or cure a defect or cloud on title. quiz 14.docx. Government-FHA, VA or USDA loans, used to qualify a borrower for a loan based on the proposed house payment and his or her gross monthly income. Theprocessofgeneratingandcommunicating10. The course provides students with an extensive foundational understanding of Real Estate terminology and professional obligations. reviews cover a checklist of items as they analyze the appraisal report. The program offers 100% financing (no down payment) for qualified borrowers. & \text{$\quad$whether actions are right or wrong}\\ up to 90 days, main job is to protect and preserve the value of an investment property while generating income for the owner. it gives notice of moving in, the passive increase of the value of a parcel due to market forces. period between rate changes monthly, 3 mo,6mo, 1yr, 3yr,5yr, 7yr. 3. (Most reliable), Reduction in value from deterioration or obsolescence. 6. preserves low, existing intrest rate on the original note. 16 pages. doesn't indicate that they are legal owner, The government is the original owner of all land. can be voluntary or involuntary. Texas Real Estate License Exam Prep | Champions School fixed interest rate for initial period of time, borrower pays interest only making, initially making payments smaller, monthly house payment includes principal, insurance, interest and taxes, partially amortized loan w final payment substantially larger than others, value of the property must provide adequate loan security, collateral dependent loan (hard money loan), asset based financing where borrower receives funds secured by the value of real estate. Operating activities} & \text{c. Activities of management engaged to}\\ commercial property is depreciated over how many years? 2.amount of any payment Operatingactivities7. decreases over time, norm paid by buyer. estimate of value based on current construction costs. January 1, 2005, launching its Mold Mission Program. The consummation of a real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are disbursed by the lender. You can do it, we can help! certified commercial investment member (part of NAR). ratio of borrowers total recurring monthly debts. insures the difference, Police Power Learning the principles and laws of real estate is Champions focus. Liquidity4. An independent 3rd party appraiser will be contracted to review the appraisal report to verify accuracy of data, elements and procedures used. value is maximized when there is a reasonable degree of homogeneity in a neighborhood, principle of increasing and decreasing returns. looks like a deed. Acodeofconductthataddresseswhetheractionsarerightorwrong\begin{array}{ll} person designated to execute the terms of a will. Principles of Real Estate Exam 1 Study Guide Chapter 1: Either directly or indirectly for the purpose of bringing about a sale, purchase, or option to purchase, exchange, auction, lease, or rental of real estate, or any interest in real estate is required to hold a valid real estate license. Money that has value because the government has ordered that it be accepted in payment of debts. &\textbf{Fixed Element}&\textbf{Variable Element}&\textbf{Actual Total }\\ Passed by Congress in 1980. Theintentionalpreparationofmisleadingfinancialstatementsi. 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. protection up to purchase price, norm paid by seller (buyers benefit). Quick and easy check-out You can quickly pay through credit card or Stuvia-credit for the summaries. It is prudent to improve property when the value added by the improvement exceeds cost of the improvement. document that pledges the property as security for repayment of the note. & \text{$\quad$operate the business}\\ exterior only/drive by inspection. Financialaccountingobtainadequatefundsforbeginning8. \end{array} How do I get a Texas Real Estate License? Rural Property <25% built up b) What confidence level did the pollsters use? price a wiling seller will sell for & price willing buyer will buy. Aninformationsystemthatmeasures,processes,andcommunicatesfinancialinformationaboutanidentifiableeconomicentityh. the most probable price a property should bring in a competitive and open market under fair conditions requisit to a fair sale. Comprehensive Environmental Response, Compensation, and Liability Act CERCLA. helpful info about the cost pr mortgage settlement charges caused by abusive practices. Champions School of Real Estate Principles 2 Test Review September 2018 Items that affect the marketability or livability of the property authority to clean up sites contaminated with hazardous substances, pollutants or contaminants, record the deed (sign it), then moving in. borrowers rated a-f. monthly payment includes an amount that is applied first to interest that is due with the remainder being applied to principle, asset based financing where a borrower receives funds secured by he value of a parcel of real estate, unscrupulous lender takes advantage of a consumers lack of knowledge. very vulnerable to being contested. & \text{$\quad$economic entity}\\ Suppose that the battery life in both cases follows an exponential distribution. 10. The lender transfers title back to the borrower when the loan is repaid. tenant occupies real estate with the permission for an uncertain or unspecified amount of time; agreement can be terminated on short notice. 2. ___________ 8. a type of appraisal review. 2. & \text{\$876.34} & \text{\$800.00} & \text{\$1,009.56} & \text{\$30.00} & \text{\$29.67} & \text{ } & \text{\$18.00}\\ \hline 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. 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. There is no membership needed. Theintentionalpreparationofmisleadingfinancialstatementsi. value set on the property for tax purposes. ___________ 5. complete history of title including deeds, easements, liens, foreclosures, wills, marriages, death everything about the property that was recorded. 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. Acodeofconductthataddresseswhetheractionsarerightorwrong. responsible for: & \text{e. Activities of management engaged}\\ \text{Other Expenses}&\$36,000&&\$34,500\\ Demand is great and supply is short, prices increase; supply is high demand is low prices decrease, lower priced properties in the area will cause a decline in the value of the subject property, Absence of competition will cause prices to increase in the marketplace; increased competition tend to bring prices down, must be sufficient demand for the property for it to have value, If a type of property is to abundant it has reduced value. 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 Assets that are easily converted to cash. 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. The percentage of value or sales price that a lender is willing to finance. rate doesn't change between offer and closing. 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. & \text{$\quad$misleading financial statements}\\ 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. 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. 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. 176 Champions School of Real Estate Reviews - AgentAdvice.com The borrower retains ownership of the property , subject to the lien that secures repayment of the loan. This type of deed most often used to clear up a cloud on the title and also used to grant an easement. ( Champions School Of. risk based pricing, borrowers are rated A-F with prime borrows having a A rating. prepared by an attorney, least likely to be contested. Property for Sale in Hesse | Germany - EW RealEstate Match the terms that follow with the appropriate definitions. Real Estate Principles #1 - Kevin Ward Real Estate Academy Kevin Ward Real Estate Academy Streamed 9 years ago Watch This Before You Spend $1000 Bucks ! Percentage of the Lesser of the appraised value or sales price that the lender will lend. Ethics} & \text{d. The process of generating and communicating}\\ . Battery life between charges for the Motorola Droid Razr Maxx is 20 hours and the primary use is talk time. usually have a initial cap that is higher than the adjustment cap. provides the consumer with assistance securing hard to place or niche sources f mortgage money. permits additional borrowing on the same note and mortgage. \text{8. The sum of the energy used during the life cycle of a product. Fraudulentfinancialreportingaccountinginformationintheformoffinancialstatementstodecisionmakersoutsidetheorganizatione. legal. The exchange of goods or services for other goods or services without the use of money. most common example is zoning, area of land separating one land use from another (single family, apartments and retail). ___________ 4. Activitiesofmanagementengagedtospendcapitalinwaysthatareproductiveandwillhelpabusinessachieveitsobjectivesf. in depth process. We are equipped to help anyone who is seeking an exceptional Real Estate education regardless of schedule or location. 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. 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.