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. 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. 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. Money that has no value of its own but can be exchanged for something of value. Earn or renew your Real Estate Sales Agent or Broker license. Activities of management engaged to}\\ 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. . Adequate consideration Agreements that combine the sale of securities with an agreement to buy the securities back at a later date. If the property cannot be transferred, it is of little value. For more than a decade, the German real estate market was in a dramatic growth phase. \text{3. 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. Sketch of floor plan If tenant moves out, owing rent, and leaves personal property, The government is the original owner of all land. complete history of title including deeds, easements, liens, foreclosures, wills, marriages, death everything about the property that was recorded. RevenueEmployeeSalariesandWagesTravelExpensesOtherExpensesFixedElementPerMonth$50,000$36,000VariableElementPerCustomerServed$5,000$1,100$600ActualTotalforMay$160,000$88,000$19,000$34,500. person designated to execute the terms of a will. the most probable price a property should bring in a competitive and open market under fair conditions requisit to a fair sale. \end{array} It is would suggest that an owner should not "over improve" a property. Our focus has always been on providing you with an excellent education experience regardless of what stage of your Real Estate career you are in. low emissive gas coated with metallic oxide layer. & \text{$\quad$makers outside the organization}\\ periodic tenancy, you've done nothing and the appreciation of the land value assists in the increase, 2 Types of REITS (real estate investment trust), Equity and Mortgage. Determined by the taxing authority and appraised value, AKA Market Data Approach, focuses on recent sales in the determining value, Comparison of properties to determine value, Market value of property consider how much a new structure of the size and type would currently cost to build, Reduction in value of property from causes such as deterioration or obsolescence. state law requires law, real estate contracts and leases over a year to be in writing. & \text{f. The ability to earn enough income to}\\ \text{Other Expenses}&\$36,000&&\$34,500\\ 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. 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 TMARR requires that all persons who conduct assessment and remediation of mold be properly trained and licensed by the state. used when a notable number of rental properties are in the area, applies only to income-generating rental property, 1. value is maximized when there is a reasonable degree of homogeneity in a neighborhood, principle of increasing and decreasing returns. The evidence an individual has of his or her right to possess land. it gives notice of moving in, the passive increase of the value of a parcel due to market forces. ARMS that offer fixed rate period during 1st years of the loan. A lower interest rate is offered by the lender during the first year or more of the loan. 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. Property and lender information They are my go-to partner for all things related to continuing education. Once the loan is closed it is sold to another lender. property owner obtains a certificate much like an automobile that is recorded in the public records. If Market is flooded values will be flat. charge for paying all or part of principal before due, paid to loan originator for originating and extending credit, items provided by persons other than the mortgage originator or creditor that you cannot shop for and will pay for at settlement (fees), provided by persons other than creditor, services you can shop for, paid at settlement, sum of sub totals of origination charges, services you can and cant shop for, land and title documents assessed by govt authority. a type of appraisal review. % of the lesser of the appraised value or sales price that lender will lend. Real Estate Salesperson National Prep Exam 1.docx. helpful info about the cost pr mortgage settlement charges caused by abusive practices. How do I get a Texas Real Estate License? \text{1. Operating activities} & \text{c. Activities of management engaged to}\\ payment plan allows a borrower to pay only the interest for a specified number of years, typically for 3 to 10 years, making it possible for a borrower to have smaller monthly payments for a period of time, Contributions to buyer's closing cost that are limited to 6% of the sales price, USDA Rural Development Guaranteed Housing Loan program, Insured by the U.S. Department of Agriculture. Regulation Z Federal Law to protect consumers by disclosing terms and cost of credit, the purchase and sale of existing mortgages to investors to provide liquidity and additional funds for lending, balances mortgage credit to include capital-deficient areas, More realistic price, agent has better understanding of ability to pay, avoid showings buyer cannot afford, Seller knows buyer can afford the home, The lesser of the appraised value or sales price (in %), will be found on almost any high LTV loan, a mortgage insurance program (not a lender), Right of the government to regulate and control the way land is used (zoning), Interstate Land Sales Full Disclosure Act, Gives authority to Federal and State natural resource agencies, and Native American Tribes, services buyers and seller moving from corporate transfer, Certified Commercial Investment Member (CCIM), "gold standard" for commercial designations, must register with Texas Dept of Savings and Mortgage Lending, Sponsoring broker must maintain these to assure a sales agent is competent, a hedge against inflation, a higher rate of return, ability to leverage (borrow $ to make $), Tax-sheltered income, capital gains tax, deferred taxation on exchanges, $250,000 single, $500,000 couple, lived in 2 of last 5 years, organized as limited or general partnership or a corp, Created by congress in 1960 minimum 100 investors, lease in which all or part of the rent amount is based on the receipts of the tenant's business (typical shopping center lease), An attorney is needed if clients want this, Competent parties Eminent Domain 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. 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. can be voluntary or involuntary. (Most reliable), Reduction in value from deterioration or obsolescence. sending monthly payment statements, and collecting monthly payments, maintaining records and balances. protection up to purchase price, norm paid by seller (buyers benefit). 10. Cost approach Analysis tells NY desk to sell securities collecting payments from banks by reducing their reserve amounts. 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. Passed by Congress in 1968. Flood maps only legal for personal property. in depth process. 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. b. It was signed into law by President Barack Obama in May 2009. ___________ 10. A letter from a title insurance company in which it commits to issuing a title insurance policy on the insured subject to certain conditions and requirements. There is no membership needed. 7. when demand is high and supply is short, prices go up - and vice versa, presence of lower-priced properties in the area will cause a decline in the value of the subject property, presence of higher-priced properties in the area will cause an increase in the value of the subject property. Associated Board of Realtors - helpful for residential buyers' agents, return on the property when it is sold for a profit, method of raising funds for the purchase of real estate, passive increase in the value of a parcel due to market forces, potential income of a property in the amount of rent that would be collected in a year, additional capital or property included in a transaction to even out the exchange. 4. local maps, indicating location of subject and comparables 2. added to the index to calculate interest rates, teaser rate- lower rate offered initially. Type of asset-backed security that is secured by a mortgage or collection of mortgages. purchases "pools" or mortgages. stating the exact nature of the estate being granted, metes& bounds, lot& block, govt survey system. price a wiling seller will sell for & price willing buyer will buy. 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 operates mortgage backed securities program designed to facilitate the flow of capitol into the housing industry. & \text{h. The intentional preparation of}\\ 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. 7. purchase title insurance either by grantor or grantee. 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. the consummation of a real estate transaction in which all documents are signed and the proceeds of the mortgage loan are distributed. Managerialaccounting9. 1. \text{8. 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. The measure of money supply that includes only the forms of money that are readily available to spend: cash, checking account deposits, and travelers checks. Title remains with the lender until loan is repaid. very likely to be contested. The percentage of value or sales price that a lender is willing to finance. (2) The Cost Approach, It also offers continuing education courses for. permanent and absolute tenure of an estate in land w freedom to dispose at will. deemed as low risk loan, Residential Mortgage Loan Originators (RMLO), Must be certified licence holders and is mandated by the SAFE ACT (TX dept of savings and mortgage lending), purchase price is affected by the expectation of future appeal and benefits, value of a commodity is influenced by the cost of acquiring subsitute or comparable item, value of properties around yours goes up; so does yours, The Value of more expensive home placed in a neighborhood of less expensive homes will drop in value. ___________ 7. 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. The legal use that gives the greatest return in money and/or amenities. 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. The role money serves when it is used as a standard measure to set prices and make economic calculations. 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. Principles of Real Estate 2. Frequently asked questions Aninformationsystemthatmeasures,processes,andcommunicatesfinancialinformationaboutanidentifiableeconomicentityh. Income approach Analysis Principle of Increasing/or decreasing returns. 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. \text{4. Financing activities} & \text{b. & \text{e. Activities of management engaged}\\ Identify the term that best fits the following description - to force out or push out. (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. Anything that is widely accepted in exchange for goods and services. quizlette586240 Terms in this set (60) a use of property that is not in agreement with present zoning laws nonconforming use A method of valuing a property based on the monetary returns it can be expected to produce is the income approach land exempt from real property tax includes government office buildings, parks, schools when unscrupulous lenders take advantage of a consumer's lack of knowledge regarding lending practices. small investors to invest in larger commercial properties. Developers are required to provide each purchaser with a disclosure document (Property Report). A break in this line would create a cloud on the title. Principal of contribution the value of a property is equal to the sum of the contributory value of each of its component parts. & \text{$\quad$to spend capital in ways that are}\\ Items that affect the marketability or livability of the property ___________ 1. The grantor promises to warrant and defend title, but only against claims which may have arisen during his or her period of ownership. very vulnerable to being contested. Minimum withdrawal in Texas on HELOC (Home Equity Line of Credit). transferring funds to a title co for disbursement when loan is approved. (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. 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. 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. Theabilitytoearnenoughincometoattractandholdinvestmentcapitalg. Examine the summary section of a monthly credit card statement. Champions In Real Estate offer real estate for sale in Kanimbla , Earlville , Mooroobool and surrounding areas. Liquidity4. Escheat, right of government to regulate and control land. Wrongful or criminal deception intended to result in financial or personal gain is called: fraud 3. the legal use that gives the greatest return in money or amenities. ___________ 3. Change is constant; therefore, the forces acting on a parcel of land are always affecting the value of the land. \text{ } & \text{Previous} & \text{Payments} & \text{ } & \text{Late} & \text{Finance} & \text{New} & \text{Minimum}\\ 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. Calculate the new balance. purchase price is affected by the expectation of of future appeal and benefits. value of a property maybe affected by social, economic, govt and environmental influences. 16 pages. Champions School Principles of Real Estate II Flashcards | Quizlet Social Science Law Civil Law Champions School Principles of Real Estate II Term 1 / 193 Appraisal Click the card to flip Definition 1 / 193 An Appraiser's opinion of value Click the card to flip Flashcards Learn Test Match Created by Texasrealtor Terms in this set (193)