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). ratio of borrowers total recurring monthly debts. Over 90% of our business is driven by word-of-mouth referrals from Real Estate Brokers, Sales Agents, Mortgage Loan Originators, Home Inspectors, and Appraisers. a type of seller financing where in the owner retains title to the property while the purchaser takes possession of the premises and pays the principal. decreases over time, norm paid by buyer. increase in land area when water gradually withdraws, sudden addition or loss of land by river/ stream, something of value given in exchange for a conveyance, indicates the extent of the premises being conveyed. Activitiesofmanagementengagedtospendcapitalinwaysthatareproductiveandwillhelpabusinessachieveitsobjectivesf. grantor promises uninterrupted use of the property, grantor is responsible for any doccumentation needed to ensure title transfer. Liquidity} & \text{$\quad$companys management}\\ tenancy of sufferance The Board of Directors of a publicly traded company says that a proposed amendment to their bylaws is possible to win approval in the upcoming election because a poll of 1505 stock owners indicated that 52%52 \%52% would vote in favor. 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. designed to clean up sites contaminated with hazardous substance. a. 16 pages. Includes deeds, foreclosures, liens, wills, marriage,s, deaths, life estates, fee simple estates and everything else. Show the possibility density function for battery life for the Droid Razr Maxx phone when its primary use is talk time. Earn or renew your Real Estate Sales Agent or Broker license. 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. The action of government seizure of land for the good of the public. Texas Principles 2 Scenarios Questions - Champions School of Real Refers to the loss in desirability of the style, layout or function of an element of a property over time, best indicator of value for existing properties, the legal use for property that gives the greatest return in money and/or amenities, the loss in value of a property caused by factors outside the property itself, suggests the value of a property is equal to the sum of the contributory value of each of its components. looks like a deed. 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. promotes home ownership. Find the annual double-declining-balance (200% method) rate of depreciation. when an individual acquires title from the rightful owner through hostile, actual, and continuous occupation of the land for the statutory period. 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. & \text{f. The ability to earn enough income to}\\ 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. When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35. Champions School of Real Estate-Principles of Real Estate II - Quizlet 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) 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. Independent third-party appraiser will review the report, then verify the information. 3. the only limitations to title are those listed in the deed. the legal use that gives the greatest return in money or amenities. &\textbf{Fixed Element}&\textbf{Variable Element}&\textbf{Actual Total }\\ maximized value when homogeneity in neighborhood, principle of increasing and decreasing returns. Payments are guaranteed, and they would be made at the end of each year. & \text{i. 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. 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. not related to va. 30 year fixed rate loan, financial and administrative resource that helps provide essential services and affordable housing based on income, right of govt to control the way land is used, area of land separating one land use from another. homeowners who are at least 62 years of age can borrow against the equity in their property. Collateral Dependent Loans (hard money loan), borrower receives funds secured by the value of a parcel of real-estate. transferring real estate to the state cuz the owner died without a will and without heirs, interstate land sales full disclosure act, passed by congress in 1968 to protect consumers from fraud in the sale or lease of land, Comprehensive Environmental Response Compensation & liability ACT (CERLA), .Clean up federal, state and native american. generally 5-10% range with fees. 1. amount of down payment. authority to clean up sites contaminated with hazardous substances, pollutants or contaminants, record the deed (sign it), then moving in. seller is willing to take part or all of equity in the form of a note. The market wherein loan originators, such as mortgage bankers and brokers, can sell their loans and thus, recover cash for originating more loans. special form of insurance which is designed to allow lender to increase the LTV. 9. background information about the appraiser ___________ 1. 2 categories Residential Loans are divided into: If a residential property contains ____ or more living units, the sale is considered a commercial can be voluntary or involuntary. very likely to be contested. (Most reliable), Reduction in value from deterioration or obsolescence. up to 90 days, main job is to protect and preserve the value of an investment property while generating income for the owner. federal law passed in 1974. doesn't include: gender or immigration status. Examine the summary section of a monthly credit card statement. certified commercial investment member (part of NAR). a mortgage is an actual transfer of ownership from the borrower to the lender. 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. TILA, FCRA, RESPA, ECOA. 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. Texas Principles 2 Exam Practice Questions - Champions School of Real Site description 176 Champions School of Real Estate Reviews - AgentAdvice.com You can do it, we can help! lender has evaluated the borrower in the underwriting process. Servicemen's Readjustment Act (GI Bill of Rights), Was signed into law by President Franklin D. Roosevelt on June 22, 1944. is comprehensive program provided returning World War II service men and women with many medical bene ts, educational bene ts and low-interest loans to help the veteran assimilate back into civilian life, A special form of insurance which is designed to allow lenders to increase LTV ratio. The grantor promises to warrant and defend title, but only against claims which may have arisen during his or her period of ownership. I'd like more of the education to be centered around how to set up you Real Estate business after you get your license. The exchange of goods or services for other goods or services without the use of money. the value if the property is equal to the sum if the contributory value of each of its component parts. Dodd-Frank Wall Street Reform and Consumer Protection Act of _______. 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. 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. ", Texas Department of Savings and Mortgage Lending, Texas Appraiser Licensing and Certification Board. Champions School provides the education needed to become a licensed Real Estate Agent, Broker, Loan Originator, Home Inspector, or Appraiser. legal procedure where secured property is sold to pay unpaid note. If the property cannot be transferred, it is of little value. usually have a initial cap that is higher than the adjustment cap. 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. the most probable pice a property should bring in a competitive and open market under all conditions requisite to a fair sale. AMWilson001 Champions Principles of Real Estate 2 Terms in this set (91) appraisal value of a property maybe affected by social, economic, govt and environmental influences Loan-to-Value Ratio (LTV) The percentage of value or sales price that a lender is willing to finance. % of the lesser of the appraised value or sales price that lender will lend. The Loan Estimate form combines elements of the Good Faith Estimate and the initial Truth In Lending disclosure into one. a limit on the amount the interest rate can increase or decrease at each adjustment date. DUST; demand, utility, scarcity, transferability. age of structure based off observed physical condition determined by the degree of maintenance and repair, uniform standards of appraisal practice- established by appraisal foundation. based on the assessed value of the property and the existing tax rate. the market in which borrowers and mortgage lenders come together to create and negotiate terms of a mortgage transaction. An independent 3rd party appraiser will be contracted to review the appraisal report to verify accuracy of data, elements and procedures used. 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. Texas Real Estate Education | Champions School The role money serves when it is used as a standard measure to set prices and make economic calculations. 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. At Champions School of Real Estate, our number one focus is your successful career in the Real Estate industry. The Act was passed to protect consumers from fraud in the sale or lease of land. The evidence an individual has of his or her right to possess land. 3. transferring funds to a title co for disbursement when loan is approved. \text{5. 4. local maps, indicating location of subject and comparables 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. Over 90% of our business is driven by word-of-mouth referrals from Real Estate Brokers, Sales Agents, Mortgage Loan Originators, Home Inspectors, and Appraisers. The legal use that gives the greatest return in money and/or amenities. most reasonable price a property should bring in a competitive open market. Property and lender information & \text{e. Activities of management engaged}\\ in a participation loan if a lender collecs principle and intrest and shares in the profits when the property is sold. person designated to execute the terms of a will. 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. c. Supply rises by more than demand rises. Texas Real Estate License Exam Prep | Champions School value set on the property for tax purposes. 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. 5. prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or good faith exercise of any rights under the Consumer Credit Protection Act. 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. A minus to F-rated borrowers will pay 1 to 5 % higher than those with good credit. &\textbf{Per Month}&\textbf{Per Customer Served}&\textbf{for May}\\ \text{3. Havingenoughcashavailabletopay5. Income approach Analysis The loss in desirability of the style, layout, or function of an element of a property over time. 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. 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 TREC residential contract forms are: Drafted by the Broker Lawyer Committee 2. 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. qualifies borrower based on proposed home payment and gross monthly income. value is maximized when there is a reasonable degree of homogeneity or sameness in a neighborhood. 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. A lower interest rate is offered by the lender during the first year or more of the loan. Champions Real Estate School Review - Investopedia (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. The most probable price a property should bring in a competitive and open market. lese in which payments begin at a lower, fixed rate but gradually increase as the lease matures. (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. allows funding of the repairs through a series of draws. Identify and explain the structures of language. Acodeofconductthataddresseswhetheractionsarerightorwrong. Title remains with the lender until loan is repaid. sets monetary policy. grantor fully warrants good clear title to the property. 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. Sketch of floor plan The loan becomes due upon the sale of the property or the death of the owner. 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 Deed that offers the most protection in which grantor fully warrants good clear title to the premises. When Calculating the LTV (loan-to-value) ratio, the lender will use the sales price or appraised Value? Rural Property <25% built up 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. Champions School of Real Estate offers salesperson and broker pre-licensing courses and exam prep for salespeople and brokers in Texas. These are non conforming loans. 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. real estate investment trust; created by Congress in 1960, real estate mortgage investment conduits. It was signed into law by President Barack Obama in May 2009. \text{Employee Salaries and Wages}&\$50,000&\$1,100&\$88,000\\ grantor does not even claim to own the property. Financial accounting} & \text{$\quad$obtain adequate funds for beginning}\\ Champions School of Real Estate is proud to be one of the most respected Real Estate schools in Texas! \text{1. Real estate prices in Germany remain the same, although overall sales are declining. Profitabilityinformationfortheinternaluseofa3. many lenders, especially high LTV loans, will order a field review of the appraisal. The relationship between the amount of rent a specific property can command, and the value of the property to the owner. 3. number of payments or period of repayment 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. Assume that the number of tweets per hour follows a Poisson distribution and that Bob receives on average 7 tweets during his lunch hour. addition or amendment to an existing will. 3. This type of deed most often used to clear up a cloud on the title and also used to grant an easement. 2. 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. consumers are given equal chance to obtain credit. These are the 4 rights of land. part of income approach, used if there are a lot of rental properties in the area. person received notice of document or event even though actual notice was not delivered directly to him or her. 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. \text{6. 4. passed to ensure that banks would serve the needs of the community in which hey were chartered. 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. 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. 40 pages. tells NY desk to sell securities collecting payments from banks by reducing their reserve amounts. Shorter version of the appraisal report for underwriting, rather than requiring a full appraisal report, which includes interior inspection. Passed by Congress in 1968. cannot exceed 36% of the borrowers income, conventional loans that conform to fannie mae and freddie mac standards for purchase. Match the terms that follow with the appropriate definitions. Conventional-loans that have no federal guarantees or insurance Exam-Federal 1-A2. all consumers are given a equal chance to obtain credit. tax-free capital gain of up to 250k if they lived there 2 out of the last 5 years. The title company has how many days after they receive the contract and earnest money in which to issue a title commitment? If the house is 20 years old, The appraiser's estimate of the age of the house based upon its ongoing maintenance and upgrades. 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. Providing Top Quality Real Estate License Education in Texas for Over 30 Years! Activitiesofmanagementengagedto7. The landlord or owner; party granting a lease. buying the market pools. 8. Investingactivities6. However, as per the new report from the Gewos Institute for Urban, Regional and Housing Research, the sales boom may be coming to an end in the observable future. secure and fair enforcement for mortgage licensing-enhance consumer protection- and reduce fraud. Principles of Real Estate 1. Adger Corporation is a service company that measures its output based on the number of customers served. Analysis of market data improve but don't over improve; improve property when the value added by the improvement exceeds the cost of the improvement. Earn or renew your Home Inspector license. & \text{h. The intentional preparation of}\\ Financialaccountingobtainadequatefundsforbeginning8. initial truth in lending disclosure. 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. & \text{$\quad$productive and will help a business}\\ Theabilitytoearnenoughincometoattractandholdinvestmentcapitalg. Once the loan is closed it is sold to another lender. Loss of value of a building from its reproduction cost, resulting from wear and tear over time. zoning, highways. Describe the differences in producer and consumer surplus, and in overall social welfare, that would occur in each of the following scenarios. a. added to the index to calculate interest rates, teaser rate- lower rate offered initially. promotes energy efficient products and buildings. low emissive gas coated with metallic oxide layer. used to clear up cloud on title, no protection, no ownership claimed by grantor. The presence of lower-priced properties in the area will cause a decline in the value of the subject property. The role money serves when it is used as a form of payment. & \text{$\quad$achieve its objectives}\\ \text{9. Property for Sale in Hesse | Germany - EW RealEstate underwriter approval. Fraudulentfinancialreportinga. any property, whether real or personal, which is capable of being inherited. protection up to purchase price, norm paid by seller (buyers benefit). 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. What does r2r^2r2 determine about the statistical significance of a relationship between a dependent and an independent variable? ( Champions School Of. transfer of ownership against the will of owner. a type of appraisal review. The loss in value of a property caused by factors outside of the property itself. ", "Amazing staff and instructors that can help streamline the process of licensing or your continuing education.