Eminent Domain transferring funds to a title co for disbursement when loan is approved. 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. 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. preserves low, existing intrest rate on the original note. Principles of Real Estate 2. \text{6. ___________ 10. \text{5. Gross Rent Multiplier. ese are non-conforming loans. designed to clean up sites contaminated with hazardous substance. loss value caused by factors outside of the property (demand, zoning, condemnation, highways), for income-generating rental properties, neighborhood-specific, GRM = Sales Price/Monthly Rent, Property acquired by lender through foreclosure, Borrowers and lenders come together to create mortgage, Mortgage bankers, mortgage brokers, and correspondent lenders, The detailed process of evaluating a borrower's loan application, The consummation of a real estate transaction, signed and paid. Champions School of Real Estate offers salesperson and broker pre-licensing courses and exam prep for salespeople and brokers in Texas. The battery life drops to 7 hours when the phone is primarily used for Internet applications over cellular. 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. Investingactivities6. something of value given in exchange for a conveyance. type of insurance required when the LTV exceeds 80%. These are the 4 rights of land. Champions School of Real Estate-Principles of, Texas Real Estate Exam Prep Class - Champion, Principles of Real Estate 2 Champions MATH SE, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, The Cultural Landscape: An Introduction to Human Geography, AP Edition, Anderson's Business Law and the Legal Environment, Comprehensive Volume, David Twomey, Marianne Jennings, Stephanie Greene. A Rare 150 /- Acre Parcel in the . the absence of competition will cause prices to increase in the marketplace. someone who processes, underwrites, closes and funds his or her own files in his or her name. The market wherein loan originators, such as mortgage bankers and brokers, can sell their loans and thus, recover cash for originating more loans. 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. Identify what will happen to the equilibrium price and equilibrium quantity in each of the following: a. 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. 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. \text{9. 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. Champions School of Real Estate (CSRE) * School Info San antonio, Texas All Departments Documents Q&A Most Popular documents 5 pages Texas Principles 1 Exam Practice Questions - Champions School of Real Estate.docx 2 pages exam-missed (1).pdf 21 pages Texas State Portion Real Estate Exam part 2.docx 5 pages power of sale under a mortgage in default. a. risk based pricing, borrowers are rated A-F with prime borrows having a A rating. homeowners who are at least 62 years of age can borrow against the equity in their property. Once the loan is closed it is sold to another lender. funds the secondary market. The loss in a property's value due to daily wear and tear. 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 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. Improvements to site value added to improvement exceeds the cost of improvement. The borrower retains ownership of the property, subject to the lien that secures repayment of the loan. & \text{i. 8. 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. Financingactivitiesb. \end{array} negotiated between landlord and manager. |---|---| 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. helpful info about the cost pr mortgage settlement charges caused by abusive practices. They prepare you for life as a Realtor. legal. 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. Havingenoughcashavailabletopay5. original conveyance o land by the sovereign, resulting document from an investigation of all documents recorded during the history of a property. the loan origination market where borrowers and lenders negotiate mortgage terms. Activitiesofmanagementengagedto7. The staff at Champions School is top notch! tenancy of will Analysis of market data 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. What documentation must the mortgage loan originator provide to the client no later than three business days after their mortgage loan application is received? reviews cover a checklist of items as they analyze the appraisal report. Champions School provides the education needed to become a licensed Real Estate Agent, Broker, Loan Originator, Home Inspector, or Appraiser. The purchase agreement gives the purchaser a seven-day period in which the purchase can be canceled. Title remains with the lender until loan is repaid. It is would suggest that an owner should not "over improve" a property. \text{7. 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! 40 pages. transfer of ownership against the will of owner. 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. . 2.amount of any payment Comprehensive Environmental Response, Compensation, and Liability Act CERCLA. legal procedure where secured property is sold to pay unpaid note. 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. purchase price is affected by the expectation of of future appeal and benefits. \text{4. Financing activities} & \text{b. initial truth in lending disclosure. a mortgage is an actual transfer of ownership from the borrower to the lender. Type of asset-backed security that is secured by a mortgage or collection of mortgages. any property, whether real or personal, which is capable of being inherited. October 3, 2015, It replaced the Good Faith Estimate, which has been in use since January of 2010. supply is short, prices go up. consumers are given equal chance to obtain credit. founded in 1993 membership based non-profit organization that promotes sustainability in how buildings are designed, built, and operated. price a wiling seller will sell for & price willing buyer will buy. Highly recommended and I will continue to use Champions! 122 cards Real Estate Real Estate Principles Practice all cards Appraisal defined as an appraiser's Opinion of Value. usually have a initial cap that is higher than the adjustment cap. used when a notable number of rental properties are in the area, applies only to income-generating rental property, 1. \text{ } & \text{Previous} & \text{Payments} & \text{ } & \text{Late} & \text{Finance} & \text{New} & \text{Minimum}\\ 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 $1 million. value is maximized when there is a reasonable degree of homogeneity in a neighborhood, principle of increasing and decreasing returns. & \text{$\quad$attract and hold investment capital}\\ Theabilitytoearnenoughincometoattractandholdinvestmentcapitalg. this is the best indicator. The TREC residential contract forms are: Drafted by the Broker Lawyer Committee 2. permanent and absolute tenure of an estate in land w freedom to dispose at will. transfer of ownership against the will of the owner. Havingenoughcashavailabletopaydebtswhentheyareduec. a type of appraisal review. most common example is zoning, area of land separating one land use from another (single family, apartments and retail). the most probable price a property should bring in a competitive and open market under fair conditions requisit to a fair sale. Fraudulent financial reporting} & \text{$\quad$accounting information in the}\\ a limit on the amount the interest rate can increase or decrease at each adjustment date. Demand falls by more than supply rises. 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. Property and lender information The process of collecting loan monthly payments, keeping records and balances, collecting and paying taxes and insurance. 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. 16 pages. ie. protection up to purchase price, norm paid by seller (buyers benefit). Appraiser's estimate of the age of the property based on its ongoing maintenance and upgrades. Ethics10. 6. any condition that affects the health or safety of an occupant, Licensed Appraiser maintained by HUD, Dodd Frank Wall Street reform (consumer protection act, promote financial stability of the U.S by improving accountability and transparency, CFPB (consumer financial protection bureau), consumer protection for mortgage related business, non financial comp, banks, and credit unions of +$10 billion responsible for: limits interest rate over the lifetime of a loan. 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. 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). This type of deed most often used to clear up a cloud on the title and also used to grant an easement. 5. 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. 2. If Market is flooded values will be flat. Theprocessofproducingaccounting2. state law requires law, real estate contracts and leases over a year to be in writing. used to clear up cloud on title, no protection, no ownership claimed by grantor. The term Residential Mortgage Loan Originator is mandated by the ______ Act, Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act). any change in the ownership of real property, process by which a lender exercises its power of sale under a mortgage that is in default. We make it easy and convenient! person received notice of document or event even though actual notice was not delivered directly to him or her. transferring real estate to the state when a person dies without heirs. A break in this line would create a cloud on the title. + result to numerator \end{array} Permits additional borrowing on the same note and mortgage. ___________ 6. any change in the ownership of relationship property. 1. amount of down payment. Frequently asked questions generally 5-10% range with fees. the legal use that gives the greatest return in money or amenities. Consists of 79 local affiliates, 16,000 member companies and organizations, and more than 162,000 LEED Professional Credential holders. insures the difference, Police Power loss in a property's value due to daily wear and tear. Financialaccountingobtainadequatefundsforbeginning8. (3) The Income Approach. Aninformationsystemthatmeasures,processes,andcommunicatesfinancialinformationaboutanidentifiableeconomicentityh. & \text{$\quad$to spend capital in ways that are}\\ Real Estate Mortgage Investment Conduit (REMIC), Allows for the indirect investment in mortgages through the sale of securities. 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. 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. FERA also increases the statute of limitations for mortgage fraud from 5 years to 10 years. 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. Began in 1938 federal agency. person, corporation or firm, not in banking, that provides its own funds for mortgage financing. The mortgages are sold to a group of individuals (a government agency or investment bank) that securitizes, or packages, the loans together into a security that investors can buy. Match the terms that follow with the appropriate definitions. transaction, GMI x 28% =(House Payment as % of income), GMI x 36% =( Sum of regular debt plus house payment). If the house is 20 years old, The appraiser's estimate of the age of the house based upon its ongoing maintenance and upgrades. Theprocessofproducingaccountinginformationfortheinternaluseofacompanysmanagementb. ENERGY STAR program was established in 1992 under this Act. 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. Acodeofconductthataddresseswhetheractionsarerightorwrong. Shorter version of the appraisal report for underwriting, rather than requiring a full appraisal report, which includes interior inspection. You can do it, we can help! 2. grantor fully warrants good clear title to the property. equalize air pressure between rooms in a house by adjusting air flow in supply and return ducts. commercial property is depreciated over how many years? & \text{$\quad$whether actions are right or wrong}\\ Certified General Appraiser, person who is authorized by Texas Appraiser licensing and certification board to gain legal RE appraisal Experience under the sponsorship of a certified general or certified residential appraiser, the document that pledges the property at security for repayment, legal procedure whereby the secured property may be sold to satisfy the unpaid promissory note. (Zoning example). The Board of Directors of a publicly traded company says that a proposed amendment to their bylaws is possible to win approval in the upcoming election because a poll of 1505 stock owners indicated that 52%52 \%52% would vote in favor. history or list of all owners back to the sovereignty of the soil. 4. amount of any finance charge. in 1968 was established as private company,operates with private capital on a self sustaining basis to enhance the flow of funds in the secondary market. The Property Report contains information about the subdivision and is required to be delivered to a purchaser before the signing of a purchase agreement. lease where rental is based on gross recipts of the tenants business (shopping center), transfer of tenants rights and liabilites to another, right for tenant to match/ offer more than landlord may receive, transfer of rights/ leased space w liability remaining for lesee, act of mixing a clients fund w a brokers personal funds, education programs that lead to industry recognized designations, gives commercial real estate practicioneers an opertunity to further their buisness through education and networking, gives lanlord a picture of the finnancial health of the property. a. & \text{$\quad$achieve its objectives}\\ We are equipped to help anyone who is seeking an exceptional Real Estate education regardless of schedule or location. Principles of Real Estate 2 Champions School of Real Estate STUDY Flashcards Learn Write Spell Test PLAY Match Gravity appraisal Click card to see definition appraisers opinion of value Click again to see term 1/258 Previous Next Flip Space Created by Will77tx TEACHER Tags related to this set Marketing-Real Estate 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. addition or amendment to an existing will. The action of government seizure of land for the good of the public. for tax purposes- determined by tax authority- not reliable estimate of market value, sales comparison approach "market data approach", compares subject property charectoristcs with those of comparable properties which have recently sold. We feel that we provide an unparalleled Real Estate education in Texas and our students agree! DUST; demand, utility, scarcity, transferability. flexible and short u shaped duct that connects a room to a common space as pressure balancing mechanism. The grantor promises to warrant and defend title, but only against claims which may have arisen during his or her period of ownership. final step in the appraisal process, in which the appraiser weights the estimates of value from sales comps, cost and income approaches to arrive at a final estimate of market value of the subject property. closing disclosure, increases penalties for mortgage fraud 30 yrs$1mil, statute limitations 10 yrs. ___________ 13. & \text{j. limited appraisal report Bank owns it now. a type of appraisal review. 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. Having enough cash available to pay}\\ 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 The loss in desirability of the style, layout, or function of an element of a property over time. 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. improve but don't over improve; improve property when the value added by the improvement exceeds the cost of the improvement. Developers are required to provide each purchaser with a disclosure document (Property Report). ___________ 4. estate for years c. Supply rises by more than demand rises. an appraiser's opinion of value, used to determine market value property to secure the loan, Percentage of value or sales price that a lender is willing to finance, an appraisal that simply reviews a checklist of items as they analyze the appraisal report for completeness and acceptable conclusions. whichever one is lower LTV Loan-to-Value Ratio lender acquires property under foreclosure. decreases over time, norm paid by buyer. (Most reliable), Reduction in value from deterioration or obsolescence. Photographs of comparables Adequate consideration examining of the public records and constructed a chain of title and an abstract of title. various equations can calculate what investor is looking for. Activitiesofmanagementengagedtospendcapitalinwaysthatareproductiveandwillhelpabusinessachieveitsobjectivesf. Homeowners who are least 62 years of age can borrow against the equity in their property. estimate of value based on current construction costs. & \text{e. Activities of management engaged}\\ when an individual acquires title from the rightful owner through hostile, actual, and continuous occupation of the land for the statutory period. Change is constant; therefore, the forces acting on a parcel of land are always affecting the value of the land. limits how much a payment can increase/ decrease. 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.