Earn or renew your Real Estate Sales Agent or Broker license. Principles of Real Estate 2. When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35. Collateral Dependent Loans (hard money loan), borrower receives funds secured by the value of a parcel of real-estate. usually have a initial cap that is higher than the adjustment cap. subsequent to adjustment, limits how much a payment can increase or decrease. & \text{$\quad$information about an identifiable}\\ Texas Principles 1 Exam Practice Questions - Champions School of Real Estate 1. a: BOMA's major concern is advocacy on the part of: (a) Building owners and managers (b) Landlords and tenants (c) Employment law and managers (d) None of these are correct ( a ) Building owners and managers (b) Landlords and tenants (c) Employment law and managers 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. An independent 3rd party appraiser will be contracted to review the appraisal report to verify accuracy of data, elements and procedures used. 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. Bank owns it now. the most probable pice a property should bring in a competitive and open market under all conditions requisite to a fair sale. Wrongful or criminal deception intended to result in financial or personal gain is called: fraud 3. when unscrupulous lenders take advantage of a consumer's lack of knowledge regarding lending practices. 1. 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. Earn or renew your Loan Originator license. \text{2. 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. prepared by an attorney, least likely to be contested. October 3, 2015, It replaced the Good Faith Estimate, which has been in use since January of 2010. Create flashcards for FREE and quiz yourself with an interactive flipper. The role money serves when it is used as a standard measure to set prices and make economic calculations. covering more than one parcel of real estate, Texas Promulgated Contracts-CHAMPIONS STUDY, Principles Real Estate II- Practice Exam 2, Champions School of Real Estate-Principles of, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. The loss in value of a property caused by factors outside of the property itself. cannot exceed 36% of the borrowers income, conventional loans that conform to fannie mae and freddie mac standards for purchase. It is would suggest that an owner should not "over improve" a property. 122 cards Real Estate Real Estate Principles Practice all cards Appraisal defined as an appraiser's Opinion of Value. the value of a property is equal to the sum of the contributory value of each of its component parts. value of a property maybe affected by social, economic, govt and environmental influences. Exam-Federal 1-A2. maximized value when homogeneity in neighborhood, principle of increasing and decreasing returns. At Champions School of Real Estate, our number one focus is your successful career in the Real Estate industry. funds the secondary market. Neighborhood description authority to clean up sites contaminated with hazardous substances, pollutants or contaminants, record the deed (sign it), then moving in. The course provides students with an extensive foundational understanding of Real Estate terminology and professional obligations. value is maximized when there is a reasonable degree of homogeneity or sameness in a neighborhood. designed to clean up sites contaminated with hazardous substance. 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. It was signed into law by President Barack Obama in May 2009. \text{Other Expenses}&\$36,000&&\$34,500\\ 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. c. Supply rises by more than demand rises. Minimum withdrawal in Texas on HELOC (Home Equity Line of Credit). rate doesn't change between offer and closing. NOTE: leases for more than one year must be in writing, defines the rights and obligations of both landlord and tenant in the leasing of residential and commercial properties, Leadership in Energy and Environmental Design; a building certification for properties that are "green", servicing a property and its equipment in order to prevent mechanical failure and keep property values high, Building Owners and Managers Association; 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, the transfer of a tenant's rights and liabilities to another, the rent the property could currently command on the open market, the renal income as stipulated by the parties in a lease, Institute of Real Estate Management; affiliate of NAR and offers educational programs, International Council of Shopping Centers, lists all cash that came into and all expenses incurred by a property during the reporting period, advocacy on the part of building owners and managers, any property, real or personal, that is capable of being inherited, title acquired through hostile, actual, continuous occupation of the land fo the statutory period, evidence of an individuals' right to possess land, document that conveys an interest in real estate from one party to another, document that transfers ownership from the government to an individual. What does r2r^2r2 determine about the statistical significance of a relationship between a dependent and an independent variable? Copy of most recent property survey Photographs of comparables The process of collecting loan monthly payments, keeping records and balances, collecting and paying taxes and insurance. Profitabilityinformationfortheinternaluseofa3. 9. background information about the appraiser 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. Examine the summary section of a monthly credit card statement. 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. The Board goes on to say that the margin of error for this poll was 3%3 \%3%. lese in which payments begin at a lower, fixed rate but gradually increase as the lease matures. buying the market pools. Financialaccountingobtainadequatefundsforbeginning8. Having enough cash available to pay}\\ a type of appraisal review. tenancy of will the legal use that gives the greatest return in money or amenities. Sales Price monthly rent, the process of estimating the value of an income-producing property by capitalization of the annual net income expected to be produced by the property during its remaining useful life, an estimate of value based on current construction costs, less depreciation, plus land value, estimate of value by examining and comparing actual sales of comparable properties, part of income capitalization. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: FixedElementVariableElementActualTotalPerMonthPerCustomerServedforMayRevenue$5,000$160,000EmployeeSalariesandWages$50,000$1,100$88,000TravelExpenses$600$19,000OtherExpenses$36,000$34,500\begin{array}{lrrr} If the property cannot be transferred, it is of little value. The Property Report contains information about the subdivision and is required to be delivered to a purchaser before the signing of a purchase agreement. ARMS that offer fixed rate period during 1st years of the loan. ( Champions School Of. Theintentionalpreparationofmisleadingfinancialstatementsi. Liquidity4. 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 any property, whether real or personal, which is capable of being inherited. 1. 3. number of payments or period of repayment Managerialaccounting9. Identify what will happen to the equilibrium price and equilibrium quantity in each of the following: a. it can be money, personal property, ie $10, grantor promises the grantee interrupted use of the property, A deed with no guarantees or warranties - it offers the buyer the least protection - can be used to correct or cure a defect or cloud on title. Accountinga. promotes energy efficient products and buildings. Economic obsolescence Havingenoughcashavailabletopay5. 4. federal law passed in 1974. doesn't include: gender or immigration status. period between rate changes monthly, 3 mo,6mo, 1yr, 3yr,5yr, 7yr. any change in the ownership of real property, process by which a lender exercises its power of sale under a mortgage that is in default. The USPS has a monopoly on every type of mail or package. established in 1992; a voluntary program to identify and promote energy efficient products and buildings in order to reduce energy consumption, improve energy security and reduce pollution through voluntary labeling about products and buildings that meet the highest standard of energy efficiency. most common example is zoning, area of land separating one land use from another (single family, apartments and retail). The TREC residential contract forms are: Drafted by the Broker Lawyer Committee 2. \text{Employee Salaries and Wages}&\$50,000&\$1,100&\$88,000\\ There is no membership needed. when an individual acquires title from the rightful owner through hostile, actual, and continuous occupation of the land for the statutory period. & \text{$\quad$productive and will help a business}\\ The Act was passed to protect consumers from fraud in the sale or lease of land. value set on the property for tax purposes. Accounting2. Operating income and expense statements the consummation of a real estate transaction in which all documents are signed and the proceeds of the mortgage loan are distributed. limited appraisal report the legal use that gives the greatest return in money or amenities. 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. Payments are guaranteed, and they would be made at the end of each year. 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. The relationship between the amount of rent a specific property can command, and the value of the property to the owner. What is the probability that Bob receives no tweets during his lunch hour? history or list of all owners back to the sovereignty of the soil. She has one son, Tyler, who lives in Maine. b. A break in this line would create a cloud on the title. He is really good. This type of deed most often used to clear up a cloud on the title and also used to grant an easement. Acodeofconductthataddresseswhetheractionsarerightorwrong\begin{array}{ll} The reduction in value of property from causes such as deterioration or obsolescence. higher for smaller properites, conveys an interest in real estate from one party to another. 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. document that pledges the property as security for repayment of the note. Grantor implies ownership or the right to transfer title but does not provide a warranty of title, deed with no guarantees, warranties or covenants. Title remains with the lender until loan is repaid. Principles of Real Estate 1. 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 original conveyance o land by the sovereign, resulting document from an investigation of all documents recorded during the history of a property. 10. type of insurance required when the LTV exceeds 80%. 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. Suggests that the value of a property is equal to the sum of the contributory value of each of its component parts. used in most real estate transactions. exterior only/drive by inspection. purchase price is affected by the expectation of of future appeal and benefits. Real Estate Mortgage Investment Conduit (REMIC), Allows for the indirect investment in mortgages through the sale of securities. & \text{h. The intentional preparation of}\\ never a reliable estimate of market value, standards that have been established by the Appraisal Standards Board of the Appraisal Founation, Universal Residential Appraisal Report; Fannie Mae 1004, sales comparison approach, cost approach, income approach, estimate of age based on the condition of the property. 6. qualifies borrower based on proposed home payment and gross monthly income. 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. From the moment you start your education with Champions, we become an extension of your team by serving as a dedicated resource and providing you with the educational tools you will need to succeed in your new found career! Helen Fortier February 10, 2022 & \text{g. An information system that measures,}\\ Champions School of Real Estate is proud to be one of the most respected Real Estate schools in Texas! seller is willing to take part or all of equity in the form of a note. & \text{$\quad$misleading financial statements}\\ Rural Property <25% built up Principles of Real Estate 1 Key Terms Principles of Real Estate 1 Key Terms Flashcard Maker: juan brown 23 Cards - 1 Decks - 4 Learners Sample Decks: Level 1: Introduction to Modern Real Estate Practice Show Class Principles of Real Estate Part 1 Principles of Real Estate Part 1 Flashcard Maker: Deron Goodwyn 64 Cards - 2 Decks - 12 Learners estimate of value based on current construction costs. It's simple! TMARR is administered by the Texas Department of State Health Services (DSHS), and sets rules and regulations for the inspection, assessment and remedia- tion of mold. 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. The action of government seizure of land for the good of the public. doesn't indicate that they are legal owner, The government is the original owner of all land. 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.