It's simple! Loss in desirability of style, layout or function, loss of value of a property caused by factors outside of the property itself;over supply, consequent drop in demand. 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. 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. 4. Terms of each contract are as follows: As his adviser, which contract would you recommend that he accept? The percentage of value or sales price that a lender is willing to finance. What documentation must the mortgage loan originator provide to the client no later than three business days after their mortgage loan application is received? ___________ 12. Such as the oversupply and consequent drop in demand for a particular kind of property, government actions, such as zoning changes or condemnation proceedings, and proximity to undesirable land uses, such as highways or factories. respa applicable. If Market is flooded values will be flat. The TREC residential contract forms are: Drafted by the Broker Lawyer Committee 2. Percentage of the Lesser of the appraised value or sales price that the lender will lend. something of value given in exchange for a conveyance. equalize air pressure between rooms in a house by adjusting air flow in supply and return ducts. Under the Deceptive Trade Practices Act, __________ are defined as tangible chattels: goods 4. Principles of Real Estate 1. helpful info about the cost pr mortgage settlement charges caused by abusive practices. Photographs of comparables Homeowners who are least 62 years of age can borrow against the equity in their property. (pending lawsuits affecting the property). Adequate consideration 30 Credit Hours (TREC) This Real Estate Pre-Licensing course is approved by TREC and must be completed in order to get a Real Estate license in Texas. 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. cannot exceed 36% of the borrowers income, conventional loans that conform to fannie mae and freddie mac standards for purchase. These are non conforming loans. The Property Report contains information about the subdivision and is required to be delivered to a purchaser before the signing of a purchase agreement. Earn or renew your Real Estate Sales Agent or Broker license. SUMMARYPreviousBalance$876.34Payments/Credits$800.00Transactions$1,009.56LateCharge$30.00FinanceCharge$29.67NewBalanceMinimumPayment$18.00. Learning the principles and laws of real estate is Champions focus. 21 pages. 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. 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. The right of the government to take an individual's land if he or she dies without a will or heirs. \text{9. Money that has value apart from its use as money. The tax and insurance is held in an escrow account, is partially amortized loan with a final payment substantially larger than the others. 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. 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. Purchases "pools" of mortgages. The loss in desirability of the style, layout, or function of an element of a property over time. ___________ 5. A lower interest rate is offered by the lender during the first year or more of the loan. ese are non-conforming loans. estimate of value based on current construction costs. set by state of texas dept of insurance, based on properties value using sliding scale. Champions Advantage Choose Method $1080 9 Course Licensing and Renewal Program $1445 $1685 SAVE $240 Courses included: Six 30-Hour QE Courses Real Estate Exam Prep Course Three 30-Hour SAE Renewal Courses 4-Hour TREC Legal Update 1 4-Hour TREC Legal Update 2 Additional details: FREE Books / PDFs Included FREE Exam Prep Retakes for 1 Year the percentage of value or sales price that a lender is willing to finance. Calculate the new balance. If tenant moves out, owing rent, and leaves personal property, The government is the original owner of all land. only legal for personal property. + result to numerator the loan origination market where borrowers and lenders negotiate mortgage terms. Accounting} & \text{a. tax-free capital gain of up to 250k if they lived there 2 out of the last 5 years. 8. & \text{\$876.34} & \text{\$800.00} & \text{\$1,009.56} & \text{\$30.00} & \text{\$29.67} & \text{ } & \text{\$18.00}\\ \hline Champions School of Real Estate offers salesperson and broker pre-licensing courses and exam prep for salespeople and brokers in Texas. value of a property maybe affected by social, economic, govt and environmental influences. Escheat, right of government to regulate and control land. person, corporation or firm, not in banking, that provides its own funds for mortgage financing. Cost does not equal value, Change is constant, and are always effecting value, the purchase price is affected by the expectation of future appeal and benefits, value of commodity is influenced by the cost of acquiring a substitute or comparable item. . Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. \text{Revenue}&&\$5,000&\$160,000\\ Anything that is widely accepted in exchange for goods and services. offers the greatest protection of any deed. It also offers continuing education courses for. 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! Money that has no value of its own but can be exchanged for something of value. 7. The evidence an individual has of his or her right to possess land. (Zoning example). The term Residential Mortgage Loan Originator is mandated by the ______ Act, Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act). Match the terms that follow with the appropriate definitions. 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. when an individual acquires title from the rightful owner through hostile, actual, and continuous occupation of the land for the statutory period. the interest rate a Reserve Bank charges eligible financial institutions to borrow funds on a short-term basis. Conventional-loans that have no federal guarantees or insurance grantee gives to the grantor, most common, best type of deed to have. real estate investment trust; created by Congress in 1960, real estate mortgage investment conduits. A minus to F-rated borrowers will pay 1 to 5 % higher than those with good credit. Fraudulent financial reporting} & \text{$\quad$accounting information in the}\\ most conveyances are voluntary. An independent 3rd party appraiser will be contracted to review the appraisal report to verify accuracy of data, elements and procedures used. Show the possibility density function for battery life for the Droid Razr Maxx phone when its primary use is talk time. 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. Income approach Analysis purchase title insurance either by grantor or grantee. 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. exterior only/drive by inspection. Theintentionalpreparationofmisleadingfinancialstatementsi. Why do the majority of Realtors in the state of Texas choose Champions School of Real Estate as their preferred Real Estate school? 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 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. These are the 4 rights of land. 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. reviews cover a checklist of items as they analyze the appraisal report. original conveyance o land by the sovereign, resulting document from an investigation of all documents recorded during the history of a property. seller is willing to take part or all of equity in the form of a note. looks like a deed. An appraiser must always be aware of these influences and possible changes in them that could affect market value. 3. Real Estate Principles #1 - Kevin Ward Real Estate Academy Kevin Ward Real Estate Academy Streamed 9 years ago Watch This Before You Spend $1000 Bucks ! grantor promises uninterrupted use of the property, grantor is responsible for any doccumentation needed to ensure title transfer. 1. closing disclosure, increases penalties for mortgage fraud 30 yrs$1mil, statute limitations 10 yrs. The borrower retains ownership of the property , subject to the lien that secures repayment of the loan. Cost approach Analysis protection up to purchase price, norm paid by seller (buyers benefit). RESPA real estate settlement procedure act, regulation x. requires residential mortgage loan originators to provide borrowers with timely disclosures of of nature and costs of real estate, final respa-tila integrated disclosure rule, 3 pg loan estimate If the house is 20 years old, The appraiser's estimate of the age of the house based upon its ongoing maintenance and upgrades. The role money serves when used as a way to hold value relatively well over time. Real estate prices in Germany remain the same, although overall sales are declining. Ethics} & \text{d. The process of generating and communicating}\\ Borrowers are rated A-F with a prime borrower having an A rating. consent of the lender allows property to be sold for a price sufficient to pay mortgage off. a. The material (soil) that is deposited through the process of accretion that is the result of avulsion, erosion and reliction. used when a notable number of rental properties are in the area, applies only to income-generating rental property, 1. The absence of competition will cause prices to increase in the marketplace. combination of two or more properties into one. Ethics10. The value of a property may be affected by social, economic, governmental and environmental influences. Accounting2. Suppose that the battery life in both cases follows an exponential distribution. & \text{f. The ability to earn enough income to}\\ original document of conveyance of land by the sovereign, investigation of all document that have been recorded relating to a property. You can do it, we can help! 6. any condition that affects the health or safety of an occupant, Licensed Appraiser percentage of value or sales price that a lender is willing to finance. decreases over time, norm paid by buyer. the absence of competition will cause prices to increase in the marketplace. & \text{$\quad$to spend capital in ways that are}\\ 4. amount of any finance charge. & \text{$\quad$makers outside the organization}\\ no obligation o extend credit. We feel that we provide an unparalleled Real Estate education in Texas and our students agree! Adger Corporation is a service company that measures its output based on the number of customers served. Married limit is 500k. | Life | Annual Rate | 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. generally 5-10% range with fees. 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. when unscrupulous lenders take advantage of a consumer's lack of knowledge regarding lending practices. examining of the public records and constructed a chain of title and an abstract of title. Texas Principles 2 Q & A - Champions School of Real Estate 1. Profitability3. Activitiesofmanagementengagedtoobtainadequatefundsforbeginningandcontinuingtooperateabusinessd. Activities of management engaged to}\\ 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. 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. 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. According to this principle, the value of Mr. Manning, a former neighbor of Margaret's, claims that he and Margaret were "common law" married, and that it had been Margaret's dying wish to leave the house and all of its contents to him. The loss in a property's value due to daily wear and tear. The action of government seizure of land for the good of the public. 2. 5. Downpayment is the difference between the _____ and the _____. The percentage of value or sales price that a lender is willing to finance. Demand falls by more than supply rises. supplement to the body of a will; later addition to a will, individual who receives property from person who died intestate, Texas Promulgated Contracts-CHAMPIONS STUDY, Chinese 1: Chinese Hanzi to English and Pinyin, Champions School Principles of Real Estate II, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. Acodeofconductthataddresseswhetheractionsarerightorwrong. 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. Identify the term that best fits the following description - to force out or push out. Improvements to site final rule mandates the use of 2 disclosures that help the consumer in understanding the key features, costs and risk: 3 pages loan estimate & closing disclosure forms. The consummation of a real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are disbursed by the lender. 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. Profitabilityinformationfortheinternaluseofa3. 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, $500,000 couple, lived in 2 of last 5 years, organized as limited or general partnership or a corp, Created by congress in 1960 minimum 100 investors, lease in which all or part of the rent amount is based on the receipts of the tenant's business (typical shopping center lease), An attorney is needed if clients want this, Competent parties It is prudent to improve property when the value added by the improvement exceeds cost of the improvement. Change is constant; therefore, the forces acting on a parcel of land are always affecting the value of the land. limits interest rate over the lifetime of a loan. Infer What might keep a State from accepting a categorical grant-in-aid? largest investor in home mortgages. ie. Certified Residential Appraiser issued in the amount of the loan. Site description the value of a commodity if influenced by the cost of acquiring a substitute or comparable item. when an individual acquires title from the rightful owner through hostile, actual and continuous occupation of the land for the statutory period. transfer of ownership against the will of the owner. \text{1. & \text{$\quad$processes, and communicates financial}\\ 16 pages. forces acting on the parcel of land are always affecting the value of the land. transaction, GMI x 28% =(House Payment as % of income), GMI x 36% =( Sum of regular debt plus house payment). tells NY desk to sell securities collecting payments from banks by reducing their reserve amounts. tenancy of sufferance Describe the differences in producer and consumer surplus, and in overall social welfare, that would occur in each of the following scenarios. 9. RESPA (Real Estate Settlement Procedures Act), implements Consumer Federal Protection Bureau, 1968 Passed by congress to protect consumers from fraud in the sale or lease of land, something of value. commercial property is depreciated over how many years? Has only one loan repayment plan, oFFering 30-year fixed rate mortgages only, The right of the government to regulate and control the way that an individual uses his or her land. and no unpaid claims against the property. Liquiditycompanysmanagement4. the only limitations to title are those listed in the deed. Financial accounting} & \text{$\quad$obtain adequate funds for beginning}\\ Includes deeds, foreclosures, liens, wills, marriage,s, deaths, life estates, fee simple estates and everything else. 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. most important aspect is that cost does not equal value, most important aspect of principle of contribution, cost does not equal value (for exampleswimming pool), forces acting on a parcel of land are always affecting the value of the land, the purchase price is affected by the expectation of future appeal and benefits. ___________ 11. property owner obtains a certificate much like an automobile that is recorded in the public records. Aninformationsystemthatmeasures,processes,andcommunicatesfinancialinformationaboutanidentifiableeconomicentityh. The government's right to tax real estate. sending monthly payment statements, and collecting monthly payments, maintaining records and balances. 2. the value of a property is equal to the sum of the contributory value of each of its component parts. & \text{g. An information system that measures,}\\ \text{SUMMARY} & \text{Balance} & \text{/ Credits} & \text{Transactions} & \text{Charge} & \text{Charge} & \text{Balance} & \text{Payment}\\ \hline this is the best indicator. 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. Reconciliation of values Under what conditions would the traditional yield spread be close to the static spread? 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. 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. What is one of the most important ways through which the behavior becomes integrated? Unlimited number of times. Description of the property (street address is sufficient), Maintenance (maintained vs. deferred maintenance), Both landlord and tenant are expected to keep property. ratio of borrowers total recurring monthly debts. \text{4. Financing activities} & \text{b. (2) The Cost Approach, The lender transfers title back to the borrower when the loan is repaid. designed to clean up sites contaminated with hazardous substance. 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! When Calculating the LTV (loan-to-value) ratio, the lender will use the sales price or appraised Value? Flood maps consumers are given equal chance to obtain credit. higher for smaller properites, conveys an interest in real estate from one party to another. 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. Managerial accounting} & \text{$\quad$and continuing to operate a business}\\ insures most protection, any changes to the ownership of real property. The course provides students with an extensive foundational understanding of Real Estate terminology and professional obligations. Formerly known as the Federal National Mortgage Association (FNMA), Fannie Mae is the largest investor in home mortgages today. & \text{j. Aninformationsystemthatmeasures,processes,andcommunicatesfinancialinformationaboutanidentifiableeconomicentityh. right of govt to take private land for public use. ___________ 4. Let and take agreement in depth process. \text{10. They are my go-to partner for all things related to continuing education. The legal use that gives the greatest return in money and/or amenities. 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). 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. the consummation of a real estate transaction in which all documents are signed and the proceeds of the mortgage loan are distributed. 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. \text{5. The borrower retains ownership of the property, subject to the lien that secures repayment of the loan. a. Another Name for environmental or economic obsolescence. the legal use that gives the greatest return in money or amenities. The U.S. The process of producing accounting}\\ 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. maximized value when homogeneity in neighborhood, principle of increasing and decreasing returns. transferring real estate to the state when a person dies without heirs. The program offers 100% financing (no down payment) for qualified borrowers. whichever one is lower LTV Loan-to-Value Ratio & \text{$\quad$misleading financial statements}\\ A Rare 150 /- Acre Parcel in the . Theabilitytoearnenoughincometoattractandholdinvestmentcapitalg. some lenders accept this drive-by type of review for low LTV or low risk loans. 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. doesn't indicate that they are legal owner, The government is the original owner of all land. addition or amendment to an existing will. Texas State Portion Real Estate Exam part 2.docx.
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