underwriter approval. 10. Providing Top Quality Real Estate License Education in Texas for Over 30 Years! ( Champions School Of. Principal of contribution the value of a property is equal to the sum of the contributory value of each of its component parts. commercial property is depreciated over how many years? 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. 7. a type of appraisal review. 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. CFPB implemented. 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. & \text{$\quad$productive and will help a business}\\ \text{3. purchases "pools" or mortgages. The government's right to tax real estate. Accounting2. permits additional borrowing on the same note and mortgage. all consumers are given a equal chance to obtain credit. Title remains with the lender until the loan is repaid. (Most reliable), Reduction in value from deterioration or obsolescence. It basically insures the difference between the borrower's down payment and LTV. % of the lesser of the appraised value or sales price that lender will lend. The relationship between the amount of rent a specific property can command, and the value of the property to the owner. lese in which payments begin at a lower, fixed rate but gradually increase as the lease matures. 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 landlord or owner; party granting a lease. The term Residential Mortgage Loan Originator is mandated by the ______ Act, Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act). 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. \text{Other Expenses}&\$36,000&&\$34,500\\ Change is constant; therefore, the forces acting on a parcel of land are always affecting the value of the land. based on the assessed value of the property and the existing tax rate. Match the terms that follow with the appropriate definitions. 4. amount of any finance charge. 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. 1. Learning the principles and laws of real estate is Champions focus. 2. Married limit is 500k. Is the gradual loss of land over time as the land bordering a river or stream washes away, missing "links" or breaks in the chain of title, The original conveyance of land by the sov- ereign is usually done with this document, Historically, when one was interested in acquiring title, he or she would ask an attorney, or abstractor, to do a title search that would result in this. something of value given in exchange for a conveyance. Havingenoughcashavailabletopaydebtswhentheyareduec. Title remains with the lender until loan is repaid. Investingactivitiesdebtswhentheyaredue6. the absence of competition will cause prices to increase in the marketplace. \text{Revenue}&&\$5,000&\$160,000\\ provides the consumer with assistance securing hard to place or niche sources f mortgage money. Operating activities} & \text{c. Activities of management engaged to}\\ secure and fair enforcement for mortgage licensing-enhance consumer protection- and reduce fraud. Suggests that the value of a property is equal to the sum of the contributory value of each of its component parts. the legal use that gives the greatest return in money or amenities. power of sale under a mortgage in default. Managerial accounting} & \text{$\quad$and continuing to operate a business}\\ TMARR requires that all persons who conduct assessment and remediation of mold be properly trained and licensed by the state. 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. Comprehensive Environmental Response, Compensation, and Liability Act CERCLA. the percentage of value or sales price that a lender is willing to finance. Financialaccountingobtainadequatefundsforbeginning8. 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. The market wherein loan originators, such as mortgage bankers and brokers, can sell their loans and thus, recover cash for originating more loans. Demand rises and supply is constant. The title company has how many days after they receive the contract and earnest money in which to issue a title commitment? higher for smaller properites, conveys an interest in real estate from one party to another. Champions school of real estate principles 1 quizlet 2 reviews of Alpha College of Real Estate "I'm currently taking the principles of real estate class Howard is my instructor. insures the difference, Police Power transfer of ownership against the will of owner. generally 5-10% range with fees. responsible for: 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. no guarantee for approval, property must fit criteria . loans including refinance transactions secured by a first or subordinate lien on residential real property that is improved with a new home, payment applied to interest not principal, scheduled variations in regular periodic payment amounts not caused by charges to the interest rate, payment 2x of that of regular periodic payment, interest rate increases after consummation but the rates that will apply or periods,are not known at consummation, interest rate changes after consummation but the rates that will apply or periods,are known at consummation. prohibits redlining. The borrower retains ownership of the property, subject to the lien that secures repayment of the loan. less depreciation, plus land value. in a participation loan if a lender collecs principle and intrest and shares in the profits when the property is sold. Theprocessofproducingaccountinginformationfortheinternaluseofacompanysmanagementb. ___________ 13. largest investor in home mortgages. preserves low, existing intrest rate on the original note. 6. title to land in the United States can be traced back to its original owner, (Police Power,Eminent Domain,Taxation, Escheat), Changing the zoning of a property to a lower value, The amount of space required between the lot line and the building line, Interstate Land Sales Full Disclosure Act. interest rate a reserve bank charges eligible financial institutions to borrow money short term. various equations can calculate what investor is looking for. Liquidity} & \text{$\quad$companys management}\\ two largest are Freddie Mac and Fannie Mae, may be organized as limited or general partnerships, all or part of the rental is based on the gross receipts of the tenant's business, a lease with definite beginning and ending dates, when a lease agreement comes to the end of the lease period and terminates, lease that renews itself for like periods of time automatically, when a lease ends and the tenant doesn't leave. vetran loan, loans made by lender dd214 submission form 26-1880. section 502 loan 100% financing, no down payment, primary residences only, rural property loan. issued in the amount of the loan. Downpayment is the difference between the _____ and the _____. Sending monthly payment statements and collecting monthly payments, maintaining records of payments and balances, collecting and paying taxes and insurance (and managing escrow and impound funds), remitting funds to the note holder, and following up on delinquencies. (PETE) police power, escheat, taxation, eminent domanin. 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 Neighborhood description authority to clean up sites contaminated with hazardous substances, pollutants or contaminants, record the deed (sign it), then moving in. (3) The Income Approach. For more than a decade, the German real estate market was in a dramatic growth phase. Liquiditycompanysmanagement4. Theintentionalpreparationofmisleadingfinancialstatementsi. 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. requires an application. Earn or renew your Real Estate Sales Agent or Broker license. 1. 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. Competent grantor, identified grantee, consideration, conveyance, legal description, signed and delivered, a contract between the title company and the insured, RESPA (Real Estate Settlement Procedures Act), Regulation X, disclose cost, fees of settlement, Origination charges, Services you shop for, services you don't shop for (sum is Total Loan Costs), Final Loan terms and closing costs - Compare with Loan Estimate, Closing date, name of Settlement agent, Property address, Commission = (Amount of Sales) x (Commission Rate), Yearly Interest = Interest Rate (%) x Principle, loan x interest, then divide by 12 for monthly interest, subtract from payment to find principle paid, Principles Real Estate II- Practice Exam 2, Principles of Real Estate 2 Champions MATH SE, d.Theprocessofgeneratingandcommunicating, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Alexander Holmes, Barbara Illowsky, Susan Dean, Don Herrmann, J. David Spiceland, Wayne Thomas, social studies end of war and consitution. Theabilitytoearnenoughincometoattractandholdinvestmentcapitalg. & \text{e. Activities of management engaged}\\ Identify what will happen to the equilibrium price and equilibrium quantity in each of the following: a. in depth process. the process of creating a new mortgage loan, the processor will build a file to make an underwriting decision, evaluating a borrower's loan application to determine the risk involved for the lender. 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 no obligation o extend credit. 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. 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. It was signed into law by President Barack Obama in May 2009. & \text{g. An information system that measures,}\\ lender has evaluated the borrower in the underwriting process. 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. and no unpaid claims against the property. \end{array} Photographs of comparables 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. The lender transfers title back to the borrower when the loan is repaid. Achieve success through Business Etiquette. The percentage of value or sales price that a lender is willing to finance. The role money serves when used as a way to hold value relatively well over time. funds the secondary market. c. Supply rises by more than demand rises. The loan becomes due upon the sale of the property or the death of the owner. offers the greatest protection of any deed. The battery life drops to 7 hours when the phone is primarily used for Internet applications over cellular. small investors to invest in larger commercial properties. sending monthly payment statements, and collecting monthly payments, maintaining records and balances. Certified Residential Appraiser Havingenoughcashavailabletopay5. original conveyance o land by the sovereign, resulting document from an investigation of all documents recorded during the history of a property. 9. background information about the appraiser grantor promises uninterrupted use of the property, grantor is responsible for any doccumentation needed to ensure title transfer. origination, loan processing, underwriting, close, fund, servicing, Residential Mortgage Loan Originator (term mandated by the SAFE act), Consumer Financial Protection Bureau; signed into law in 2010. Conventional-loans that have no federal guarantees or insurance used to clear up cloud on title, no protection, no ownership claimed by grantor. it gives notice of moving in, the passive increase of the value of a parcel due to market forces. respa applicable. 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. 5. used in most real estate transactions. Managerialaccounting9. 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)