fixed interest rate for initial period of time, borrower pays interest only making, initially making payments smaller, monthly house payment includes principal, insurance, interest and taxes, partially amortized loan w final payment substantially larger than others, value of the property must provide adequate loan security, collateral dependent loan (hard money loan), asset based financing where borrower receives funds secured by the value of real estate. Champions Real Estate School Review - Investopedia zoning, highways. original conveyance o land by the sovereign, resulting document from an investigation of all documents recorded during the history of a property. 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. Principles of Real Estate 1. Once the loan is closed it is sold to another lender. ___________ 1. a type of appraisal review. Profitability3. Photographs of property 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. Began in 1938 federal agency. The Loan Estimate form combines elements of the Good Faith Estimate and the initial Truth In Lending disclosure into one. \text{3. PDF Final Exam For Real Estate Principles - annualreport.psg.fr consumers are given equal chance to obtain credit. The most probable price a property should bring in a competitive and open market. history or list of all owners back to the sovereignty of the soil. accretion, alluvion, erosion, reelection, avulsion, grantor promises to warrant and defend title, but only against claims which may have arisen during his or her period of ownership, deed with no guarantees or warranties. prohibits redlining. 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. the only limitations to title are those listed in the deed. The money that mortgage companies use to make loans comes from the sale of __________. 4. amount of any finance charge. Certified Residential Appraiser ___________ 8. help meet the credit needs of ALL the community. The action of government seizure of land for the good of the public. Texas Principles 2 Scenarios Questions - Champions School of Real 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. person, corporation or firm, not in banking, that provides its own funds for mortgage financing. \end{array} The percentage of value or sales price that a lender is willing to finance. b) What confidence level did the pollsters use? Describe the differences in producer and consumer surplus, and in overall social welfare, that would occur in each of the following scenarios. many lenders, especially high LTV loans, will order a field review of the appraisal. (pending lawsuits affecting the property). Fraudulent financial reporting} & \text{$\quad$accounting information in the}\\ the percentage of value or sales price that a lender is willing to finance. Accountinga. There is no membership needed. state law requires law, real estate contracts and leases over a year to be in writing. Theprocessofproducingaccountinginformationfortheinternaluseofacompanysmanagementb. (Zoning example). authority to clean up sites contaminated with hazardous substances, pollutants or contaminants, record the deed (sign it), then moving in. 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. 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. When Calculating the LTV (loan-to-value) ratio, the lender will use the sales price or appraised Value? ENERGY STAR program was established in 1992 under this Act. equalize air pressure between rooms in a house by adjusting air flow in supply and return ducts. Analysis of market data If the property cannot be transferred, it is of little value. & \text{$\quad$productive and will help a business}\\ Principle of Increasing/or decreasing returns. 2. Dodd-Frank Wall Street Reform and Consumer Protection Act of _______. Why do the majority of Realtors in the state of Texas choose Champions School of Real Estate as their preferred Real Estate school? federal law passed in 1974. doesn't include: gender or immigration status. 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. initial truth in lending disclosure. The role money serves when it is used as a form of payment. 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. Profitabilityinformationfortheinternaluseofa3. the value of a property is equal to the sum of the contributory value of each of its component parts. Examine the summary section of a monthly credit card statement. 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. Income approach Analysis ( Champions School Of. transfer of ownership against the will of owner. 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. DUST; demand, utility, scarcity, transferability. promotes home ownership. 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. decreases over time, norm paid by buyer. risk based pricing, borrowers are rated A-F with prime borrows having a A rating. special form of insurance which is designed to allow lender to increase the LTV. Escheat, right of government to regulate and control land. lese in which payments begin at a lower, fixed rate but gradually increase as the lease matures. 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. Infer What might keep a State from accepting a categorical grant-in-aid? (PETE) police power, escheat, taxation, eminent domanin. The loan becomes due upon the sale of the property or the death of the owner. Principles of Real Estate 2 Champions School of Real Estate - Quizlet Calculate the new balance. Collateral Dependent Loans (hard money loan), borrower receives funds secured by the value of a parcel of real-estate. Cost approach Analysis The tax and insurance is held in an escrow account, is partially amortized loan with a final payment substantially larger than the others. & \text{$\quad$achieve its objectives}\\ The borrower retains ownership of the property, subject to the lien that secures repayment of the loan. & \text{f. The ability to earn enough income to}\\ Bank owns it now. Money that has value because the government has ordered that it be accepted in payment of debts. combination of two or more properties into one. 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. small investors to invest in larger commercial properties. Accounting2. January 1, 2005, launching its Mold Mission Program. higher for smaller properites, conveys an interest in real estate from one party to another. permanent and absolute tenure of an estate in land w freedom to dispose at will. 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. in a participation loan if a lender collecs principle and intrest and shares in the profits when the property is sold. The title company has how many days after they receive the contract and earnest money in which to issue a title commitment? purchase title insurance either by grantor or grantee. Match the terms that follow with the appropriate definitions. & \text{$\quad$form of financial statements to decision}\\ Real estate prices in Germany remain the same, although overall sales are declining. percentage of value or sales price that a lender is willing to finance. Loss of value of a building from its reproduction cost, resulting from wear and tear over time. Economic obsolescence Flashcard App | Champions School Texas Real Estate License Exam Prep | Champions School b. legal. Under what conditions would the traditional yield spread be close to the static spread? limits how much a payment can increase/ decrease. no obligation o extend credit. Theintentionalpreparationofmisleadingfinancialstatementsi. any change in the ownership of relationship property. Providing Top Quality Real Estate License Education in Texas for Over 30 Years! value of a property maybe affected by social, economic, govt and environmental influences. 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. 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) Whether you need Qualifying Education (QE) to start your career, Sales Agent Apprentice Education (SAE) to build your . 7. Operatingactivities7. some lenders accept this drive-by type of review for low LTV or low risk loans. Real Estate Principles 1 Flashcards & Quizzes | Brainscape Find the annual double-declining-balance (200% method) rate of depreciation. 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. Developers are required to provide each purchaser with a disclosure document (Property Report). The program offers 100% financing (no down payment) for qualified borrowers. transferring funds to a title co for disbursement when loan is approved. For more than a decade, the German real estate market was in a dramatic growth phase. Quick and easy check-out You can quickly pay through credit card or Stuvia-credit for the summaries. Champions School Principles of Real Estate II Flashcards | Quizlet Social Science Law Civil Law Champions School Principles of Real Estate II Term 1 / 193 Appraisal Click the card to flip Definition 1 / 193 An Appraiser's opinion of value Click the card to flip Flashcards Learn Test Match Created by Texasrealtor Terms in this set (193) Get your Real Estate License Education on a Mobile Web App. homeowners who are at least 62 years of age can borrow against the equity in their property. Earn or renew your Loan Originator license. purchases "pools" or mortgages. 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 Investingactivitiesdebtswhentheyaredue6. * whole # by denominator 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. The borrower retains ownership of the property , subject to the lien that secures repayment of the loan. Real Estate Mortgage Investment Conduit (REMIC), Allows for the indirect investment in mortgages through the sale of securities. Items that affect the marketability or livability of the property 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. 8. it can be money, personal property, ie $10, grantor promises the grantee interrupted use of the property, A deed with no guarantees or warranties - it offers the buyer the least protection - can be used to correct or cure a defect or cloud on title. \end{array} Description of the property (street address is sufficient), Maintenance (maintained vs. deferred maintenance), Both landlord and tenant are expected to keep property. risk based pricing, no published rates. 9. background information about the appraiser residential property is depreciated over how many years? right of govt to take private land for public use. Fraudulentfinancialreportinga. Principles of Real Estate 2. tenancy of will provides the consumer with assistance securing hard to place or niche sources f mortgage money. The legal use that gives the greatest return in money and/or amenities. Per Adjustment Cap/Lifetime Cap/ Initial Adjustment Cap, Includes both real and personal property ( fixtures and furnishings), The monthly house payment includes principal, interest, taxes and insurance (known as PITI). used in most real estate transactions. The purchase agreement gives the purchaser a seven-day period in which the purchase can be canceled. Agreements that combine the sale of securities with an agreement to buy the securities back at a later date. loss value caused by factors outside of the property (demand, zoning, condemnation, highways), for income-generating rental properties, neighborhood-specific, GRM = Sales Price/Monthly Rent, Property acquired by lender through foreclosure, Borrowers and lenders come together to create mortgage, Mortgage bankers, mortgage brokers, and correspondent lenders, The detailed process of evaluating a borrower's loan application, The consummation of a real estate transaction, signed and paid. & \text{$\quad$economic entity}\\ Under the Deceptive Trade Practices Act, __________ are defined as tangible chattels: goods 4. Downpayment is the difference between the _____ and the _____. set by state of texas dept of insurance, based on properties value using sliding scale. Principal of contribution the value of a property is equal to the sum of the contributory value of each of its component parts. | 4 years | |. c. Supply rises by more than demand rises. most conveyances are voluntary. Champions In Real Estate offer real estate for sale in Kanimbla , Earlville , Mooroobool and surrounding areas. SUMMARYPreviousBalance$876.34Payments/Credits$800.00Transactions$1,009.56LateCharge$30.00FinanceCharge$29.67NewBalanceMinimumPayment$18.00. 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. Real Estate Salesperson National Prep Exam 1.docx. borrowers provide basic information like income, debt, and credit history. Payments are guaranteed, and they would be made at the end of each year. generally 5-10% range with fees. sum of the energy used over the ENTIRE assemblation, distribution and life and disposal of product. 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. | Life | Annual Rate | document that pledges the property as security for repayment of the note. 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. this is the best indicator. 1. amount of down payment. Activitiesofmanagementengagedtospendcapitalinwaysthatareproductiveandwillhelpabusinessachieveitsobjectivesf. 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. \text{6. CERCLA-passed in 1980.was designed to clean up sites contaminated with hazardous substances, pollutants or contaminants. 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. Texas Qualifying Education (Pre-Licensing), Texas Sales Agent Apprenticeship Education (SAE), Texas Continuing Education (CE), Real Estate Professional Assistant Certificate, "I cannot say enough good about Champions School. most reasonable price a property should bring in a competitive open market. The material (soil) that is deposited through the process of accretion that is the result of avulsion, erosion and reliction. 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. & \text{$\quad$whether actions are right or wrong}\\ 4. local maps, indicating location of subject and comparables \text{1. looks like a deed. quiz 14.docx. 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. Theprocessofproducingaccounting2. someone who processes, underwrites, closes and funds his or her own files in his or her name. up to 90 days, main job is to protect and preserve the value of an investment property while generating income for the owner. 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. responsible for: Photographs of comparables ___________ 14. Passed by Congress in 1968. 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. October 3, 2015, It replaced the Good Faith Estimate, which has been in use since January of 2010. ", "Amazing staff and instructors that can help streamline the process of licensing or your continuing education. Adger Corporation is a service company that measures its output based on the number of customers served. Achieve success through Business Etiquette. underwriter approval. The mortgage is an actual transfer of ownership from the borrower to the lender. grantor fully warrants good clear title to the property. Acodeofconductthataddresseswhetheractionsarerightorwrong\begin{array}{ll} 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. A rookie quarterback is negotiating his first NFL contract. Create flashcards for FREE and quiz yourself with an interactive flipper. permits additional borrowing on the same note and mortgage. Texas Principles 1 Exam Practice Questions With Answers - Champions The value of a property may be affected by social, economic, governmental and environmental influences. A break in this line would create a cloud on the title. used to clear up cloud on title, no protection, no ownership claimed by grantor. Havingenoughcashavailabletopaydebtswhentheyareduec. Learning the principles and laws of real estate is Champions focus. Frequently asked questions & \text{$\quad$information about an identifiable}\\ whichever one is lower LTV Loan-to-Value Ratio 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. any property, whether real or personal, which is capable of being inherited. 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. Demand rises and supply is constant. title companies maintain their own date base of transactions within the county that is organized in a manner that makes title examination far more efficient than searching at county clerk, document tat conveys an interest in real estate from one party to another, evidence am individual has to possess land, investigation of all the documents that have been recorded relating to a property, opinion regarding state of title and ability to transfer, transfer of title that is free of grantor.