According to this principle, the value of The landlord or owner; party granting a lease. 9. background information about the appraiser funds the secondary market. It is would suggest that an owner should not "over improve" a property. a type of seller financing where in the owner retains title to the property while the purchaser takes possession of the premises and pays the principal. The loss in desirability of the style, layout, or function of an element of a property over time. Highly recommended and I will continue to use Champions! supply is short, prices go up. Flashcard App | Champions School uniform residential appraisal report aka fannie mae form 1004, Freddie mac form 70. value of subject property is increased by value of surrounding properties, absolute adjustments made to the comparable, considering those that are +/-, if similar properties in the market are selling at prices that yield and investor a return of x%, potential rate of return(income, return on investment, value), certain rate of return (income, return on investment, value), subdivision that includes locally owned commodities and common facilities. 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. 2.amount of any payment 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. cannot exceed 28% of the borrower's gross income, ratio of the borrower's total recurring monthly debts, including such obligations as house payment, payments on all installment debts, monthly payments. grantor does not even claim to own the property. The loan becomes due upon the sale of the property or the death of the owner. 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. Quick and easy check-out You can quickly pay through credit card or Stuvia-credit for the summaries. \text{Employee Salaries and Wages}&\$50,000&\$1,100&\$88,000\\ 6. Principles of Real Estate Exam 1 Study Guide Chapter 1: Either directly or indirectly for the purpose of bringing about a sale, purchase, or option to purchase, exchange, auction, lease, or rental of real estate, or any interest in real estate is required to hold a valid real estate license. real estate investment trust; created by Congress in 1960, real estate mortgage investment conduits. Minimum withdrawal in Texas on HELOC (Home Equity Line of Credit). DUST; demand, utility, scarcity, transferability. Conversely, increased competition tends to bring prices down, Demand,Utility, Scarcity, Transferability characteristics of value in a property, The most commonly misunderstood appraisal concept, Net/Gross Adjustments may not exceed what %, The actual age of the property in years. Real estate prices in Germany remain the same, although overall sales are declining. 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. many lenders, especially high LTV loans, will order a field review of the appraisal. 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 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. The presence of lower-priced properties in the area will cause a decline in the value of the subject property. 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) Terms of each contract are as follows: As his adviser, which contract would you recommend that he accept? A principal owes his agent compensation, reimbursement, indemnification and performance Procuring Cause of Sale The effort that results in the sale of property - the act of bringing a ready, willing and able buyer to a seller resulting the sale of the seller's property Exclusive right to sell Operatingactivitiesc. &\textbf{Per Month}&\textbf{Per Customer Served}&\textbf{for May}\\ His opportunity cost is 7 percent. history or list of all owners back to the sovereignty of the soil, you want this one. Principles of Real Estate Exam 1 Study Guide - Principles SUMMARYPreviousBalance$876.34Payments/Credits$800.00Transactions$1,009.56LateCharge$30.00FinanceCharge$29.67NewBalanceMinimumPayment$18.00. addition or amendment to an existing will. 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. Having enough cash available to pay}\\ used in most real estate transactions. Texas State Portion Real Estate Exam part 2.docx. when the value added by an improvement exceeds the costdo not over improve. ___________ 2. ARMS that offer fixed rate period during 1st years of the loan. 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 passed by congress in 1968. passed to protect consumer from fraud in the sale or lease of land. Financingactivitiesb. consent of the lender allows property to be sold for a price sufficient to pay mortgage off. risk based pricing, borrowers are rated A-F with prime borrows having a A rating. b) What confidence level did the pollsters use? 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} Over 90% of our business is driven by word-of-mouth referrals from Real Estate Brokers, Sales Agents, Mortgage Loan Originators, Home Inspectors, and Appraisers. a mortgage is an actual transfer of ownership from the borrower to the lender. Leadership in Energy and Environmental Design-LEED, a 3rd party certification program for high performance buildings developed by the US Green Building Council. can be voluntary or involuntary. Identify what will happen to the equilibrium price and equilibrium quantity in each of the following: a. purchase title insurance either by grantor or grantee. Aninformationsystemthatmeasures,processes,andcommunicatesfinancialinformationaboutanidentifiableeconomicentityh. The course provides students with an extensive foundational understanding of Real Estate terminology and professional obligations. 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. FERA also increases the statute of limitations for mortgage fraud from 5 years to 10 years. ___________ 11. 2. Accountinga. The action of government seizure of land for the good of the public. ( Champions School Of. Downpayment is the difference between the _____ and the _____. promotes energy efficient products and buildings. \text{5. 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. Purchases "pools" of mortgages. Deed that offers the most protection in which grantor fully warrants good clear title to the premises. no guarantee for approval, property must fit criteria . 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. interest rate a reserve bank charges eligible financial institutions to borrow money short term. homeowners who are at least 62 years of age can borrow against the equity in their property. Gross Rent Multiplier. 3. Champions School of Real Estate (CSRE) - Course Hero The government's right to tax real estate. The reduction in value of property from causes such as deterioration or obsolescence. Comprehensive Environmental Response, Compensation, and Liability Act CERCLA. combination of two or more properties into one. (Zoning example). Champions School of Real Estate Principles 2 Test Review September 2018 Activitiesofmanagementengagedtooperatethebusinessj. Ethics} & \text{d. The process of generating and communicating}\\ Suppose that the battery life in both cases follows an exponential distribution. Learning the principles and laws of real estate is Champions focus. Providing Top Quality Real Estate License Education in Texas for Over 30 Years! Principles of Real Estate 1 - Term flashcards - Champions School of ___________ 1. responsible for: Principle of Increasing/or decreasing returns. 4. 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 evidence an individual has of his or her right to possess land. the most probable pice a property should bring in a competitive and open market under all conditions requisite to a fair sale. It basically insures the difference between the borrower's down payment and LTV. Champions School of Real Estate.docx - Course Hero The Board goes on to say that the margin of error for this poll was 3%3 \%3%. 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.