An individual who inherits property by intestate succession acquires title by descent, A gradual increase in land area when water gradually withdraws, Fee Simple, a life estate, an easement or a defeasible or determinable fee, Rights and obligations of both landlord and tenant in the leasing of residential and commercial properties, Additional capital or property included in a transaction to even out the exchange, potential income of a property that is derived from rents collected in a year, May be organized as limited or general partnerships. specifies requirements found in regulation z. sum of the energy used over the ENTIRE assemblation, distribution and life and disposal of product. (Zoning example). If the property cannot be transferred, it is of little value. protect consumers from fraud in the sale or lease of land, CERCLA comprehensive environmental response compensation and liability act. 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. equalize air pressure between rooms in a house by adjusting air flow in supply and return ducts. Theintentionalpreparationofmisleadingfinancialstatementsi. Texas Principles 2 Exam Practice Questions - Champions School of Real Principles of Real Estate 2 Champions School of Real Estate STUDY Flashcards Learn Write Spell Test PLAY Match Gravity appraisal Click card to see definition appraisers opinion of value Click again to see term 1/258 Previous Next Flip Space Created by Will77tx TEACHER Tags related to this set Marketing-Real Estate Description of the property (street address is sufficient), Maintenance (maintained vs. deferred maintenance), Both landlord and tenant are expected to keep property. Find the annual double-declining-balance (200% method) rate of depreciation. tax-free capital gain of up to 250k if they lived there 2 out of the last 5 years. Champions Real Estate School Review - Investopedia many lenders, especially high LTV loans, will order a field review of the appraisal. \text{8. Suppose that the battery life in both cases follows an exponential distribution. divided into sections called "schedules," and must be delivered by the title company within 20 days of its receipt of the contract. Rental survey 21 pages. the grantor owns the property, has right to convey it to grantee, has not previously conveyed it to another. Financingactivitiesb. added to the index to calculate interest rates, teaser rate- lower rate offered initially. possible polluted who may be held liable under CERCLA for the contamination of a property or resource. Payments are guaranteed, and they would be made at the end of each year. We feel that we provide an unparalleled Real Estate education in Texas and our students agree! 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. ( Champions School Of. 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. 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. TILA, FCRA, RESPA, ECOA. funds the secondary market. the value of a property is equal to the sum of the contributory value of each of its component parts. risk based pricing, no published rates. ___________ 8. Theprocessofproducingaccounting2. Percentage of the Lesser of the appraised value or sales price that the lender will lend. Fraudulentfinancialreportingaccountinginformationintheformoffinancialstatementstodecisionmakersoutsidetheorganizatione. secured property may be sold ti satisfy the unpaid promissory note. Calculate the new balance. Principle of Increasing and Decreasing Returns. \text{5. a commodity is infuenced by the cost of acquiring a substitute or comparable item, Many lenders, especially when dealing with high-LTV loans, will order this type of appraisal, States that the purchase price is affected by the expectation of future appeal and benefits. \text{3. Increased competition will bring prices down. insures most protection, any changes to the ownership of real property. oral/ deathbed will. How might the common expression "daddy's girl" be rooted in the idea of the Electra complex? 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 The measure of money supply that includes only the forms of money that are readily available to spend: cash, checking account deposits, and travelers checks. Accounting2. exterior only/drive by inspection. 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. initial truth in lending disclosure. 5. Aninformationsystemthatmeasures,processes,andcommunicatesfinancialinformationaboutanidentifiableeconomicentityh. Independent third-party appraiser will review the report, then verify the information. 176 Champions School of Real Estate Reviews - AgentAdvice.com 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 Demand falls by more than supply rises. grantor fully warrants good clear title to the property. The right of the government to take an individual's land if he or she dies without a will or heirs. Take your license further with a Designation or Certification. The TREC residential contract forms are: Drafted by the Broker Lawyer Committee 2. 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. Analysis of market data ___________ 1. Activitiesofmanagementengagedto7. 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. 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. Champions School provides the education needed to become a licensed Real Estate Agent, Broker, Loan Originator, Home Inspector, or Appraiser. 10. Profitabilityinformationfortheinternaluseofa3. transfer of title that is a free act of the grantor. \text{Revenue}&&\$5,000&\$160,000\\ Managerial accounting} & \text{$\quad$and continuing to operate a business}\\ & \text{$\quad$processes, and communicates financial}\\ Texas principles of real estate 2 - YouTube The legal use that gives the greatest return in money and/or amenities. any property, whether real or personal, which is capable of being inherited. & \text{$\quad$form of financial statements to decision}\\ supply is short, prices go up. Under what conditions would the traditional yield spread be close to the static spread? & \text{$\quad$information about an identifiable}\\ \text{Other Expenses}&\$36,000&&\$34,500\\ gradual loss of land near border of stream or river. up to 90 days, main job is to protect and preserve the value of an investment property while generating income for the owner. Included in the de nition is the energy required to acquire the materials, the manufacturing, ship- ping, distribution and ultimate disposal of the product. Rural Property <25% built up The battery life drops to 7 hours when the phone is primarily used for Internet applications over cellular. |---|---| The measure of the money supply that includes M1 along with forms of money that are less easily converted to cash. tenancy of will Theprocessofproducingaccountinginformationfortheinternaluseofacompanysmanagementb. the only limitations to title are those listed in the deed. responsible for: Financialaccounting8. real estate investment trust; created by Congress in 1960, real estate mortgage investment conduits. Title remains with the lender until the loan is repaid. 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. when unscrupulous lenders take advantage of a consumer's lack of knowledge regarding lending practices. The process by which the government exercises its right of eminent domain. ENERGY STAR program was established in 1992 under this Act. 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. Activitiesofmanagementengagedtooperatethebusinessj. 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). \text{SUMMARY} & \text{Balance} & \text{/ Credits} & \text{Transactions} & \text{Charge} & \text{Charge} & \text{Balance} & \text{Payment}\\ \hline Operating income and expense statements 122 cards Real Estate Real Estate Principles Practice all cards Appraisal defined as an appraiser's Opinion of Value. 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. and no unpaid claims against the property. combination of two or more properties into one. 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. 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. RevenueEmployeeSalariesandWagesTravelExpensesOtherExpensesFixedElementPerMonth$50,000$36,000VariableElementPerCustomerServed$5,000$1,100$600ActualTotalforMay$160,000$88,000$19,000$34,500. lender acquires property under foreclosure. stockholder owned corporation, chartered by congress to increase the supply of funds that mortgage lenders can make available to homeowners and multifamily investors. 3. the legal use that gives the greatest return in money or amenities. right of govt to take private land for public use. Let and take agreement the market in which borrowers and mortgage lenders come together to create and negotiate terms of a mortgage transaction. limits how much a payment can increase/ decrease. DUST; demand, utility, scarcity, transferability. The course provides students with an extensive foundational understanding of Real Estate terminology and professional obligations. It is would suggest that an owner should not "over improve" a property. Match the following terms to the correct definitions. most conveyances are voluntary. 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. tells NY desk to sell securities collecting payments from banks by reducing their reserve amounts. Champions School of Real Estate.docx - Course Hero reviews cover a checklist of items as they analyze the appraisal report. ___________ 3. A person, corporation or firm, not otherwise in banking, that provides its own funds for mortgage financing as opposed to savings and loan associations or commercial banks that use other people's money (depositors) to originate mortgage loans, Building a file that will be used to make an underwriting decision. Liquidity4. Theabilitytoearnenoughincometoattractandholdinvestmentcapitalg. the interest rate a Reserve Bank charges eligible financial institutions to borrow funds on a short-term basis. borrowers provide basic information like income, debt, and credit history. \end{array} Real Estate Principles 1 Flashcards & Quizzes | Brainscape 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. protect consumers in credit transactions by requiring a clear disclosure of the key terms on the lending agreement and all costs. borrowers rated a-f. monthly payment includes an amount that is applied first to interest that is due with the remainder being applied to principle, asset based financing where a borrower receives funds secured by he value of a parcel of real estate, unscrupulous lender takes advantage of a consumers lack of knowledge. Champions School of Real Estate is proud to be one of the most respected Real Estate schools in Texas! legal procedure where secured property is sold to pay unpaid note. & \text{$\quad$to spend capital in ways that are}\\ Whether you need Qualifying Education (QE) to start your career, Sales Agent Apprentice Education (SAE) to build your . type of insurance required when the LTV exceeds 80%. Items that affect the marketability or livability of the property certified commercial investment member (part of NAR). TILA (Truth in Lending), RESPA ( Real Estate Settlements Procedures Act), FCRA (Fair Credit Reporting Act, ECOA (Equal Credit Opportunity Act), A federal law passed to ensure that banks would serve the needs of the community in which they were chartered to do business and prohibits redlining. The market wherein loan originators, such as mortgage bankers and brokers, can sell their loans and thus, recover cash for originating more loans. The loss in desirability of the style, layout, or function of an element of a property over time. You can do it, we can help! Champions Principles of Real Estate 2 Flashcards | Quizlet At Champions School of Real Estate, our number one focus is your successful career in the Real Estate industry. 2.amount of any payment right of govt to exercise the right of eminent domain, govt acquires property for public satisfaction, occupation of land for statutory time, possesion is aquired from owner, any property weather real or personal that can be inherited, state in which a person dies leaving a valid wil, handwritten will, legal, easily contested. The Special Information Booklet and the Loan Estimate form, RESPA manages closings on ______federally-related financing, one-to-four family residential properties with, Survivorship rights of a policyholder's spouse, lists all cash that came into and all expenses incurred by a property during the reporting period, Any property, whether real or personal, that is capable of being inherited. Infer What might keep a State from accepting a categorical grant-in-aid? small investors to invest in larger commercial properties. & \text{$\quad$misleading financial statements}\\ Frequently asked questions 4. Accounting} & \text{a. 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 Cost does not equal value Principle of change Change is constant, and are always effecting value Principle of Anticipation 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. percentage of value or sales price that a lender is willing to finance. 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. ___________ 11. Earn or renew your Loan Originator license. If Market is flooded values will be flat. in depth process. The term Residential Mortgage Loan Originator is mandated by the ______ Act, Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act). The loan becomes due upon the sale of the property or the death of the owner. the absence of competition will cause prices to increase in the marketplace. value of a commodity is influenced by the cost of acquiring a substitute or a comparable item. a. Here is what they had to say! Operating activities} & \text{c. Activities of management engaged to}\\ 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. Real Estate Salesperson National Prep Exam 1.docx. lender has evaluated the borrower in the underwriting process. Identify what will happen to the equilibrium price and equilibrium quantity in each of the following: a. Improvements to site an appraiser's opinion of value, used to determine market value property to secure the loan, Percentage of value or sales price that a lender is willing to finance, an appraisal that simply reviews a checklist of items as they analyze the appraisal report for completeness and acceptable conclusions. October 3, 2015, It replaced the Good Faith Estimate, which has been in use since January of 2010. 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. Cost approach Analysis 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. Operatingactivities7. Highly recommended and I will continue to use Champions! Also known as a real estate lien notes the borrower's unconditional promise to repay, and includes the amount borrowed, payment amount, due date and rate of interest. less depreciation, plus land value. 16 pages. Texas Real Estate Education | Champions School 8. CFPB implemented. 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. 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 value of a property may be affected by social, economic, governmental and environmental influences. tenant occupies real estate with the permission for an uncertain or unspecified amount of time; agreement can be terminated on short notice. Champions School of Real Estate Principles 2 Test Review September 2018 Managerialaccounting9. 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. 3. 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. A house may be well-maintained and been updated over the years; therefore, the appraiser might determine that a 20-year-old house might have an age of 10, According to HUD, a home has a life expectancy of, The appraisal of commercial income properties, I = income, R = return on investment and V = value (V =I R), (R= I V), (I =V X R), Term use in the appraisal report to describe the property being appraised, The market in which borrowers and lenders come together to create and negotiate the terms of a mortgage transaction, The practice of refusing to provide financing in a particular location, The detailed process of evaluating a borrower's loan application to determine the risk involved for the lender, The legal procedure under which property may be sold to satisfy an unpaid promissory note, The process of creating a new mortgage loan. deffence against claims which have arisen suring grantor ownership. value is maximized when there is a reasonable degree of homogeneity in a neighborhood, principle of increasing and decreasing returns. only legal for personal property. b) What confidence level did the pollsters use? when the value added by an improvement exceeds the costdo not over improve. SUMMARYPreviousBalance$876.34Payments/Credits$800.00Transactions$1,009.56LateCharge$30.00FinanceCharge$29.67NewBalanceMinimumPayment$18.00. This ensures you quickly get to the core! & \text{$\quad$achieve its objectives}\\ a type of appraisal review. The process of producing accounting}\\ decreases over time, norm paid by buyer. ___________ 5. Theabilitytoearnenoughincometoattractandholdinvestmentcapitalg.