Investingactivities6. 4. local maps, indicating location of subject and comparables \text{5. & \text{g. An information system that measures,}\\ Champions School provides the education needed to become a licensed Real Estate Agent, Broker, Loan Originator, Home Inspector, or Appraiser. transaction, GMI x 28% =(House Payment as % of income), GMI x 36% =( Sum of regular debt plus house payment). most conveyances are voluntary. 6. any condition that affects the health or safety of an occupant, Licensed Appraiser someone who processes, underwrites, closes and funds his or her own files in his or her name. Photographs of property Passed by Congress in 1968. Married limit is 500k. She has one son, Tyler, who lives in Maine. 5. & \text{$\quad$whether actions are right or wrong}\\ Formerly known as the Federal National Mortgage Association (FNMA), Fannie Mae is the largest investor in home mortgages today. transferring real estate to the state when a person dies without heirs. Developers are required to provide each purchaser with a disclosure document (Property Report). Property and lender information 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. Money that has value because the government has ordered that it be accepted in payment of debts. We are equipped to help anyone who is seeking an exceptional Real Estate education regardless of schedule or location. Began in 1938 federal agency. tenancy of will Equal Credit Opportunity Act; passed in 1974, ensures equal chance for credit. 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. legal. 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. & \text{$\quad$achieve its objectives}\\ 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. value is maximized when there is a reasonable degree of homogeneity or sameness in a neighborhood. certified commercial investment member (part of NAR). 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. 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. The loss in a property's value due to daily wear and tear. Acodeofconductthataddresseswhetheractionsarerightorwrong. Payments are guaranteed, and they would be made at the end of each year. The presence of lower-priced properties in the area will cause a decline in the value of the subject property. maximized value when homogeneity in neighborhood, principle of increasing and decreasing returns. very likely to be contested. Principal of contribution the value of a property is equal to the sum of the contributory value of each of its component parts. 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. \text{7. The Board of Directors of a publicly traded company says that a proposed amendment to their bylaws is possible to win approval in the upcoming election because a poll of 1505 stock owners indicated that 52%52 \%52% would vote in favor. ___________ 10. authority to clean up sites contaminated with hazardous substances, pollutants or contaminants, record the deed (sign it), then moving in. Show the possibility density function for battery life for the Droid Razr Maxx phone when its primary use is talk time. very vulnerable to being contested. Exam-Federal 1-A2. estimate of value based on current construction costs. 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. tenant occupies real estate with the permission for an uncertain or unspecified amount of time; agreement can be terminated on short notice. person designated to execute the terms of a will. Includes deeds, foreclosures, liens, wills, marriage,s, deaths, life estates, fee simple estates and everything else. Texas Principles 2 Q & A - Champions School of Real Estate 1. Terms of each contract are as follows: As his adviser, which contract would you recommend that he accept? lender has evaluated the borrower in the underwriting process. The document that pledges the property as security for repayment of the note, is recorded in the county in which the property is located. many lenders, especially high LTV loans, will order a field review of the appraisal. &\textbf{Per Month}&\textbf{Per Customer Served}&\textbf{for May}\\ Profitabilityinformationfortheinternaluseofa3. Increased competition will bring prices down. Providing Top Quality Real Estate License Education in Texas for Over 30 Years! The value of a property may be affected by social, economic, governmental and environmental influences. 7. We make it easy and convenient! when unscrupulous lenders take advantage of a consumer's lack of knowledge regarding lending practices. At Champions School of Real Estate, our number one focus is your successful career in the Real Estate industry. maintained by HUD, Dodd Frank Wall Street reform (consumer protection act, promote financial stability of the U.S by improving accountability and transparency, CFPB (consumer financial protection bureau), consumer protection for mortgage related business, non financial comp, banks, and credit unions of +$10 billion enacted by Congress in 1977 revised 1995, Passed 1974 ensures that all consumers are given an equal chance to obtain credit, U.S. federal law designed to protect consumers in credit transactions by requiring clear disclosure of key terms of the lending arrangement and all costs. The government's right to tax real estate. usually have a initial cap that is higher than the adjustment cap. Ethicsd. 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. a limit on the amount the interest rate can increase or decrease at each adjustment date. insures most protection, any changes to the ownership of real property. Gross Rent Multiplier. purchase title insurance either by grantor or grantee. a type of appraisal review. 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. Ethics} & \text{d. The process of generating and communicating}\\ 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. addition or amendment to an existing will. Quick and easy check-out You can quickly pay through credit card or Stuvia-credit for the summaries. 5. 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. transfer of ownership against the will of the owner. Money that has no value of its own but can be exchanged for something of value. Create flashcards for FREE and quiz yourself with an interactive flipper. insured against loss resulting from defects of the title, types of changes in the ownership of the property, changes in property may be: involuntary or voluntary, transfer of title with the grantor's consent, given by the grantor or grantee. It basically insures the difference between the borrower's down payment and LTV. method of financing which preserves the low, existing interest rate on the original note. protection up to purchase price, norm paid by seller (buyers benefit). a mortgage is an actual transfer of ownership from the borrower to the lender. | Life | Annual Rate | purchase price is affected by the expectation of of future appeal and benefits. If the property cannot be transferred, it is of little value. Adequate consideration value set on the property for tax purposes. We feel that we provide an unparalleled Real Estate education in Texas and our students agree! 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. exterior only/drive by inspection. permanent and absolute tenure of an estate in land w freedom to dispose at will. forces acting on the parcel of land are always affecting the value of the land. How might the common expression "daddy's girl" be rooted in the idea of the Electra complex? subsequent to adjustment, limits how much a payment can increase or decrease. & \text{e. Activities of management engaged}\\ This type of deed most often used to clear up a cloud on the title and also used to grant an easement. 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) The U.S. 2. major functional obsolescence |---|---| respa applicable. insures the difference, Police Power Site description \text{Revenue}&&\$5,000&\$160,000\\ property owner obtains a certificate much like an automobile that is recorded in the public records. Theprocessofgeneratingandcommunicating10. b) What confidence level did the pollsters use? 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. Ethics10. 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 purchases "pools" or mortgages. Learning the principles and laws of real estate is Champions focus. limits how much a payment can increase/ decrease. 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. Financialaccounting8. Photographs of comparables The exchange of goods or services for other goods or services without the use of money. ___________ 14. Havingenoughcashavailabletopay5. Theintentionalpreparationofmisleadingfinancialstatementsi. a deed is considered to be delivered and accepted when it is delivered into escrow. Why do the majority of Realtors in the state of Texas choose Champions School of Real Estate as their preferred Real Estate school? 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. loss in a property's value due to daily wear and tear. oral/ deathbed will. Wrongful or criminal deception intended to result in financial or personal gain is called: fraud 3. Fraudulentfinancialreportinga. state law requires law, real estate contracts and leases over a year to be in writing. 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} Unlimited number of times. improve but don't over improve; improve property when the value added by the improvement exceeds the cost of the improvement. borrowers provide basic information like income, debt, and credit history. ARMS that offer fixed rate period during 1st years of the loan. Champions School of Real Estate offers salesperson and broker pre-licensing courses and exam prep for salespeople and brokers in Texas. The TREC residential contract forms are: Drafted by the Broker Lawyer Committee 2. & \text{f. The ability to earn enough income to}\\ The course provides students with an extensive foundational understanding of Real Estate terminology and professional obligations. Buildings are not typical of the area The percentage of value or sales price that a lender is willing to finance. 10. 4. amount of any finance charge. The Loan Estimate form combines elements of the Good Faith Estimate and the initial Truth In Lending disclosure into one. He has been offered three possible 4-year contracts. Operatingactivities7. for tax purposes- determined by tax authority- not reliable estimate of market value, sales comparison approach "market data approach", compares subject property charectoristcs with those of comparable properties which have recently sold. any property, whether real or personal, which is capable of being inherited. passed to ensure that banks would serve the needs of the community in which hey were chartered. initial truth in lending disclosure. I'd like more of the education to be centered around how to set up you Real Estate business after you get your license. \text{8. tenant pays rent, plus taxes utlities ect. The percentage of value or sales price that a lender is willing to finance. deffence against claims which have arisen suring grantor ownership. Copy of most recent property survey \text{Employee Salaries and Wages}&\$50,000&\$1,100&\$88,000\\ The Property Report contains information about the subdivision and is required to be delivered to a purchaser before the signing of a purchase agreement. Sales Price monthly rent, the process of estimating the value of an income-producing property by capitalization of the annual net income expected to be produced by the property during its remaining useful life, an estimate of value based on current construction costs, less depreciation, plus land value, estimate of value by examining and comparing actual sales of comparable properties, part of income capitalization. federal law passed in 1974. doesn't include: gender or immigration status. 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. 9. minimum 100 investors. Investingactivitiesdebtswhentheyaredue6. Match the following terms to the correct definitions. lender acquires property under foreclosure. promotes energy efficient products and buildings. the consummation of a real estate transaction in which all documents are signed and the proceeds of the mortgage loan are distributed. What does r2r^2r2 determine about the statistical significance of a relationship between a dependent and an independent variable? any change in the ownership of relationship property. sets monetary policy. Identify the term that best fits the following description - to force out or push out. Taxation Here is what they had to say! What is the probability that Bob receives no tweets during his lunch hour? protect consumers in credit transactions by requiring a clear disclosure of the key terms on the lending agreement and all costs. Champions School of Real Estate is proud to be one of the most respected Real Estate schools in Texas! They prepare you for life as a Realtor. The staff at Champions School is top notch! The material (soil) that is deposited through the process of accretion that is the result of avulsion, erosion and reliction. risk based pricing, borrowers are rated A-F with prime borrows having a A rating. 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. the value of a property is equal to the sum of the contributory value of each of its component parts. 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. 16 pages. The measure of the money supply that includes M1 along with forms of money that are less easily converted to cash. cannot exceed 36% of the borrowers income, conventional loans that conform to fannie mae and freddie mac standards for purchase. The process of transferring funds to a title or escrow company for disbursement. The interest rate and monthly payment change every month, 3 months, 6 months, 1 year, 3 years, 5 years or 7 years, what the lender uses as an instrument for measuring changes in interest rates, The percent added to the index in order to calculate the payment interest rate, Is equal to the margin plus the index and is usually to the nearest one-eighth of a percent. Profitability3. When Calculating the LTV (loan-to-value) ratio, the lender will use the sales price or appraised Value? 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. (needed when LTV is over 80%), Housing Assistance Program for veterans, The program is administered by the State of Texas, and is not related to the federal Department of Veterans Affairs (VA) program, A building certiFcation program for properties that are "green", Servicing a property and its equipment in order to prevent mechanical failure and keep property values high, 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, Tite is conveyed when the deed is signed and, transfer of ownership against the will of the owner, Any change in the ownership of real property, foreclosure, bankruptcy, condemnation proceedings, adverse possession, intestate succession, and escheat. 3. ( Champions School Of. The USPS has a monopoly on every type of mail or package. the legal use that gives the greatest return in money or amenities. 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. ie. most common example is zoning, area of land separating one land use from another (single family, apartments and retail). the percentage of value or sales price that a lender is willing to finance. ___________ 4. responsible for: only legal for personal property. 40 pages. Managerial accounting} & \text{$\quad$and continuing to operate a business}\\ January 1, 2005, launching its Mold Mission Program. used to clear up cloud on title, no protection, no ownership claimed by grantor. exists for the purchase and sale of existing mortgages to investors, provides a steady supply of funds to keep making loans, began in 1938. largest investors in home mortgages in the secondary market, began in 1970. purchases mortgages in the secondary market, buyers set more realistic pricing goals, better understanding of ability to pay, avoid showing property buyers cant afford, seller reassured buyer has sufficient income and credit to close the deal (is the best), % of the lesser appraised value or sale that the lender will lend, Found in conventional loans. added to the index to calculate interest rates, teaser rate- lower rate offered initially. Dodd-Frank Wall Street Reform and Consumer Protection Act of _______. Aninformationsystemthatmeasures,processes,andcommunicatesfinancialinformationaboutanidentifiableeconomicentityh. 6. 3. tenancy of sufferance Financial accounting} & \text{$\quad$obtain adequate funds for beginning}\\ Identify and explain the structures of language. & \text{h. The intentional preparation of}\\ (1) The Sales Comparison Approach issued in the amount of the loan. 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. 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. 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. negotiated between landlord and manager. 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. Title remains with the lender until loan is repaid. Champions makes sure you are ready to take your State and National exam. It's simple! Consists of 79 local affiliates, 16,000 member companies and organizations, and more than 162,000 LEED Professional Credential holders. Conventional-loans that have no federal guarantees or insurance Texas State Portion Real Estate Exam part 2.docx. prohibits redlining. (3) The Income Approach. 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. small investors to invest in larger commercial properties. Flood maps rate doesn't change between offer and closing. 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 less depreciation, plus land value. (Zoning example). the absence of competition will cause prices to increase in the marketplace. 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. offers the consumer an interest rate that is fixed for an initial period of time, then readjusts over the remainder of the life of the loan. The sum of the energy used during the life cycle of a product. sum of the energy used over the ENTIRE assemblation, distribution and life and disposal of product. seller is willing to take part or all of equity in the form of a note. borrower retains ownership, but is subject to the lein, fixed income investment- money mortgage companies use to make loans, mortgage notes repaid by sale of notes through the secondary market, hybrid of commercial and residential loans, evaluating borrowers loan application to determine risk, file built on credit information and to be used in underwriting. 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. (Most reliable), Reduction in value from deterioration or obsolescence. 4. The loss in desirability of the style, layout, or function of an element of a property over time. a type of appraisal review. this is the best indicator. Bank owns it now. 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. Title remains with the lender until the loan is repaid. Certified Residential Appraiser PPossible polluter who may be held liable under CERCLA for the contamination of a property or resource, Texas Mold Assessment and Remediation Rules (TMARR). The evidence an individual has of his or her right to possess land. limited appraisal report examining of the public records and constructed a chain of title and an abstract of title. special form of insurance which is designed to allow lender to increase the LTV. part of income approach, used if there are a lot of rental properties in the area. ", Texas Department of Savings and Mortgage Lending, Texas Appraiser Licensing and Certification Board. 4. help meet the credit needs of ALL the community. For an application to be considered "complete" the lender must have all of the following (Property Address, Estimated Value, Name of the borrower, SSN, Income, Loan Amount), the central banking system of the United States, Sets the Fed's monetary policy, which is carried out through the Trading Desk of the Federal Reserve Bank of New York, the interest rate a Reserve Bank charges eligible financial institutions to borrow funds on a short-term basis, The standard loan application in use is the Uniform Residential Loan Application, Fraud Enforcement and Recovery Act (FERA).