Conventional-loans that have no federal guarantees or insurance TMARR is administered by the Texas Department of State Health Services (DSHS), and sets rules and regulations for the inspection, assessment and remedia- tion of mold. These are the 4 rights of land. 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. Servicemen's Readjustment Act (GI Bill of Rights), Was signed into law by President Franklin D. Roosevelt on June 22, 1944. is comprehensive program provided returning World War II service men and women with many medical bene ts, educational bene ts and low-interest loans to help the veteran assimilate back into civilian life, A special form of insurance which is designed to allow lenders to increase LTV ratio. Comprehensive Environmental Response, Compensation, and Liability Act CERCLA. These are non conforming loans. generally 5-10% range with fees. 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). 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. ___________ 10. & \text{$\quad$productive and will help a business}\\ The loan becomes due upon the sale of the property or the death of the owner. the interest rate a Reserve Bank charges eligible financial institutions to borrow funds on a short-term basis. 16 pages. From the moment you start your education with Champions, we become an extension of your team by serving as a dedicated resource and providing you with the educational tools you will need to succeed in your new found career! Downpayment is the difference between the _____ and the _____. purchase title insurance either by grantor or grantee. 1. 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). The loss in desirability of the style, layout, or function of an element of a property over time. 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. Take your license further with a Designation or Certification. this is the best indicator. used to clear up cloud on title, no protection, no ownership claimed by grantor. (1) The Sales Comparison Approach Sketch of floor plan 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 process of producing accounting}\\ borrowers provide basic information like income, debt, and credit history. 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. Wrongful or criminal deception intended to result in financial or personal gain is called: fraud 3. 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. Minimum withdrawal in Texas on HELOC (Home Equity Line of Credit). person received notice of document or event even though actual notice was not delivered directly to him or her. Texas Principles 2 Q & A - Champions School of Real Estate 1. 21 pages. Loss of value of a building from its reproduction cost, resulting from wear and tear over time. ese are non-conforming loans. payment plan allows a borrower to pay only the interest for a specified number of years, typically for 3 to 10 years, making it possible for a borrower to have smaller monthly payments for a period of time, Contributions to buyer's closing cost that are limited to 6% of the sales price, USDA Rural Development Guaranteed Housing Loan program, Insured by the U.S. Department of Agriculture. \text{8. We feel that we provide an unparalleled Real Estate education in Texas and our students agree! some lenders accept this drive-by type of review for low LTV or low risk loans. Operating income and expense statements & \text{$\quad$misleading financial statements}\\ transferring funds to a title co for disbursement when loan is approved. & \text{$\quad$operate the business}\\ 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. used when a notable number of rental properties are in the area, applies only to income-generating rental property, 1. Escheat, right of government to regulate and control land. There is no membership needed. Real estate prices in Germany remain the same, although overall sales are declining. when an individual acquires title from the rightful owner through hostile, actual, and continuous occupation of the land for the statutory period. 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. 6. Managerialaccountingandcontinuingtooperateabusiness9. Activities of management engaged to}\\ it gives notice of moving in, the passive increase of the value of a parcel due to market forces. when the value added by an improvement exceeds the costdo not over improve. 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. His opportunity cost is 7 percent. The presence of lower-priced properties in the area will cause a decline in the value of the subject property. 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. prohibits redlining. The money that mortgage companies use to make loans comes from the sale of __________. Photographs of property 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. Havingenoughcashavailabletopaydebtswhentheyareduec. It is would suggest that an owner should not "over improve" a property. RESPA (Real Estate Settlement Procedures Act), implements Consumer Federal Protection Bureau, 1968 Passed by congress to protect consumers from fraud in the sale or lease of land, something of value. right of govt to take private land for public use. value of a commodity is influenced by the cost of acquiring a substitute or a comparable item. someone who processes, underwrites, closes and funds his or her own files in his or her name. 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. & \text{$\quad$processes, and communicates financial}\\ Photographs of comparables Real Estate Principles #1 - Kevin Ward Real Estate Academy Kevin Ward Real Estate Academy Streamed 9 years ago Watch This Before You Spend $1000 Bucks ! transfer of ownership against the will of owner. This ensures you quickly get to the core! Passed by Congress in 1980. & \text{e. Activities of management engaged}\\ 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. real estate investment trust; created by Congress in 1960, real estate mortgage investment conduits. 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. 5. permits additional borrowing on the same note and mortgage, owner retains title of property while purchaser takes possession while paying principle. when unscrupulous lenders take advantage of a consumer's lack of knowledge regarding lending practices. Developers are required to provide each purchaser with a disclosure document (Property Report). It's simple! The action of government seizure of land for the good of the public. The grantor promises to warrant and defend title, but only against claims which may have arisen during his or her period of ownership. person, corporation or firm, not in banking, that provides its own funds for mortgage financing. Copy of most recent property survey Mr. Manning, a former neighbor of Margaret's, claims that he and Margaret were "common law" married, and that it had been Margaret's dying wish to leave the house and all of its contents to him. authority to clean up sites contaminated with hazardous substances, pollutants or contaminants, record the deed (sign it), then moving in. Activitiesofmanagementengagedtoobtainadequatefundsforbeginningandcontinuingtooperateabusinessd. Achieve success through Business Etiquette. Champions In Real Estate offer real estate for sale in Kanimbla , Earlville , Mooroobool and surrounding areas. The TREC residential contract forms are: Drafted by the Broker Lawyer Committee 2. forces acting on the parcel of land are always affecting the value of the land. A rookie quarterback is negotiating his first NFL contract. & \text{f. The ability to earn enough income to}\\ & \text{$\quad$to spend capital in ways that are}\\ state law requires law, real estate contracts and leases over a year to be in writing. Activitiesofmanagementengagedtooperatethebusinessj. flexible and short u shaped duct that connects a room to a common space as pressure balancing mechanism. Demand rises and supply is constant. The battery life drops to 7 hours when the phone is primarily used for Internet applications over cellular. document that pledges the property as security for repayment of the note. They prepare you for life as a Realtor. the value if the property is equal to the sum if the contributory value of each of its component parts. The amount of money available for the purchase of goods and services. |---|---| underwriter approval. \text{2. Principle of Increasing/or decreasing returns. Consists of 79 local affiliates, 16,000 member companies and organizations, and more than 162,000 LEED Professional Credential holders. 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. help meet the credit needs of ALL the community. Flood maps The term Residential Mortgage Loan Originator is mandated by the ______ Act, Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act). helpful info about the cost pr mortgage settlement charges caused by abusive practices. TMARR requires that all persons who conduct assessment and remediation of mold be properly trained and licensed by the state. 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. percentage of value or sales price that a lender is willing to finance. Providing Top Quality Real Estate License Education in Texas for Over 30 Years! a. residential property is depreciated over how many years? Acodeofconductthataddresseswhetheractionsarerightorwrong. permanent and absolute tenure of an estate in land w freedom to dispose at will. Earn or renew your Home Inspector license. 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{5. grantee gives to the grantor, most common, best type of deed to have. a deed is considered to be delivered and accepted when it is delivered into escrow. Frequently asked questions 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. (2) The Cost Approach, & \text{$\quad$economic entity}\\ Equal Credit Opportunity Act; passed in 1974, ensures equal chance for credit. provides the consumer with assistance securing hard to place or niche sources f mortgage money. The role money serves when used as a way to hold value relatively well over time. & \text{$\quad$makers outside the organization}\\ part of income approach, used if there are a lot of rental properties in the area. Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. Comprehensive Environmental Response, compensation, and Liability Act. The measure of the money supply that includes M1 along with forms of money that are less easily converted to cash. set by state of texas dept of insurance, based on properties value using sliding scale. 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. 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. FERA also increases the statute of limitations for mortgage fraud from 5 years to 10 years. 3. in depth process. quiz 14.docx. 3. number of payments or period of repayment 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. ___________ 4. The Loan Estimate form combines elements of the Good Faith Estimate and the initial Truth In Lending disclosure into one. + result to numerator The role money serves when it is used as a standard measure to set prices and make economic calculations. Terms of each contract are as follows: As his adviser, which contract would you recommend that he accept? Rental survey something of value given in exchange for a conveyance. 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. For more than a decade, the German real estate market was in a dramatic growth phase. decreases over time, norm paid by buyer. Collateral Dependent Loans (hard money loan), borrower receives funds secured by the value of a parcel of real-estate. Champions makes sure you are ready to take your State and National exam. The absence of competition will cause prices to increase in the marketplace. Refers to the loss in desirability of the style, layout or function of an element of a property over time, best indicator of value for existing properties, the legal use for property that gives the greatest return in money and/or amenities, the loss in value of a property caused by factors outside the property itself, suggests the value of a property is equal to the sum of the contributory value of each of its components. Learning the principles and laws of real estate is Champions focus. ___________ 3. CERCLA-passed in 1980.was designed to clean up sites contaminated with hazardous substances, pollutants or contaminants. If the property cannot be transferred, it is of little value. licensing classes champions school, 60 hour classroom principles and practice of real estate, free real estate flashcards studystack, real estate license school allied schools, real estate broker wikipedia, florida real estate 63 hour sales associate pre license, california real estate school earn your ca real estate, reference book a real . Get your Real Estate License Education on a Mobile Web App. 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. Champions School of Real Estate offers salesperson and broker pre-licensing courses and exam prep for salespeople and brokers in Texas. 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. Investingactivitiesdebtswhentheyaredue6. Appraiser's estimate of the age of the property based on its ongoing maintenance and upgrades. A minus to F-rated borrowers will pay 1 to 5 % higher than those with good credit. protect consumers in credit transactions by requiring a clear disclosure of the key terms on the lending agreement and all costs. 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. ___________ 8. Liquiditycompanysmanagement4. Neighborhood description small investors to invest in larger commercial properties. Havingenoughcashavailabletopay5. Taxation 9. background information about the appraiser Choosing a Real Estate School is the first step to an exciting and eventful career in the Real Estate industry! 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. Included in the de nition is the energy required to acquire the materials, the manufacturing, ship- ping, distribution and ultimate disposal of the product. any property, whether real or personal, which is capable of being inherited. Economic obsolescence no guarantee for approval, property must fit criteria . The reduction in value of property from causes such as deterioration or obsolescence. consumers are given equal chance to obtain credit. Aninformationsystemthatmeasures,processes,andcommunicatesfinancialinformationaboutanidentifiableeconomicentityh. & \text{$\quad$attract and hold investment capital}\\ value is maximized when there is a reasonable degree of homogeneity or sameness in a neighborhood. ___________ 6. charge for paying all or part of principal before due, paid to loan originator for originating and extending credit, items provided by persons other than the mortgage originator or creditor that you cannot shop for and will pay for at settlement (fees), provided by persons other than creditor, services you can shop for, paid at settlement, sum of sub totals of origination charges, services you can and cant shop for, land and title documents assessed by govt authority.