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133 Cards in this Set
- Front
- Back
- 3rd side (hint)
What is equity? |
The value minus the debit |
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Market price actual sales |
Used to detrimental Price of the property |
(Appraisal process) |
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The income approach |
Used to estimate value of commercial units |
(Appraisal process) |
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Sales comparison approach |
Estimate value of residential units |
(Appraisal process) |
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Cost approach |
Unique properties |
(Appraisal process) |
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GRM (Gross rent mutiplier) |
Used to determine the value of residential properties |
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How many principle values are there to the appraisal process? |
4 |
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Contribution |
Is the principal used to determine cost of improvements |
(PRINCPLE VALUES) |
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Highest and best use |
Is used to determine the best use over time |
(PRINCPLE VALUES) |
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Supply and demand |
Used to determine if market has too much stock or not enough and how it impacts pricing |
(PRINCPLE VALUES) |
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Conformity |
Applies to the properties surrounding the subject |
(PRINCPLE VALUES) |
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P.I.T.T |
Possession, Intrest, Title, TIme |
Types of ownership |
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O.L.D.C.A.R |
Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care and skill |
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PTM? |
The agent must keep price terms and motivation confidential |
Oldcar |
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Types of agency |
Special agency authorized to preform a particular act without the principle, General agency authorized to preform a series of acts associated with a continued operation of a business, Universal agency authorized to preform in place of principle. |
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What are the three different types of listings? |
Exclusive right to sell ( broker gets paid regardless), Exclusive agency (Owner can sell on his own without paying commission), Open listing ( Owner listing with more than nine brokerage) |
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Express can be what? |
Oral or written |
Contracts |
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Implied contract is? |
By actions not in writing |
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What are the reasons for a voidable contract? |
The party is a minor, subject to duress, fraud, and misrepresentation |
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Lender= |
Mortgagee |
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Unilateral |
Promise exchanged for a promise |
Contracts |
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Bilateral |
Promise exchanged for promise |
Contract |
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Executory period |
One or both parties need to complete the contract duties |
Contracts |
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Executed |
Duties are completed per contract |
Contracts |
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Addenda |
Additional material attached to and made part of the initial agreement |
Contracts |
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What are the five essential elements of a valid contract? |
Competent parties, Mutual agreement, Lawful objective, Consideration, In writing and signed |
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Statute of frauds? |
Enforces contracts in real estate be In writing |
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Statute of limitations ? |
Sets the length of time parties will be given to file claim |
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The types of real estate contracts? |
Purchase agreement, Option, and Lease purchase |
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Rwmidies for breach of contract l? |
Mutual Rescission (mutual agreement to cancel all obligations), Remedies for default (Enfore specific performance (court action to force breaching party to preform), Terminate the contract and recieve earnest money as liquidated damages,Sue for actual damages |
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F.R.e.S.H.C.o.R.N? |
Family status, Race, Handicap, Color, Religion, National origin |
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Not protected under federal law? |
Age, Sexual orientation, Martial status, Occupation |
Fair housing acts |
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Steering? |
The channeling of potential buyers to and from a certain area because of discrimination |
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Blockbusting? |
Inducing people to sell thier homes due to entry of a protected class in that neighborhood |
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Redlining? |
Refusing to offer or limiting loans in certain areas, may not refuse for high crime rates in area. |
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Who receives complaints about discrimination? |
HUD |
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Americans with disabilities act? |
Ensures equal access to public accommodations for disabled persons |
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Equal credit opportunity act? |
Prohibits discrimination in all consumer credit transactions. |
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Megan's law? |
Requires registration of sex offenders |
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The three financing instruments? |
Promissory note, Mortgage and deed of trust ,Satisfaction (mortgage note paid) |
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Acceleration clause? |
Speeds up the note when borrower is in default |
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Foreclosure laws are implemented state or national? |
State |
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Deed in lieu? |
Alternative to foreclosure, Lender does not have to accept, Disavantage to lender |
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Insufficient proceeds from foreclosure sale? |
Deficiency or personal judgement |
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Short sale? |
When sellers nen is default prior to foreclosure, property for sale often at lower price, lender may agree to except |
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Straight loan |
Intrest only, small monthly payment, full amount (balloon )due at the end |
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Partially amortized loan? |
Repaint nfb in equal payments of bvn principle and interest, has balloon payment at the end but smaller |
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Fully amortized loan? |
Repaid in equal payments of principal and interest with the balance paid in full, payments are larger, interest paid in arrears. |
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Adjustable rate mortgage? |
Rate subject to change in an economic index |
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Budget debt service |
Borrower pays p&I plus half taxes and one half insurance into the lenders impound escrow account |
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Reverse mortgage? |
Mortgagee pays Mortgagor over a specific term.Used to obtain equity in a home when a senior does not want to sell but needs cash. |
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Line of credit? |
Allows borrower to obtain further advances at a later date. |
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Subprime loans? |
Borrower is at a higher risk and more likely to default |
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The two seller financing options? |
Contract for deed ,Seller carry loan |
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Loan to value LTV? |
Maximum percentage of value lender will loan,used to determine loan amount and if private loan insurance is needed, based on price or appraisal whatever is less |
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Discount points? |
Charged by lender to increase lenders yield |
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Loan origination fee? |
Is a free charged by lender to process and issue loan |
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Leverage? |
Borrowed money used to increase investment return |
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Subordination? |
It's a clause that allows a change in the order or mortgages |
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Usury? |
Chargung interest in excess of what is permitted by state law. |
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FHA? Federal housing Administration |
Insures lenders against loss due to foreclosure |
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V.A. Department of Veterans affairs |
Guarantees lenders against loss on loans to veterans |
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Primary mortgage market |
Mortgage bankers and mortgage brokers |
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Predatory lending |
Umbrella term for unfair or nen illegal lending practices |
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Secondary mortgage market? |
Buys mortgages from primary lenders which are banks |
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APR? |
Rate that includes the note rate plus the total cost of credit |
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Truth in lending act? |
Promotes the informed use of consumer credit by requiring disclosures about its terms and cost |
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What triggers full disclosure? |
Down payment, interest rate, monthly payments, or number of payments |
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What does RESPA represent? |
Disclosure of all closing costs within 3 days |
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Can Real estate professionals charge for a CMA? |
Yes but must make sure it's not mistaken for appraisal |
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Market price? |
Actual price paid in a transaction |
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Appurtenances ? |
Including rights, privileges, and fixtures |
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Metes and bounds? |
Starts and ends at a point of beginning |
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Rectangular survey? |
Tiers, ranges, land parcels, townships |
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Acre = how many square feet? |
43,560 square feet |
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How many acres in one section? |
640 or one mile by one mile |
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Recorded plat? |
Lot,block, subdivision |
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D.U.S.T? |
Demand, Utility, Scarcity, Transferablility |
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Freehold estate? |
Forever duration of ownership. Lasts forever, maximum rights of ownership |
Type of ownership |
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Leasehold estates? |
Has a definite duration and may be terminated |
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Estate/ tenancy for years? |
Has predeterminated termination date |
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Periodic estate/tenancy? |
Renews from poeriod to period such as month to month. |
Type of ownership |
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Estate/tenancy at will? |
Continues until terminated by owner or tenant. |
Type of ownership |
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Estate/tenancy of sufferance? |
Occurs when a holdover tenant stays beyond termination without consent.(If landlord accepts payment becomes periodic tenancy ) |
Type of ownership |
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Easement? |
Right to use land |
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Encroachment? |
Unauthorized use of someone else's land. |
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General partnership? |
All partners share equal profits and liablity |
Owners in severalty |
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Limited Partnership? |
Only responsible for the amount of investment. Liablity equals the amount invested. |
Owners in severalty |
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Tenants in common? |
Co ownership no right of survivorship |
Multiple ownership |
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Joint tenants? |
Co ownership with right of survivorship, no probate,overrides a will, |
Multiple ownership |
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Tenancy by the entirety? |
Applies to married couples in some states |
Multiple ownership |
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Cooperatives? |
Ownership of the building by a corporation. Shares of stock |
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Police power? |
Enforces laws governing land use.(zoning, building codes, planning and safety codes) |
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Eminent domain? |
The right to take private land for public use. |
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Ad valotem? |
Taxes are based on assessed value, not on current market value. |
Government rights |
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Special assessments? |
Lien against specific properties that benefit from public improvements |
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Escheat? |
Properties with no heirs may revert back to government |
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Master plan used to: |
Control growth |
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Nonconforming use? |
Allows owner to continue present use that no longer complies with current zoning. |
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Variance? |
Allows owner to vary from building codes or build into a setback tonorevent economic hardship. |
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Lead based paint before date? |
January 1,1978 |
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Riparian rights? |
Ownership of land abutting water that is flowing. |
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Littoral rights? |
Ownership of land abutting water that is not flowing |
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Gross lease/fixed lease? |
Pays fixed rent, landlord pays all expenses. |
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Net lease? |
Fixed rent plus expenses |
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Percentage lease? |
Pays percentage of income as rent. |
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Index lease? |
Rent is adjusted based on economic index |
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Sale-leaseback? |
Coverts equity to capital without giving up possession |
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Warranty deed/General warranty deed? |
Five covenants and guarantee of title |
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Limited (special) warranty deed? |
Warrants only those defects and encumbrances during grantors ownership |
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Quitclaim deed? |
Used as problem solver to terminate deed restrictions |
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Bargain and sale deed? |
Contains only implied warranties that the grantor hold title and possession of the property |
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Adverse possession? |
Ownership granted by the courts due to open, continuous, actual, notorious, and exclusive possession of another's land for minimum statutory period |
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Easement by prescription? |
An easement prescribed by the court for open, continuous, acual,and notorious use |
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Abstract of title? |
Historical summary of all conveyances and encumbrances against property |
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Quiet title action? |
Used to clear problems found in the abstract or title report |
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Items that are deductible. P.O.I.T? |
Points, origination, interest, and taxes |
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Residential income property depreciates.. |
27 1/2 year period |
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Commercial property depreciates... |
39 years |
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Straight line depreciation? |
Requires that an asset must be depreciated by equal amounts each year over it's useful life. |
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Voluntary Alienation |
The legal term for the transfer of title during the owners lifetime. |
Transfer of title |
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How many reuwirmenta are there for a valid deed? |
9 |
Transfer of title |
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Special warranty deed? |
Warranty that that the grantor recieved title, the property was not encumbered during the time the grantor held title |
Transfer of title |
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Deed of trust? |
Conveyance from trustor to trustee |
Transfer of title |
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Reconveyance deed? |
Conveyance from trustee back to trustor |
Transfer of title |
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Trustee's deed? |
Conveyance from trustee to third party |
Transfer of title |
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Testate? |
Has a prepared will |
Transfer of title |
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Intestate |
No will |
Transfer of title |
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Devise? |
The gift of real property by will. |
Transfer of title |
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The five bundle of rights? |
Right of posession, right to control the property, right of enjoyment, right of exclusion, right of disposition |
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Fee simple/fee absolute |
Highest interest in real estate recognized by law |
Interests in real estate |
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Fee simple defeasible |
Is interest that can be reverted to owner if a occurence or non-occurance of some specified event. |
Interests in real estate |
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Annexation |
Process of converting personal property to real property |
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