60 flash cards

Question 1

certified commercial investment member
(CCIM )

Answer 1

A CHALLENGING PROGRAM FOR COMMERCE AS “gold standard”

Question 2

real estate investment syndicates

Answer 2

when two or more parties join together to create and operate a real estate investment, it is called a syndicate.

syndicates may be organized as a limited or general partnership or corporation

Question 3

1 mile

Answer 3

5,280 feet

Question 4

loan pre- qualification / pre-approval

Answer 4

• Buyers must be realistic with pricing
• buyer agent has an understanding of the buyers’ ability to pay
• the agent can void showing properties the buyer cannot afford
• seller is somewhat reassured that the buyer has income and credit to close the transaction

Question 5

constructive notice

Answer 5

when a deed enters it into the public records and gives constructive notice to the world that that ownership has been transferred

Question 6

quitclaim deed

Answer 6

is one with no guarantees, warranties, or covenants. grantor does not even claim to own the property

Question 7

blanket mortgage

Answer 7

covers more than one piece of property. a builder may buy more than one lot in a new subdivision; he will do so with one loan

this type of loan might contain a release clause.

Question 8

loan to value

Answer 8

the percentage of value or sales price that a lender is willing to finance

Question 9

gross rent multiplies

Answer 9

GRM = sales price / monthly rent

Question 10

outgoing cash includes the payment of the operating cost of the property, such as

Answer 10

re- paint

Question 11

loan estimate
(LE)

Answer 11

MUST BE PROVIDED NO LATER THAN 3 BUSINESS DAYS AFTER RECEIPT OF WRITTEN APPLICATION

Question 12

3 approaches to value

Answer 12

• sales comparison approach
• cost approach
• income approach
  sales , cost, income

Question 13

two forms of REIT

Answer 13

equity and mortgage

Question 14

principle of regression/progression

Answer 14

the opposite occurs according to the principle of progression, which states that the value of the subject property is increased by the value of surrounding areas.

progression ⬆️ regression ⬇️

Question 15

cost approach

Answer 15

• depreciation
• physical deterioration
• functional obsolescence
• external obsolescence

Question 16

appreciation

Answer 16

is the “ passive” increase in the value of a parcel due to market forces

Question 17

police power

Answer 17

is the right of the government to regulate and control the way land is used. the most common example of police power is [zoning]

Question 18

appraisal

Answer 18

appraise’s opinion of value

Question 19

license act

Answer 19

a broker is required to advise a sponsored sales agent of the scope of the sales agent’s authorized activities under the licensing act sponsoring broker is required to create competency standards

Question 20

secondary mortgage market

Answer 20

exist for the purchase and sales of existing mortgage to investors

Question 21

general warranty

Answer 21

the best way to ensure that the grantor has good, marketable title is to get a general warranty deed from the grantor

Question 22

lispendens

Answer 22

issues include judgments that been filed ( pending lawsuits affecting the property)

Question 23

EMINENT domain

Answer 23

the right of the government to take private land for public use

the action of taking the land is called condemnation

if a landowner sues the government in order to force the government to buy their land, this is inverse condemnation

Question 24

reservation

Answer 24

reservaion on a deed reserves rights for a grantor

Question 25

ad valorem taxes

Answer 25

means according to value
the higher the value of a parcel of land the higher the taxes

Question 26

RESPA

Answer 26

requires mortgage loan originators to provide detailed disclosures regarding the transfer, sales, or assignment of mortgage

Question 27

leasehold estates

Answer 27

• estates for years
• periodic tenancy
• tenancy at sufferance
• tenancy at will