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Real Estate BHG > Final Exam > Flashcards

Final Exam Flashcards

1
Q

Purpose of Appraisal

A

And estimate or opinion of value based on an analysis of the relevant data.

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2
Q

Trade fixtures are?

A

A fixture placed with the intention of being removed.

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3
Q

Cost Replacement Approach

A

The cost at today’s prices, using today’s construction materials to replace a building with one that has the same function.

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4
Q

Reproduction Cost

A

The cost at today’s prices of constructing an exact replica.

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5
Q

Hazard Insurance- paid in advance how far?

A

One year

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6
Q

Property Tax Formula?

A

Annual Tax divided by 365= Daily Rate

Then,

Daily Rate x the number of days.

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7
Q

Insurance Proration formula?

A

Annual Premium divided by 365 = daily rate

Then,

Daily rate x the number of days

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8
Q

Accrued Interest formula

A

Loan Balance x Rate of Interest =annual interest

Then,

Annual Interest divided by 360 = daily interest

Then,

Daily Interest x number of days owed.

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9
Q

Special Agent

A

One who is appointed to act on a particular occasion or for a specific purpose. A person with limited authority.

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10
Q

Exclusive right to sell

A

Right to market is exclusive and commission is guaranteed if property is sold, no matter who sells it. Contract must be in writing & have a definite date of termination.

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11
Q

Universal Agent

A

Authorized to perform any act that the principal could perform.

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12
Q

General Agent

A

Has the authority to bind the principal in business conduct.

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13
Q

Fiduciary

A

Implies trust and confidence

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14
Q

Earnest Money

A

A purchaser’s initial commitment by use of something valuable to indicate that he/she wants to buy the property. This earnest money is deposited into the broker’s trust account until the transaction is closed.

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15
Q

Lien

A

Creditor uses this as a way to take a debtor’s property as payment for the debt owed.

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16
Q

Voluntary or Involuntary Debt

A

Depending on whether they are recorded with the owners consent or without it.

17
Q

Statutory Lien

A

Mechanics lien, involuntary

18
Q

Equitable lien

A

Vendee’s lien, voluntary

19
Q

Specific lien

A

Attached to only one parcel of property.

20
Q

General lien

A

Attached to all properties the debtor has.

21
Q

Property Tax Lien

A

When ad valorem taxes and special assessment taxes are not paid by the property owner within the time allowed.

22
Q

Mortgage Lien

A

When a purchaser pledges a property to the lender as security for a loan. If repayment is not paid according to terms, the lender can force sale of the property. These liens are voluntary.

23
Q

Mechanics lien

A

This allows contractors workmen and suppliers of building materials to place a lien against the property if they are not paid for improving it. These liens are involuntary.

24
Q

Vendee’s lien

A

This protects a buyer from losing their earnest moneydeposit in case of default. This is voluntary.

25
Q

Attachment lien

A

This grants the court custody of a specific property to prevent the owner from transferring ownership while a suit for damages is being decided.

26
Q

Judgment lien

A

Arises out of a lawsuit. When one person sues another person for damages. The debtor receives a lien on any property they own in that county.

27
Q

IRV

A

I= net operating income

R= capitalization Rate

V= value

If any two of these components are known, the third component can be calculated.

28
Q

Net Operating Income (NOI)

A

Effective gross income minus the total operating expenses.

Deals with income made from a business within the past year.

29
Q

Income Approach

A

The value of property is based on the anticipated amount of income.

30
Q

Net Operating Income formula

A 
Potential Gross Income
- Vacancy Rate
=Effective Gross Income
- Operating Expenses
= net Operating Income
31
Q

Regulation Z

A

Gives lenders guidelines to follow in disclosing to borrowers their exact cost of credit.

32
Q

Who does Regulation Z apply to?

A
  • All loans up to $25,000 for personal family & household purposes.
  • All residential real estate transactions involving credit regardless of the amount.
  • Residential mortgage loans for 2 to 4 family residential properties providing the owner occupies one of the units.
33
Q

CAM license (community association management)

A

Limited to tasks involved in managing homeowners associations such as are found in subdivisions and condominium complexes.
Must work as agents of a broker.

34
Q

Property Manager

A

One who is given the responsibility of maintaining preserving and enhancing an owners property & generating the highest possible net return from it.

Real Estate BHG (6 decks)

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