Principles Of Real Estate 2 Flashcards
Loss of value due to lack of modernization is called…
Functional Obsolescence
The ____ is considered the most reliable approach to value because it is based on verifiable market events.
Sales comparison approach
A loss in a property’s value due to daily wear and tear is an example of…
Physical deterioration
The appraiser will use the cost approach to value…
A unique building
A real property appraisal will contain an analysis of each of the following, EXCEPT…
1 Improvements to the site
2 Site description
3 Neighborhood description
4 Personal Property
Personal property
The appraisal principle of conformity tells us that a house is worth the most when…
It is in a neighborhood of similar priced homes
Official property value for tax purposes is called…
Assessed value
The appraisal principle of ____ states that the purchase price of a property is affected by the expectation of future appeal and benefits.
Anticipation
The best definition of market value is…
The most probable price a property should bring in a competing and open market
The effective age of a house can be younger than its ____ if it has been well-maintained.
Chronological age
In which approach to value is the appraiser calculating depreciation as a factor along with land value and replacement cost for a structure?
The cost approach
The primary purpose of the FHA is…
To insure loans
When a loan is funded, the FHA charges a(n) ____ which can be paid at closing or added to the loan at funding.
Up-Front Mortgage Insurance Premium
The borrower’s monthly payment includes principal and interest plus one-twelfth of the annual property tax assessment and one-twelfth of the annual insurance premium. This is a…
Budget loan
What are three characteristics pertaining to the use of gift funds in government loans?
- Property must be owner-occupied
- Donor must be a relative, domestic partner, or finance
- Gift funds may be used for the entire down payment
A person who brings a borrower and lender together for a fee is called…
A mortgage broker
Most of the specific requirements imposed by TILA are found in….
Regulation Z
The ____ is the percentage of the lesser of the appraised value or sales price that the lender will lend.
Loan-To-Value Ratio
The Loan Estimate…
Is a detailed breakdown of the cost of the loan
The Equal Credit Opportunity Act prohibits credit discrimination on the basis of…(Name 3)
- Race
- Religion
- Sex
Some characteristics of property taxes?
- Property taxes create the highest priority lien against property
- Unpaid taxes are an automatic lien and at foreclosure will always be paid first.
- If property taxes are not paid, the property will be sized and sold
Which of the following is one of the four rights that the government retains in land?
A. Variance
B. Escheat
C. Allodial
D. Ad Valorem
Escheat
Police Power is the…
Right of the government to regulate and control the way land is used
If a landowner sues the government in order to force it to buy his or her land, this is called…
Reverse condemnation
A ____ is one in which a property, with the consent of the lender, is sold by an owner/borrower at a price that is not sufficient to pay off the existing mortgage.
Short sale
A Residential Mortgage Loan Originator must be licensed with…
The as Department of Savings and Mortgage Lending
A sponsoring barker must…
Require that sales agents are adequately trained in the area in which they practice
The CHMS designation is a designation for…
License holders specializing as a residential seller’s agent
Leverage is…
The use of borrowed money to make money
Some disadvantages of real estate investment include…
- Risk
- The need for management
- lack of liquidity
What are some objectives investors invest in real estate to satisfy?
- Appreciation of properties
- Income derived from collecting rents
- Investment gain
The TREC buyer’s temporary lease agreement, or seller’s temporary lease agreement is for periods of time of…
Any number of days
Which of the following is a requirement of a valid lease?
Competent parties
Which of the following types of leases would be most appropriate for a shopping center?
Percentage Lease
A lease for a period of more that one year must be in writing to comply with the ____.
Statute of Frauds
Which of the following is one of the four leasehold estates
Tenancy at Will
The Landlord and Tenant Act…
- Is a lengthy and detailed set of rules that address issues such as security deposits, default, repairs, damage to property and the eviction process
- Defines the rights and obligations of both landlord and tenant in the leasing of residential and commercial properties
- Is found in the Texas Property Code, Title 8
The ____ is an instrument or conveyance used to create a leasehold estate.
Lease
The property manger’s employment contract is the…
Management agreement
The property manager is most often an employee or…
A general agent of the owner
A few responsibilities of the property manager are to…
- Generate income for the owner
- Preserve the value of an investment
- Serve as a “buffer” between the tenant and the landlord
Closing Disclosure
A final closing disclosure to the consumer that must be received by the consumer 3 days before closing
