Principles of Real Estate II Flashcards
Government’s authority to regulate the health, safety, welfare, and morals of its citizens
Police power
Regulation by a municipality of the use of land located with the municipality’s corporate limits as well as the regulation of the buildings and structures located thereon
Zoning
Limit how close a structure can be built to neighboring property lines
Setbacks
Request of the Board of Adjustment to vary development standards (not uses) such as building setbacks in the zoning ordinance
Variance
Combines the individual ownership of private dwellings with the right to use shared common facilities of the entire project
Common Interest Development (CDI)
Has the authority to enforce deed restrictions and to raise money through regular and special assessments
Homeowner’s Association (HOA)
Consists of a seperate fee interest in a particular specific space (the unit), plus an undivided interest in all common or public areas of the development
Condominium
Requires that federal agencies and other entities undertaking activities on federal property conduct an environmental analysis of the proposed project
National Environmental Policy Act (NEPA)
A construction loan is called a(n)
Interim Loan
The term lessor is MOST likely to be used to describe a(n)
owner
While a buyer’s funds are held by the escrow agent, they are kept…
in a trust account
What results from factors outside the property?
Economic Obsolescence
The clause that gives the lender the right to call in the note if the mortgaged property is sold or otherwise conveyed by the borrower is known as the
due-on-sale clause/alienation clause
The expenses, which a lender incurs while processing a mortgage loan application, are recovered from the borrower as…
origination fees
Jack has a lien on his home. The lien will be repaid in full by the maturity date without the need for a balloon payment. This type of loan is known as a(n)
Amortized loan
The rates that consumers pay for the title insurance in Texas are set by
Texas Dept. of Insurance
The difference between the market value of a property and the sum of the liens against it is called
The equity
A lender may voluntarily take a lower priority position that he would otherwise be entitled to by a virtue of his recording date is
subordination
The placing of funds belonging to others in a broker’s personal bank account constitutes
Commingling
The loan that requires regular equal payments of sufficient size and number to pay all interest and principal by the end of the loan is…
an amortized loan
To legally pursue a cause of action for a commission against a principal, the listing broker must…
- Be employed
- Be licensed by TREC
If two parcels combined into one larger parcel that is worth more than the total value of the individual parcels, that added value is called…
Plottage
When a borrower gets behind on his loan payments, the lender could call for the entire balance due immediately based on the…
Acceleration Clause
This person arranges loans between borrowers and lenders…
A mortgage broker
The monthly rent for a small hardware store is $600 plus 6% of gross sales above $10,000. This is a…
Percentage Lease
In analyzing mortgage loan application, it is illegal for a lender to consider…
Marital Status
Truth-in-lending laws were created primarily to protect…
consumers
Public restrictions on the use of real property…
Zoning laws
The owner of a cooperative estate hold shares of stock in the cooperative and are issued a…
Proprietary lease
The basic authority for zoning laws is derived from a state’s…
Police power
Ownership of the interior space of your home and an undivided interest in the building structures, common ares, and the land area of the entire project describes a…
Condominium
A small corner grocery store existed before the land was zoned residential by a new zoning ordinance. The grocery store is an example of…
A nonconforming use
Price fixing and boycotting are both illegal. They are violation of the…
Sherman Antitrust Act
The relationship of a real estate broker to the owner of the property listed for sale with the broker is that of a…
Special Agent
A market in which mortgage loans can be sold to investors
Secondary mortgage market
Which approach to appraisal takes into account depreciation?
Cost Approach
A lot measuring 100ft x 250ft sells for $1000 per front foot. What is the sales price?
$100,000
The community with individually owned lots and houses and community ownership of the common area is a…
Planned Unit Development (PUD)
A lease for a definite period of time, which terminate when that time has expired is a(n)…
Estate for years
PITI is the acronym for…
A loan payment including Principal, Interest, Taxes, & Insurance
A lender’s refusal to make loans in certain neighborhoods or areas is known as…
Redlining
A lease under which the tenant pays a fixed rent and the landlord pays all the operating expenses is a….
Gross lease
A mortgage that may include both real estate and personal property is a(n)
Package mortgage
Laws that limit the amount of interest that can be charged to borrowers are called…
Usury Laws
The regulations that implement the enforcement of the Truth in Lending act are known as
Regulation Z
When the amount received from a foreclosure sale is insufficient to pay off the mortgage loan and the other expenses of the sale, the lender may sometimes secure…
A deficiency judgement
Property taxes are levied according to the value of the property. Therefore they are called…
ad valorem taxes
Kickbacks and/or fees for services not actually performed during the closing process are prohibited by…
RESPA
