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Principles of Real Estate 2 > RE2 Study > Flashcards

RE2 Study Flashcards

1
Q

code that appraisers must follow

A

Uniform Standard of Professional Appraisal Practice (USPAP)

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2
Q

regulates appraisers

A

TX Appraiser Licensing & Certification Board (TALCB)

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3
Q

Characteristics that make real estate valuable

A

DUST (Demand, Utility, Scarcity, Transferability)

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4
Q

construction cost

A

cost approach

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5
Q

cost of building similar features using modern materials

A

replacement cost

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6
Q

loss of value due to economic/functional factors

A

obsolscence

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7
Q

gives long term residential loans

A

savings associations

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8
Q

gives long term mortgage loans

A

savings banks

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9
Q

3 step loan approval

A
  1. pre-qualification 2. pre-approval 3. final loan approval
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10
Q

document by GSE (fannie mae & fannie mac) for loans under their underwriting requirements

A

Uniform Residential Loan Application (URLA)

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11
Q

network for handling loan applications

A

Computerized Loan Origination (CLO)

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12
Q

loan that can be sold in the secondary market

A

conforming loans

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13
Q

conventional loan has 80% of property value or less, requires 20% down payment

A

LVT ratio

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14
Q

fee paid upfront in exchange for below market intrest rate

A

buydown mortgage

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15
Q

graduated payment, similar to buydown, funds drawn from savings account for first part of the loan . payments start once savings account runs out

A

Pledged Account mortgage

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16
Q

mortgage financing too expensive so title doesn’t transfer until the full price is paid

A

Contract for Deed

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17
Q

(investor loan) lender gives deed of trust loan with low intrest rate in exchange for guarenteed share of the gain from property

A

shared-appreciation loan

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18
Q

(investor loan) used for more than one lots. mostly used by developers. it comes with a release clause that allows the developer to release one lot from the lien

A

blanket mortgage

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19
Q

(investor loan) sells building then leases it back from the buyer for working capital

A

sale/leaseback loan

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20
Q

mandates licensing/registration system for MLO’s

A

SAFE ACT

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21
Q

created new government agencies to oversee banking system

A

DODD-FRANK ACT

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22
Q

title 1 of consumer credit protection act

A

Truth in Lending Act (TILA)

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23
Q

requires certain disclosures to be made. borrow has 3 days to rescind the transaction

A

Regulation Z

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24
Q

educate consumers about closing & settlement services and protect from abusive lending practices

A

(RESPA) Real Estate Settlement procedures Act

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25
Q

loan estimate and closing disclosure

A

(TRID) TILA-RESPA Integrated Disclosure

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26
Q

financial institution pursue responisibilities to meet deposit and credit needs

A

(CRA) Community Reinvestment Act

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27
Q

state laws that limit interst rates

A

Usury Laws

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28
Q

zoning changed but people continue to use it anyways

A

Nonconforming-Use

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29
Q

building structure, design, ect.

A

building codes

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30
Q

finance cost of redeveloping in a part of the city

A

(TIRZ) Tax Increment Reinvestment Zones

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31
Q

non government limitations controlling how buyers use land within subdivisions

A

Restrictive Covenants

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32
Q

(PETE) 1. Police Power 2. Eminent Domain 3. Taxation 4. Escheat

A

4 Public Land Use Controls

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33
Q
  1. Conditions 2. Covenants
  2. Restrictions
A

3 Private Land Use Controls

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34
Q

state level enforcement of federal environmental legislation

A

(TCEQ) TX Commission on Environmental Quality

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35
Q

$9 billion superfund to clean up hazardous spills

A

(CERCLA) Comphrehsenive Environmental Response, Compensation, Liability Act

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36
Q

needs a license. Protects property owners investment & maximize return on investment

A

property manager

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37
Q

property owned by a lender as a result of not finding a 3rd party buyer at foreclosure auction

A

(REO) Real Estate Owned

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38
Q

no reserve or restriction on price

A

absolute auction (no reserve auction)

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39
Q

minimum sale price is in place

A

minimum bid auction

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40
Q

seller can accept or reject highest bid

A

reserve auction

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41
Q

entire loan amount is due upon default

A

acceleration clause

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42
Q

transfer title from borrower to lender and releases borrower from debt owed to lender

A

Deed in Lieu of Foreclosure

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43
Q

allow defaulting buyers to pay defaulted portion of debt to lender in order to prevent foreclosure sale

A

Equitable Redemption

44
Q

percentage gain or loss on the cost of investment over a period of time

A

Rate of Return

45
Q

investment concept saying todays money is worth more now than the same amount will be in the future

A

Time Value of Money (TMV)

46
Q

taking on debt in order to realize a greater return

47
Q

used to determine the cash flow potential of a property

A

operating statement

48
Q

represents what the revenue generation would be in the best case scenario where property is enjoyed 100% occupancy and collected 100% of the rent due

A

Potential Gross Income

49
Q

pre-tax amount of income after deduction of expenses

A

Net Operating Income

50
Q

ratio of price of investment property to its annual rental income before considering expanses

A

Gross Rent Multiplier (GRM)

51
Q

money deducted to making payments on principle/interest of loan

A

Debt Service

52
Q

net sales price-adjusted investor basis

A

capital gains

53
Q

two or more individuals pool financial resources

A

Syndication

54
Q

company may sell securities to investors

A

Regulation D

55
Q

business arrangement that a partnership will use wen joining forces for single objective. Temparary relationship

A

Joint Venture

56
Q

limited partnership

57
Q

general partner

58
Q

limited partner

59
Q

company that owns & operates income producing real estate

60
Q

income by rent collecting or sale of properties

A

Equity RIET

61
Q

provide money for real estate owners

A

Mortgage RIET

62
Q

both equity and mortgage RIET

A

Hybrid RIET

63
Q

type of special purpose vehicle that is compromised of a pool of mortgage loans sold as investment- grade bonds known as mortgage backed securities

A

(REMICs) Real Estate Mortgage Investment Conduits

64
Q

mortgage backed securities sold to investors at different risk levels

65
Q

landlord give signed lease to tenant in how many days

66
Q

landlod has how many days to return security deposit

67
Q

landlord has how many days to make repairs

68
Q

landload has how many days to rekey residense

69
Q

landloard can discard personal property of dead tenant after how many days

70
Q

tenant responible for fixed monthly payments

A

gross lease

71
Q

tenant pays base rent + property taxes

72
Q

lease that increases relative to economic indicator

A

index lease

73
Q

a report that list # of units, identifies tenants, lease terms, Ect.

74
Q

ACTOR
Avoid risks
Control risks
Transfer insurance policy
Or
Retain Risks

A

Property Manager Risk Management

75
Q

Clause where interest in property covered by grantor

A

Granting Clause

76
Q

Clause where limited ownership of grantee

A

Habendum Clause

77
Q

Clause where borrower pledges collateral

A

Hypothecation Clause

78
Q

Clause where mortgager has the right to redeem property upon obligated payments

A

Defeasance Clause

79
Q

clause where one party withdraws under certain circumstances

A

Release Clause

80
Q

deed with conveyance carries only one convenant

A

Special warrenty Deed

81
Q

deed with greatest protection

A

general warrenty deed

82
Q

Deed where grantor holds title/possession of property. No warrenty against encumbrances

A

Bargain and Sale Deed

83
Q

deed where the grantee has least protection and grantor has least liability

A

Quitclaim deed

84
Q

written instrument used for transfer of title

A

conveyance

85
Q

protect consumers from abusive lending practices

86
Q

helps borrowers select the best mortgage

87
Q

buyer borrows from seller and lender

A

Purchase Money Mortgage

88
Q

financing based on value of asset

A

Hard Money Loan

89
Q

trigger payment of full loan upon sale of property

A

Alienation Clause/Due-on-Sale

90
Q

gain ownership or interest in real property

A

aquisition

91
Q

causing the owner to sell because they fear a protected class is moving in

A

blockbusting

92
Q

funds used to upgrade physical assets

A

capital expenditures

93
Q

the entire chronological record of property ownship

A

chain of title

94
Q

collaterized debt obligations made up of bundles of mortgage backed securities

A

(CMO) collateralized mortgage obligations

95
Q

investment products similar to bonds. consists of a bundle of home loans and other real estate debt bought from the banks that issued them

A

mortgage backed securities

96
Q

something of value exchanged by parties as evidence of agreement

A

consideration

97
Q

termination of lease because of the landlord

A

constructive eviction

98
Q

finance institution that is not for profit

A

credit union

99
Q

outlaws against false/misleading statements

A

deceptive trade practice act

100
Q

extend mortgage loans from customers savings account

A

depository institution

101
Q

gift of real property by will

102
Q

land benefits from easement appurtenant

A

dominant tenement

103
Q

require tenant to pay base rent, property taxes, and insurence

A

double net lease

104
Q

allowed on property for specific purpose

A

easement in gross

105
Q

property passed to state if theres no will, relatives, hiers

106
Q

constructive/actual notice of real property ownership

A

evidence of title

Principles of Real Estate 2 (1 decks)

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