Real Estate Financing Practice Flashcards
0
Q
What is a blanket loan?
A
A blanket loan covers more than one parcel or lot. It is usually used to finance subdivisions development. However, it can finance the purchase of a improved property or consolidate loans as well.
1
Q
What is the package loan?
A
Includes real and personal property such as furniture, drapes, the kitchen range, dishwasher, as part of the sales price of the home.
2
Q
what is a wraparound loan?
A
It enables a borrower with an existing mortgage or deed of trust loan to obtain additional financing from the second lender without paying off the first loan. The lender gives the borrower a new, increased loan at a higher interest rate and it assumes payment of the existing loan.
3
Q
What is an open~end loan?
A
A mortgage loan that is expandable by increments up to maximum dollar amount, will loathing secured by the same original mortgage.
4
Q
What is in the estate for years?
A
It’s a leasehold estate that continues for a definite period. That Maybe for years, months, weeks, or even days.
5
Q
What is an estate from period to period?
A
Created when the landlord and tenant into into an agreement for an indefinite time-that is, the lease does not contain a specific expiration date. It continues until proper notice has been given.
6
Q
What is a lease?
A
It’s a contract between an owner of real estate (the lessor) and a tenant (the leasee).
7
Q
What is a leasehold estate?
A
It’s a tenants rights of possess real estate for the time of the lease.
8
Q
What is an estate at Will?
A
It gives the tenants the right to possess the property with the landlord consent for an unspecified or uncertain time. It continues until it’s terminated by either party giving proper notice.
9
Q
What is an estate at sufferance?
A
Arises when a tenant lawfully possess real property continues in possession of the premises without the landlord consent after the rights expired
10
Q
What is a gross lease?
A
It’s where the tenant pays fixed rent they also may pay taxes, repairs, insurance, etc. Residential and commercial office leases are most often gross leases
11
Q
What is a net lease?
A
A net lease they pay a fixed rent plus all or most property charges. Most often associated with large commercial and industrial leases.
12
Q
What is a percentage lease?
A
Tenant pays a fixed rent plus a percent of the gross sales. Received by the tenant doing business on the leased property. The percentages charged is negotiable and varies depending upon the nature of the business, location of the property and general economic conditions.
13
Q
What is a variable lease?
A
Increase in the rental charges during the lease period.
14
Q
What is a ground lease?
A
It’s when an owner of a piece of land allows the tenant to erect the building on the land, the owner still owns the land and the tenant pays rent for the grounds. Separate ownership of the land and the building.
15
Q
Oil and gas lease?
A
When an oil company leases land to explore for oil and gas, a special lease agreement must be negotiated.
16
Q
What is a lease purchase?
A
Part of the rent is applied towards the purchase price of the property until it is reduced to an amount for which the tenet can obtain financing or purchased the property out right, depending on the terms of the lease purchase agreement.
17
Q
What is a sale and leaseback?
A
It’s an arrangement where the owners of a property sell the property and then lease it back again for an agreed period and Rental.
18
Q
Which type of insurance coverages insures an employer gives most claims for job related injuries?
A
Worker’s Compensation
19
Q
Property managers is offered a choice of three insurance policies with different deductibles. If the property manager select the policy with the highest deductible, which risk management technique is being used?
A
Retaining risk
20
Q
Adaptation of property specifications to suit tennant requirements are…
A
Tenant improvements.
21
Q
Avoid, control, transfer, or retain are the four alternative techniques of…
A
Risk management
22
Q
The manager of a commercial building has many responsibilities in connection with the operation and maintenance of the structure. The manager would normally be considered the agent of…
A
Owner
23
Q
A high-rise apartment building burns to the ground. What type of insurance covers the landlord against the resulting loss of rent?
A
Consequential loss, use, and occupancy
24
A property manager who enters into a management agreement with an owner is usually a.....
General agent... One was authorized by principle to represent the principal in a broad range of matters related to particular business or activity.
25
What is a universal agent?
As a person empowered to do anything the principal could do personally. They act on behalf of the principal and is virtually unlimited.
26
What is a special agent? Or a limited agent
Authorized to represent the principal in one specific act or business transaction only.
27
What is a designated agent?
It's a person authorized by the real estate broker to act as the agent of a specific principle.
28
What is express agency?
It's where the parties formally express their intentions to establish an agency and state is terms and conditions. It could be either oral or written.
29
What is implied agency?
This occurs when the actions of the parties indicated that they mutually consent to an agency. A licensee acts on behalf of another party at the party's agent.
30
What is a non-agent?
Also known as a facilitator, inter mediator, transactional broker, transactional coordinator, or contract broker. Assist one or both parties with the transaction without representing either parties interest and often is subject to specific statutory responsibilities
31
What is price-fixing?
It's setting the prices for products or services rather than letting the competition and open market except wish those prices. And real estate price-fixing occurs when competing brokers agrees to set sales commissions, fees, or management rates.
32
What is group boycotting?
It's when one or more business gets together to conspire against another business
33
What is a tie in agreement?
It's an agreement to sell one product buyer has to purchases another product as well. So the first desired product is tied to the purchase of the second less desirable product.
34
What is a net listing?
Specify that the seller will receive a net amount of money from any sale, but the excess of going to the listing broker as commission.
35
What is eminent domain?
It is the right of the government to acquire privately owned property for public use.
36
What is condemnation?
Is the process by which the government exercises the right of eminent domain by either judicial or administrative proceedings.
37
What is taxation?
It's a charge on real estate to raise funds to meet public needs of government.
38
What is life estate?
It is a freehold estate limited in duration to a life of the owner or the life of some other designated person or persons. It is not inheritable.
39
What it is remainder and reversion?
The fee simple owner who creates a life estate must plan for its future ownership. The life estate and is replaced by fee simple estate. The future owner of the fee simple estate may be designated in one or two ways;
Remainder interest-creator of the life estate may name a as the person to whom the property will pass on when the life estate ends.
Reversionary interest-the creator of the life Estate may choose not to name a remainderman. In that case, ownership reverts to the original owner upon the end of the life estate.
40
What is a legal life estate?
Not created voluntarily by an owner. Rather, it is form of life estate established by state law.
41
What is the homestead?
It is a legal life estate in real estate occupied as a family home. An effect, the home or at least some part of it is protected from most creditors during the office lifetime.
42
What is a encumbrance?
It is a claim, charge, or a liability that attaches to real estate.
43
What is the deed restriction?
Private restrictions that affect the use of the land. Was placed under the by the previous owner, they run with the land, limiting the use of the property and binding to all grantees.
44
What is an easement?
The right to use the land of another for particular purpose.
45
What is an appurtenant easement?
It is attached to the ownership of one parcel and allows this owner the use of a neighbor's land.
46
What is an easement in gross?
It's an individual or company interest in the right to use someone else's land. For example a railroad right-of-way is a easement a gross, as are the right way of utility easements such as for pipeline or hi-tension powerline.
47
What is an easement by necessity?
Created when a owner sells a parcel of land and has no access to the street or public way except over the sellers remaining land
48
What is easement by prescription?
Person uses another person's land for certain period of time. Ranges from 10 to 21 years. Must be open visible and notorious and the owner must have been able to learn of it.
49
What is a statutory lien?
It's created by regulating taxes, it's a involuntary, statutory lien. Without any action by the property owner.
50
What is an equitable lien?
A court ordered judgment that requires a debtor to pay the balance on a delinquent charged account.
51
What is a general lien?
It's a charge that affects all the property, both real and personal
52
What is it specific lien?
Specific property and effects of particular property. Deals with vendors liens, mechanics lien, Mortgage Lane, real estate tax lien, and liens for special assessments and utilities.
53
What is a subordination agreement?
It's a written agreement between lienholders to change the party of mortgage, judgments and other ways.
54
What is ad valorem?
A Latin word for according to value. Taxes based on the value of a property being taxed and are specific, involuntary, statutory liens.
55
What is a mil?
It's one 1/1000 of a dollar or .001
56
What is special assessments?
Taxes charged on real estate to fund public improvements to the property. Property owners are required to pay for the improvements because the property benefits directly from them.
57
What are unilateral contracts?
It's a one-sided agreement. One party makes a promise as to induce the second party to do something. The second part is not legally obligated to act. However, the second party does comply, the first party is obligated to keep a promise
58
What is express contract?
It's when the party state retirement show their intentions and words, either oral or written. Most real estate contracts are expressed contracts they have been committed to writing.
59
What is a voidable contract?
Appears to be valid but maybe rescind it disaffirmed I want to both parties based on some legal principle. Considered by the courts to be valid if the party who has the option to disaffirm the agreement is not do so within a period of time
60
What is unenforceable contract?
They also appeared to be valid; however, neither party can sue the other two forced performance.
61
What is novation?
The substitution of a new contract for an existing contract.
62
What is a land contract? Also called a contract for deed, a bond for title, and installment contract, a land sales contract, or articles of agreement for warranty deed.
The seller retains legal title. The buyer called Ivin D takes possession and gets equitable title to the property. The buyer agrees to get the seller down payment and pay regular monthly installments of principal and interest of a number of years. The bar also pays real estate taxes, insurance premiums, repairs, and upkeep on the property. The seller is not obligated to execute and deliver the deed to the bar until the terms of the agreement are met.
63
What is a habendum clause?
It defines ownership to be enjoyed it may follow the granting clause. It begins with the words to have and to hold.
64
What is an acknowledgment?
The formal declaration under of that a person who signs a written document though so voluntarily and that the signature is genuine.
65
What is delivery and acceptance?
The title is not considered transferred until the deed is actually delivered to and excepted by the grantee.
66
What is a Gen. warranty deed?
It provides the greatest protection to the bar because the grantor is legally bound by certain covenants promises or warranties.
67
What is covenant of seisin?
Once that they own the property and have the right to convey title to it. Seisin simply means possession.
68
What is covenant against encumbrances?
The grantor warrants that the property is free from liens or encumbrances, except for any specifically stated in the deed.
69
What is covenant of quiet enjoyment?
The grantor guarantees that the grantees title will be good against third parties who might bring court actions to establish superior title to the property.
70
What is covenant of quiet enjoyment?
The grantor guarantees that the grantees title will be good against third parties who might bring court actions to establish Se. title to the property.
71
What is covenant of warranty forever?
The grantor promises to compensate the grantee for loss sustained if the title fails at any time in the future
72
What is a special warranty deed?
Contains two basic warranties; at the grantor received title and that the property was not encumbered during the time to grantor held title except otherwise noted in the date
73
What is a bargain and sale deed?
Contains no express warranties against encumbrances
74
What is a quitclaim deed?
Provides the grantee with the least protection of any deed. He carries no covenants or warranties and generally conveys only what interest the Gretchin may have when the deed is delivered.
75
What is the deed of trust?
It's the means by which a trustor conveys real estate to a trustee for the benefit of the beneficiary
76
What is a reconveyance deed?
It's used by a trustee to return title to the trustor
77
What is the trustees deed?
A deed executed by trustee is a trustees deed. It is used when a trustee conveys real estate held in the trust to anyone other than the trustor.
78
What is involuntary alienation?
Transfer of property without the owner's consent.
79
What is accretion?
The increase of land by deposits of sand or soil washed up naturally
80
What is a testate?
The person that has died and left a will
81
What is intestate?
The person that has died and not left the will
82
What is it a devise?
It's the gift of real property by will and the person who receives real property by will is known as a devisee
83
What is chain of title?
It's the recording of property ownership beginning with the earliest owner, a title my past many individuals.
84
What is an abstract title?
It's a summary report of what the title search found in the public records. The person that prepares this report is called an abstractor
85
What is marketable title?
Title that has no serious defects and not depend on doubtful questions of law or fact to prove its validity. No hazardous of litigations or threat of quiet enjoyment.
86
What a certificate of title?
A statement of opinion of the title status on the date the certificate is issued. It's not a guarantee of ownership rather it's certifies the condition of the title based on the examination of the public records
87
What is the Torrens system?
Legal Registration system used to verify ownership and encumbrances.
88
What is Title Theory?
The mortgagor actually gives legal title to the mortgagee and retains equitable title. Title is returned with the debt is paid.
89
What is lien theory?
The mortgagor retains both legal and equitable title. The mortgagor or deed of trust, is nothing more than a collateral for the loan
90
What is hypothecation?
To pledge property as security for an obligation of loan without giving up possession of it
91
What is Usury?
Charging interest in excess of the maximum rate allowed by law is called usury
92
What is loan origination fee?
It's the processing of a mortgage application. When the mortgage loan is originated, alone or origination fee, or transfer fee is charged by most lenders to cover expenses involved in generating below. Example loan officer salary, paperwork, and the lenders other cost of doing business.
93
What a discount points?
Discount points are used to increase the lenders yield (rate of return) on it's investment.
94
What is a deed of trust?
A trust deed conveys naked title or bare legal title-that is, title without the right of possession. The date is given as security for the loan to a third-party called the trustee. The trustee holds bare Title on behalf of the lender, was is known as the beneficiary. The beneficiary is the holder of the note.
95
What is an acceleration clause?
Borrower doesn't pay lender, lender may ask for all the money to be paid immediately. Without an acceleration clause, The lender would have to sue the borrower every time a payment was overdue
96
What is novation?
Buyers assumes sellers mortgage
97
What is an alienation clause?
It's the balance of the debt becomes due immediately if the seller sells the property
98
What is a land contract?
The seller retains legal title and the buyer takes possession and gets equitable title on the property. The buyer agrees to give the seller a down payment and monthly installments and pay interest over number of years. The buyer also pays real estate taxes, insurance premiums, repairs, and upkeep on the property.
99
What is a judicial foreclosure?
Allows the property to be sold by the court after the mortgagee has given sufficient public notice.
100
What is adjustable rate mortgage?
A loan characterized by a fluctuating interest rate , usually one tied to a bank or savings and loan association cost of funds index.
101
How much is an acre of land?
43,560 sq. ft. Or 4,840 sq. yards, 4047 sq. meters, 160 square rods.
102
What is affidavit of title?
A written statement made under oath by a seller or grantor of real property and acknowledge by a notary public, in which the grantor (1) identifies himself or hersellf.
103
The real estate commission is responsible for the?
Approval of licensing examination
Determining commission splits between brokers and salespersons
Establishing standard real estate forms
Establishing minimum advertising standards
104
If an owner decides to sell his only piece of rental property a single family home he must provide the tenant with an opportunity to purchase the property. How long does the tenant have to negotiate with the Owner?
30 days
60. Days
90 days
120 days
105
The responsibility of the DCREC includes
A. Regulating brokerage fees
B. enforcing the license law (Correct)
C. Scheduling gri course
D. All of the above
106
The penalty for any persons knowingly filing with the mayor any false or fraudulent information involving the real estate guaranty and education fund will be subject to:
Not more than 1 year in jail
107
A list of all licensees with active licenses in the District of Columbia is on file with?
A. The office of public records
B. the chairman of the real estate commission
C. The clerk of the DC court
D. None of the above (D)
DCRA
108
If your license is revoked you may appeal to?
District of Columbia Court of Appeals
109
Which of the following is true regarding real estate taxes?
A. Taxes are assessed January 1st of each year
B. taxes must be paid no later than June 1st
C. Real estate tax is a lie on All real property
D. None of the above (D) March and September
110
Licensees of active real estate salesperson are located?
A. In the branch office where each salesperson works
B. in the main office of the broker of record
C. In the main office of the broker of record and in the office where each salesperson works (correct)
D. In the physical possession of the salesperson
111
What is an appraisal?
It's an estimate or an opinion of a value of the market price on a property and is given to the lender the client with detailed and accurate information
112
What does USPAP stand for?
Uniform standards of professional appraisal practice
113
What is a BPO?
It's a broker's price opinion it's less expensive alternative of evaluating property often used by lenders working with home-equity lines, refinancing, portfolio management, loss mitigation, and collections.
114
What are the two basic classes of appraising a property?
General data, which covers the nation, region, city, and neighborhood. It's the neighborhood where the appraiser finds physical, economic, social, and political influences that directly affect the value and potential of the subject property.
Specific data, which covers details of the subject property, as well as comparative data relating to cost, cells, income, and expenses of properties similar to a competitive with the subject property
115
What is market value?
The most probable price that a property should bring in a fair sale
116
What is market price?
It's what a property actually sells for
117
What is anticipation?
Is the expectation that certain events will occur. For instance, the value of a house may be affected if rumor circulates that an adjacent property may be converted to a commercial use in the near future
118
What is conformity?
Is that the maximum value was created when a property is in harmony with its surroundings. Maximum values is realized that the use of the land conforms to existing neighborhood standards. For instance building should be similar in design, construction, size, and age.
119
What is highest and best use?
The most profitable single use of a property that is legal and feasible, and will bring the most money over time
120
What is the law of increasing return?
If improvements produce an increase in income of value then the law of increasing returns applies.
121
What is the law of diminishing returns?
When you over improve and it doesn't bring value to place with the expenditures than the law of diminishing returns apply
122
What is plottage?
The increase in value or utility resulting from the consolidation (assemblage) of two or more adjacent lots into one larger lot.
123
What is assemblage?
Assemblage is combining two or more enjoying lots into one larger tract increase the total value of the two parcels
124
What is the sales comparison approach (also known as the market data approach )
The process of estimating the value of the property by examining and comparing actual sales of comparable properties.
125
What is the cost approach?
The process of estimating the value of the property by adding to the estimated land value the appraiser's estimate of the reproduction or replacement cost of the building, less depreciation.
126
What is accrued depreciation?
Loss in value resulting from the properties physical deterioration, external depreciation, and functional obsolescence
127
What is the income approach?
The value is based on the present value of the rights to future income. It is assumed that the income generated by property will determine the properties value. It's use for valuation of income producing properties such as apartment buildings, office buildings, and shopping centers anticipation.
128
What is we conciliation?
The final steps in the appraisal process, in which the appraiser combines the estimates of value received from the sales comparison, cost, and income approach to arrive at the final estimate of market value for the subject property.
129
What is an open listing?
Multiple brokers only the selling broker is paid and the seller has the right to sell without obligation
130
What is an exclusive agency listing?
One broker and the brokers paid only if he is the procuring cause and the seller has the right to sell without obligation
131
What is a net listing?
That's when the seller receives the net amount of financing from the sale and any excess goes to the broker
132
What is a PUD?
Planned unit development also called master-planned communities merge such diverse land uses as housing , recreation and commercial units into one self-contained development.
133
What is a MUD?
High-rise developments, sometimes called mixed-use developments combining office space, stores, theaters, and apartment units into a single medical community.
134
What is IRA?
Penalty free withdrawals from the tax-deferred individual retirement accounts for down payments on their homes.
135
Basic insurance forms covers?
Fire lightning, glass breakage, when storm and hail, explosions, write a civil commotion, damage by aircraft, damage from vehicles, damage from smokes, vandalism and malicious mischief, fast, and loss of property removed from the premises when it is endangered by fire or other perils.
136
What is a broad form insurance cover?
Falling object, damage due to the weight of ice, snow, sleet; collapse of all a part of a building; bursting, cracking, burning, of all the same water heating system or of appliances used to heat water; accidental discharge, leakage, or overflow of water or steam from within the plumbing, heating, or air-conditioning system; freezing of plumbing, heating, air-conditioning systems and domestic appliances, devices, fixtures, and wiring from short-circuit or other accidentally generated currents.
137
What is express agency?
Parties express their intentions to establish an agency and they state their terms and conditions.
138
What is implied agency?
It's the actions of the parties that indicate that they mutually consented to an agency.
139
Termination of an agency may be accomplished by?
Completion, performance, or from the fulfillment and purpose of agency; destruction or condemnation of the property; expiration of the times of the agency; mutual agreement of all parties to the contract; bridge by one party, maybe liable for damages; and operation of law, as in the bankruptcy of the principal.
140
What is an Sherman antitrust law?
The most common antitrust violations are price-fixing, group boycotting, allocation of customers or markets, and tie-in agreements.
Under the Sherman antitrust act, violators face up to $1,000,000.00 and 10 years in prison, with corporate fines as high as $100 million. In a civil suit, the successful plaintiff may recover triple damages plus attorney fees and costs.
141
What is price-fixing?
The practice of setting prices for products or services rather than letting the competition and open market establish those prices. Price-fixing is illegal.
142
What is allocation?
Real estate brokers dividing the markets from each other's businesses
143
What is feesimple determinable?
Maybe inherited. Former owner retained the possibility of reverter. If you violate the owners wishes he can take the property back.
144
What is the simple subject to a condition subsequent?
Owner gives real estate on a condition of ownership, if there is a violation to the to the condition the owner has the right of reentry but must go to court to start this right. The right of reentry and possibly for reverter may never take a fat. If they do it will only be at sometime in the future therefore each of these rights is considered a future interest.
145
What is a life estate?
A life estate is not inheritable. a life tenant is not a renter. But they can benefit from both possession an ordinary use, and profits arising from ownership it can be sold, mortgage, or lease but it always is subject to the limitations of the life estate.
146
What is a legal life estate?
Is not created voluntarily by an owner. Rather, it is a form of life estate established by law.
147
What is a deed restriction?
Did restrictions are private restrictions that affect the use of the land.
148
What is an appurtenant easement?
It's attached to the ownership of one parcel and allows the owner the use of a neighbor's land. And appurtenant easement is part of the dominant tenement, and if the dominant tenement is conveyed to another party that easement transfers with the title.
149
What is a trust?
a device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third-party.
150
What is a partnership?
It's an association of two or more persons who carry on a business for profit as co-owners. In a general partnership all the partners participate in the operation and management of the business and share full liability for business losses and obligations. In a limited partnership consist of one or more general partners and limited partners the business is run by the general partner or partners.
151
What is a corporation?
It's a legal entity-an artificial person-created under the authority of the laws of the state from which it is received its charter. The death of one of those officers or directors does not affect title to the property owned by the corporation.
152
What is an important issue in most co-ops?
Method by which shares in the corporation may be transferred to new owners. For instance, the bylaws may require that the Board of Directors approves any prospective shareholders. In some cooperatives, a tenant-owner must sell the stock back to the Corporation at the original purchase price so that the corporation realizes any profits when the shares are resold
153
What are the four ways to create a lien?
Voluntary, involuntary, statutory, equitable
154
What is a voluntary lien?
Created intentionally by the property owners action like when a person takes out a mortgage loan
155
What is a statutory lien?
Created by statute. The real estate tax lien for example is involuntary statutory lien. It is created by statute without any action by the property owner.
156
What is an equitable Lien?
Arises out of common law." Order judgment that requires the owner to pay the balance of the delinquent charge account
157
What is a vendors lien?
Along to the seller of a property for unpaid purchase price of the property, with the vendor the seller is not taken any other lien or security such as a mortgage, be on the personal obligation of the purchaser. Vendors lean and real estate are uncommon arise out of the use of owner financing to sell the property
158
What is suit for specific performance?
If the seller breaches of real estate contract, the buyer may sue for specific performance unless the contract specifically states otherwise. The bar ask the court to force the seller to go through with the selling transfer of the property as previously agreed.
159
Execution of corporate deeds
A corporation can convey real estate only by authority granted in its bylaws or on proper resolution passed and its Board of Directors. The stimulus they can be signed only by an authorized officer.
160
What is the Gen. warranty deed?
Provides the greatest protection to the buyer because the grantors legally bound by certain covenants promises or warranties.
161
What is the bargain and sale deed?
Contains no express warranties against encumbrances. The warranty is not specifically stated, the grantee has little legal recourse if title defects appear later.
162
What is the special warranty deed?
Defends the title against themselves. Sometimes the special warranty deed is used by a grantor was acquired title at a tax sell
163
What is the acceleration clause?
the lender may declare the entire debt due and payable immediately if the buyer doesn't pay.
164
What is a defeasance clause?
It's a satisfaction from the lender that the note has been paid, released or discharged.
165
What is a primary mortgage market (PMM)?
It's made up of lenders that originated mortgage loans. Linda's make money available directly to borrowers
166
What is a rate cap?
Limit the amount of interest rate may change. Have to type the right caps-periodic and life of the loan. Periodic rate cap limits the amount the rate may increase, usually over a year. A life of the loan rate cat limit the amount the rate may increase over the life of the loan
167
What is the index method?
A factor representing the percentage increase of construction cost up to the present time is applied to the original cost of the subject property.
167
What is physical deterioration?
A curable item is one in need of repair, such as painting, that is economically feasible I would result in an increase in value equal to or exceeding the cost.
168
What is functional obsolescence?
A loss in value on Improvements real estate from functional problems like outdated or poor design
169
What is external obsolescence?
Environmental caused by negative factors social or economic forces is always incurable.
170
What is economic life?
Straight-line method, also called the economic age life method. Depreciation is assumed to occur at a even rate over the structures economic life.
171
What is income approach?
Value is based on the present value of the rights to the future income. The income approach is used for evaluation of income-producing properties such as apartment buildings, office buildings, and shopping centers and is based on anticipation
172
What is capitalization rate?
It's the rate of return is determined by comparing the relationship of net operating income with the sales price of similar properties that have sold in the current market
173
What is reconciliation?
The act of analyzing and effectively weighing the findings from three approaches.
174
What is a comprehensive plan?
Also known as MasterPlan, is not regulatory document but rather a guide to planning for change rather than reacting to proposals
175
What is zoning?
Tell communities regulate and control land-use for the protection of public health, safety, and welfare
176
What is inverse condemnation?
Bye-bye property owner seeking justice for land taken for public use where it appears that the taker of the land does not intend to bring eminent domain proceedings
177
What is nonconforming use?
Where building may be allowed to continue legally as long as it complies with the regulations governing gone conformity is in the local ordinances until the improvement is destroyed or torn down or until the current use is abandoned
178
What is the equal credit opportunity act?
Prohibits discrimination in the lending process based on race, color, religion, national origin, sex, marital status, or age at the receipt of public assistance In the granting of credit
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What is blockbusting?
Is the act of encouraging people to Sell or Rent their homes by claiming that the entry of protected class of people into neighborhoods will have some sort of negative impact on property values
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What is steering?
Channeling of home seekers to particular neighborhood by discouraging potential buyers for considering some areas
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How long before you can file a complaint with HUD about discrimination?
Personally believe that they have been ill legally discriminated against has one year to file a complaint. Upon receiving the plane had initiate an investigation within 100 days of the filing of the complaint
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What is asbestos?
Fire resistant mineral that was once used extensively that insulation and to strengthen other materials
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What is formaldehyde?
A colorless chemical with a strong, amounts of odor, is used widely in the manufacture of building materials and many household products because it's preservative characteristics. Often admitted as a gas, formaldehyde is one of the most common and problematic volatile organic compounds is one of the most you indoor air for the That can be measured
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What is RESPA?
Federal consumer law that requires certain disclosures about the mortgage settlement process and prohibit certain practices that increase the cost of settlement services, such as kickboxing referral fees that can increase settlement possible homebuyers.
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What is pyramiding?
An effective method for real estate investors to increase their holdings without investing additional capital is through pyramiding. Paramedic is the process of using one property to drive acquisition of additional properties.
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What is equity buildup?
The result of a loan payment directed toward the principle rather than interest, plus any game in property value due to appreciation
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What is leverage?
Use of borrowed money to finance and investment
