Tom Flashcards
Test Study Flashcards
1
Q
3.5%
A
Down payment on a FHA loan
2
Q
Acceptable TOR Ratio for a Conventional Loan
A
36%
3
Q
Ad Valorem
A
According to the value
4
Q
Appraisal Adjustments
A
CBS CIA
Comp, Better, Subtract
Comp, Inferior, Add
5
Q
Appraisal Standards Board (ASB)
A
Establishes criteria for federal certified appraisers
6
Q
Appraiser Qualifications Board (AQB)
A
Establishes criteria for state certified appraisers
7
Q
Arbitration
A
The act of having a third party render a binding decision in a dispute regarding two parties
8
Q
Assemblage
A
The combining of two or more adjoining properties into one tract
9
Q
Assignment of Mortgage
A
A legal instrument stating that the mortgagee transfers the mortgage and promissory note to the purchaser
10
Q
Beneficiary
A
Person or entity named to receive assets or property from an estate
11
Q
Bequest
A
A gift given by will
12
Q
Bilateral
A
An agreement wherein both parties are legally obligated to each other to perform
13
Q
BK
A
Broker
14
Q
BL
A
Broker Associate
15
Q
Blockbusting
A
The illegal practice of inducing homeowners to sell their property by making misrepresentations regarding the entry of prospective entry of minority persons in order to cause a turnover of properties in the area
16
Q
Boot
A
Money or other property that is not like-kind to make up any difference in value between exchanged properties
17
Q
BPO
A
Brokers Pricing Opinion
18
Q
Brokerage Relationship Duties
A
ADD COLD; Account, Deal honestly and fairly, Disclosure. Confidential, Obedient, Loyal, Disclosure (full). COLD for Single Agent!
19
Q
Bundle of Legal Rights
A
DEEP C; Disposition, Enjoyment, Exclusion, Possession, Control
20
Q
CAM
A
Community Association Manager
21
Q
Caveat Emptor
A
Let the buyer beware
22
Q
Chapter 455
A
Defines the general legal practice and procedure for the DBPR, including real estate
23
Q
Chapter 61J1
A
Rules for appraisals
24
Q
Chapter 61J2
A
Rules of the Florida Real Estate Commission (FREC)
25
Characteristics of Value
DUST; Demand, Utility, Scarcity, Transferability
26
CMA
Current Market Analysis
27
COLD
Confidence
Obedience
Loyalty
Disclosure (Full)
28
Compensatory Damages
A remedy for breach of contract seeking an amount of money that is equal to the extent of loss suffered
29
Condemnation
The taking of private real property for a public purpose under the right of eminent domain for a fair price
30
Consideration
Obligation that each party makes to make the contract enforceable
31
Constructive Notice
The recording of a document or an instrument in the public record designed to give adequate notice to all
32
Contract for Deed
A financing technique wherein the seller agrees to deliver the deed at some future date and the buyer takes possession while paying the agreed amount
33
Conversion
Unauthorized use or retention of money that belongs to another person
34
Conveyance
Written document transferring real property to another
35
Cost, Price, Value
Cost Create: Expenditure to create an improvement
Price Paid: Amount paid in a particular transaction
Value Worth: The worth of something between many
36
DBPR
Department of Business and Professional Regulations
37
Declaration
Declaring rights claimed under a contract or statute preventing loss or to guide performance
38
Dedication
Gift of land by an owner to a governmental body for public use
39
Designated Sales Associates
Two real estate licensees designated to represent the buyer and seller as single agents in a non-residential transaction. The buyer and seller must have assets of $1M or more and sign disclosures stating the $1M.
40
Devisee
One who receives real property under a will
41
Dimensions of a Township
6 miles X 6 miles = 36 square miles
42
DRE
Division of Real Estate
43
Each Township Has How Many Sections
36
44
EDO
Escrow Disbursement Order
45
Effective Gross Income
When vacancy and collection losses are deducted from annual PGI (potential gross income)
46
Elements of a Valid and Enforceable Real Estate Sale Contract
COLIC; Competent parties, Offer and acceptance, Legal purpose, In writing and signed, Consideration
47
Eminent Domain
The constitutional right given to a unit of government to take private property involuntarily, if taken for public use and a fair price is paid to the owner
48
Equity
Market value less any debt against it
49
Escheat
Reversion of property to the state when an owner dies without leaving a will or any known heirs
50
Estimate Value of Rental Property
Price/monthly rent = index (average if more than 1)
51
Estoppel
A principle of law that prohibits or stops people from defending themselves against their own acts or lack of action
52
Exclusive Agency
An employment contract given to one real estate broker as the sole agent for the sale of an owners property
53
Exclusive right of sale
An employment contract given to one real estate broker as the sole agent for the sale of an owners property with the commission going to that broker regardless of who actually sells the property during the employment contract
54
Executed
An agreement in which the terms have been fully performed by all parties; assigned documents
55
Executory
An agreement containing some act or condition that remains to be completed
56
Express
An agreement wherein the terms are specifically stated by the parties, either orally, in writing or a combination of the two
57
Expungement
A process that destroys or seals a criminal conviction after expiration of time
58
External Obsolescence
Any loss in value due to influences originating from outside the boundaries of the property such as an expressway adjacent to the neighborhood
59
FAC
Florida Administrative Code
60
Family
Members of a household
61
Fee Simple Estate
The most comprehensive and complete bundle of legal rights. Allows property to descend to heirs
62
FHA
Federal Housing Authority
63
FIRREA
Financial Institutions Reform, Recovery, and Enforcement Act
64
Five types of real estate sales
Residential, Business, Industrial, Agricultural, Commercial
65
Florida Statute 120
Administrative Procedure Act. Defines the procedure for implementation of licensing and disciplinary process
66
Florida Statute 20
Establishes the structure of the executive branch of Florida's government
67
Florida Statute Chapter 475 I
Often called the Real Estate Professional Practice Act. Establishes the rights and responsibilities of real estate licensees and appraisers
68
Florida Statute Chapter 475 II
Pertains to real estate appraisers - sets forth the requirements for licensed appraisers
69
Florida Statute Chapter 475 III
Gives a broker lien rights for earned commission for commercial property sales
70
Florida Statute Chapter 475 IV
Gives a broker lien rights for earned commission for commercial leases of real estate
71
Four Unities of a Joint Tenancy
PITT; Possession, Interest, Title, Time
72
FREAB
Florida Real Estate Appraisal Board
73
FREC
Florida Real Estate Commission
74
FREC Members
Seven total. Four with broker license that have been held for five years, one with sales associate license for 2 years, two non-real estate. One must be 60 years old or older
75
Freehold Estate
A tenancy in real property not terminated by a measure of time
76
Functional Obsolescence
Anything that is inferior because of operational inadequacies such as too few bathrooms
77
General Warranty Deed
An instrument of conveyance containing the strongest and most comprehensive promises of further assurance possible for a grantor (seller) to convey to a grantee (buyer)
78
Going-concern
The worth of a business including real estate, goodwill and earning capacity
79
Government Survey
A type of land description developed by the Federal government for subdividing land using surveying lines
80
Granting
The provision in a deed that specifies the names of the parties involved, the words of conveyance and a description of the property
81
Gross
An agreement for tenant to pay a fixed (base) rent with the landlord paying all of the expenses associated with the property
82
Group license
A right granted a sales associate or broker associate to work various properties under one owner-developer
83
Habendum
A provision in a deed to real property that stipulates the estate or interest the grantee is to receive and the type of title conveyed
84
Hardship Zoning
A variance that allows a property owner to build or improve on their property showing a hardship in which it involves land use and is no fault of the owner
85
HER
Housing Express Ratio (PITI + MIP) / monthly gross income = HER
86
Household
One individual or a group of individuals living in one dwelling unit
87
How Many Acres in a Section
640
88
How Many Hours in Post-licensing Education
45
89
How Much per Discount Point is Added to Mortgagee's Yield
1/8
90
HUD
Federal Housing and Urban Development
91
Hypothecation
To pledge real or personal property as security for a debt or obligation without giving up possession of the property
92
ILSA
Interstate Land Sales Full Disclosure Act
93
Income Rate Value (IRV)
NOI/Rate = Estimated Value
94
Index
The variable component that is added to the margin to calculate the interest rate of an ARM
95
Investment
The worth of a property to a particular investor based on the investor's desire rate of return, risk tolerance, etc
96
IRMA
Legal Test for fixtures
Intent of the parties
Relationship or agreement of the parties
Method or degree of attachment
Adaptation of the item
97
Just Value
The fair and reasonable value based on objective valuation methods
98
Kickback
Unearned compensation paid to licensee
99
Legally Sufficient
A complaint that contains facts indicating that a violation of a Florida statute, a DBPR rule or a FREC rule has occurred
100
Leverage
The use of borrowed funds to finance the purchase of an asset
101
Lis Pendens
A notice a lawsuit has been filed usually in the county, that disputes the property’s ownership or title
102
Life Estate
Tenancies whose durations are limited to the life of some person; freehold
103
Liquidated Damages
In case of default by the buyer, a payment (typically the earnest money) is sought by the seller
104
Liquidation
The process of determining liabilities and apportioning the assets in order to discharge the indebtedness of a business to be sold
105
Location of DBPR
Tallahassee
106
Location of FREC and DRE
Orlando
107
Lot and Block
A type of legal description of land
108
LTV
Loan to Value ratio
109
MALE
Mediation, Arbitration, Litigation, Escrow Disbursement Order
110
Margin
The fixed component that is added to the index to calculate the interest rate in an ARM
111
Mediation
The act of having a third party attempt to reconcile a dispute between two parties
112
Ministerial
The duties of the DRE that involve record keeping
113
MIP
Mortgage Insurance Premium
114
MLO
Mortgage Loan Originator
115
MLS
Multiple Listing Service
116
Mortgagee
A lender who holds a mortgage on a specific property as security for the money loaned to the borrower
117
Mortgagor
A borrower who gives a mortgage on the borrowers property in order to obtain a loan from a lender
118
Multiple license
Licenses held by a broker in two or more real estate brokerage firms
119
N.A.
National Association - initials required to be on a federally chartered bank
120
NAR
National Association of Realtors
121
Net
An agreement for the tenant to pay a fixed rent plus property costs such as taxes, insurance and utilities
122
Non-Freehold Estate
A tenancy that is measured in time of an individual such as a lease, renter
123
Nonconforming use
Continuing land use that is not in compliance with zoning ordinances
124
Novation
The substitution of a new party/new terms to an existing obligation
125
Option
The right or privilege to purchase or lease real property at a specific price during a designated period based on a sufficient consideration
126
Percentage
An agreement for the tenant to pay rent based on the gross sales received by doing business on the leased property
127
PITI
Principal/Interest/Taxes/Insurance
128
Plottage
The added value as a result of combining two or more properties into one large parcel
129
Power of Attorney
Designation of another person to act for a principal who may not be present
130
Quasi-Judicial
Powers delegated to the FREC to discipline real estate licensees for violations
131
Quasi-Legislative
Powers delegated to the FREC to enact rules and regulations and decide questions of practice
132
Real estate professionals provide expertise in three areas
Knowledge of property transfer, knowledge of market conditions, knowledge of how to market real estate and businesses
133
Real Estate Services
A BAR SALE; Advertise, Buy, Appraise, Rent, Sell, Auction, Lease, Exchange
134
Recommended order
A determination by a judge that includes findings and conclusions to be in a final order
135
Redlining
Discriminatory financing by a lender
136
REIT
Real Estate and Investment Trusts
137
Reliction
Gradual receding of water that results in more land once covered
138
Remainderman
The party designated to receive an estate at the end of a life estate
139
Riparian
Private ownership rights along a river or stream
140
Salvage
The estimated amount for which improvements can be sold at the end of a structures useful life
141
Seisin
A covenant in a deed that warrants that the grantor (seller) holds the property by a fee simple title and has the complete right to sell the same
142
Seven Protected Classes
FRSH CRN; Familial status, Race, Sex, Handicap status, Color, Religion, National Origin
143
SIN
Stamp Tax - on entire purchase $.7 for each $100
Intangible - $.002 on new mortgage
Note - $.35 for each $100 of note
144
Situs
Relationship and influences created by location of a property that effects value, as an example accessibly, personal preference
145
SL
Sales Associate
146
SOH
Save Our Homes
147
Special Exemptions
An individual ruling in which a property owner is granted the right to a use otherwise contrary to law
148
Special Use
Permission to build or use in apparent conflict with existing zoning ordinance
149
Special Warranty Deed
The grantor guarantees that nothing has been done to encumber or cloud the title during the grantor's ownership.
150
Specific Performance
A remedy for an injured party obtained through a court of equity, which requires specific accomplishment of the contract terms by a defendant
151
Square Feet in an Acre
43,560
152
Stay of enforcement
A delay temporarily of an enforcement during an appeal process
153
Steering
Discriminatory acts against buyers
154
Subordination
A provision in a mortgage in which the lender voluntarily permits a prior or subsequent mortgage to take priority over the lender's otherwise superior mortgage
155
Summary suspension
An immediate action by the DBPR taken to suspend further actions against a licensee to protect the public
156
Tenant at sufferance
An estate lawfully acquired for a temporary period of time but retained after a period of lawful possession has expired. Non-freehold estate
157
Tenant at will
An estate that may be terminated by either party at any time upon proper notice; non-freehold estate
158
Tenant by the Entirety
An estate created by spouses jointly owning real property with instant and complete right of survivorship
159
Tenant in Common
A form of ownership by two or more persons each having an equal or unequal interest and passing the interest to heirs, not surviving tenants
160
Testatrix
Female leaving a will
161
Three Approaches to Value of Property
Sales Comparison, Cost Approach, Income Approach
162
Three general phases of development and construction
Land acquisition, Subdividing, Recording plat map
163
Three Items that Must be on Broker Sign
Name of company, Broker name, "Licensed Real Estate Broker"
164
Three Types of Brokerage Representations
Transactional, Single Agent, Non-Representation
165
Three Types of Residential Construction
Speculative, Custom, Tract
166
TOR
Total Obligation Ratio
167
Triggering Terms of a Loan
Amount or % of any down payment, number of payments, period (term), amount of any payment, amount of any finance charge
168
Types of Sales Transactions for Licensees
```
Business
Residential
Industrial
Agricultural
Commercial
```
169
Unilateral
An agreement in which only one party promises to perform without receiving a reciprocal promise to perform from the other party
170
USPAP
Uniform Standards of Professional Appraisal Practice
171
VA
Veterans Administration
172
Value Associated with a Rapid Sale
Liquidation
173
Variances
Exception to zoning regulations or ordinances granted to relieve the hardship
174
Voidable
A contract that because of the manner or method in which it was brought about, one of the parties is allowed to avoid contractual duties
175
What happened in 1923
Florida legislature passed the Real Estate License Law
176
What happened in 1925
FREC was established
177
What is Considered Residential
Four or less units, 10 acres or less of agricultural property
178
WILD CARD
```
Ways an offer is terminated
Withdrawal by offeror
Insanity
Lapse of time
Death
Counteroffer
Acceptance
Rejection
Destruction of the property
```
179
Writ if supersedeas
A stay of enforcement; temporary stop in a legal proceeding, restraining order
