TX Principles Of Real Estate PT 2 Flashcards
Most common objective of an appraisal is to develop an opinion of ________ value?
Market value
A single value is derived from the three appraisal methods of determining value during the _________ process?
Reconciliation
Second step in appraisal process
List data needed
Third step in appraisal process
Determine highest and best use
First step in appraisal process
State the problem
How many hours of appraisal education is required to become an appraisal trainee?
75 hours
How many hours of appraisal education is required to become a general certified appraiser?
300 hours
The desire for possession or ownership backed by the financial means to satisfy that need is referred to as..?
Effective demand
The capacity to satisfy human needs and desires is referred to as…?
Utility
Supply of a property in relation to effective demand is known as…?
Scarcity
A typical residential appraisal report is issued on a…?
Uniform residential appraisal report
The highest price in terms of money which a property will bring in competitive and open market and under all conditions required for a fair sale
Market value
The cost of replacing a structure completely destroyed by an insured hazard
Insured value
Current value for accounting purposes of an asset expressed as original cost plus capital additions minus accumulated depreciation
Book value
A valuation placed upon a piece of property by a public authority as a basis for a levying taxes on the property
Assessed value
The price paid for a piece of property regardless of pressure’s motives or intelligence
Market price
What is the first step an appraiser takes and valuing the property using the cost approach?
Determine the value of the land as if it were vacant
The cost of replacing the subject improvement with one that is the exact replica, having the same quality of workmanship, design and layout, or cost to duplicate an asset is known as?
Reproduction cost
The cost to replace a structure with one having utility equivalent to that being appraised, but constructed with modern materials and according to current standards, design and layout.
Replacement cost
The loss in value brought about by wear and tear, disintegration, and use and actions of the elements is known as ________ obsolescence.
Functional obsolescence
A loss in value due to factors away from the subject property but adversely affecting the value of the subject property is known as____obsolescence.
Economic obsolescence
The income approach determine value by applying a capitalization rate to the
Net operating income
_______ Depreciation cannot be fixed and economically feasible cost
Incurable
The period over which a property will yield a return on the investment over and above the economic or ground rent due to land
Economic life
The most probable price a property will bring in the market
Market value
The primary function of a ____Is to promote thrift And homeownership?
S&L
The Fannie Mae form 1003 is also known as the?
Uniform residential loan application
A mortgage in which they scheduled payment well not amortize the loan over the mortgage term; therefore, for the debt to be fully satisfied, a final payment larger than the uniform payment is required
Balloon mortgage
A mortgage that requires the mortgagors To pay interest only during the mortgage term, With the principal due at the end of the term
Term mortgage
Who would most likely benefit from a balloon mortgage
People who only intend to live in the property for a few years
Most deed of trust loans are…?
Fully amortized
The amount of money the borrower or seller must pay the lender to get a mortgage and stated interest rate
Discount points
The financing charge that a lender requires
Loan origination fee
Minimum interest rate sit by the federal reserve for lending to other banks
Discount rate
Private owned corporation that purchases FHA, VA, and conventional mortgages
Fannie Mae
Nickname for Federal home loan mortgage corporation, corporation wholly owned by the Federal home loan bank system that purchases FHA, VA, and conventional mortgages
Freddie Mac
Nickname for the government national mortgage association. A US government agency that purchases FHA And VA mortgages
Ginnie mae
Written notice of an obligation given by a corporation or government entity
Bond
The federal reserve system is divided into how many geographical districts
12
Illegal rezoning of a certain property in a zoned area to permit a different type of use than that authorized for the rest of the area
Spot zoning
A variance may be granted for a change in the permitted_____or use?
Building area
Delay or negligence is Asserting ones legal rights
Laches
Can be filed to stop the violation of a deed restriction
Injunction
Radon most often enters the house through
Foundation walls
Real estate security can include
Mortgage notes
A property with a higher intristic value can often demand a higher
Sales price
Total amount of money remaining after all expenditures have been paid including taxes, operating costs, and mortgage payments.
Cash flow
Use of debt financing of an investment to maximize return per dollar of equity invested
Leverage
Cash received in a tax deferred exchange
Boot
Cost to acquire a property plus the cost of the physical improvements minus the depreciation claimed as a tax deduction is equal to the
Adjusted basis
A REIT Is not subject to a corporate income tax if at least how much of its income is distributed to shareholders
90%
A mortgage REIT’s Primarily source of income are from mortgage interest and
Mortgage origination fees
Business trust which deals principally with interest in land generally organized to conform to the internal revenue code
Real estate investment trust (REIT)
Using the straight line depreciation method residential property can be depreciated over how many years
27.5
Actual cash value is also known as
Depreciated value
The CAN-SPAM act applies to solicitation involving
Emails
A deed to relinquish any interest in the property which is the grantor may have without any warranty of title or interest
Quit claim deed
To have and to hold clause
Habendum clause
Items that are owned by the seller but ultimately paid by the buyer
Accrued items
