Glossary of Final Exam Realestate Pawlicki
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- What is the benefit of having a Cul-de-sac lot? pg.352 L. 7-11
- -more spacious backyard
-less car traffic
- What is the definition of escheat? pg. 169 L.12-14
- -provides for government
-allows to take property of deceased without any hiers
- Using the government survey system , start prime meridian, and baseline- east to west. What are they called? pg.198 Fig.10.6
- Principal meridian - north and south
Base Line- east and west
- Four legal descriptions: which one has 2.5 acres? pg. 202 L. 16-25 / pg. 203 L. 1-6
- 1/2 ,1/2 = 2*2=4
- Metes and bounds given a degree, what is opposite? Pg. 195 Fig 10.2
- west/east =90 degree
north and south = 0 degree
- Everything about statue of frauds. pg. 210 L. 38-42 / pg.211 L. 1-26
- -P- urchase and sale of conrtacts
-O- ption contracts
-L- ease agreements for MORE than one year
-L- isting agreements for MORE than one year.
-must be written/signed except:
1) when an oral contract has been formed and the buyer has paid part of the property or made improvements.
2) if both parties have fully performed as promised.
- What are statute of limitations? pg. 211 L.27-30
- (time a contract may be enforced)
-written contracts - 5 years
-Oral contracts - 4 years
-1/2 written 1/2 oral - 5 years written and 4 years oral.
- Which items required to make any contract valid? pg. 211 L. 35-38
- 1) contractual capacity of parties (competence)
2) offer and acceptance (mutual assent)
3) Legality of Object
- What are elements needed to have a real property contract valid? pg.213 L. 1-3
C-contractual capacity( competent parties)
O- offer and acceptance (meeting of the minds)
L- Legality of object
I - In writing and signed (statue of frauds)
C- consideration (valuable or good)
- Definition of open listing. pg.220 L.16-17
- an employment contract given to any number of brokers who work simultaneously to sell the property.
- What happens to a mortgage in a title theory state? pg. 248 L. 13-18
- Title to a mortgage property is conveyed to the lender through a mortgage deed, if the borrower defaults, the lender may take possession of the property.
- What are the elements of a net lease? pg.181 L. 35-37
- a tenant pays fixed rent plus property costs such as maintenance and operating expenses(taxes insurance and utilities). Typically commercial property.
- what happens to principals on a level payment fixed mortgage? pg. 262 L. 10-15
- Payments during the first few years are almost entirely to pay interest and payments during the last few years are almost entirely principal repayment
- What does a gem mean? pg.267 L.10-15
- Growing equity mortgage (GEM): rapidly increases the equity in a property by increasing the monthly payments by a certain percentage each year and applying these increases to the principal. quicker payoff.
- What does exculpatory clause in a mortgage do? pg.253 L.44-46
- exculpatory clause requires that the lender waive the right to a deficiency judgment against the borrower. it relieves the borrower of personal liability to repay te loan.
- What is the interest rate charge to members of the FED bank called? pg. 282 L. 14-15
- The discount rate.
- What is the HER and TOR for the different type of mortgages? pg.270 L. 2-5 pg. 271 BOX
- HER- housing expense ratio-29 %
-monthly housing expenses/ monthly gross income
TOR - total Obligation ratio -41%
-total monthly obligations/ monthly gross income
- who guarantees mortgage back securities? pg.288 L. 35
- Ginnie Mae
- What does hypothecation mean? pg. 249 L. 8-10
- refers to the pledging of property as security for payment of a loan without surrendering possession of the property.
- What are elements of an ARM? pg.266 L.8-11
- Adjustable-rate mortgages:
calculated interest rate = index + margin
- How does the FED reduce the supply of money? pg. 282 L. 25-35
- Change/increase the reserve requirements. Reserve requirements are the amount of funds the bank must hold in reserve against deposits liabilities.
- How does the binder deposit appear on a closing statement? pg. 309 L.15/16
- credit to the buyer
- How to compute State tax on a Deed? pd.305 L. 33-36
- Stamps on deed .70 - 100$
Note,stamps on notes .35- 100$
Intangible on new mortgages .002-1$ of debt.
- What does wattage mean? pg. 359 L.16-19
- wattage indicates how much energy a device consumes. electric company charges customers according to kilowatt hours used. kwh-1000 watts
- What does exchange value mean? pg.324 L.7-11
- The ability to command other goods in exchange. market value.
- given a scenario determine CBS vs. CIA & make math adjustments.
pg. 328 L.41-46
pg.329 Fig15.1 & box
- Comparable property Better = Subtract
Comparable property inferior= add
- What would be classified as a fixed expense to determine NOI?
pg.336 L. 35-42
- ex, property taxes, hazard insurance.
- Which is NOT a tax advantage to owning a home? pg.400 L.41-44 pg.401 L.4-5
- 1) Mortgage Interest
2) Property taxes
3) Interest on a home equity loan
4) Mortgage origination fees (points)
- Definition of positive leverage.
pg. 377 L.36-37
- If the benefits from borrowing exceed the costs of borrowing.
- Which is NOT benefits of investing in real estate? pg. 371 L.42-45 pg. 372 L.1-23
- Good rate of return
Hedge against inflation
Bad = illiquidity = not liquid.
- Define highest and best use.
Pg. 326 L.21-29
- The most profitable use to which a property may be put.
1)legally permissible (zoning)
2)physically possible (soil type, slope)
3) financially feasible (income generating vs. costs)
- define Physical deterioration.
pg. 334 L. 15-19
- ordinary wear and tear cause by use, lack of maintenance exposure to elements and physical damage.
- When can a seller choose title and insurance Company?
- When the seller is paying for the owner's title insurance policy.
- what methods are used to appraise a business? pg. 383 L. 9-15
- liquidation analysis. Used b/c ; failure, death of a sole proprietor, dissolution of partnership, a court order, or any # of other reasons.
consider: pay-off short term obligations, the value of inventory on hand, and the liquidation value preferred stock.
- What are the requirements for lead base paint disclosure? (fins false) pg.225 L.41-43 Pg. 226 L.1-4
- pamphlet, disclosure must be signed.
- calculate special assessment.
pg.399 L. 21-25
- feet * $$ = total
total * owners share = OS
OS /2 = Special assessment.
- The steps in order to protest and assess evaluation.
- 1) Go to county property appraisers office.
2) Go before Value adjustment board
3) Go to court
- What does a RAM do? pg.266 L.43-45
pg. 267 L.1-3
- reverse annuity mortgage. designed to help elderly homeowners The lender pays the borrower a fixed amount each month based on the mortgagor's life expectancy and property value.
- Calculate millage rate.
pg. 393 L.2-5
- 1,000 mills - $1.
approved budget- non property tax revenue/
total assessed value - exemptions =
- Scenario; determine adjusted basis of a home. pg.402 L.1-7 1st Box
- original purchase price + purchase expenses and capital improvements =
- Variables that influence the supply of real estate. pg. 414 BOx
- 1)skilled labor
2)construction loans and financing
- Define over improvement. pg.325 L. 19-22
- when an owner invests more money in a structure than they may reasonably expect to recapture.
- purpose of zoning ordinances. pg. 430 L. 23-26
- local laws that implement the comprehensive plan. local gov. exercises police power by regulating and controlling the use of land and structures within designated land-use districts or zones.
- How to create tenancy in common.
pg. 152 L.44-45 Pg. 153 Fig8.4
- 1) 2 or more people
2) undivided possession
3) interest equal or unequal percentage
4) same or different time
5) No right of survivorship heirs inherit.
- define Buffer zone pg.432 L.1-5
- A strip of land separating one land use from another.
- Purpose of variance. pg. 433 L.3-21
- allows all property owners to vary from strict compliance with all or part of a zoning code.
under 2 conditions;
1)property owner must show hardship exists.
2)ZBA must use same criteria to judge the validity of requests for variance.
- difference between block buster and steering pg. 127 L.18-20
- steering - channel protected home seekers away from areas that are not mixed with that class.
block bustering - use entry or rumor of entry of a protected class in a neighborhood to persuade others to sell.
- Elements of RESPA pg.131 L.28-30
- good faith estimate (GFE) of closing (settlement) costs, listing charges the buyer is likely to pay at closing.
- What equal credit opportunities act does.
pg. 131 L.8-12
- ECOA of 1974. ensures financial institutions and firms engaged in extending credit will make credit available with fairness and w/o discrimination.
- landlord and tenants act, where security deposits may be kept. pg.135 L.29-34
- non-interest/interest bearing accounts in Florida. or
post a security bond with the clerk of court in the county in which the rental property is located.
- define spec homes. pg.8 BOX
- Building "on speculation" involves purchasing one or more lots and constructing a home without securing a buyer in advance of construction.
- What is true about CMAS? pg.6 L.27-28
- a CMA is a marketing tool and may NOT be referred to or represented as an appraisal.
- Federal regulated transaction(false)?. pg.6 L.17-20
- Federally related transactions include the sale, lease, purchase, exchange, investment , refinancing, or other use of real estate as a security for a loan or investment that has a transaction value greater than 250,000.
- When to give a broker relationship disclosure.
pg.50 L. 21-34
- when dealing with residential real estate transactions. ONLY
- What don't disclose on real estate applic. pg.15 L.31-34
- traffic offense, ex) parking, speeding, inspection, or traffic signals violations.
- Sales associate: what to do if license expired for 18 months. Not the 1st renewal. pg.39 L.12-13
- complete 2 28 hour continuing education courses.
- define Irrevocable consent to service.
pg.19 L. 1
- provides that lawsuits and other legal actions may be initiated against the applicant in any county of FL.
- define equity. pg.370 L. 22-24
- investors own money.
- What course must you complete before renewing license the 1st time. pg. 21 L. 2-3
- post licensing education requirement.
- meaning of "exercise limited confidentiality" pg. 52 L. 5-12
- prevents disclosure that seller and buyer are in agreement on price.
- If a brokers license is revoked what action to sales associate license? pg. 40 L. 22-28
- no disciplinary action. license involuntarily suspended.
- who is exempt to licensure according to 475? pg. 24/25 L. 23-24
- buy/sell cemetary lots
mobile park homes
- What are duties of transaction broker? (false) pg. 51/52 fig.4-4 pg.67 / fig. 4-1 pg.55
- When does a broker have 2 have written consent to transfer to transaction broker? pg. 58 L.21-26
- transition to another relationship.
- When to a present verbal offer.
pg.52 L. 1-4
- timely manner
- Loan to value ratio
- Loan amount/ price =Ratio
- IRS depreciationon insitutional property
- dep. basis /39 years = annual depreciation
- # of lots that go to an acerage tract
- sq.feet per acre * percent land available= #
#/ minimum sq feet per lot =##
##* acre= total subdivsion lots
- NOI then put into IRV formula
- potential gross income (PGI) - vacancy and collection losses
+ other income= EGI
EGI- expenses oper.
- Irv Formula
- SIN TAXES
- s SELLER .70-100
n BUYER .35 - 100
I BUYER .002- 1
- MONTHLY EXPENSES / gross income
- 2nd months principal on mortgage
- principal balance* annual interest /12= 1st months interest
monthly mortgage payment - first months interest = pay. on principal
begining principal balance - principal payment = new principal balance
- sale price / monthly rental= GRM
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