National Real Estate

Front 1

What is equity?

Back 1

The value minus the debit

Front 2

Market price actual sales

Back 2

Used to detrimental Price of the property

Hint 2

(Appraisal process)

Front 3

The income approach

Back 3

Used to estimate value of commercial units

Hint 3

(Appraisal process)

Front 4

Sales comparison approach

Back 4

Estimate value of residential units

Hint 4

(Appraisal process)

Front 5

Cost approach

Back 5

Unique properties

Hint 5

(Appraisal process)

Front 6

GRM (Gross rent mutiplier)

Back 6

Used to determine the value of residential properties

Front 7

How many principle values are there to the appraisal process?

Back 7

4

Front 8

Contribution

Back 8

Is the principal used to determine cost of improvements

Hint 8

(PRINCPLE VALUES)

Front 9

Highest and best use

Back 9

Is used to determine the best use over time

Hint 9

(PRINCPLE VALUES)

Front 10

Supply and demand

Back 10

Used to determine if market has too much stock or not enough and how it impacts pricing

Hint 10

(PRINCPLE VALUES)

Front 11

Conformity

Back 11

Applies to the properties surrounding the subject

Hint 11

(PRINCPLE VALUES)

Front 12

P.I.T.T

Back 12

Possession, Intrest, Title, TIme

Hint 12

Types of ownership

Front 13

O.L.D.C.A.R

Back 13

Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care and skill

Front 14

PTM?

Back 14

The agent must keep price terms and motivation confidential

Hint 14

Oldcar

Front 15

Types of agency

Back 15

Special agency authorized to preform a particular act without the principle, General agency authorized to preform a series of acts associated with a continued operation of a business, Universal agency authorized to preform in place of principle.

Front 16

What are the three different types of listings?

Back 16

Exclusive right to sell ( broker gets paid regardless), Exclusive agency (Owner can sell on his own without paying commission), Open listing ( Owner listing with more than nine brokerage)

Front 17

Express can be what?

Back 17

Oral or written

Hint 17

Contracts

Front 18

Implied contract is?

Back 18

By actions not in writing

Front 19

What are the reasons for a voidable contract?

Back 19

The party is a minor, subject to duress, fraud, and misrepresentation

Front 20

Lender=

Back 20

Mortgagee

Front 21

Unilateral

Back 21

Promise exchanged for a promise

Hint 21

Contracts

Front 22

Bilateral

Back 22

Promise exchanged for promise

Hint 22

Contract

Front 23

Executory period

Back 23

One or both parties need to complete the contract duties

Hint 23

Contracts

Front 24

Executed

Back 24

Duties are completed per contract

Hint 24

Contracts

Front 25

Addenda

Back 25

Additional material attached to and made part of the initial agreement

Hint 25

Contracts

Front 26

What are the five essential elements of a valid contract?

Back 26

Competent parties, Mutual agreement, Lawful objective, Consideration, In writing and signed

Front 27

Statute of frauds?

Back 27

Enforces contracts in real estate be In writing

Front 28

Statute of limitations ?

Back 28

Sets the length of time parties will be given to file claim

Front 29

The types of real estate contracts?

Back 29

Purchase agreement, Option, and Lease purchase

Front 30

Rwmidies for breach of contract l?

Back 30

Mutual Rescission (mutual agreement to cancel all obligations), Remedies for default (Enfore specific performance (court action to force breaching party to preform), Terminate the contract and recieve earnest money as liquidated damages,Sue for actual damages

Front 31

F.R.e.S.H.C.o.R.N?

Back 31

Family status, Race, Handicap, Color, Religion, National origin

Front 32

Not protected under federal law?

Back 32

Age, Sexual orientation, Martial status, Occupation

Hint 32

Fair housing acts

Front 33

Steering?

Back 33

The channeling of potential buyers to and from a certain area because of discrimination

Front 34

Blockbusting?

Back 34

Inducing people to sell thier homes due to entry of a protected class in that neighborhood

Front 35

Redlining?

Back 35

Refusing to offer or limiting loans in certain areas, may not refuse for high crime rates in area.

Front 36

Who receives complaints about discrimination?

Back 36

HUD

Front 37

Americans with disabilities act?

Back 37

Ensures equal access to public accommodations for disabled persons

Front 38

Equal credit opportunity act?

Back 38

Prohibits discrimination in all consumer credit transactions.

Front 39

Megan's law?

Back 39

Requires registration of sex offenders

Front 40

The three financing instruments?

Back 40

Promissory note, Mortgage and deed of trust ,Satisfaction (mortgage note paid)

Front 41

Acceleration clause?

Back 41

Speeds up the note when borrower is in default

Front 42

Foreclosure laws are implemented state or national?

Back 42

State

Front 43

Deed in lieu?

Back 43

Alternative to foreclosure, Lender does not have to accept, Disavantage to lender

Front 44

Insufficient proceeds from foreclosure sale?

Back 44

Deficiency or personal judgement

Front 45

Short sale?

Back 45

When sellers nen is default prior to foreclosure, property for sale often at lower price, lender may agree to except

Front 46

Straight loan

Back 46

Intrest only, small monthly payment, full amount (balloon )due at the end

Front 47

Partially amortized loan?

Back 47

Repaint nfb in equal payments of bvn principle and interest, has balloon payment at the end but smaller

Front 48

Fully amortized loan?

Back 48

Repaid in equal payments of principal and interest with the balance paid in full, payments are larger, interest paid in arrears.

Front 49

Adjustable rate mortgage?

Back 49

Rate subject to change in an economic index

Front 50

Budget debt service

Back 50

Borrower pays p&I plus half taxes and one half insurance into the lenders impound escrow account

Front 51

Reverse mortgage?

Back 51

Mortgagee pays Mortgagor over a specific term.Used to obtain equity in a home when a senior does not want to sell but needs cash.

Front 52

Line of credit?

Back 52

Allows borrower to obtain further advances at a later date.

Front 53

Subprime loans?

Back 53

Borrower is at a higher risk and more likely to default

Front 54

The two seller financing options?

Back 54

Contract for deed ,Seller carry loan

Front 55

Loan to value LTV?

Back 55

Maximum percentage of value lender will loan,used to determine loan amount and if private loan insurance is needed, based on price or appraisal whatever is less

Front 56

Discount points?

Back 56

Charged by lender to increase lenders yield

Front 57

Loan origination fee?

Back 57

Is a free charged by lender to process and issue loan

Front 58

Leverage?

Back 58

Borrowed money used to increase investment return

Front 59

Subordination?

Back 59

It's a clause that allows a change in the order or mortgages

Front 60

Usury?

Back 60

Chargung interest in excess of what is permitted by state law.

Front 61

FHA? Federal housing Administration

Back 61

Insures lenders against loss due to foreclosure

Front 62

V.A. Department of Veterans affairs

Back 62

Guarantees lenders against loss on loans to veterans

Front 63

Primary mortgage market

Back 63

Mortgage bankers and mortgage brokers

Front 64

Predatory lending

Back 64

Umbrella term for unfair or nen illegal lending practices

Front 65

Secondary mortgage market?

Back 65

Buys mortgages from primary lenders which are banks

Front 66

APR?

Back 66

Rate that includes the note rate plus the total cost of credit

Front 67

Truth in lending act?

Back 67

Promotes the informed use of consumer credit by requiring disclosures about its terms and cost

Front 68

What triggers full disclosure?

Back 68

Down payment, interest rate, monthly payments, or number of payments

Front 69

What does RESPA represent?

Back 69

Disclosure of all closing costs within 3 days

Front 70

Can Real estate professionals charge for a CMA?

Back 70

Yes but must make sure it's not mistaken for appraisal

Front 71

Market price?

Back 71

Actual price paid in a transaction

Front 72

Appurtenances ?

Back 72

Including rights, privileges, and fixtures

Front 73

Metes and bounds?

Back 73

Starts and ends at a point of beginning

Front 74

Rectangular survey?

Back 74

Tiers, ranges, land parcels, townships

Front 75

Acre = how many square feet?

Back 75

43,560 square feet

Front 76

How many acres in one section?

Back 76

640 or one mile by one mile

Front 77

Recorded plat?

Back 77

Lot,block, subdivision

Front 78

D.U.S.T?

Back 78

Demand, Utility, Scarcity, Transferablility

Front 79

Freehold estate?

Back 79

Forever duration of ownership. Lasts forever, maximum rights of ownership

Hint 79

Type of ownership

Front 80

Leasehold estates?

Back 80

Has a definite duration and may be terminated

Front 81

Estate/ tenancy for years?

Back 81

Has predeterminated termination date

Front 82

Periodic estate/tenancy?

Back 82

Renews from poeriod to period such as month to month.

Hint 82

Type of ownership

Front 83

Estate/tenancy at will?

Back 83

Continues until terminated by owner or tenant.

Hint 83

Type of ownership

Front 84

Estate/tenancy of sufferance?

Back 84

Occurs when a holdover tenant stays beyond termination without consent.(If landlord accepts payment becomes periodic tenancy )

Hint 84

Type of ownership

Front 85

Easement?

Back 85

Right to use land

Front 86

Encroachment?

Back 86

Unauthorized use of someone else's land.

Front 87

General partnership?

Back 87

All partners share equal profits and liablity

Hint 87

Owners in severalty

Front 88

Limited Partnership?

Back 88

Only responsible for the amount of investment. Liablity equals the amount invested.

Hint 88

Owners in severalty

Front 89

Tenants in common?

Back 89

Co ownership no right of survivorship

Hint 89

Multiple ownership

Front 90

Joint tenants?

Back 90

Co ownership with right of survivorship, no probate,overrides a will,

Hint 90

Multiple ownership

Front 91

Tenancy by the entirety?

Back 91

Applies to married couples in some states

Hint 91

Multiple ownership

Front 92

Cooperatives?

Back 92

Ownership of the building by a corporation. Shares of stock

Front 93

Police power?

Back 93

Enforces laws governing land use.(zoning, building codes, planning and safety codes)

Front 94

Eminent domain?

Back 94

The right to take private land for public use.

Front 95

Ad valotem?

Back 95

Taxes are based on assessed value, not on current market value.

Hint 95

Government rights

Front 96

Special assessments?

Back 96

Lien against specific properties that benefit from public improvements

Front 97

Escheat?

Back 97

Properties with no heirs may revert back to government

Front 98

Master plan used to:

Back 98

Control growth

Front 99

Nonconforming use?

Back 99

Allows owner to continue present use that no longer complies with current zoning.

Front 100

Variance?

Back 100

Allows owner to vary from building codes or build into a setback tonorevent economic hardship.

Front 101

Lead based paint before date?

Back 101

January 1,1978

Front 102

Riparian rights?

Back 102

Ownership of land abutting water that is flowing.

Front 103

Littoral rights?

Back 103

Ownership of land abutting water that is not flowing

Front 104

Gross lease/fixed lease?

Back 104

Pays fixed rent, landlord pays all expenses.

Front 105

Net lease?

Back 105

Fixed rent plus expenses

Front 106

Percentage lease?

Back 106

Pays percentage of income as rent.

Front 107

Index lease?

Back 107

Rent is adjusted based on economic index

Front 108

Sale-leaseback?

Back 108

Coverts equity to capital without giving up possession

Front 109

Warranty deed/General warranty deed?

Back 109

Five covenants and guarantee of title

Front 110

Limited (special) warranty deed?

Back 110

Warrants only those defects and encumbrances during grantors ownership

Front 111

Quitclaim deed?

Back 111

Used as problem solver to terminate deed restrictions

Front 112

Bargain and sale deed?

Back 112

Contains only implied warranties that the grantor hold title and possession of the property

Front 113

Adverse possession?

Back 113

Ownership granted by the courts due to open, continuous, actual, notorious, and exclusive possession of another's land for minimum statutory period

Front 114

Easement by prescription?

Back 114

An easement prescribed by the court for open, continuous, acual,and notorious use

Front 115

Abstract of title?

Back 115

Historical summary of all conveyances and encumbrances against property

Front 116

Quiet title action?

Back 116

Used to clear problems found in the abstract or title report

Front 117

Items that are deductible. P.O.I.T?

Back 117

Points, origination, interest, and taxes

Front 118

Residential income property depreciates..

Back 118

27 1/2 year period

Front 119

Commercial property depreciates...

Back 119

39 years

Front 120

Straight line depreciation?

Back 120

Requires that an asset must be depreciated by equal amounts each year over it's useful life.

Front 121

Voluntary Alienation

Back 121

The legal term for the transfer of title during the owners lifetime.

Hint 121

Transfer of title

Front 122

How many reuwirmenta are there for a valid deed?

Back 122

9

Hint 122

Transfer of title

Front 123

Special warranty deed?

Back 123

Warranty that that the grantor recieved title, the property was not encumbered during the time the grantor held title

Hint 123

Transfer of title

Front 124

Deed of trust?

Back 124

Conveyance from trustor to trustee

Hint 124

Transfer of title

Front 125

Reconveyance deed?

Back 125

Conveyance from trustee back to trustor

Hint 125

Transfer of title

Front 126

Trustee's deed?

Back 126

Conveyance from trustee to third party

Hint 126

Transfer of title

Front 127

Testate?

Back 127

Has a prepared will

Hint 127

Transfer of title

Front 128

Intestate

Back 128

No will

Hint 128

Transfer of title

Front 129

Devise?

Back 129

The gift of real property by will.

Hint 129

Transfer of title

Front 130

The five bundle of rights?

Back 130

Right of posession, right to control the property, right of enjoyment, right of exclusion, right of disposition

Front 131

Fee simple/fee absolute

Back 131

Highest interest in real estate recognized by law

Hint 131

Interests in real estate

Front 132

Fee simple defeasible

Back 132

Is interest that can be reverted to owner if a occurence or non-occurance of some specified event.

Hint 132

Interests in real estate

Front 133

Annexation

Back 133

Process of converting personal property to real property