Term
| metes-and-bounds description |
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Definition
| legal method for describing the exact boundaries of a property. must result in an enclosed figure |
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| detailed land survey drawing, prepared by pro, that shows features of property and its legal description |
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| north-south lines used as ref points in rectangular survey system |
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| a 36-square mile area formed by township and range lines in Rectangular Survey System |
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| east west lines that run parallel to base lines in RSS |
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| Rectangular Survey description |
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Definition
| a unit of land approximately 24 miles square, bounded by base lines running east and west, and meridians running north and south. This 24 mile square is divided into areas six miles square called townships. Townships are further divided into 36 sections, each one mile square. |
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| 1 square mile rectangles that divide townships into 36 equal areas of 640 acres each |
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| east west lines used as reference points in RSS |
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| Government National Mortgage Association- a gov. org. that provides subsidized loans for certain mortgage borrowers (Ginnie Mae) |
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Definition
| Federal National Mortgage Association- agency that was created by the federal government in 1938 to buy mortgages from lenders and to serve as a clearing-house for secondary mortgage brokers (fannie mae) |
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| mortgage backed securities- securities issued by mortgage holders to investors who wish to invest indirectly in the mortgage market |
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| an easement with clearly identifiable dominant and servient estates |
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Definition
| an unauthorized invasion or intrusion of a fixture, building, or another improvement onto another person's property |
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| restrictions or limitation on ownership rights |
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| an easement with only a servient estate |
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Definition
| method of expressly creating an easement on a grantor's property |
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Term
| servient (burdened) estate |
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Definition
| the property burdened by the existence of an easement appurtenant or easement in gross |
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Definition
| method of expressly creating an easement on a grantee's property |
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| dominant (benefited) estate |
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Definition
| the property benefited by the existence of an easement appurtenant |
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Definition
| an easement created when someone other than the owner uses the lan "openly, hostilely, and continuously" for a statutory time period |
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Term
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Definition
| the acquisition of property as a result of "actual and exclusive, open and notorious, hostile and continuous" possession under a claim of right for a statutory period of time. i.e. build a fence on someone elses property that they don't dispute for 10 years in arizona, the property becomes yours |
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Definition
| the land and things attached to the land |
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| consists of legal interests in land and things permanently attached to the land |
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| best way to indicate intent is by written agreement |
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| if damage is caused to land or building by removing it becomes a fixture |
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| specifically adapted to real estate removal would reduce usefulness of property ex: kitchen cabinets |
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| personal property that becomes part of the real property when attached to the land or building |
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| people whose property borders water all have equal rights to the water |
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Term
| prior appropriation doctrine |
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Definition
| whoever first uses water for economic benefit has rights to the water |
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Term
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Definition
| fullest and most complete set of ownership rights |
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Term
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Definition
| covenants, conditions and restrictions are private encumbrances that limit the way property owner can use a property |
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Definition
| a contract by which a broker is employed by the seller to find a buer for the seller's real estate, according to the seller's terms, and for which service, the broker is paid a commission |
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Definition
| you potentially could get a loan for the amount stated to you, assuming that all of the information given was accurate and true |
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Definition
| it means that you have undergone the extensive financial background check, which includes looking at your credit history, previous tax returns, and verifying your employment. and the lender is willing to give you a loan |
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Definition
| authorizes the agent to act on his or her behalf |
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| means agent is in position of confidence and must perform his duties in best interest of the principal |
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| sales associate is an agent of the broker and a subagent of the brokers principal |
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Term
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Definition
| present if broker 1. intention to mislead 2. false statement material to a transaction that 3. justifiably relied on by a client 4. resulting in injury to client |
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Definition
| represent both buyer and seller |
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Term
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Definition
| same as fraud, doesn't need intention to mislead |
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Term
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Definition
| multiple listing service- group of bokers provide accurate and structured data about properties for sale. It also is a mechanism for listing brokers to offer compensation to buyer brokers who bring a buyer for their listed property. listing broker still receives commision very helpful to seller |
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Definition
| a property that is simultaneously marketed by multiple real estate agents. only receive commission if broker finds a buyer |
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Term
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Definition
| Contract in real estate giving only one broker, for a specific time, the right to sell a property and also allowing the owner to sell the property without paying a commission. |
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Definition
| A Listing Agreement which gives the listing agent the right to sell the property for a specified time, with the right to collect a commission if the property is sold by anyone, including the owner, during the listing period |
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Term
| buyer representation agreement |
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Definition
| An agreement that specifies the duties and the scope of services a buyer’s representative agrees to provide to the buyer as well as specifying the buyer’s responsibilities. |
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Definition
| most probable price property should be in a competitive market |
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Term
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Definition
| the amount of insurance that should be carried on the detructible portion of the real estate to compensate the owner adequately in case of loss |
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Definition
| amount actually paid for property |
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Definition
| the worth of a property to a particular investor |
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Term
| principle of substitution |
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Definition
| a buyer will not pay more than an equally desirable substitute in the open market |
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Term
| principle of anticipation |
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Definition
| An appraisal principle that holds that value can increase or decrease based on the expectation of some future positive or negative impact on the property. |
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Term
| principle of contribution |
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Definition
| the value of a component of property depends upon its contribution to the value of the whole property. The cost of an improvement does not necessarily equal the value the component adds to the property. |
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Term
| most probable selling price |
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Definition
| The property's most likely selling price when not all the conditions required for a Market Value estimate are relevant. |
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Term
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Definition
| An appraisal principle holds that no physical or economic condition remains constant and that change is largely the result of cause and effect and that existence occurs in three states: integration, equilibrium and degeneration. |
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Term
| sales comparison approach |
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Definition
| An appraisal practice which estimates the value of a property by comparing it to comparable properties which have sold recently. |
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Definition
| The cost to build something that is substantially similar to the original but is constructed with modern materials and according to current standards, design and layout and having equal utility. |
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Definition
| A loss in value due to factors outside the property lines of the subject property that adversely affect the usability and value of the subject property or its actual or potential income. |
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Term
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Definition
| term referring to properties with characteristics that are similar to a subject property whose value is being sought. |
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Term
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| A loss of value due to adverse factors from inside the property lines such as defects in the plan or design which affect how well the property can be used, function or perform which affects its value and marketability. |
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Definition
| An impairment of condition and a loss in value inherent in property brought about by wear and tear, disintegration, use and actions of the elements which is either curable or incurable. |
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Definition
| The most profitable and likely use of a property selected from reasonably probable and legal alternative uses, which are found to be physically possible, appropriately supported and financially feasible to result in the highest possible land value. |
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Definition
| The actual monetary difference between the cost to replace a property as of the date of the original appraisal and the present appraised depreciated value. |
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Term
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Definition
| appraisal method by estimating the replacement cost of the improvements and then deducting the estimated accrued depreciation from it and then adding back the market value of the land. |
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Term
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Definition
| Federal Home Loan Mortgage Corporation (freddie mac)- Freddie Mac was created in 1970 so that Fannie Mae wouldn't have a monopoly on government-backed mortgages. |
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Term
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Definition
| FHA loans are designed for low to moderate income borrowers who are unable to make a large down payment. FHA loans allow the borrower to borrow up to 97% of the value of the home. The 3% down payment requirement can come from a gift or a grant, which makes FHA loans popular with first-time buyers. only up to $346,250 |
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Definition
| a loan in which the lender is protected from the borrower's default by a guarantee of repayment from the Department of Veteran Affairs |
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Term
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Definition
| firms that borrow money from commercial banks to originate new loans to mortgage borrowers |
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Definition
| firm that acts as an intermediary between loan applications and lenders |
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Term
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Definition
| Private Mortgage Insurance- non government insurance that provides the lender with protection against the borrower default. PMI is required if the loan value is over 80% of home value |
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Term
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Definition
| principal, interest, taxes and insurance (PITI) include PMI + HOA if needed. Traditionally, a maximum of 28% of the borrower's gross monthly income |
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Term
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Definition
| the percentage of a borrower's gross monthly income required to meet monthly contractual expenses. max 36% |
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Term
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Definition
| An estate, such as a fee simple or life estate, of a duration that runs forever and its end cannot be determined. |
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Term
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Definition
| In real estate, the degree, quantity, nature and duration of interest, share, right, equity of which riches or fortune may consist and which a person holds in real property. |
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Term
| conventional (conforming) home loan |
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Definition
| adheres to the standards of fannie mae and freddie mac, no more than 75% of the home value can be financed, usually has a fixed rate |
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Term
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Definition
| an agency that was created by the federal govt in 1938to buy mortgage from lenders and to serve as a clearing-house for secondary mortgage brokers |
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Definition
| not backed by U.S government |
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Term
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Definition
| A right given to one party by a land owner to use the land in a specified manner |
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Term
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Definition
| NOT a type of mortgage, refers to borrowers with poor credit.. |
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Term
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Definition
| principal, interest, taxes, and insurance |
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Term
| exam question: As a result of the exercise of police powers (zoning), property owners recieve what? |
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Definition
| none of the above (no compensation) |
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Term
| exam question: The comprehensive or general plan is what? |
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Definition
| the justification for assigning individual parcels in their zoning classifications |
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Term
| exam question: Suppose chuck and barbara agree to purchase a vacant lot from steve, the legal owner. Two days later, steve's father calls and informs them that steve has changed his mind, as many precocious 16 year olds are apt to do. At the time the contract was signed, Steve did not reveal his age. What are chuck and barbara's options? |
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Definition
| accept steve's decision and look for another property (capacity of parties [minor]) |
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Term
| exam question: required elements for a sales contract to be valid include what? |
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Definition
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Term
| exam question: when an installment contract is signed by the buyer and seller what happens? |
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Definition
| equitable title transfers to the buyer |
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Term
| exam question: a listing agreement whereby the seller reserves the right to sell the property without having to pay a commission but also allows a real estate agent to sell the property and earn a commission is what type of listing? |
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Definition
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Term
| exam question: the commission paid in the real estate brokerage industry is traditionally what? |
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Definition
| a percentage of the contract price |
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Term
| exam question: one important difference between a real estate broker and a real estate salesperson is what? |
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Definition
| real estate salesperson must be affiliated with a licensed real estate broker |
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Term
| exam question: the definition of market value in appraisal includes what? |
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Definition
| typically motivated parties |
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Term
| exam question: which of the following statements is true regarding the sales comparison approach? |
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Definition
| adjustments are made to the sales prices of comparable properties to make them representative of the subject property's characteristics |
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Term
| exam question: what is the basic distinction between mortgage bankers and mortgage brokers? |
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Definition
| mortgage brokers typically do not service the loans they are involved in originating |
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Term
| exam question: PMI provides protection for who in the event of a mortgage default? |
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Definition
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Term
| non conforming "jumbo" loan amount |
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Definition
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| borrowers unable to obtain favorable loans (bad credit history etc.). higher interest rates |
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Definition
| Adjustable Rate Mortgage- low initial interest rate and monthly payment |
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Definition
| Alternative documentation- "no doc" loan, high loan to value loan, borrowers with lower credit scores, borrowers with high debt to income ratios |
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Term
| do applicants need to qualify under mortgage debt ratio or total debt ratio? |
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Definition
| applicants must qualify under both ratios |
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Term
| reasons for price increases 2003-2006 |
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Definition
1. affordable housing
2. low interest rates, loan money available
3. unqualified borrowers getting loans, subprime mortgage is not a real mortgage, refers to creditworthiness of borrower |
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Term
| current conditions of the phx market |
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Definition
| prices down 48% from the 2006 peak, prices down 35% from april 2008 to 2009 |
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Term
| magnitude of the foreclosure problem |
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Definition
1. 5150 phx foreclosures in june
2. over 45000 pending foreclosures
3. about 128,000 ARMs set to reset in 2010 |
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Definition
1. $75 billion making homes affordable plan
2. 10% tax rebate for first time home buyers up to maximum of $8000 |
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Term
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Definition
| N 1/2 of s22 T1N R4E from Salt/Gila Base and Meridian |
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Term
| is licensing required of all agents? |
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Definition
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Term
| how do you obtain a brokers license? |
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Definition
| 3 years experience plus exam |
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Term
| who does the listing agent work for? |
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Definition
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Term
| how long does an exclusive right to sell listing typically last? |
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Definition
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Term
| when is the best time to use the sales comparison approach? |
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Definition
| single family residential |
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Term
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Definition
| The process of estimating the value of property by considering the present value of a stream of income generated by the property. 2 steps: estimating future income and converting the estimate into present value estimate |
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Term
| best time to use income approach |
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Definition
| apartment, retail, office, etc. |
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Term
| what is a tax advantage of home ownership |
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Definition
| tax deductibility of mortgage interest and property taxes |
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