Term
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Definition
| owner who does not reside on property |
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Term
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Definition
| process of developing an opinion of property value based on evidence and approved meathods as of a certain date |
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Term
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Definition
must be registered ,licensed or certified by DBPR (department bussiness professional regulation
LIC Apprasier MUST be used for Fed regulated loan |
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Term
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Definition
Written opinion of value of property.
Licensees are allowed to prepare and charge as long as not called apprasial used for short sales |
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Term
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Definition
| Licensee who engages in sale,purchase,lease of bussiness |
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Term
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Definition
| Sale Purchase or Lease of bussiness |
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Term
| CAM Community Association Manager |
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Definition
person who holds to manage associations with 10 or more units and annual budget in excess $100,000
NOT required for apt buildings,commercial or single family |
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Term
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Definition
| Offer of land for public user by owner with acceptance by or on behalf of the public |
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Term
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Definition
| Selected area where devote special atteniton and study to specialize in |
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Term
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Definition
| Leasing,marketing and management |
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Term
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Definition
| manages property,secures and retains tenats,keep financial records provides up keep and maintanance ..Must be liced to receive commision |
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Term
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Definition
| person pd a fee to find accomadations..Must be licensed broker to receive commission |
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Term
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Definition
| Plan for tract of land subdivided into lots shoing required ammenities |
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Term
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Definition
| Specific group of prospects in a chosed demografic,financial lifestyle |
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Term
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Definition
| bussines of bring buyers and sellers.renters and owner together and completing transaction |
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Term
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Definition
Residential
Commercial
Industrial |
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Term
| 3 steps to development and constuction |
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Definition
Land aquasition
sub dividing and development
recording of sub division |
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Term
| 3 types residential construction |
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Definition
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Term
| Local goverment impacts on building |
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Definition
property taxes
zoning
permits
building codes |
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Term
| when did NAR (national association of realtors) adopt code of ethics... and what is code of etics |
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Definition
adopted in 1913 to emphisize fair dealings with
clients
other real estate agents
public |
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Term
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Definition
| uniform standards of professional apprasial practice (Florida law requires appraiers to abide by) |
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Term
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Definition
| a person who for another and for compensation performs real estate services |
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Term
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Definition
| holds a brokers license but choosed to work under another broker |
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Term
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Definition
| refers to being good and true(by having real estae license with persons name on it assume its good) |
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Term
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Definition
| unlicesed entity that sells exchanges or leases its own property.Sales staff must hold license to receive commision |
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Term
| what are sales associate requirements to be licensed and post license requirements |
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Definition
63 hour pre license course..score 70 on course exam.
application,fingerprints ,background check , app fee
pass state exam with 75 ,must be 18 or older ,must have ss# diploma or GED
Post license 45 hr course and 14 hrs ceu prior to 1st expiration of license |
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Term
| Days to notify commission if move out of state |
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Definition
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Term
| Broker exam requirements. and post lic requirements |
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Definition
72 hour pre lic course score 70 on exam
24 months active real estate license in past 5 years
post lice 60 course |
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Term
| What are the 8 mutual recognition states |
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Definition
Alabama
Arkansas
Connecticut
Georgia
Illinois
mississippi
Nebraska
Oaklahoma |
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Term
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Definition
| Currnet valid and registered |
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Term
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Definition
| cease to exist does not involve diciplinary action |
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Term
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Definition
| licensee can not preform services because certan events IE.. Broker changes bussiness address |
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Term
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Definition
| a right granted sales associate or broker to work various properties owned by 1 affilate under owner developer |
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Term
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Definition
| License help by broker in 2 or more real estate firms |
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Term
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Definition
| license status that results when license not renews at end of license period. |
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Term
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Definition
associate failed to complete post license education prior to 1st renewal Failed to renew 2 or more times
Involuntary in avtive 24 months |
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Term
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Definition
| penalty imposed by FREC allowed to continue to work under the guidance of FREC while completing specifed conditions |
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Term
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Definition
| formal act of announcing new statue or rule ...FREC may prougate rules and regulations |
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Term
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Definition
| licensee has met all requirements but chooses not to engage in real estate |
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Term
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Definition
| request DBPR cancel license must be wrtten commication no longer wish to do bussiness or retireing |
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Term
|
Definition
Department bussiness professionl regulations
Regulations to protect health saftey and welfare of public.
Chapter 455 grants authority to investigate
Under executive branch of governor chapter 120
Cheif administrator is sec of DBPR
Office located in tallahassee
Employees all DRE personnel |
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Term
|
Definition
Division of real estate
Duties administrative
Main office in orlando
Director approved by secretarty of DBPR (majority vote FREC needed) |
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Term
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Definition
FREC has 7 members
5 active brokers licensed at least 5 years.
1 active associate licensed at least 2 years
2 have never been licensed
at least 1 must be over 6o years old |
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Term
|
Definition
executive: foster education,adopt a seal,establish fees.
Quasi Legislative : create ,regulate rules.Quasi Judicial :grant or deny license make decisions on violations Must report to state attorney under chapter 475 Governor appoints 4 yr stagged terms no max but not more than 2 consecutive. accountable to Governor. members exempt from civil liablity ,NO salary only $50 a day while working |
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Term
| License renewal dates are? |
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Definition
march 31st and september 31st
Date will give licensee as close to 24 months with out exceeding 24 |
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Term
| Armed force exemption for renewal |
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Definition
| A member in good standing has 6 months after discharge (from another state) also applies to spouse |
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Term
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Definition
| May be issued to to spouse of milatary assigned to florida good for 6 months if hold valid license in another state |
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Term
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Definition
| body of law created by adminastrative agencys in the form of rules regulations orders and decisions |
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Term
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Definition
| Representative who is authorized to act on behalf of another |
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Term
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Definition
| conducting negotiating on your own behalf under no ones influence or control |
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Term
| common law also known as? |
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Definition
| case law (judge made as opposed to statutory law |
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Term
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Definition
| written agreement to change broker relationship |
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Term
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Definition
| Per 475 a member of the public may be buyer or seller and may or may not be represented |
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Term
| designated sales associates |
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Definition
| 2 agents designated to represent buyer and seller as single agent Buyer and seller must have over 1 million in assets and sign disclosure |
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Term
|
Definition
| Illegal in florida when agent represemts both buyer and seller |
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Term
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Definition
| Fiduciary is person of position and trust . fiduciary relation ship owes complete alliance to pricipal |
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Term
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Definition
| authorized by principal to preform acts of bussines or employment of a particulare nature |
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Term
| No Brokerage Relationship |
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Definition
| Broker does not represent the customer |
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Term
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Definition
Improved property 4 or fewer units
Sale of agriculture of fewer than 10 acres |
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Term
|
Definition
| Per 470.01 represents as fiduciary buyer or seller But Not BOTH |
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Term
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Definition
| authorized by principal to preform a particular act ot transaction without continuity of service as a general agent |
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Term
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Definition
| created to enact legislation |
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Term
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Definition
| authorized to assist and represent origional agent |
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Term
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Definition
| Limited representation to buyer or seller |
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Term
|
Definition
| authorized by principal to preform all acts the principal could preform or delegate |
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Term
|
Definition
Advertise
Buy
Appraise
Rent
Sell
Auction
lease
Exchange |
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Term
|
Definition
| State and Federal laws designed to maintain and preserve bussiness competition |
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Term
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Definition
| Having a 3rd party render a binding decision in a dispute |
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Term
Blind Advertisment
Commingle
Conflicting demands |
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Definition
Advertising witout brokerage name.
To mix money with personal funds
Each party makes demands inconsistant with each other |
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Term
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Definition
| Fictitous person or entity formed to conduct specific types of bussiness activity |
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Term
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Definition
| course of action declacring rights under a contract or statute intended to prevent loss or guide preformance by a 3rd party |
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Term
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Definition
Ernest money or some other valuable consideration as a sign of good faith to accompany an offer.
Solely for safe keeping customer funds |
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Term
| EDO escrow disbersment order |
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Definition
| order to determine who gets escrow funds |
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Term
|
Definition
| 2 or more persons for the purpose of jointly conducting bussiness EACH party being responible for the debt incurred |
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Term
Good faith doubt
MALE the 4 settlemet procedures |
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Definition
Broker uncertain who gets escrow.
Broker must notify FREC within 15 days and state settlement procedures.
Mediation arbitration Litagation escrow disbursment order |
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Term
|
Definition
time frame for depositing escrow funds.
1. sales associate must deliver to broker no later than End next bussiness Day 2.Broker must deposit no later than end of 3rd bussines day associate received |
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Term
| Name 3 Financial institions used to maintain escrow account |
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Definition
Commercial bank
Credit union
Savings association |
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Term
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Definition
| 2 conflicting parties can not reach arbitrated agreement,,broker deposits money with courts to determine |
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Term
|
Definition
| Payment of money fron someone other than buyer or seller |
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Term
| LLC Limited liability company provides? |
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Definition
| protection from personal liablity from bussiness debts and income taxed only once |
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Term
| LLP limited liability Partnership |
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Definition
| protection from personal liability fron other partes or employee obligations |
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Term
| Bussiness entitys that may register as a brokerage |
|
Definition
sole proptietership
general partnership
limited partnership
LLP\LLC
Corporation |
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Term
| Brokers sign MUST contain |
|
Definition
The trade name
Brokers name
The word Licensed Or Lic Real estate broker.
associates names can be place but must be seperated by line or space |
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Term
|
Definition
| competing brokers conspire to set commission rate |
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Term
| ostensible partnership or Quasi Partnership |
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Definition
| not intentionly created but 2 or more people create an appearance of partnership,,IE 2 brokers out of same building but only 1 sign its assumed to be partnership this is fradulaent |
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Term
|
Definition
| violation or admission of legal or moral duty in the breaking of a promise or obligation |
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Term
|
Definition
| violation or admission of legal or moral duty in the breaking of a promise or obligation |
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Term
|
Definition
Formal allagation or charge
Alleged violations and penaties to be imposed .
minor violation fines 100.00-500. |
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Term
|
Definition
| Personal use or mis use of clients money |
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Term
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Definition
| conduct while not intentional involves disreguard for consequences.. |
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Term
DOHA division of administrative hearings
what is a formal complaint |
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Definition
hears all formal hearings from administrative complaint.
formal complaint outline of charges againt licensee that must be answered |
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Term
| Failure to account and deliver |
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Definition
| Failure to pay money to person entitled to receive it |
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Term
|
Definition
| respondant does not dispute alleged facts , licensee given opportunity to explan details to FREC |
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Term
|
Definition
| Complaint that contains facts indicating a florida statute violation BBPR OR FREC rule broken |
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Term
|
Definition
| Piece of imformation that affects the value of real property and is relevant to the person making the decision about property |
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Term
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Definition
| Issued by DBPR for minor violation that does not endanger the public... The mildest of all penalties |
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Term
Recommended order
Final order |
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Definition
determination by administrative law judge that includes findingd and conclusions to rule in a final order
Frecs Final decision becomes effective 30 days after entered |
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Term
|
Definition
| agreement as to the penalty reached between attorney for DRE and Licensee |
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Term
|
Definition
agreement as to the penalty reached between attorney for DRE and Licensee
MUST be approved by FREC |
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Term
|
Definition
| Emergency suspension granted by the secratary of DBPR to protect the public IE :broker seaing funds |
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Term
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Definition
| licenss request cancelation as long as no investgations or diciplinary actions pending |
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Term
| 7 Steps involde in the process of dealing with complaint of alleged violations |
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Definition
complaint files
investigation of complaint
probable cause determination
formal complaint issued
informal or formal hearing conduted
final order issued
judicial review if apeal files |
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Term
| Probable cause panel is composed of? |
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Definition
2 members
1 current member of commission
1 current or Former commisioner and 1 of them must be licensed |
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Term
|
Definition
| Illegal act of misrepsentation of entry of minority to induce owners to sell |
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Term
|
Definition
| Protected class as defined in fair housing act. 1 or more persons under age 18 living with parent or guardian and pregnant women |
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Term
|
Definition
| Procted class under fair housing and americans with Disabilities, consisiting of Mental or Physical imparment that limits 1 or more major life activities |
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Term
|
Definition
| Disclosure required under Federal Interstate Land and Sales Full Disclosure Act...ILSA Developers of 25 or more lots must provide prior to buyer signing contract |
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Term
|
Definition
| Private entities that Own, Lease to or operate facilities such as restaurants,retail stores,hotes movie theaters etc |
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Term
|
Definition
| Discrimatory financing by a lender |
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Term
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Definition
| agent chaneling buyers to or away from a neighborhood |
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Term
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Definition
| Federal act that prohibits any type of discrimination based on RACE in any real estate transaction without exception |
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Term
| Name the 7 proteced classes (frsh Crn) fresh corn |
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Definition
Familial status
Race Sex Handicap Status
Color Religion National Origion |
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Term
Civil Rights 1866
Civil Rights Act 1964
Fair Housing act ammended 1968 |
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Definition
Discrimanation against Race in all real estate transactions
Race,color religion ,national origion in public facilities and accomodations
sale,rent.advertise finance familiar and Handicap statues added as well as blockbusting,steering and redlining |
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Term
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Definition
| protects againt Race Sex disability nationality religion color familial status, 1st time offense $10,000 up to 25,000 if found guilty within 5 preceeding years |
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Term
| Bundle of property rights DEEP C |
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Definition
| Disposition, Enjoyment Exclusion Possession Control |
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Term
|
Definition
| The right to sell,mortage,dedicate give away or otherwise dispose of all or part of real property |
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Term
|
Definition
| The right to enjoy and use property without interference |
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Term
|
Definition
| The right to keep others from tresspassing |
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Term
|
Definition
| The right to occupy the property in privacy |
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Term
|
Definition
| The right to uninterupted use and control of property |
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|
Term
Real estate refers to:
Real Property includes? |
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Definition
Land and all human made improvements
Real estate plus the legal bundel of rights |
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Term
| Physical components of land are |
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Definition
| surface:, subsurface and air. |
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Term
Surface rights include
2 water rights are? |
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Definition
Land and water
Riparian rights :land abutting a flowing waterway (river or stream)
Littoral :land abutting tital bodies (sea or ocean) |
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Term
|
Definition
| The owners right to underground minerals gas ans so forth |
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Term
|
Definition
| invole the space above extending to the height established by law |
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Term
|
Definition
Intent of parties
Relationship or agreement
Meathod or degree of attachment
Adaption of the item ( was is custom for the space) |
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|
Term
personal property
Trade fixture |
|
Definition
refers to property that has limited lif and is movable also known as chattle and personaly..
Attached to real property that is owned by tenant and is used in bussiness |
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Term
|
Definition
Estates of ownership.
Fee sinmple is absolute
Life estate-measured by lif span
estate in reversion-when property returned to grantor
Remainder estate when property goes to 3rd party.
vested remainedman-someone whos legal name is specified.
Contingent -name not specified such as 1st born |
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Term
|
Definition
leasehold estate of possession.
Estate for years-written lease with specified time fram.
Tenancy at will-oral agreement or 1 with no specific dates.
Tennancy at sufferance-lease period ended and tenant still there |
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Term
| Homestead and its protection |
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Definition
Must be primary residence,
protection of family-surving spouse or heirs
Protection of homestead from hudgements
tax exemption up to 50,000
Size limit 160 acres ouside city 1/2 in city |
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|
Term
name the 4 enties of a joint tenancy
PITT |
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Definition
Possession-tenants have same rights of undivided possession.
Interest- equal ownership
Title - aquire title same deed
Tim aquire interst in property same time |
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Term
| 3 types of concurrent ownership |
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Definition
Tenancy in common-shared ownership
Joint tenancy
Tenancy by the entireties - joint tenancy by husband and wife |
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Term
|
Definition
| Transfering ownership,title or interset in real property |
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|
Term
Voluntary alienation ?
Involuntary alienation |
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Definition
Transfering title with owner consent : by deed or will
Involuntary without owner consent -operation of law IE forclosure |
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Term
Decent?
Intestate?
teastate?
Escheat to state ? |
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Definition
Descent =dies with out will
Intestate - without will
Testate -has will
Escheat- intestate no will no heirs |
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Term
| Adverse Posession HOT CAN- |
|
Definition
owner fails to maintain possession,
Hostile possession-of property.
Open possession=no attempt to conceal.
Taxes pd by possessor (7 yrs)
Clain of title exist
Adverse possesson for 7 years
Notorious flagarant possession |
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Term
|
Definition
| Goverment legal process to take land thru process called CONDEMNATION |
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|
Term
Actual notice?
Constructive notice ? |
|
Definition
actual notice is direct knowledge
Constructive notice is a recorded document |
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Term
|
Definition
| Declaration before notary the signature is voluntary act |
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|
Term
Chain of title ?
Abstract of title
Opinion of title |
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Definition
Chain- record of property ownership
Abstract condensed history to revel judgments and liens.
Opinion-attorney studys abstract list judgments liens,encumbrances |
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Term
Owners insurance?
Lender policy? |
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Definition
owners-purchase price,not transferable
Lenders - loan amount ,transferable |
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Term
|
Definition
Grantor seller giving title
Grantee Buyer getting title |
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Term
|
Definition
| attorneys opinion by studying abstract of title ..List liens easements and all other emcumbrances |
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|
Term
| Title insurance Protects ? |
|
Definition
| policy holder from loss arising from defects on title |
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Term
| Requirements (7) for a valid DEED |
|
Definition
In writing...Names of Grantor and Grantee...consideration described...Granting clause
Habendun Clause (convey ownership)
Legal description..Signed by Grantor and 2 Witnesses ...Voluntary delivery and acceptance |
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Term
| Government Restrictions on real estate PET |
|
Definition
Police Power
Eminent Domain
Taxation |
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|
Term
| Private Restrictions DELL |
|
Definition
Deed
Easements
Leases
Liens |
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|
Term
Easement Appurtenant
Easement by necessity is |
|
Definition
Runs with the land and benefits adj parcel..allows owner to use the adj parcel
Land locked property court ordered easement allows owner to enter/exit |
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|
Term
Easement in gross is
Encroachment is |
|
Definition
a utility easement
Unauthorized use |
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|
Term
3 General Liens are?
4 Specific Liens? |
|
Definition
Judgement-Involuntary lien
Income Tax- Failure to pay fed tax
Estate tax lien- upon death
Specifice Liens
Property tax/special assessment
MTG lien
Vendor( equity lien by seller)
Construction |
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|
Term
Purpose of survey is
Survey is?
POB is? |
|
Definition
description of parcel with enough detail to hold up in court of law.
Drawing of parcel showing its boundaries
POB is point of beginning |
|
|
Term
3 types of Legal descriptions are?
Monument is? |
|
Definition
Metes and Bounds (most accurate)
Government survey
Lot and Block
Monument is marker used each corner to identify POB |
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|
Term
Principal Meridian ?
Range? |
|
Definition
Imaginary lines running NORT/SOUTH and crossing a base line(gov survey system)
Rage-vertical strip 6miles wide between 2 consecutive Submeridians |
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|
Term
Section ?
Township?
Township lines?
Tier? |
|
Definition
section-1square mile -640 acres
township-sq tract of land 6 miles each side 36 sections..Formed by crossing range & township lines(EAST/WEST lines every 6 miles North & South of base or sub-baseline)
Tier-east west row of townships |
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Term
|
Definition
| Permanent reference mark used to established elevations and altitudes above sea level |
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|
Term
| 4 Contracts a licensee can prepare |
|
Definition
Listing agreement(Brokers employment contract with seller)
Buyers Brokerage (employment contract with buyer)
Sale and Purchase
Option contract ( recommend done by attorney) |
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|
Term
| Valid contract consist COLIC |
|
Definition
Competent parties
offer and acceptance
Legal purpose
In writing and signed
Consideration (good or valuable) |
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|
Term
valid
Void?
Voidable?
Enforceable?
Unenforceable? |
|
Definition
valid-Contains all required elements
Void- no contract lacks 1 or more elements
Voidable-may be Valid but can be void by 1 part (if minor -can void adult can not.
enforceable- court will enforce
unenforceable -valid but court will not enforce |
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|
Term
Formal contract is?
Informal is ?
Expressed ?
Implied?
executory?
executed? |
|
Definition
Formal is written contract
Informal is oral or parol
expressed-state terms /show intention.
Implied-acts and conduct demonstrated .
executory-not completed
executed completed at closing |
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|
Term
| ways to terminated offer WILD CARD |
|
Definition
Withdrawal of offer
Insanity
Lapse of time
Death
Counteroffer
acceptance
rejection
destruction of property |
|
|
Term
|
Definition
specific- court ordered to preform
Liquidated- amount of damages
Rescission-contract canceled
compensatory-lawsuit to recover damages |
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|
Term
|
Definition
assignment -persons who tranfers rights and duties
Novation is agreement to substitute new party |
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|
Term
| 3 contract types include # of brokers and who gets commission |
|
Definition
open- 1 or more brokers commission pd to selling broker only.
Exclusive Agency-1 broker commission to listing broker (if not sold by owner).
Exclusive Right of sale- broker commission no matter who sells
exclusive AGENCY 1 |
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|
Term
Listing contract requires per chapter 475 ?
To be paid commission 3 things broker must be |
|
Definition
An expiration date -no extension clause
Description of property
Listing price and terms
Brokers compensation
signatures all owners of record.(owner must get copy within 24 hrs)
\broker must hold active license,be employed by buyer or seller.be procuring cause to get paid |
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|
Term
Optionor ? optionee? option contract
Vendor? Vendee? sales contract
Grantor? Grantee? Deed |
|
Definition
Seller AKA as vendor Grantor Optionor
Buyer AKA as vendee Grantee and Optionee |
|
|
Term
| 11 things contract MUST include.. |
|
Definition
names (vendor/vendee).Legal description
Consideration. Purchase price
financing or cash terms
type of deed
title evidence. terms of expenses
personal property included
Date-Time-Place of closing
When possession of property will occur |
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|
Term
| Disclosure types Must be given (9) |
|
Definition
Material defects, Radon Gas
Lead paint pre 1978 (10 insp allowed)
Energy efficiency (right to get rating)
Home Owners Association
Property Tax
Buiding code violation, CCD(comm Dev district) Time share //If appicable |
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|
Term
Florida supreme court case known for material facts?
Raynor Vs wiles realty of Tallassee case known for? |
|
Definition
Florida supreme court case known for material facts IS Johnson VS Davies
Raynor Vs Wise realty of Tallassee case known for Extending duty to disclose facts to licensee |
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|
Term
Lien theory ?
Title theory |
|
Definition
Lein-Borrower retains property Lender protected by Lien (most states inc FL)
Title- Property conveyed to lender until paid in full |
|
|
Term
Promissory note ?
Mortgagor is ?
Mortgagee is ? |
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Definition
Promise to repay that makes borrower personally liable
Mortgagor is BORROWER
Mortgagee is LENDER |
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Term
Satisfaction of Mortgage must be recorded ?
Sub Ordination agreement alters rule of? |
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Definition
Sub Ordination agreement alters ruleOf
Sat of mtg must be recorded within 60 days
GIVING 1st mortgage priority lien (mtg on land but make construction loan priority) |
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Term
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Definition
Acceleration- upon default full pmt due
Defeasance -MTG paid lien released(lien theory)conveyed to borrower (title theory)
Due on sale (acceleration) must pay loan off
Prepaid penalty - allows extra charge if paid off early
Right to reinstate- Mortgagor (borrower) right to reinstate original repayment plan after lender(mortgagee) initiated acceleration clause |
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Term
Equity
interest
Escrow account used to ?-mtg related
LTV
PITI
Discount points
Loan origination fee LOF |
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Definition
equity-monatarty interest above mtg
interest-cost to borrow funds
escrow account -1/12 of est tax and ins
LTV loan to value
PITI- principal,interest,taxes.insurance
discount pts paid up front, long term lower interest ,increase lender yield 1/8 of 1%,1pt=1%
LOF-processing fee for application |
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Term
assignment of mortgage ? using?
Assignee?
Assignor? |
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Definition
assignment of mtg is transferring ownership using Estopple certificate showing unpaid balance and interest.
Assignee is seller of mtg
Assignor is buyer of mtg |
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Term
| 2 methods of purchasing encumber property are? |
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Definition
Subjet to mtg -buyer takes title knowing seller resp for debt,
assumption of- Buyers signs promisory note to be liable (in default seller still responsible) can do novation agreement assigning and freeing seller |
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Term
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Definition
| Land sale where buyer or vendee makes down payment and seller or vendor finances (must be prepared by attorney) |
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Term
Land development loan ?
Construction Loan ?
Takeout commitment ?
Buydown? |
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Definition
land loan- finances improvements to land including sewers,streets,utilities
takeout commitment - future permanent lender
Buydown-upfront fee to lender to lower interest rate
construction loan-finances construction of homes |
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Term
Blanket mortgage?
Partial release clause? |
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Definition
blank Mtg pledges parcels as secutity for loan,developer pays with sale of parcels
Partial release clause -allows release of individual lots upon payment |
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Term
Foreclosure?
Initiate suite on promissory note ?
Foreclosure proceedings?
Equity in redemption? |
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Definition
Foreclosure-enforcement of mtg lien
suit for note- lender can sue for judgement any real property.
redemption- buyer pays PI + expenses prior to sale
proceeding- accelerate due date,file lawsuite,final judgemet,public notice,sell |
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Term
Results of foreclosure purchase are?
Surplus funds
deficient judgement |
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Definition
Buyer received certificate of deed free from mortgage debt but may have other liens or judgment's buyer beware.
If surplus funds More than what was owed it goes to lender.
Deficiency judgement -not enough to cover the mtg will result in judgement to original owner |
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Term
Sale
Deed in lieu of foreclosure |
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Definition
shortsale- lender allows sell free and clear for less than owed to save foreclosure expense
Deed in lieu-No court defaulting borrower gives back deed ,lender takes title with lien |
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Term
| receivership clause (income producing property) |
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Definition
| allows a receiver to be appointed to collect income to make mortgage payment in event of default |
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Term
| conventional loan details |
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Definition
*Not insured or guaranteed by government
*Interest rate reflect market condition
*Not assumable (fixed rate)
*allowed to prepay
*lower LTV ratio than FHA or VA
Loan more that 80% Must pay PMI
to apply TOR not exceed 36% |
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Term
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Definition
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Term
Fully amoritized mortgage is
Partial amoritized (balloon)
ARM
Margin
Legal payment plan |
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Definition
Regular payment each month of PI-pmt remains same amount applied to principal each month INCREASES Interest DECREASES
partial or ballon - smaller payments with balloon pmt at end
ARM financing whicj lender can lower or raise Interest rate according to index
Margin-% added to index to cover lender cost/profit
legal -payments fixed amt applied to principal increases monthly interest decreases |
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Term
| FHA federal housing administration |
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Definition
*Insures mtg made by approved lender
*fha does NOT make nor regulate interst rate
*Borrowers pay upfront mortgage insurance then part of payment
*Down Payment at least 3.5%
*Fixed rate loans for 1-4 family residential |
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Term
demand deposit
Reserve requirements |
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Definition
Checking account payable on demand by holder
* reserve req -amount of funds institution must hold against deposit liabilities |
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Term
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Definition
Va loan -partially guaranteed mtg from private lenders to Vets,surviving spouses of or active military
*Entitlement amount is the max guaranteed by gov in default. *certificate of eligibility will show amount
Down pmt not required under $417,000
*No pre payment clause
*Can be assumed
*charges a funding fee |
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Term
| va Loan vet can NOT Pay and May pay |
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Definition
vet CANNOT pay termite inspection.commissions or brokerage fees
Vet MAY pay for VA appraisal,credit check,state and local taxes and recording fee |
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Term
primary market
primary mortgage market
Secondary mortgage market
Intermediation
Intermedary
Disintermeddiation |
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Definition
Primary market is where securities and goods created
Sec mtg market Investors buy/sell includes fannie ,Freddie and ginie
mortgage market is LENDERS that originate new loans
Intermediation is flow of funds into deposits held by primary lenders
Intermedary is using borrowers savings to provide funds to others
Dis intermediation -when savers withdraw funds to invest elsewhere |
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Term
Mortgage loan originators MLO
Mortgage Brokers?
Mortgage lender |
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Definition
MLO middle men they shop for loans . received fee after laon'
Mtg Brokers employ licensed MLO.
Mtg Lender originate and package to investors may also use there own money to loan.
Mtg lenders Do service loans |
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Term
Fannie mae
Freddie Mac
Ginny Mae |
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Definition
Fannie-conventional fha,VA and conforming loans that meet guidelines
Freddie- Secondary market,buys/sells conventional loans by saving associations
Ginnie-Gov agency under HUD provides low cost credit |
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Term
| MBS Mortgage backed securities |
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Definition
| Only one that carries full faith and credit guarantee by fed government mainly FHA and VA |
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Term
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Definition
| combines tila and respa disclosure under the Loan estimate and closing disclosure' |
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Term
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Definition
Implemented by fed reserves REGz requires lenders to disclosr APR and all cost associated with credit.
have 3 days to cancel consumer loan but not residential |
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Term
| Equal Credit Opportunity Act ECOA |
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Definition
makes sure credit available with out discrimination
race,religion.color.origin.sex.marital status,age or receiving public assistance |
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Term
| rules of thumb for closing statement |
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Definition
show as credit to seller:total purchase price
prepaid items
DEBIT to seller :Mtg assumed or pd off
New mtg
pro rated taxes
Mtg laon interest on assumed mtg(if app)
prepaid rent (if pp)
tenants sec dep (if app) |
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Term
physical characteristics of Real Estate
Economic |
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Definition
real estate is immobile
Land is indestructible
Real Estate is unique
economic-gov controls influence via zoning,B coded,taxes
Supply-amount and type variable infuences- labor const loans,availability of land and materials |
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Term
Demand
variable
situs
buyers market
sellers market
Market Indicators? |
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Definition
demand-desire & availability
variable-pop numbers,homes available
Situs-buyers pref in certain areas
Buyers market-excess supply
sellers marker
demand exceeds supply
Market indicators- price level& building permits,vacancy rates,sales volume |
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Term
Market value
value
Highest and best use
To have value must possess what 4 things |
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Definition
Market value-most probable price property should bring
Value-what cust willing to pay
Highest best use-most profitable use of property
To Have value goods and servise must posess.
demand,utility,scaracity.transferability |
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Term
| 3 approaches to estimate value |
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Definition
Sales comparison
cost depreciation- est market value to reproduce
Income approach est value based on worth of future income |
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Term
Real Estate investment analysis?Appreciation
assets
tangible
untangible
substance
worth
cash flow` |
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Definition
process of determining extent to which Real estate investment achives investors objective
appreciation -increase property value
Assets- entire resource of business Tangible asset- can be touched
untangible value does not have to be physical
substance-such as good will of business
worth-diff between assets and liabilities
cash flow -spendable income |
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Term
leverage
positive leverage
negative leverage
Liquiditidy
Basis
capital gain or loss |
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Definition
leverage-use of borrowed funds tpo purchase asset
Positive leverage-benefits exceed cost to borrow
Neg leverage-funds cost more that profit
Liquidity- ability to see quickly without loss
Basis Initial cost of property adj by adding improvements /or depreciation
capital gain /loss difference from basis of property and net selling price gain or loss |
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Term
tax shelter
Real Estate Investment trust
investors opportunity
Types of Real estate investment |
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Definition
Tax shelter- investments shield income from taxes
Investors opp-pool of income producing properties under prof. mgt
Types of RE investment- residential,commercial,industrial,agriculture,bussiness |
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Term
disadvantage of investing
risk-general business conditions
Growing concern value
income statement
balance sheet |
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Definition
Disadvantage to investing-illiquidity,;ocal market,mgt req risks
Risk chance of loosing General risk conditions-Bussinees risk,financing .purchase- power risk.interest rate risk
Growing concern value-value of business VS just physical assets
Income statement-shows summary all income and expenses
Balance sheet - financial situation at any given time |
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Term
Expertise required in business brokerage
Meathods of appraising business |
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Definition
corp finance,
bussiness accounting
valuation of business
meathods to appraise -comparative sale analysis, reproduce or replace,income,liquidation assets |
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Term
Property taxes due?
assessed Value
immune property
exempt property
partially exempt |
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Definition
Taxes due on or after april 1st and become delinquent april 1st the following year
assessed Value-vale for tax purpose
immune-not subject to tax-city,state,goverment
exempt--churches ,non profit
partially exempt homestead |
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Term
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Definition
protest - contact property appraiser
appeal to value adjustment board
file suit in court called CENTIORARI preceedings |
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Term
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Definition
Home stead exemption MAX $50,000 -25,000 in city from county and school board taxes
Home value over 75K add 25k from from city and county
500 for widowers legally blind Non Vet disabled
quad -pelagic 100% exempt
5,000 Vets at least 10@ military disabled |
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Term
Florida Green belt Law
Save our homes- ?
special assements
depreciation
instalment sale meathod
like-kind exchange |
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Definition
-*save our home caps increase to 35 annually prcpi(consumer price index) whichever is less
SOH benefit portable if had homestead in either preceeding 2 years
special assement -1 time tax public improvments
Depreciatio-ded cost pf improvements over time ...IRS 27.5 yr residential 35 yrs non res income
installment sale-relieves seller from paying income tax
Like-kind-allows benefits of investment while paying taxes later |
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