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who doesn't have to have a real estate licenseowner attorney trustees/receivers forrester government employeecan you do property management with a real estate licenseyeswhen you receive a deposit, where do you deposit totrust account4 main disciplinary actions that the RE Comm can take against realtorrevocation fine up to 1000 per violation suspension public reprimanddispute of earnest money, what does BIC do?hold money until dispute is resolved by written agreement or court orderwhat kind of damages does earnest money coverliquidated damagesif a licensee wants to transfer companies by mailtransfer form sign it and new BIC. Send in old license, thy will send new license///////can be done onlinein sc, net/price listing illegalyespotential grounds for disciplinary actionfraud forgery comingling---- steering blockbusting redliningwhat is the max against someone selling real estate without a licenseup to 500 and or up to 6 months in jailunder homestead act, 3 groups that qualify for discount?62 age elderly disabled legally blind3 main exceptions of to our duty of confidentialitycourt order consent defendif a buyer chooses not to be representeda customerwhat state legislative act lets local govt zoneenabling actsif seller agrees to allow selling agent to keep any dollar amount over certain pricenet listinga buyer signs agreement and it doesn't matter who procures the saleexclusive buyer agency agreementexample of a general lienjudgementwhat specific lien are not recorded in public recordproperty taxes special assessmentsin an appraisal, when we apply the 3 approaches to valuereconciliation- 3 approaches to value3 approaches to valuesales comparison income cost approachunder lead paint act, it applies to houses built before?1978buyer has how many days to test for lead paint10 daysunder the superfund act, what are the 3 typesstrict liability joint/several retroactivewhat if new terms are made to contract, what should we make client doinitial and datewhat kind of title does the buyer get when entering into a binding contractequitable titlean option contract binds the....sellerunder statute of fraud, contracts must be in what form to be enforcablein writingon the contract, it states that "time is of the essence" if one party is not ready which party to can declare breachwhatever party is readywhat events will terminate a selling agreementdeath of seller substantial destruction of property mutual release expiration date loss of titleconfidentiality is part of fudiciary, what else could it be worded as?loyaltywhere does the common law common law come fromEngland but now court decisionsbuyer's agent tells the wrong zoning ( fudiciary duty)reasonable careif the type of property has no limit on use when it is inheritablefee simpleif property is deeded as a recreational use onlydeterminable feeif you have a planned development.....what is the other name used?Planned Unit Development MASTER PLANNED COMMUNITYif a senior citizen wants to get cash out of a house, what can they apply orreverse mortgageif loan is not fully amortized, what will the last payment be?balloon payment or the client usually refinanceif the interest is paid after the period after it is earned?in arrearsadjustable rate mortgage is tied to an economic indicatorindexif tenant puts in bookshelves, can they remove them at the any time, even at the end of the lease?yes, they are considered trade fixtureswhat are the 4 tests for a fixture of a propertyannexation adaptation intention agreementin a land contract, when does the seller give the legal title to the buyerafter final paymentwhat are the 3 requirements to receive commissionlicense written agreement salea lease agreement states that tenant can stay until landlord gives notice?tenancy at willin a sale and lease back agreement, the buyer becomeslandlord/lessorbuyers agent to keep buyer informed of new potential propertiesdisclosurewhat FED law requires the lender to state finance charges as an a interest ratetruth in lending act or as also known Regulation Zif seller is killed in an accident, what happens to the agreementit is terminatedif you are listing agent, seller signed buyers agreement, what should happen next?return signed contract to buyer's agentwhat is the first step to cost approach?estimate costs to what replacement/reproduction of improvementswhat fed law requires lender to provide a statement of all fees and chargesRESPA real estate settlement procedures actA conveys a life estate to B, when B dies, C gets the property. What does C have in the life o BC has remainder interestWhat kind of liens can be searched by public record. what can you find?mechanics lien easements mortgage heirsbuyer makes offer, what happens to the earnest money if offer is revokedit is returnedwho has stronger possession on deeds, recorded or unrecorded deed?recorded deedwhat does a squatter not have to show that he has received from the owner?permissionA, B & C are joint tenants with right of survivorship. A & B allow C to sell to D then B dies. What are A & D?A & D are tenants in commonif state want to aquire a piece of property for a road, what is this called?eminent domainunder civil rights act of 1968, may a private social club restrict club lease or saleyes----this is called open membershipthe listing agent listed a parcel was smaller than listed. Could they be liable?yeswhat type of property does the seller has to complete the seller disclosureresidential for or under previously occupied4 ways to deal with risk in property managementavoid control retain transferif a contract is signed under diress?voidableif deed contains 5 covidents/warranty (5 star general)general warranty deedif agent channels away or to a certain area, based on protective statussteeringprimary feature of joint tenancyright of survivorshipindependent contractor- realtoris self employedform of tenancy that expires on a certain datetenancy of yearsif home lacks of indoor plumbing it suffers fromfunctional opsolencedepreciation approachphysical functional externalif property is grandfathered out of current zoningnon conforming useif investors are talking about of return o property in certain areacapitalization ratewhat events can terminate an offerrevocation acceptance death destruction of property expiration/lapse of time rejection/counterofferwhat type of deed will cure a cloud on a titlequit claim deedbitsy's home is smallest home in larger home area. what does she benefit fromprogressionwhat can zoning enforce/say?set back line use coverage height density building materialsappraiser is appraising is a restaurant, which approach should be used in appraisalincomewhat type of inspection should buyers gethome inspectionmay a lender refuse a loan to a member of a protected group with poor credityescivil rights act of 1866, unique on no acts ofracial discriminationif agent states on no they are moving into neighborhoodblockbusting (Paul Revere)if lender discriminates against marital status or age or public assistanceECOA equal credit opportunity actmay real estate agent give discounts to a member of his ethic groupnojones vs mayer (supreme court ruling)Raceif condo discriminates against man with minor childrenfamilia statusbased upon scope of authority, what is a property managergeneral agentunder ADA, employees applies to what kind of employees?15 or more employeesstandard title insurance, does it cover parties with possession with unrecorded rightsnounder landlord tentant-15 days leaving dwelling without no reason or no rentabandonmentwhen license is revoked how long to reapply1 year7 licensed realtors 2 not licensed 1 licensedreal estate commissiondesignation agencyis best contractwho doesn't have to have a licenseowners attorney trustee/receiver forresters govt employeesPUDplanned unit development or master planned communitydisposition DEEPCright to transferexclusion ""right to invite or excludeenjoyment ""free frompossession ""right to occupycontrol ""personal propertyPETEpolice power eminent domain taxation escheatOLD CARobedience loyalty disclosure confidentiality accounting reasonable carecommingling fundscannot do, must be placed into a trust accountBIC-Vicarious liabilitythey are liable or what sub agent does can delegate all dutieshow many states use the lien theory23 stateshow many states use the title theory27 statestitle theory provides more protection to thelenderif a buyer defaults on loan, lender must go to court in alien theorydifferent levels of license statusactive inactive lapsed cancelled suspended revoked 8 hr classes needed for renewal, to renew inactive, the fee is 2 times of the renewal feeage of property manager and how many hours of classes18 and 30 hrs, no post classes neededage of salesman and how many hours of classes18 and 60 hrs pre licensing and 30 hrs post licensinghow many years of experience does a broker have before they get their license3 years as a salesmanwhen is a sales comparison approached usedin residential-pulled comps, less than 1 year old--preferably 6 months or less, weighted analysis=final valuewhen is the cost approached usedchurch/school--est of cost or replacement or reproduction, deduct for depreciation, add land valuewhen is the income approach usedcommercial--estimate potential gross annual income, deduct for estimated vacancy and rest loss, deduct operating expenses, annual net operating income, cap rateContracts- validoffer acceptance consideration competent parties legality of purpose (missing one of the above points, voids contract)contracts-enforceablestatute of frauds statute of limitationsvoidablefraud diuress coercion minor mentally ill intoxicated under the influencein south Carolina, real estate license law is administered by theS.C. Real Estate Commissionthe south Carolina real estate commission has the authority tomake and enforce the rules by which all real estate licensees must abidethe S.C. Real Estate Commission may investigate a licensee for all the following reasons EXCEPTa written complaint submitted by an agent about a cooperative commission arrangementin S.C., which of the following would need to be a licensed real estate brokerperson who employs fewer than three agentsa real estate license is required for all the following activities EXCEPTreselling a personal mobile homeif engaged in real estate activities, which of the following persons are exempt from the real estate licensing programattorneys at law if within scope of duties for a clientthe office mgr for a local office is responsible for the following activities, coordinating the flow of paperwork, preparing forms, hiring and supervising clerical personnel. the office mgr isexempt from real estate licensing requirementsin S.C., application for any real estate license mustbe completed before taking the written examin S.C., the following are requirements for obtaining a broker's license EXCEPThaving been actively engaged as a licensed salesperson for at least 5 yearsan applicant for a real estate license in S.C. mustrespond within 60 days to the commission if notified of unsatisfactory credita salesperson must complete which of the following course to renew his or her license2 hrs of law update and 6 hrs of core and or elective coursesin S.C. an unlicensed real estate assistant may perform which of the following activitiesprepare and distribute flyers and promotional materialsall of the following are true about nonresident licensees EXEPT that they musttake all education course requirements in S.C.a nonresident license applicant must file with the S.C. Real Estate Commission airrevocable consent to suits and actionsunder S.C. law, which of the following is exempt from continuing education requirements for license renewalage 65 and has been in real estate for 25 yearsa licensee who wishes to manage condominiumscan have a provisional real estate licensewhich of the following is correct regarding an applicant for BICmay be exempt by the commission from the education requirementsin S.C., an office/company policymust contain the policy on fair housingthe BIC of a real estate company becomes mentally incapacitated. what is the status of the companyit will continue to operate under an associate licensee for up to 6 month with commission approvalwhat is mandatory for biennial continuing educationtwo hours of core hours are due bienniallyif a licensee pays the renewal fee but has not fulfilled the mandatory educationplace the license on inactive status until the education requirements are completeda buyer broker delivers an offer to purchase and an earnest money check to the listing broker. the seller will not be able to see the offer for a week. when must listing broker deposit, the earnest money check into escrow accountwithing 48 hrs of ratification, excluding Saturdays, Sundays and bank holidaysin S.C. all of the following would be grounds for revoking a brokers license EXCEPTagreeing with a seller to accept a listing for more than the normal commission ratein S.C., a broker may have his or her license suspended or revoked for all of the following actions EXCEPTdepositing earnest money into the firm's escrow accountwhich of the following actions is legal and not a violation of license lawhaving the buyer client pay the commissionwhen advertising real property, real estate licenseesmust indicate that the ads were placed in the name of the real estate companyin S.C. real estate commissions arenegotiable between the seller/buyer and brokercommissions earned by a broker in real estate sales transactionare determined by agreement of the broker an his or her principala broker signs a listing agreement with the seller. the agreement contains the following clause "if the property has not been sold after three months from th edate of signing the agreement will automatically continue for an additional 3 month periods thereafter until the property is sold"is illegal in SCregarding listing agreements in SC, which of the following could result in the suspension in revocation of a person's licenseno specific termination dateupon obtaining the listing, a broker or licensed salesperson is obligated togive the person (s) signing is legible, signed, true and correct copya person who believes that the have been illegally discriminated against may file a complaint with the SChuman affairs commission or HUDa housing discrimination charge must be filed with the SC Human Affairs Commission within6 monthswhen a BIC has his her license suspended for 2 years, what effect does this have on the associate brokers and salespeople affiliated with the BICtheir licenses must be returned to the RE commissiona broker intends to open a branch office in a neighboring town. the broker applies for a branch office in a neighboring town. the broker applies for a branch office license, giving the name that clearly identifies its relationship with the main office. the broker names a licensee as the branch manager. under these facts, could the broker receive approval for the branch officeyes, if the RE commission approves the broker being BIC of two officesan associate broker is not satisfied with her present RE company and has decided to become associated with another. Before the associate broker can begin actively selling for the new company, theassoc broker license, along with the proper fee and form signed by the new BIC an the old BIC. then must be sent to SC RE commission who in turn sends the new license to the second brokerin any real estate transaction that a broker negotiates, the broker is not required toinform the buyer of his opinion of the condition of the seller's title of the propertywhich of the following are not necessary for a net listing broker to be entitled to a commissiona contract sale between the buyer and the sellera broker is convicted May 1st of possession and distribution of a controlled substance and it took place out of state. on June 13th the broker calls the SC RE commission and leaves a message informing them of the incident. based on these facts, what is true?both the conviction and the broker's failure to notify within 10 days violate RE commission regulationshow is a broker's commission determined in a real estate transactionit must be stated in the listing agreement and is negotiated between the broker and the sellera licensee may have a license revoked if the licenseefails to inform the tenant that the security deposit will be held by the owner of the property, not the management companyall of the following are protected classes under the S.C. Fair Housing ACT EXCEPTsexual preferencea landlord has a no pets policy but someone that has a service dog wants to rent from them.the S.C. fair housing act specifically prohibits the landlord from refusing to rent due to the no pets policyan agent's license renewal fee has been returned for insufficient funds, the SCRECommissionmay take disciplinary action against the indvidiualunder what circumstances can a broker keep personal funds in an escrow account?a minimum amount to keep the account openmonies received by a broker for a rent on a property must beplaced in the escrow accounta RE co has a property mgmt. division. in this situation, what are the regulations regarding escrow accountsa minimum of 1 escrow account is requireda classified ad is considered is considered illegal by the SC RE commission when ithas a phone number but no more informationcontinuing education is required by the SCRE commissionto protect the publicafter revocation of a license, a new license may not be issueduntil proof is submitted of trustworthiness and honestythe SC real estate Commission is empowered tosuspend or fine a licensee for infractionsfor a SC licensee to remain on inactive statusif he pays biannual feeswhat legal recourse does an individual have if discriminated against in SC?file a complaint within 180 days to the SC Human Affairs commissionthe SC fair housing laws provides protection from discrimination for all of the following EXCEPTagethe SC RE commission has set guidelines for the agency and agency disclosure form. a broker wishes to set these guidelinesa broker must ensure that each buyer is given the agency disclosure formif a provisional license is violated, the licensee might be subject totemporary restraining ordera listing broker knows that the 5 year protection for the town to include construction of a parkway that will border the property. what disclosure does the realtor owe the clientfull disclosure because it is a material acta BIC fails to renew his license by June 30th but continues to engage in RE dealings500 fine or/and imprisonment upon convictionSC requires some documents be retained by the BIC for a certain period of time5 years for leasesa buyer becomes a client of a broker at the time ofbuyers agency agreement is signed by buyer and the brokera licensed broker, procures a ready, willing and able buyer for his seller principal. The seller accepts the buyers offer in writing then experiences a change of heart and withdraws the acceptance. In this situationthe broker is entitled to collect a commissiona buyer prospect is interested in seeing a house listed with the real estate company, but does not wish to enter in a buyer agency agreement. a salesperson from the real estate company can show the buyer an in-house listingeven if the buyer remains a customerall of the following provisions are included in the SC RE Commission rules regarding listing agreements EXCEPTa listing agreement must be accompanied by a qualified expert's report of the property's conditiona buyer is interested in seeing a house listed with XYZ realty but does not wish to enter into an agency relationship. A salesperson from LMN can show the buyer the house isXYZ realty obtains the seller's written consent to the sub agencya salesperson represents a seller who does not want sub agency or disclosed dual agency When prospective buyers ask to look at the property, the salesperson mustnot show them the property unless they are customerssix months after a buyer bought a house, the roof leaked during a rainstorm. when the house was listed, the seller told the broker that the roof leaked but they agreed not to tell any prospective buyers. the broker claims that the buyer never asked about the roofthe buyer can sue the broker for nondisclosure required by license lawa broker entered into a listing agreement with a seller. another broker, who has been working with a buyer, learns of the property through MLS. The second, cooperating broker could, with the listing broker's permission representthe seller as a subagenta broker decides to sweeten an MLS listing for a property by making a blanket offer of sub agency. is the broker's action acceptableyes, if the seller agreed to the sub agencya brokerage's relationship with a buyer client or customer must be determinedat the time of the first substantial contractS.C. license law requires that thebroker keep all information that the seller has provided confidentiala buyer has indicated self representation on the agency disclosure form. does the sales agent owe this buyer any duties?yes, they buyer is owed fairness, honesty and accurate information in all dealingsin S.C. when may an agent divulge client confidential information?if required by lawa buyer agency agreement must contain all of the following EXCEPTnotification of intent to cancel after expiration datein S.C. a buyer's agent mayoffer properties the client has interest in to other potential purchasersa registration of each time share sold must be filed with the S.C.Real Estate Commissionwhat type of tax relief is available under the SC homestead act for a person who is over 6550,000 reduction in tax appraised valuea tenant vacated the property because the landlord refused to fix the hot water heater. this is calledconstructive evictionin S.C. which of the following activities regarding security deposits may result in legal penalties to the landlordretaining the security deposit until the tenant gives a forwarding addresswhat obligations does the smoke detector law impose on a landlord in a duplexto provide and maintain smoke detectorsunder the S.C. consumer protection code, a purchaser mayelect to use the family attorney for the closinga seller terminates a listing with a broker. what fiduciary responsibilities are required for the broker after the terminationconfidentiality and accountability survive the contractdisclosed dual or designated agency would most likely occur in acompany which does not practice sub agencyconsent to disclosed dual agencycan be withheld by either party before a specific transaction20 yrs ago, a homeowner obtained a 30 yr mortgage loan to purchase a home. the loan was 9.275 %. the homeowner is prepared to pay off the loan early. based on the facts, which of the following statement is true in S.C.the lender is not permitted by S.C. statute to charge the homeowner a prepayment penalty on loans more than 150,000in S.C. the landlord may terminate the rental agreement if a tenant fails to pay rent within how many days of the scheduled due date5 daysconfidentiality can be breached in all of the following situations EXCEPT whenanother client may benefitplacing a company "For Sale" sign on a property isprohibited without a signed listing agreementa tenant pays rent and a security deposit. what are the regulations regarding the deposit of these funds?both rent and security deposit can be deposited into the same escrow accountlegal descriptions using the government survey system are not generally used inthe original 13 statesIn the sale of property, there is often confusion over whether an item is a fixture or personal property. What is the best way to avoid this confusionspecify questionable items of property in the written sales contracta major difference between freehold an nonfreehold estates is that all freehold estatesare in indeterminable durationalthough states make specific laws governing water rights and the rights in the land that borders water, most states follow one of the two basic doctrines regarding water rights. most common law is riparian rights what is the other doctrine that is usedprior appropriationa legal easement can be created by any of the following EXCEPTmerger of the titlesan EIS, environmental impact statementprotects the impact on the environment of a proposed projectan escheat occurs whena property owner dies without heirs or a valid willan appraiser must be licensed or certified to handled federally relate work on residential property valued more than250,0003 identical homes in one area were listed at the same time where a market is on constant demand. what house would have sold for the lowest pricethe first soldin helping a buyer select a lender with good credit, tax returns and documented salary, the might recommend a mortgage banker instead of a mortgage broker for all of the reasons EXCEPTmore variety of loan programs availablewhich of the federal law regulates the advertisement of lender's credit termsregulation Zwhich of the following consumer's would be able to derive the most benefit from a reverse mortgagea couple in their late 60s who need to tap their home equity to help cover their expenses but do not want to sell their houseaccording to the truth in lending act, any trigger terms are used in ad, all of the following disclosures must appear in ad EXCEPTprepayment penalties and rebatesa broker, acting as agent for seller, presents an offer to buy from the broker's fellow college roommate. the broker knows the buyer will pay more but still lowballed the offer. what should the broker dotell the seller that the buyer will pay morea realty firm just entered into an agreement to represent a home builder in the sale of a new subdivision and has several potential buyers and purchasers. the agency has a relationship withthe builderwhich of the following real estate contracts in a service contracta listing agreementa salesperson lists a property with a contract that allows for subagency and dual agency the sales person isan agent to the broker and a subagent to the principalstate laws differ on whether a buyer is entitled to knowa suicide that occurred in the house last yearwhat critical aspect of the property inspection process must licensees convey to prospective buyersneed for inspections to be completed within the time stated in the contracthouses built before 1978 may have dangerous levels of lead. because of this, some fed agencies such as FHArequire the buyer to acknowledge disclosure of the presence of any known lead paintunrepresented buyer asks the seller agent that if he should get a property inspection. how should they respondif you feel it is in your best interest, please do soa broker has brought a ready, willing and able buyer to the seller. in most listing contracts, the broker has earned commission whenthe seller accepts the offera prospective buyer made an offer to purchase a property. the owner responded with a counteroffer. while the buyer was reviewing, he received a better offer from another buyer. the owner can accept the second offer ifthe owner withdraws the counteroffer before it is accepteda company agrees to lease a property to be used as a gambling casino, state prohibits gambling. this contract would legally defined asvoida licensee has an agency representation agreement with a buyer. when showing another company's listing, what obligation does the licensee have to the seller and listing broker at the other company?disclose the agency relationship when arranging the showing and disclose material information about the buyer if presenting an offerunder the terms of their listing contract, the owners may sell their house themselves and pay no commission. what kind of contact do they haveexclusive agency listingalex, who is 14 inherits property. a buyer makes an offer and alex accepts the offer.a buyer cannot legally compel Alex to sella bunch of realtors are together and the subject of commissions came up. what is this in violation ofSherman Antitrust Actantitrust laws prohibit competing brokers from all of the following EXCEPTreceiving compensation from both the buyer and the sellerwithout checking the facts, a broker who is the seller's agent tells a buyer that the property taxes are among the lowest of the area. before closing, it is determined they are much higher. they buyer could seek to rescind the contract basis ofmisrepresentationa minority couple was looking for a house. salesperson has properties that they qualify for but avoids showing them or not even mentioning them but shows them in an area with low price and intergrated neighborhoods. this is calledsteeringwhich restrictive covenant would be considered illegala covenant that restricts selected parcels within a defined subdivisionthe buyer is assuming the mortgage presently on the property of 110,000. what is the adjustment at closingcredit buyer 110,000, debit seller 110,0003 people buy a house as tenants in common. Subsequentily, two of the owners want to sell, but the 3 discouranges each potential purchaser. The two owners who wish to sell the house canfile an action for partition against the 3rd owneran owner hired a construction company to build a swimming pool in a new home. The owner failed to pay the bill once the work was completed and placed a lien on the property , the lien is on the propertymechanics liena deed restriction is applicable to all the activities ofall owners, present and futurea landlord wishes to build a neighborhood grocery store on a busy street in an area that is zoned for residential use. Which of the following would most likely to be used to obtain permission for this storeconditional use permit or zoning varianceordinances that specify construction standards arebuilding codesif all other factors are equal, in which location is a parking lot likely to bring the highest sales pricebusiness district zoned for a six story office buildingif an older building cannot be air conditioned, it is an example offunctional obsoliescencea prospective seller asks a salesperson to recommend a listing price for a property. the salesperson should suggesta competitive market analysis to determine the property's valuea competitive market analysis takes into considerationsquare footage of the subject propertya competitive market analysis is most often used forsetting a listing pricewhen preparing a market data estimate of value, which of the following categories of adjustment is NOT essentialthe original cost of the buildinga borrower has defaulted on the mortgage, the mortgage contains an acceleration clause. this permits the lenderdemand immediate payment of the entire notethe FHA functions MOST likean insurance companyeven after an offer ha been accepted and is binding, the buyer and seller may still choose to sign mutual release papers rather than proceed to closing. Which of the following circumstances would NOT give either party a justifiable reason to insist for a mutual releasethe buyer finds a better property for better termsunder the common law of agency, licensees owe the broker with whom they are associated all of the following duties acceptindemnificationa broker supplies the financing for a projects to build condos with the stipulation that he has the exclusive right to sell the completed condos. which of the following best describes this relationship?agency coupled with an interestthe day after a broker's listing on a house expired, it was listed with another broker offered into the MLS. Several days later, a 3rd licensee called the first broker and asked for the key to show the house. The broker should inform the caller thathe is not longer the listing agentto what party or parties does the broker owe the fiduciary duty of carethe party or parties employing the brokeran agency relationship between a property owner and a property manager are usually created bya management agreementwhat is the duration of a home warranty coverageas disclosed in the contract that offers the warrantya seller tells the listing agent that her home was treated for termites 10 years ago, so there are no termites now. Before listing the property, the agent shouldtell the seller to disclose the termite treatment on the property disclosure statementa seller's statement in a property disclosure document meanthe owner is disclosing known latent defectsa gross lease can be best defined as one where the tenant pays. as a part of the rentno operating expenses of the leased spacewhen a listing broker is preparing an offer to purchase for a buyer customer, contingencies involving inspections or approval by a 3rd party shouldhave a short deadlinefailure of a real estate agent to comply with the Fair Housing practices of punishable bylicense revocation and criminal prosecutionan equal hosing opportunity notice must bedisplayed in the brokerage officeduring the listing representation, the seller questions the amount of commission to be paid and is toldthe amount of commission is negotiablean owner lists her home at a 7% commission rate and wants to net $45,000 after paying the mortgage balance of $68000 and the broker's commission. to the nearest dollar, what should the selling price be to net her 45000?121505a buyer wants to purchase a home for $160000 with a15% down payment. The lender charges 2 points. How much money does the buyer need up front to make the purchase25720an investment property returns 12% of its value or $21000 annually. what is the value of the property175000MOST closed real estate transactions should be reported to the IRS. REQUIRED information includes seller(s) name(s) and social security numbers andthe sale pricein most states forclosed property is sold throughpublic auctioneven with title insurance, the policyholder may still suffer losses arising fromland use change due to zoning ordinancesto be valid, every deed mustbe executed by the grantorprorationsall prorations are based on a 360 day year, depending upon instructions from your exam. most are debited to the seller.deed stampsdebit seller/credit broker. 3.70 per $1000 or 1.85 per $500 of a sales price., always round uptax prorationdebit seller/credit buyer in closing statementinterim interestdebit buyer/credit brokerinsurancedebit buyer/credit brokertitle insurancedebit buyer/credit brokerinsurancedebit buyer/credit brokernormal debited items at closing for sellerexisting mortgage note assumed loan accrued interest deed preparation deed stamps satisfaction piece recording commission termite/furnace letters garbage proration discount points prorated taxes prorated water and sewage prorated rent carpet allowance va repairs re-inspection fees seller receives amount or net proceeds to sellernormal debited items at closing to buyerpurchase price interim interest attorney's fees service charge loan origination fee recording fees credit report appraisal PMI title insurance tax escrow mortgage insurance MIP (FHA Insurance) homeowners insurance VA funding fee discount points builder coverage annual homeowner or hazard insurance escrow balance on assumption closing home inspectionnormal debited items to brokerearnest moneyhow many square feet are in an acre43650how much is the fee for deed stamps3.70 per 1000 or 1.85 per 500legal descriptions using the government survey system are NOT generally used inthe original 13 statesthe difference between tenancy in common and joint tenancy is that with tenancy in common, when a co owner dieshis undivided interest passes to his heirsalthough states make specific water right laws and its rights in land that borders water, most states use either riparian or littoral rights. the doctrine of prior appropriation is MOST likely used or followed by states wherewater is scarcea judgment has been properly recorded. any subsequent purchasers, whether they actually examined the record or not, have been givenconstructive noticea property is encumbered by the first mortgage of 60000 and a second mortgage of 23500. the property has just been sold at a forclosure auction to a speculating investor for 88000. assume all of the costs of the forclosed sale are included in these balances. which of the following statements is false regarding the distributing of fundsthe second mortgagee will receive nothing unless he forced the forclosurebuilding codes areordinances that specify construction standardsa deed restriction is applicable to the activities ofpresent and future ownersand environmental impact statement typically describes the effects of the proposed projects on factors such aspublic health and safetya commercial property lost value because a recently constructed highway moved traffic away from the property. this is an example ofeconomic or external obsolesencea formal appraisal will always be required when thelender wants to sell the mortgage in the secondary marketthe day after a broker's listing expires, it was listed by another broker and offered in MLS. several days later, a 3rd licensee called the first broker for the key to show the home, what should the broker sayhe is no longer the listing agenta salesperson lists a property with a contract that allows for sub agency and dual agency. the salesperson isagent to the broker and subagent to the principalto what party or parties does the broker owe fiduciary duty of carethe party or parties employing the brokerwhat critical aspect of the property inspection process must licensees convey to prospective buyersneed for inspections to be completed within the time stated in the contractthe dept of housing and urban development stimates that most private homes built before 1978 contain potentially dangerous levels of lead. Because of this, some federal agencies, such as FHArequire the buyer to acknowledge disclosure of the presents of any known lead paintwhile an agent is showing a listed property, the seller and the buyer enter into an oral agreement for the purchase of the home. if a dispute over the terms arises later, the agreement may be unenforceable becausethe agreement does not comply with the statute of fraudsa licensee has an agency representation agreement with a buyer when showing another company's listing, what obligation does the licensee have to the seller and the listing broker to the other companydisclose the agency relationship when arranging the showing and disclose material information about the buyer if presenting an offeran express contract is createdwhen parties to the contract state clearly what they will do or will not do.implied contract is createdby the actions of the parties.bilateral contract is createdwhen one in which two parties each agree to do something.unilateral contract isa one sided contractexclusive right to sell listing agreementrequires that compensation be paid to the broker regardless of who sells the property, the broker or the property owner.exclusive agency agreementin which a fee is owed to the broker only if the broker sells the listing agreementan owner agrees to pay a fee to any broker producing a successful buyer.exclusive buyer agency agreementbuyer agrees to pay the agent whether or not the agent finds the buyer the house that the purchaser buys.exclusive agency buyer agency agreementbuyer is obligated to pay the agent only if the agent produces a property that the buyer buyer agency agreementhe will pay any agent who finds him a propertya contract has been drawn which obliges the sellers to convey title to their land to the buyers if the buyers come up with $22000 on or before December 31st. this is calledan option contracta broker has brought a ready, willing and able buyer to a seller. in most listing contracts, the broker has earned his commission whenthe seller accepts the offera gross lease can be best defined as one where the tenant pays, as a part of the rentno operating expenses of the leased spaceantitrust laws prohibit competing broker from all of the following EXCEPTreceiving compensation from both the buyer and the sellera landlord may legally refuse to rent to a prospective tenant if the tenanthas been convicted of selling illegal drugsan investment property returns 12% of its value or 21,000 annually, what is the value of the property175000a buyer is obtaining a full amortized loan in the amount of 140000. the bank will give him a loan for 15 years at 5% or 30 years at 6%. to the nearest dollar, what is the difference between these two loans?267a lender will make an 80% loan to value loan on a property that is appraised for 72250 and sells for 73500. if the buyer has save 14450 for a down payment, how much more will he need in order to make the down payment required under the terms?he needs an additional 1250when the buyer forfeits the contractthe seller declares the contracted forfeited and the seller typically is entitled to keep whatever earnest money there is.when the buyer rescinds the contractafter a buyer defaults, the seller declares the contract rescinded. they buyers money is returnedwhen the buyers refuses to go ahead with the contract, the seller canfile suit for specific performancewhen the seller refuses to go ahead with thethe buyer can rescind the contract and basically let the seller off the hook, also can file suit for compensatory damages and file suit for specific performancewhat is the purpose of filing suit for specific performancethis type of lawsuit is to designed to make the other party go through with the deal.what is the purpose of filing suit for compensatory damagesthe party feels that they suffered because of the default in contracta title may be transferred byvoluntary alienation (selling), involuntary alienation (loss of title) will or descent (heirs)a voluntary alienation may be accomplished bygift, sale or dedication involving some type of deedrequirements of a valid conveyanceslegally capable grantor grantee granting clause habendum clause consideration property description limitations grantor's signaturespecial warranty deeda property that was not encumbered during time of grantor's ownership......used by trustees, executors and corporationsgeneral warranty deed (5 star general)provides the greatest protection, the sellers is bound by the 5 following covenants seizing against encumbrances quiet enjoyment further assurance warranty foreverbargain and sale deedgrantor covenants that the title is valid but may or may not warrant against encumbrances or promises to defend against clams of other parties "as is"deed in trusttrustor conveys real estateadministrators deedwhen there is no will, this can be used. when someone dies, the court appoints an administratorexecutor's deednamed in will to dispose of the deceased persons assetsreconveyance deedwhen a loan secured by a trust has been paid in fullsheriff's deedused to transfer property sold by the court to satisfy a judgementtax deedused to convey title to property sold for delinquent taxestitle passess upon deliveryand acceptance of the deedtransfer by involuntary (liens alienation may occureminent domain escheat tax sale foreclosure forclosed sale(liens) adverse possession accretion avulsiontestateperson dying having a willintestateperson dying without a willdevisegift of real property in a willbequestgift of personal propertyfee simple fee simple absolute indefeasible feemost complete form of ownership without limitations on rights of ownership, except for public and private restrictions on what can be done with the propertyfee simple qualified estate fee simple defeasible estatehas some limitations on it. #fee simple condition precedent-ownership aka title, wont pass from one person to another until a particular condition is met. #fee simple condition subsequent-estate is a situation in which the grantor(original owner) can reclaim property if some condition isn't met after the title has been passed #fee simple determinable-title remain with the new owner as long as conditions of ownership are being estates#ordinary life estate-in which the length of time of the estate interest is the lifetime of the person receiving the life estate. example-husband wants to let 2nd wife live in house until she passes, then left to his heirs, his childrenlife estate pur autre viefor another life-the length of the life estate in this case is for the life time of the 3rd party rather than the person actually receiving the life estatesome state have legal life estates#community property-which is the right of a spouse, entitling him or her to one half of the interest in real property that was acquired during a marriage #curtesy-right of the husband to a portion of real property that is owned by his wife #dower-which is the right to a portion of real property that is owned by her husband #homestead-grants the family home a certain level of protection of creditor's during a owner's lifetimeleasehold interest or estateis the tenant's interest in the real property. remember, the tenant hold the rights assigned by the leaseleased fee interest or estateowner's or landlord's interest in the real property. remember, the landlord hold the fee or title to the propertylittoral rightsgranted to the owners of property that border a bay, a large lake, the ocean or a sea. they have an unrestricted right to use the water and ownership of the land up to the average or mean high water markriparian rightsrights of property owners who own land abutting rivers and streams.doctrine of prior appropriationis state specific and is when water is scarce. this basically places the right to control water resources in the hands of the state rather than the property ownerstenancymeans having an interest In a piece of real estatesole ownership or tenancy in severaltyowning real estate by yourselftenancy in common is a form or ownership in which tow or more people own property together.#undivided ownership-the land itself is not physically divided into or split between multiple owners #equal or unequal shares-the percentage of ownership interest of each party need not be equal, so one person can have 50% share and two others have 25% shares #sale without permission-any owner can sell his or her share without having to receive permission to do so from the other owners. the new owner is the tenant in common with the previous owners #no right to survivorship-if one owner dies, she leave her share to her heirs.joint tenancy is a form of ownership with special features for two or more people#unity of interest-means that each owner has the same interest in the property. (joint tenancy) #unity of possession-like tenancy in common, each owner's interest is in an undivided property. although interest in the property maybe divided, the land and building if any, may not be divided #unity of time-joint owners all take title to the property at the same time. a later owner cannot be added to the joint tenancy as a joint tenant unless new documents are executed. #unity of title-that all joint tenants names are on the deed togethertenancy by the entiretyform of co ownership specifically geared toward protecting the interest of married couples by providing a right of survivorship. a form of joint tenancy. another unique feature of tenancy by the entirety is that neither spouse can sell his or her share without doing so together (divorce)Community property#may be sold or mortgage or joint action #separate mortgage may be sold or mortgaged by person owning it #no right of survivorship existsProperty owned by third party and coveys it to the trusteeThe trustorPerson who receives the property and administers it on behalf of the beneficiaryThe trusteeCorporationTreated like an individual when it comes to real estatePartnership#two or more people or companies combining to do business #either limited or generalTwo issues that are considered disadvantages of cooperative ownership#shared liability #cooperative board approving newcomersCondominium ownershipWhich you own as a tenant if severalty. And you share as a tenant in common of the land under and around your unitEncumbrances#financial claims against real estate-liens #limitations on the use of property-easements, encroachments, restrictionsLien attached to real estate can limit ownership in different ways#can be sold against your will to pay off a debt... Mortgage....taxes #show up when you sell your propertyVoluntary lienA mortgage is the most commonInvoluntary lienTaxesSpecific lienAttaches to one propertyGeneral lienAttaches to multiple propertiesTax lien# placed on property for unpaid taxes. #government agencies get paid first #water and sewer can be added to this group #unvoluntary lienMortgage lien# a voluntary specific lien.Mechanics lien#for work completed but not paid for. #this is involuntary and specificJudgement lien#involuntary and general #result of court actionencumbranceis a right or interest in a piece of real estate that belongs to someone other than the property ownerliensfinancial claims against the real estatelimitations on the use of the property#easements #encroachments #restrictionspriority of liensreal estate tax is 1st priority, all other liens usually are paid off in the order they were recorded in the local office of recordsappurtenant easementsbenefits a neighboring property. easement appurtenant is the same thing #surface easement #underground easement #overhead or aerial easementeasements in grossthis benefits another person rather than a piece of property. utility easementseasements by necessitya court order creates an easement to permit someone to gain access to a propertyeasement by prescriptioncreated by the actions of one person against the interests of another person. this is related to adverse possessionending easements#an agreement or release-person who possesses the easement agrees to give up or release the person across whose property the easement exists #by merger-joining of the two properties #by abandonment-use it or lose it #need no longer existslicenseis a temporary right to do something on someone else's propertydeed restrictionslimitation on the use of the property that appears in the deed to your property and is put there by another person. it is typically called a private land use restriction. this binds current and future ownersencroachmentsis the unauthorized or illegal use of someone's property by another personadverse possessionsomeone claiming ownership of your real estate because of how they are using it.master plansmost municipalities create a master plan or comprehensive plan #capital facilities-municipality takes inventory and analyzes its publicly owned buildings and parks #demographics-population characteristics of the municipality #housing-municipality examines its current and future housing inventory #infrastructure-refers to roads, sewers, water lines, and other physical facilities #land use-areas of land within the municipality are examined, usually on a mapzone ordinanceszoning code, is a set of rules that control what property in the municipality can be used for and regulates where on the land any buildings will be located. #special permit use-variation from the requirements of the zoning ordinance for an individual piece of property #nonconforming use-established structure --accessory buildings or building separate from the main building of a property that support or are related to the main buildings --accessory uses are uses that are related to but a little different from the principal use of the propertysubdivisionsa piece of land that has been divided into two or more pieces of land. #must adhere to zoning lawssubdividerscreated subdivisions, developers. individual pieces of property are called lot or parcels. a subdivision must be approved, subdividers can sell the entire subdivision to a developer or builder. a subdivder can also sell individual lots with the promis to eventually put in roads, etc.developerdevelops the subdivision.density zoning ordinancepermits overall density within the subdivision, which means the same total number of lots on the same overall size property as allowed by the zoning ordinancescluster zoninggoes one step further than density zoning, it clusters or groups lots together in a relatively small area to preserve a certain portion of the property as open space.interstate land sales full disclosure actwas acted in 1968 to minimize fraud and dishonest dealings in the interstate land sales market. administered by HUDeminent domain#land must be for legitimate public purpose, road, park, sewer line #fair price must be paid to the owner #government must follow all legal procedures, they must exercise due processseisinguarantee that the grantor is the ownerspecial warranty deedonly has 2 warranties- that the grantor is the seisin and that nothing was done to affect the title during the grantor's ownership and if a problem did exist, the grantor will correct itgrant deedonly used in a few states and provide limited warranties. gives no protection to the granteequitclaim deedno warranties to the granty and gives no implication on how much or how good the grantor's title to the property is. it conveys to the grantee only that much ownership interest that the grantor may have. this also allows to clear up a cloud on a titletrust and reconveyance deedsthis is s trust deed, deed of trust.trustee's deedsgiven by a trustee when ownership of property held by a trust is conveyed. ex. a child owns a property held in trust until reaches legal agecourt-ordered deedsresult of legal proceedings, an executor's deed in the case a deceased person's estate or a sherrif's deed in the sale of property seized y local unit of government town or the bank.metes and boundslegal description uses specific locations, distances, and compass directions to describe the boundaries of a piece of property. this is clearly stated in the deed. it was formed by the original 13 coloniesrectangular survey system(government survey system) based on a system of lines that form rectangles and squares throughout the United States. #quadrangles-24 miles square #townships-divisions of a quadrangle, 6 miles square #sections-divisions of a township-1 square mile and have an area of one square mile 640 acres #quarter sections- formed by dividing a section into 4ths that are delineated by their direction from the center of the section.lot and block systemthe recorded plat system, the recorded map system, the lot block tract system.illegal ways to describe property#using the property's address #tax assessor's parcel numberproviding marketable title#abstract of title #certificate of title #title insurance #torrens system-proper registration of titleremoving lienssome liens can be satisfied at time of closing, ex. mortgage, home equity, tax lienexamining encumbranceslimitations on the owner's use of the propertymeeting the conditions of the sales contractmaking sure everything has been taken care of, inspection, termite bond, repairs if necessaryRESPAreal estate settlement and procedures act #required reading the hud booklet must be given to anyone applying for a mortgage loan #estimated costs-the lender must give the borrower a good faith estimate of all settlement costs #closing settlement statement, used to be called a HUD form 1 #prohibited kickbacks-respa prohibits any unearned fee. example-an inspector who pays a fee to a lendor for recommending him to perform home inspections for one of the bank's customersdedicationvoluntary transfer from an individual to a governmentpublic grantsgrants from the governmentinvoluntary alienationproperty lost or takenpossession#actual #adverse #claim #continuous #hostile #notorious #openforeclosureslosing your property involuntarily to pay a debt--usually unpaid mortgages and unpaid taxesforfeitureby disobeying something in the deedpartitioninglegal preceding that is undertaken to divide a piece of propertylaws of descentno will but still has heirsan express contractparties agree to what they will or will not doimplied contractexample-owner selling house, realtor brings buyer, draws up contract and gets it under agreement, it is implied in contract that they will receive commissiona bilateral contractwhen parties agree to do something. exchanging promisesan unilateral contractone sided contractlisting agreements#exclusive right to sell-requires commission to the broker, whomever sells the home #exclusive agency agreement-a fee is owed to the broker only if he sells #open listing-owner agrees to pay a fee to whomever sells the homebuyer agency agreements#exclusive buyer agency agreement-requires the buyer pays a fee even if he does not buy or buys a different house that the realtor did not find. #exclusive agency buyer agency agreement-buyer will only pay a fee if realtor finds a home for the buyer to purchase #open buyer agency-will pay any realtor that finds the propertyan option in real estateterms in an agreement in which a seller agrees to sell property to a buyer at an agreed to price within a certain time frame if the buyer wants to buy itdischarging a contract#performance-ideal way to end a contract because all parties hae fulfilled their obligations, times is of the essence #assignment and delegation-someone else takes over or is assigned the obligations of the one of the parties to the contract #death- #impossibility of performance-where the action that was contracted cannot be performed legally, can possibly be impossible. #mutual agreement-both parties to the contract agree to cancel it #novation-is a situation in which a new contract with different terms. the new contract can be between the same parties or between one of the parties of the original contract and a new party #operation of law-type of situation can relate to some legal issue that arises that cancels the contract...example based on fraud #partial performance-discharging a contract for partial performance refers to an acceptance by one party of incomplete work by the other party and an agreement that the incomplete work will constitute fulfillment of the terms of the contract #rescission-is when one party decides not to fulfill its obligations under the contract #substantial performance-one party may force payment from the other party.leasebetween two parties for possession and use of a particular space usually for a certain length of timeestate for yearslease agreement with a definite start and ending dateperiodic estatealso called a periodic tenancy, occurs when the original agreement doesn't contain any definite period of time example- month to month lease. a periodic estate can be created when an estate for years ends and then tenant does not move out and the landlord continues to accept the rent, the tenant may be referred to as a holdover tenantestate at willlandlord allows the tenant to occupy the premises, but there is no definite period of time when the arrangement will expire. an owner about to sell a building may allow a tenant to occupy an apartment under this arrangement. estate at will can be terminated at any time with proper legal noticeestate at sufferanceoccurs when a tenant who had legal right to occupy the premises continues to occupy the space after the right of occupancy has expired.typical provisions of a lease#legally competent parties #mutual agreement #legal objective #consideration #agreement in writingwhat is contained in a lease#description #terms of lease #amount and date of rent payments #provisions for rent increases #security deposit #how the premises can be used #whether or how improvements can be made #provisions outlining maintenance responsibilities #details for destruction of premises #provisions for occupancy limits #provisions for or against subleasing #termination on sale clause #right of quiet enjoyment #any optionsgross leasetenant pays the same rent each month and the landlord pays all the building expenses, such as maintenance and taxesground or land leasewhere someone rents an empty piece of land specifically to erect a building on it. these leases tend to be long term and often exceed 50 years or longer. tenant owns the building and the landlord owns the land. usually requires the tenant to pay all property expenses....taxes....utilities.....and maintenance. similar to a net leasetenant pays the building expenses on top of the base rent.percentage leaseusually has a minimum monthly rental charge plus a percentage of the gross earned by the business.proprietary leaseis a least that is given to the owner of a cooperative apartment. the owner doesn't own the actual apartment itself but rather share in the corporation that owns the buildingtypes of eviction#actual eviction-landlord sues for possession of the premises #constructive eviction-when the landlord's actions are such that the premises become uninhabitable.rentable spacespace that a tenant pays for when renting non residential space. usually has more square feet than the tenant is entitled to use. rent is stated as so many dollars per square foot annuallyuseable spacesquare footage that the tenant is allowed to use exclusivelyenvironmental impact statementsthis protects the area and the public of something being built out of proportionasbestos#leave it alone if it is in good shape and doesn't appear to be disintegrating or deteriorating in such a way that the fibers and dust are escaping into the air #remove it should only be done in accordance with experts who follow procedures established by the EPA and your state #deal with it-called encapsulation is sealing the asbestos in place. a professional does all evaluations and work with dealing with asbestosradonodorless, colorless, tasteless, radioactive gas produced by the decay of natural materials such as rocks that are radioactive. it tends to accumulate in areas with poor outside air circulation such as basements. it may spread through a building by heating and air ducts and it is believed to cause lung cancer. if found, remedy is to introduce some kind of ventilationGRM gross rent multipliertechnique for estimating value is based on the idea that a property can be calculated as a multiple of the gross rent. gross rent x (factor GRM)=value estimate GRM-the gross annual rent rather than monthlyincome capital approachnet operating income (I) divided by capitalization rate (R)=value (V) estimating the net operating income determining the capitalization rate applying the IRV to arrive at a value estimatenet operating income (NOI)#estimate the potential gross income #subtract a vacancy and collection loss figure from potential gross income #estimate all building expenses and subtract them from the effective gross income #subtract the estimated expenses from the effective gross incomedetermining the capitalization rate(similar to the rate of return)net operating income (I) divided by sales price= capitalization rateapplying the formula to estimate valuenet operating income (I) divided by capitalization rate (R)=estimated value (V)calculating incomevalue (V) x capitalization rate (R)= net operating income (I) $300000 x .08=$24000points on a mortgage1% of the loan amount $100,000 x .02= $2,000types of mortgages#conventional-meet certain guidelines that can be set by the lend but often comply with the standards set by fannie mae #conforming loan-loan meets the criteria necessary for it to be sold in the secondary mortgage market. #nonconforming loands-doesn't meet the criteria of the secondary mortgage market, these loans may be made by lenders under specific circumstances and may require extra requirements from the borrower to meet, but they cannot be sold on the secondary mortgage market.primary mortgage market#commercial banks and savings and loan associations-sometimes collectively referred as to institutional lenders. one of the most principal places the average consumer goes to get a loan #credit unions-average homebuyer, depending on the amount of assets upon which they can rely and the interest rates they charge #insurance companies-this is more for large projects #investment groups-individuals or companies that pool their money together to make mortgage loans #mortgage banking companies-set up by investors specifically to make mortgage loans, they don't generally offer other banking services. #pension funds-managers may lend money from their fund's assets for the construction of large real estate projects or purchasessecondary mortgage marketfederal reserve system is a player in the financial markets that affect the availability of money for real estate mortgage loans. has two factors #reserve requirement for banks-imposes on banks to maintain a specified amount of their assets as reserve funds in cash. reserve funds may not be used for loans. #discount rate-how the Fed controls the flow of money. the secondary mortgage market which buys loans from banks and other primary lending institutions collects, packages and pool (all mean the same thing) the main players in the secondary mortgage market are directly and indirectly associated with the federal government. #fannie mae- charted by congress.... VA and FHA loans #ginnie mae-government national mortgage assoc- govt agency administered by the US dept of Housing and Urban development. works primarily with fannie mae in the secondary mortgage market #Freddie mac-federal home loan mortgage corp is owned by corporation that also provides secondary market for mortgages. it sells bonds to raise funds to purchase morgages #farmer mac-fed agricultural mortgage corp serves as a secondary mortgage market for farm homesblanket mortgageis a loan that covers more than one piece of propertyconstruction loanis made to finance a construction projecthome equity loanline of credit, based on how much is the house worth and what is still owedopen mortgagecan be paid back at any time without a prepayment penaltyopen end mortgageafter a loan has been paid down it can be reopened to borrow against itpackage mortgageis a loan that covers real estate and personal property being sold with the real estatepurchase money mortgageloan used to buy real estatesale leasebackis not actually a mortgage, but can be a source of project financing and a mean of obtaining the equity in a property.shared equity mortgageallows the share of the profit on the property to be given to someone else in return for help purchasing the property.temporary loaninterim financing, bridge loan, swing loan, gap used when funds are needed for a short period of time to complete a real estate transaction.wraparound mortgagea new mortgage wraps around an old mortgage. this is used when the old mortgage wont be paid off at the tie of the sale of the propertyfixed rate mortgagesthroughout the lifetime of the loan, the interest rate and the amount of the monthly mortgage payments do not change. what does change, in an amortized loan, is the amount of principal and interest in each monthly payment.adjustable rate mortgagesARM- is a mortgage for which the interest rate is subject to change during the life of the loan. a borrower's rate at any point in time can change but is subject to two limits that are called caps or ceilings #annual cap-interest rate can be adjust upward in any given year, example if you have a 2 percent ceiling per year and the interest rate you have currently is 7 and rates go up to 10, the highest yours can go to is 9%. #lifetime cap-gives protection so it limits on how high the lender can let your interest rate go to. ##a prepayment cap can also be put in place in an ARM, meaning that even if therate adj reach their max each yer, if the resulting monthly payment increases to more than the specific amount, the payment cap keeps the payment within reasonable limitsamortized loanmost popular type of loan. also called a direct reduction loan. example rate 6.44 mortgage is 150,000 25 years 150 x 6.44=$966 this is the monthly payment to pay off the principal and interest at the same time.straight loanthis is a term loan. payment of interest only during the term of the loan. at the end, a single payment of the principal is required.partially amortized loancombination of amortized and straight loan. at the end it will be a balloon payment duegrowing equity mortgage GEMfixed interest rate but payment of principal increases more than normal amortization over time. this allows the borrower to pay off the loan fasterequitable redemptionin the event of a nonpayment of the debt, depending on the state, the borrower may have a right to equitable redemption, meaning that the borrower may pay off the debt before the sale of the property in foreclosure. the right to redeem the property after the sale is called a statutory right of redemptiondeed of in lieu of foreclosurefriendly foreclosure, the buyer voluntarily signs the property over to the lender by executing the deed to avoid foreclosuremortgage assumptiontakes place when a new party takes over the obligations of another person's mortgage debt and does require approval of the lender. an alienation clause in the mortgage loan agreement helps lenders prevent or control this.estoppel certificate or reduction certificatestate showing how much the person who assumes an existing mortgage actually isassignment of a mortgageis the change in the person or institution to whom the debt is owed on a mortgage without changing the terms of the loan. this is essentially a change in the lendertruth in lending actregulation z #amount of payment #finance charge amount #down payment #number of payments #terms of the loan, that is how long the loan is for *****if trigger terms are mentioned in an ad, then it must also contain the following information..... #APR #cash price #down payment needed #number, amount and due dates of all payments #total of all payments need to be madetax rate in millsa mill is one-tenth of a cent (.001). ways to figure it out millage divided 1,000= mill rate expressed in dollars or cents of tax per dollar assessed valuation 40 mills divided 1000=.040 40 mills = .040 60,000 (assessed value) x .040=$2400 in taxestax exempt propertiesgovernment owned propertiespartial tax exemption#senior citizens #veteransarea of a squarelength x width=area 100 ft by 100 ft 10,000 sq feet 150 ft x 80 ft=12000 sq ft1 yard3 ft1 mile5,280 ft1 sq yard9 sq feet1 acre43560a section-1 sq mile or 640 acres1 cubic yard27 cubic feetarea of a triangle1/2 base x height=areavolume of anythinglength x width x height=volumearea of a circlediameter is a straight line drawn through the center from one side of the circle to the other and the radius is half of the diameter building a circular patio, that is 16 ft in diameter 3.1416x8(squared)=area 3.1416 x (8x8)=201.06 sq feetexamples of percent800% 8 80% .80 8% .08 .8% .008 .08% .0008 8.5% .085