Champions Principles of Real Estate 2 Flashcards

Champions Principles of Real Estate 2 Flashcards Safe Harbor Rulestipulate the circumstances in which an individual or entity may be exempt from liability for the cleanup of a polluted site.Quitclaim DeedA deed with no guarantees or warranties - it offers the buyer the least protection - can be used to correct or cure a defect or cloud on title Functional ObsolescenceThe loss in desirability of the style, layout, or function of an element of a property over time.Principle of ConformityMaximum value is found when there is a reasonable degree of similarity or homogeneity

An opinion of valueThe appraised value of a property is:

termthe duration of the agreement Capital gainsa return on property when it is sold for a profit Highest and Best UseThe legal use of property giving the greatest return in money or amenities CCIMWhich association provides in-depth courses for persons interested in learning about commercial real estate regarded as the gold standard?Title is conveyed when the deed is signed and delivered one-to-four family residential properties with federally-related financing RESPA manages closings on General Warranty DeedThe most common type of deed for conveying real estate. It contains all the covenants and warranties available to give the most complete protection.Adverse Possessionwhen an individual acquires title from the rightful owner through hostile, actual, and continuous occupation of the land for the statutory period.Market ValueThe most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale.Attorney's Opinion of TitleOpinion regarding the state of the title and it's ability to be transferred codicilan addition to a will Intestatedying without a will Management AgreementProperty manager's employment agreement USPAP (Uniform Standards of Professional Appraisal Practice) Standards that have been established by the Appraisal Standards Board of the Appraisal Foundation.executora person appointed by a testator to carry out the terms of the will restrictionA limitation placed on the use of real property, either by the government or by other persons who have an interest in

the property. Private restrictions are either in the form of covenants or conditions.

General Warranty Deedmost common type of deed used in Texas DeviseWhich of the following is not a type of involuntary alienation condemnationthe action of government seizure of land for the good of the public.Scarcityif a type of property in a market area is too abundant, it has reduced value.holographicA will written entirely by the testator with his own hand.Legal but easily contested.ad valoremaccording to value Redlininga practice in which banks refuse to make loans to people living in certain geographic locations buffer zoneAn area of land separating one land use from another incompatible use such as residential from commercial Cloud on TitleA break in chain of title Back RatioSum of regular debt plus house payment VA loanGovernment guaranteed loan Taxationthe government's right to tax real estate cash flow reporta summary of cash received and disbursed showing the beginning and ending amounts Principle of AnticipationStates that the purchase price is affected by the expectation of future appeal and benefits PMI (Private Mortgage Insurance)Insurance that protects the lender in case the borrower defaults and is unable to repay the loan. Generally a borrower must pay PMI if their equity is less than 20% of the home's value.OriginationThe process of making or initiating a new mortgage loan.Expirationwhen a lease agreement comes to the end of the lease period and termination.assessed valuethe amount that your local government determines your property to be worth for tax purposes TestateHaving made and left a valid will.DownzoningA change in zoning of a property to a lower value.Erosionthe gradual loss of land over time as the land bordering a river or stream washes away preventive maintenanceServicing a property and its equipment in order to prevent mechanical failure and keep property values high embodied energyThe sum of the energy used during the life cycle of a product.legacyan amount of money that is inherited Titleevidence of ownership leasea contract granting use or occupation of property during a specified time for a specified payment Forclosurewhen a bank takes back a property and auctions it off to recover the unpaid loan amount

Estate for yearsA lease for a definite stated period of time. The term may be one year, one month, one week or even one day. No notice needed to terminate.descendantAn individual who inherits property by intestate succession acquires title by descent Front RatioHouse payment as % of income Deferred MaintenanceDeterioration of a property due to delayed maintenance Field ReviewMany lenders, especially when dealing with high-LTV loans, will order this type of appraisal ad valorem taxa tax levied on the assessed value of real and personal property real estate investment syndicatea method of raising funds for the purchase of real estate appreciationthe passive increase in the value of a parcel due to market forces Underwritingthe process of making a lending decision.Abstract of TitleA history of the ownership of a parcel of land which lists transfers of title, rights, and liabilities.VLBHousing Assistance Program condemnationThe process of taking private property for public use through the government's power of eminent domain.LTV% of value/sales price lender will lend Interstate Land Sales Full Disclosure Act Passed by Congress in 1968. The Act was passed to protect consumers from fraud in the sale or lease of land.Developers are required to provide each purchaser with a disclosure document (Property Report). The Property Report contains information about the subdivision and is required to be delivered to a purchaser before the signing of a purchase agreement. The purchase agreement gives the purchaser a seven-day period in which the purchase can be canceled.*Assemblage and plottagecombining several parcels of land into one GranteeA person who receives a conveyance of real property from a grantor.External Obsolescenceloss of value due to factors beyond the property boundaries Police powerRight of the government to regulate and control the way land is used Lessorlandlord or owner descentindividual who receives property by intestate succession subject propertyThe property that is being appraised.RESNETResidential Energy Services Network trend within a number of builders Hereditamentany property, whether real or personal, which is capable of being inherited.The license holder should go ahead with the transaction only if he or she is competent to do so.When a license holder is asked to locate an investment property for a potential buyer.