Metro brokers final exam24 Flashcards

Metro brokers final exam 4/3/24 Flashcards When can a seller request to keep earnest money as liquidated damages?In most real estate contracts, in the event that the buyer defaults , as long as the amount is not excessive.Real estate commissionerFull time employee of the Commission who serves as its chief administrator. conducts day to day business of the department.IRV- net operating incomeThe basis of the income approach to value is principle of anticipation, which states that the properties value is based not only on what is consists of today but on whatever expectation there might be for future income and benefits.Does not include land valueThe capitalization

approach:uses net income to project and estimate of

present value. NOI is effective gross income minus operating expensesI= Net operating income, R= Cap rate, V= ValueV=I/RR= I/VI= R x VThe higher the cap rate, the lower the valueThe lower the cap rate, the higher the value Lenders policy- protects the lender against loss due to a title defect and it is valid as long as there is an outstanding balance on the loanOwners policy- protects the owners equity in the property and lasts, at a minimum, for as long as this owner or the heirs have an interest or obligation regarding the property.Reproduction vs. Replacement cost

Riparian rights:concern properties that border water such

as streams and rivers and any non-navigable waterway. All owners have the right to use the water for such things as swimming, boating, or fishing. a owner whose property borders a non-navigable waterway would typically own to

the center of that waterway.Littoral rights:Rights of

properties that border large navigable waterways (oceans, large lakes, or seas.) Ownership stops at the high tide or high water mark.UFMIP cal method of legal description identifies the parcel by describing its boundaries.Used for properties outside of subdivisions Advertising requirements How an appraisal is charged?The fee charged can never be based on an estimate of value.

Reproduction: is the cost at todays price of constructing the

exact replicaReplacement: is the cost of todays prices and

using todays construction materials and methods , of replacing the building with on that serves the same functional utility and has basically the same amenities.Who does the closing attorney

Real estate commission authority- Can & cant do Ways to avoid dual agency When can a offer be withdrawn?Any time prior to mutual assent and acceptance The Truth in lending act (TILA)Is a federal law enacted in 1968 to help protect consumers in their dealings with lenders and creditors, compare the cost of borrowing before commitment.Includes regulation Z, Truth in lending statement, Trigger terms Tax proration for sellerInclude the closing date. Seller accures tax until 7/1. You will have to debit the seller if closing is before or on 7/1.Credit the seller if the closing is after 7/1.Uses a 365 calendar.ANNUAL TAX DIVIDED BY 365 = DAILY

RATEDAILY RATE X NUMBER OF DAYS

Priorty of liens1.Property taxes2.Special assessments3.Mechanics liens4.Then by date of recording unless a subsequent lien includes a subordination clause How to calculate buyers monthly PMIPrivate Mortgage Insurance: Applies loans with greater than 80% LTV ratio and protects the lender in the event of default.Lender increases rates with risk.In the past, PMI was typically paid up front and as a percentage of the monthly payment, but now is usually calculated as an annual percentage of the loan amount paid monthly.Loan amount x Annual rate/ 12 High-density/ Low-densityDown zoning: Rezoning a parcel to a lower density or less

profitable useUp zoning: Rezoning a parcel to a higher

density or more profitable useBulk Zoning: Designed to

limit population growth and density in certain areas. Ex.inclined restrictions on lost sizes, floor space, building

height, open areas and setbacksSetbacks: Required

distances a building must be placed from the front, side, and rear lot lines Replacement cost approachThe cost of replacement of buildings, at todays prices and using todays construction materials, with similar or comparable structure, to serve the same purpose.Net listingProhibited in GASeller authorized broker to market the property at any price and pocket the difference Secondary mortgage marketThe market where loans are bought from local lenders in order to provide them with a constant supply of cash to

originate more loans to homebuyers.Includes:Fannie

MaeGinnie MaeFederal Home Loan mortgage corporationMortgage Guaranty insurance company Promissory note-A promise to repay a loan within a certain time period.Riparian Rights/ Littoral rights Can-SPEstablishes requirements for commercial email, spells out penalties for email senders, and gives consumers the right to have emailers stop sending emails to them.does not require the sender to give a valid phone numberPenalty of

$16000 per email may be imposed.If a person buys a house and a deed is not recorded, who is the rightful owner?The buyer, so long as some form of constructive notice has been given (moving in, cultivating the land) and no subsequent recordation's of title were made prior to notice.

BRRETA (What its for, no expiration date on the document)The Brokerage Relationship in Real Estate Transaction

Act:Georgia law, to prevent "detrimental

misunderstandings" that common law might cause in brokerage relationships. Governs the relationships between licensees and their clients or customers. Covers brokerage, brokerage relationships, brokerage engagements, material facts, and ministerial acts.If an agency contract does not have a specific date of termination, it will terminate in ONE YEARMaterial facts- facts a party does not know, would want to know, and could not reasonable discover, up to a one mile radiusMinisterial facts- acts that do not require a licensees professional skill or judgment.What is a CAM & what do they do?Community Association ManagerHandles tasks involved in managing homeowners associations When to turn in earnest money?As soon as possible, to the broker.The check must be made out to the broker, not the agent.A loan insured by the Federal Housing Administration and made by an approved lender in accordance with the FHA's regulations.

• promises in a

Assemblage/ PlottageAssemblageis the combining of two or more adjoining properties into one tractPlottageis the added value as a result of assemblage

Comparative market analysis:or broker price opinion is the

type of valuation prepared by a real estate licensee by comparing the subject property to similar properties which

have recently sold or are currently on the market.Appraisal:

is based on analysis of relevant data by a qualified person known as an Appraiser Law of capture Advertising trigger termsAny mention of finance term requires APR disclosureExamples- Payment- Down payment- Interest rate- Monthly paymentadvertise bank financing - include APR #

Personal Note Earnest moneyFrom Curtis: If a buyer submits a promissory note as

earnest money, the salesperson must make not of it on the sales contract Real estate commissionAppointed commission responsible for overseeing the implementation and administration of a state's real estate license law. It usually is empowered to grant, revoke, or suspend licenses, and otherwise discipline real estate brokers operating in the state.6 members, appointed by the governor and confirmed by the senate.5 members must have been residents of GA and actively licensed in real estate for five yearsThe six member is chosen for expertise in consumer affairs, and have no real estate industry connection.All members serve 5 year terms, staggered.The