Exam (elaborations)
Idaho Real Estate Mod 1 & 2 Questions Graded A+
- Course
- Institution
Idaho Real Estate Mod 1 & 2
[Show more]
Content preview
Idaho Real Estate Mod 1 & 2Appraisal - answer an estimate or opinion of value based on supportable evidence and
approval methods
CMA - Comparable Market Analysis - answer an analysis of probable value of real
estate done by individual other than an appraiser
BPO - Broker Price Opinion - answer an opinion of value of real estate value done by a
licensee with a broker level license. can charge
Elements of Value - answer1) demand with purchasing power
2) utility
3) scarcity
4) transferability
Market Value - answer estimate of value based on an analysis of data
Market Price - answer what the property actually sold for
Cost - answerthe price to build the structure including land cost
Regression - answerpulls down property value
Progression - answerraises property value
Over improvement - answerland improvement more extensive than surrounding
neighborhood
Principle of Substitution - answerthe value of a property cannot exceed the cost of
equivalent substitute properties
Principle of Highest and Best Use - answerthe most profitable singe use for a property
Plottage - answerincrease in value or utility by combining lots
Form Report - answermost common appraisal report
Narrative Report - answerlong, comprehensive appraisal report
,Three Approaches to Value - answer1) Market Data Approach aka Sales Comparison
Approach
2) Cost Approach
3) Income Approach
Sales Comparison Approach (Market Data Approach) - answervalue obtained by
comparing similarly sold properties
Cost Approach - answerused to obtain value on new structures or custom structures
such as museums, library, factory
Cost Approach - answerCost - depreciation + land cost
Sales Comparison Approach (Market Data Approach) - answerif comparable is superior
deduct from value, if inferior add to value
Physical Deterioration - answerdeferred maintenance (curable) peeling paint, bad roof,
bad floors, broken windows, termite damage..etc
Functional Obsolescence - answerout-dated design or feature (curable) low ceilings, 6
bd/1 bth, split entry, knob & tube wiring
External or Economic Obsolescence - answerconditions outside property lines; airport
flight path, next to free way, businesses close
Income Approach - answerbased on current value of the right to future income
Capitalization - answerdetermining the value of the property by interpreting the
property's net income with a percentage (NOI)
Gross Income Multiplier - answersales price / gross income =
Gross Rent Multiplier - answerratio based on current or projected rent
sales price/gross rent
First substantial business contact - answerwhen is Blue Brochure given?
Mortgagor - answerbuyer or borrower
Mortgagee - answerlender
Lien Theory State - answermortgagor (buyer) retains both legal and equitable title
Title Theory State - answerlegal title to the mortgagee (lender)
Elements of a real estate loan - answernote and security instrument
,Types of security instruments - answerDeed of Trust, Mortgage, Contract for Deed
Type of security instrument for 40 + acres agriculture - answermortgage
Type of security instrument for less than 80 acres non-agricutural - answerDeed of Trust
or Mortgage
Type of security instrument for 80+ acres any use - answerMortgage
Contracts for Deed ( Land Sales Contract) - answerowner carry
Note - answerthe borrowers personal promise to repay
Usury Laws - answerlegal limits on interest rates (Idaho is 12%)
Terms - answerlength of loan
Loan Origination Fees - answerfee computed off of loan amount
Discount Point - answerpre-paid interest equaling 1% of loan amount
Hypothecation - answerthe pledging of property as security on a loan
Defeasance Clause - answerrequires lender to release their interest when paid in full
Deed of Reconveyance - answera recorded document which gives notice a deed in trust
has been paid in full
Demand Features - answerAcceleration clause, due on sale clause, alienation clause
Subject to - answerseller remains liable for the loan
Assumption of - answerseller may be released of liability
Non-judicial foreclosure - answerforeclose on Deed of Trust
Notice of Default - answerfirst formal notice recorded regarding Deed of Trust
foreclosure
Notice of Trustee's Sale - answernotice of foreclosure on Deed of Trust; a) mailing
b)posting 3 attempts within 7 days c) publication once per week 4 times at least 30 days
before sale
Reinstatement Right - answerup to 115 days to make up all back charges to lender to
stop foreclosure on Deed of Trust
, 120th Day - answerday in which Deed of Trust foreclosure can go up for auction
No Redemption Right - answerDeed of Trust foreclosure does not allow borrower rights
to property after sale
Judicial Foreclosure - answerCourt required foreclosure on a mortgage
6 months redemption right - answerfor property 20 acres or less in judicial foreclosure
12 month redemption right - answerfor property 20 acres or more in judicial foreclosure
Sheriff's Deed - answerdeed given at end of redemption period to winner on judicial
foreclosure
Foreclosure for Land Sale Contract (Contract for Deed) (Owner Carry) - answerno rights
at foreclosure, mortgagee can re-enter and seize
Deed in Lieu - answerform of foreclosure known as a friendly foreclosure
Redemption - answerthe right of a mortgagor to buy back their property, can also be
used in tax sales
Reinstatement - answerpaying current only those payments delinquent plus foreclosure
costs
Deed to Purchaser at Trustees Sale - answertitle contains no warranties, transfer from
foreclosure sale
Deficiency Judgement - answerborrower may be order to repay any losses to bank
within 90 days
Vendor - answerseller in Land Sales Contract
Vendee - answerbuyer in Land Sales Contract
Short Sale - answersale of property for less than what is owed to the bank, bank has 5
years to seek deficiency judgement
TILA - Truth in Lending Act - answer1974 Federal Legislation to inform buyers of all
financing charges and true cost of borrowing
Regulation Z - answerdiscloses to buyer how much credit is actually costing them
3-day right of rescission - answerlimited right to cancel a credit transaction; does not
apply to purchases or non-owner occupied refi's
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller julianah420. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $18.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now