National Real Estate Exam with Verified Answers Graded A+
5 views 0 purchase
Course
National Real Estate
Institution
National Real Estate
National Real Estate Exam with Verified Answers Graded A+
Reliction
The Richards family farm is located on
a 10-acre parcel of land, which is very
rare in their area. However, the house
is rundown and in need of many re-
pairs. Most buyers in the area are look-
ing for a move-in-ready home, ...
National Real Estate Exam with Verified Answers Graded A+
Gradual recession of water which uncov-
Reliction ers land that usually belongs to the ripar-
ian owner.
The Richards family farm is located on
a 10-acre parcel of land, which is very
rare in their area. However, the house
is rundown and in need of many re-
pairs. Most buyers in the area are look-
ing for a move-in-ready home, which
means they would need to either look
elsewhere or wait several months for the
home to be renovated. Which factor is
most negatively impacting the value of
the Richards' property?
The value of any given change to the
property is dependent on the value of
the property as a whole. Because of this,
The principle of contribution: the same improvement to different hous-
es may result in an increase in value in
one, while the other sees no appreciable
change
regulations are typically set up as a
covenant (an agreement between the
homeowner and the association).
Association regulations subject property
owners to certain rights, responsibilities,
and obligations, including the obligation
Homeowners association (HOA), condo- to pay the HOA fee.
minium association, and owners associ-
ation Associations may regulate aesthetic
choices for structures (such as paint or
shingle color) or for landscaping (such as
the type and number of trees and shrubs
that owners may plant).
Associations typically have the authority
to levy fines against residents who don't
,National Real Estate Exam with Verified Answers Graded A+
comply with the regulations.
Any member of the association may pur-
sue enforcement in a civil court of law if a
resident isn't complying with regulations.
An abbreviation which means "Principal,
Interest, Taxes and Insurance." In resi-
dential financing, it is common for the
monthly mortgage to include these four
PITI payments.
lenders place prop. tax and insurance
amounts collected each month in an es-
crow account
time frame to lock in interest rates. no more than 90 days
a clause stating that the lien on the prop-
defeasance clause
erty is defeated when the debt is repaid
a statement in a credit contract that re-
acceleration clause quires you to repay the entire loan imme-
diately if there is a borrower default
A clause, included in many mortgages,
permitting the lender to require the bor-
due-on-sale clause rower to repay the outstanding balance
when the property is sold. Prevents loan
assumption.
A percentage of gross monthly income
set aside for total housing expense, in-
cluding principal, interest, taxes, home-
owners insurance, mortgage insurance,
housing ratio and any condominium or homeowners
association fees.
total of all the buyers debt divide by in-
come
,National Real Estate Exam with Verified Answers Graded A+
conventional: 33-36
debt ratio FHA: 43-50
VA: <41%
An instrument that grants a trustee under
a land trust full power to sell, mortgage,
and subdivide a parcel of real estate. The
beneficiary controls the trustee's use of
deed of trust
these powers under the provisions of the
trust agreement.
theory states
a written contract with a promise to pay
a supplier a specific sum of money at a
definite time
promissory note
negotiable and transferrable
usually always has collateral involved
loan principal is paid down over the life of
Amortized Loan
the loan
A loan that requires payments of
both principal and interest (same each
fully amortized loan
month). When the last payment is made,
the loan is retired.
a loan with a series of amortized pay-
partially amortized loan ments followed by a balloon payment at
maturity
Fee paid by borrower in exchange for
lender's protection in the event of borrow-
mortgage insurance premium
er's default in payment of mortgage debt.
upfront charge and annually
can be up to 100% of the purchase price,
set for 33 years (38 for very low-income
FSA loans borrowers), and provide loan guarantees
for up to 95% of the loss of principal and
interest.
, National Real Estate Exam with Verified Answers Graded A+
1. have to be at least 62 years old
reverse mortgage loans 2. either gives lump sum or payments
based on equity in the house
The seller accepts a down payment on
a parcel of land but title to the property
does not pass until the last principal pay-
land contract
ment has been received. This is referred
to as an installment sales contract or a
contract for a deed.
A mortgage given by the seller to the
buyer to cover all or part of the sale price.
Seller financing.
purchase money mortgage
usually for when buyer cannot qualify for
traditional loans
loans often used to finance home im-
provements that carry a variable interest
home equity lines of credit rate and that allow homeowners to bor-
row up to a certain amount based on their
home's value
The federal law that requires certain dis-
closures to consumers about mortgage
Real Estate Settlement Procedures Act
loan settlements. The law also prohibits
(RESPA)
the payment or receipt of kickbacks and
certain kinds of referral fees.
no paying or receiving for referring to a
kickback rules
settlement service providert
A federal law requiring lenders to provide
residential loan applicants with estimates
Truth in Lending Act (TILA)
of the total finance charges and the an-
nual percentage rate (APR).
Specific credit terms, such as down pay-
trigger terms ment, monthly payment, and amount of
finance charge or term of loan.
regulation z
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 MERCYTRISHIA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
