Real estate flashcards.txt

A property owner who does not live on the property but instead has a manger who supervises the property for him/her.

The act of process of developing an opinion of property value as of a specific date

The brokerage of business property: the purchase, sale, or lease of this type of real estate.

The practice of keeping up with a customer after a sale to

foster goodwill and potential referrals.

A system of comparisons of recently sold, pending or currently for sale home prices in a specific area for houses that are similar in size and features to the subject property; it is prepared by a real estate professional before or in conjunction with obtaining a listing to assist the seller in determining an initial asking price for the property or in the case of the buyer an acceptable offer price.

The operation of an owner�s property by a professional property manger for compensation. Such operation entails the marketing of a space, advertising and rental activities, collections, recording and remitting of rents and may include maintenance of the property, tenant relations, hiring of employees, keeping proper accounts and rendering periodic reports to the owner.

• A property that because of its unique design or use has limited marketability; existing structures on the property
• cannot easily be altered for another usage.

A tract plan for the layout of lots and their amenities as part of a subdivision.

Uniform Standards or Professional Appraisal Practice:

An annual of the Appraisal Foundation to define key appraisal terminology and offer guidelines for completing nonbiased and accurate appraisals.

• Provide limited representation in real estate transactions, facilitate in transactions as non-representatives or serve as agents. Including:
• * Financing, title and property tax transfers
• * Interpretations of market conditions
• * Finesse in moving real estate

• * Residential
• * Commercial
• * Industrial
• * Agricultural
• * Business

• A licensee who acts to bring together the contracting parties in a real estate transaction.
• An agent who negotiates contracts, purchases, or sales in return for a fee or a commission

• * Tract homes
• * Custom homes
• * Speculative homes

Demarcates the scale and positioning of lots along streets and indicates where sewer and water lines will lay.

• * Has a contracted buyer.
• * The buyer plays a role in the development plans for this unit.

• * Do not have certain buyer.
• * Built on a premise that some undetermined buyer will buy it at a later date.

• * National Association of REALTORS.
• o Regulatory entity concerned with the instruction and professionalism of those in the industry
• o Uses Multiple-Listing Services (MLS)
• - Mapping software through which members may access internet property listings, map or even select real estate agents

• * Provides a way of avoiding property sales tax through a tax-deferred exchange of "like kind properties" by delaying capital gains taxation that would otherwise occur in the event of an outright sale of property.
• * This only applies to business & investment property

This is when a court does not convict an individual of a legal offense, but still holds the individual responsible as if guilty. In other words, this issue is resolved judiciously.

A person who engages in the procedure of estimating the value of real property or personal property.

Latin phrase meaning: "Let the buyer beware"

Primarily emphasizes for the buyer to be careful when buying anything, because in the long-run they will deal with the consequences.

That's why FL setup FREC & FREAB to keep things under control

When a thing of value is exchanged for something of equal value; a trade. A property owner gives his or her property to a buyer and receives compensation for the property given in the form of cash or some other property.

• * Latin phrase meaning: "I do not wish to argue."
• * A type of plea to a legal charge, which basically means that the defendant neither denies nor confirms the charges brought against him.
• * Often take to as a sign of guilt, despite the lack of an actual admission.
• * Also called "no contest"

Established as fact unless contradictory evidence is produced

• Ex.: the license you are issued as a realtor is proof enough to prove
• you are one, unless there is evidence to prove otherwise

When a real estate broker or salesperson acts on behalf of the law as an intermediary between property sellers and buyers, usually for a commission.

• * Defined in FS 475.1
• * Composed of 7 members, each appointed by governor and approved by the state�s senate
• * Serves 4-term; no more than 2 consecutive terms
• * Expires on October 31
• * Made up of:
• o 4 brokers licensed ≥ 5 years
• o 1 real estate sales assoc. licensed ≥ 2 years
• o 2 members not associate with real estate
• o 1 of the members has to be ≥ 60 years old

• FDIC = Federal Deposit Insurance Corporation
• Includes laws protecting consumers in real estate industry, such as:
• * Nondisclosure of information
• * High settlement costs
• * Referral fees
• * High down payments
• * Inaccurate records & titles

Covers the authority and structure of FL Real Estate Commission (FREC) & FL Real Estate Appraisal Board (FREAB)

Lists qualifications for a valid application for licensure, fees, examinations, testing and cont. ed. Requirements

An authoritative rule dealing with details or procedure

• Broker who provides limited representation to a buyer, seller, or both in a real estate transaction, but does NOT represent either in a fiduciary capacity.
• * Customers should be dealt with honestly and fairly.
• * No misrepresentation of a transaction to a customer

A broker who represents, as a fiduciary � with all the responsibilities that that entails � either the buyer or seller but not both in the same transaction.

• AAppraising
• BBuying
• LLeasing
• EExchanging

• A Auctioning
• R Renting
• MMarketing
• S Selling

An agent employed to effect bargains and contracts, as a middleman or negotiator, between other persons, for a compensation commonly called brokerage. He takes no possession, as broker, of the subject matter of the negotiation. He generally contracts in the name of those who employ him and in his own.

The Escrow Disbursement Order is an order to disburse claims on escrowed property.

• * Possessing or exhibiting equity
• * The monetary value of a property or business beyond any amounts owed on it in mortgages, claims, liens, etc.

• * License Renewal: supervises the renewals
• * Executive Director: appoints director for each board
• * Budget: presents annual budget to FL legislature
• * Training: training of new members
• * Regulation: ensures rules are implemented
• * Rule-making: establishes processes & procedures
• * Recording: records & ensures accurate transcription
• * Selection: chooses investigators
• * Screening: screens all applications

Contains a release clause, allowing the borrower to pay a specified amount to release a single lot from the blanket so it can be sold to a buyer upon completion of the construction

It temporarily conveys title to a property to a third party called a trustee, until the mortgage loan debt is repaid or until default occurs

Allows the lender to share in the income generated by the mortgaged property

Allows the lender to gain a share of the appreciation in value of a mortgaged property; usually limited to a few years

Permits the lender to share in the ownership with the borrower

• * Involves the cooperation of 2+ lenders in the origination of 1 loan
• * Reduces lender risk by dividing the mortgage loan amount between 2+ lenders

• * Also called straight-term mortgage
• * Provides for payments of interest only during the term of the mortgage
• * Principle amount borrowed is repaid in a lump sum payment, called a balloon payment at the end of the term

• * Has payments that include principal & interest + 1/12 of the annual real estate tax & home insurance
• * Also known as PITI payment

• * Passed as part of the FL Home Equity Conversion Act of 1988 to assist homeowners 62+ years old
• * Allows homeowners to receive a lump sum or a monthly advance on a line of credit based on the equity in their homes
• * Lender repaid when property is sold or when owner dies
• * If funds are insufficient to repay the lender, the Home Equity Guarantee fund reimburses the lender

• Any mortgage loan obtained from any source used to purchase a real property
• Ex: seller financing the purchase

• * Borrower holds title
• * Lender has lien
• * Satisfaction of mortgage
• * Florida uses this one

• * Borrower
• * Lender or trustee holds title
• * Reconveyance Deed gives the borrower the deed
• * Georgia uses this one

• * Excuses the borrower from the deficiency
• * Lender will have to deal with the sale being lower than the original loan

• * Hostile
• * Open
• * Taxes paid
• * Claim on title
• * Adverse possession
• * Notorious

• * Demand
• - Lending standards dropped, then demand goes up
• - House flipping
• - Mortgage fraud drives the prices higher up
• * Utility: usefulness, broad market appeal
• * Scarcity/Supply
• * Transferability

• Made up of:
• * 3 county commissioners
• * 2 county school board members
• It analyzes the property value that has been filed by the owner as needing a value adjustment and the appraiser not having granted it

• Includes ordinary wear & tear caused by:
• * Use
• * Lack of maintenance
• * Exposure to the elements
• * Physical damage
• These are said to be curable.
• Ex.: brittle roof shingles or worn out AC

• Anything that is inferior due to operational inadequacies, poor design, or changing tastes and preferences
• Ex.: poor traffic pattern, outmoded design, too few bathrooms

• Any loss of value due to influences originating outside the boundaries of the property
• Ex: an expressway being built behind the house

• Net Income from a real estate investment
• Present value

• * Sole proprietorship
• * Corporation for profit
• * Corporation not for profit
• * Limited liability company
• * General partnership
• * Limited partnership
• * Limited liability partnership

• * Corporation sole
• * Cooperative association
• * Business trust
• * Unincorporated association
• * Joint venture

• * Corporation for profit
• * General partnership
• * Limited liability corporation
• * Cooperative association
• * Limited partnership
• * Limited liability partnership
• * Business trust

• * Sole proprietorship
• * General partnership
• * Joint venture
• * Corporation sole
• * Unincorporated association

Property owner: the party who gives the mortgage to the lender to secure the loan

The lender: the party that receives the mortgage from the property owner

• * A federal law requiring lenders to fully disclose in writing the terms and conditions of a mortgage, including the annual percentage rate and other charges.
• * Also called Truth in Lending.
• * Published by the Board of Governors of the Federal Reserve System

A tenant who remains in possession of a property after the termination of a lease without the landlord�s agreement

• In a deed it:
• * Names parties
• * Describes the property
• * Shows legal considerations
• * Provides words of conveyance

Agency law is concerned with any "principal"-"agent" relationship; a relationship in which one person has legal authority to act for another. Such relationships arise from explicit appointment, or by implication. The relationships generally associated with agency law include guardian-ward, executor or administrator-decedent, and employer-employee.

• Agency, in its legal sense, nearly always relates to commercial or contractual dealings.
• A buyer takes over the seller�s mortgage payments, but does not assume liability

Requires registration of subdivisions of 50 or more lots

The process by which eminent domain occurs

The process by which a mortgage loan is paid off in equal payments consisting of principal and interest

Market value