Real Estate Transactions and Appraisal Standards, Exams of Real Estate Management

Download Real Estate Transactions and Appraisal Standards and more Exams Real Estate Management in PDF only on Docsity! 45 Hour Post License Florida all done solution study ahead Farming - >>>>Concentrating on one type of style of property or on one particular neighborhood A residential transaction os defined in F.S. 475 as the sale of any: - >>>>- Duplex - improved residential property of four units or fewer, including condominium units -unimproved property intended for four units or fewer - agricultural properties of ten acres or less - leases with options to purchase all or a portion of improved property of four or fewer residential units - dispositions of business interests for property of four or fewer residential units absentee owners - >>>>owners who buy income property as investments and depend on professionals to manage them All appraisals, whether performed by a licensed appraiser or a real estate licensee, must be developed and reported in conformity with the - >>>>Uniform Standards of Professional Appraisal Practice (USPAP) The largest and most prestigious real estate organization in the world is ________. They work for legislation enforce professional standards of conduct through its ________. - >>>>1. The National Association of Realtors (NAR) 2. Code of Ethics The largest trade association in the state is _________ - >>>>The Florida Association of Realtors (FAR) The duties required by the Code of Ethics are: - >>>>1. Duties to clients and customers 2. Duties to the public in general 3. Duties to other real estate licensees Required Skills for the Real estate professional are: - >>>>1. Valuation - Must be able to discern important differences between properties and know ho to translate those differences into value. Must be able to conduct a CMA. 2. Marketing - must have an understanding of the tools and technologies available to market a property. 3. Property Transfer - understand how to close a transaction Mission Statement - >>>>description of a desired outcome that excites, motivates, and helps you to create a mental picture of your business goal. Industrial Sales or Leasing - >>>>include warehouses and manufacturing facilities. Industrial sales and leasing generally involve user/owners, rather than investors. The law that specifically regulates real estate licensees, schools, and appraisers is _________ - >>>>F.S. 475 The Range Of Penalties for disobeying FS 475 or 455 from lowest to highest is: - >>>>Reprimand, fine, probation, suspension, and revocation or denial. Which is the maximum penalty for disobeying laws under FS 455 or FS 475 - >>>>Revocation or denial of license If the licensee does not complete the 45 hour course before the expiration date of their first renewal, the license becomes ____ - >>>>void and the licensee will be out of business. (have to start over everything) Pull Marketing is about developing relationships that attract your ideal client to you, which is done by using - >>>>Social media Keep your ______ up to date. As your business hows, so will your experience, education, and affiliations. - >>>>Personal Profile Three ways to market a property are: - >>>>using MLS, Direct mail and email campaigns, and open houses What is one way to prepare a home before putting it on the market? - >>>>Brighten rooms by installing high wattage light bulbs and turn them on. Ask relevant questions to gather information about their needs, their timeframe, the price they may have in mind, and their level of _______ and _______. - >>>>Motivation and Expectations What questions do you ask a seller? - >>>>Why are you moving? When would you like to be in your new home? Do you have to sell your present home to buy a new one? What don't you ask the seller? - >>>>Don't ask the seller "what type of buyer are you looking for?" After presenting the CMA, but before giving them your opinion of value, ask them _________. - >>>>What price they had in mind. What is an Open Listing? - >>>>When an owner agrees to pay a commission to any broker who provides a buyer willing to purchase the property under a price and terms agreeable to the owner. An open listing is a _______ or _______ contract. - >>>>One-sided or unilateral In an exclusive agency or exclusive listing - >>>>the owner reserves the right to sell the property himself or herself, in which case the owner will owe no commission to the listing broker. An Exclusive Right of Sale Listing - >>>>must be in writing and signed. The owner can only list with one broker and the owner agrees to pay the listing broker regardless of who actually finds the buyer. An exclusive right of sale listing is a _______ contract. - >>>>Bilateral The primary mortgage market includes the following sources for loans: - >>>>Commercial Banks Savings Associations Life insurance companies Mortgage Loan Originators Mortgage Bankers Mortgage loan originator is also known as a - >>>>Mortgage broker What do Mortgage loan originators do? - >>>>Mortgage loan originators do not make loans. They arrange the loans by taking mortgage applications and searching for lenders who offer the lowest interest rates and easiest borrower qualification. What are mortgage bankers? - >>>>Mortgage bankers are financial intermediaries who arrange for the flow of money from investors to borrowers. Mortgage bankers do not have depositors. Fannie Mae is the - >>>>largest and oldest secondary mortgage market A loan-to-value ratio is the ratio of - >>>>the mortgage principal to the value of the property the borrowers are purchasing. Lenders use LTVs to determine - >>>>the maximum amount of their loans Amortized loan - >>>>Payment goes first to the interest and then to the principal. Over the life of the loan, the amount that goes towards interest decreases, while the amount of the principal decreases. A common conventional loan is - >>>>a fixed-rate 30 year mortgage. Theres always an opportunity to pay the balance down or to refinance for a better rate later. the housing expense ratio (front-end) is - >>>>the principal, interest, taxes, and insurance payments (PITI) divided by the borrowers gross monthly income. The Housing Expense ratio should not be greater than - >>>>28% Which mortgage loan program requires little or no down payment and easy qualification requirements and low rates of interest for specified individuals? - >>>>VA Loan The provisions of Regulation Z cover - >>>>disclosure of costs, the right to rescind the transaction, advertising offers, and noncompliance penalties. The best source for obtaining buyers is your _________. If you have the listings, the buyers will follow. - >>>>Listing Inventory Make sure that a buyer is qualified, determine their _______. - >>>>Motivation and Expectations. What document does a broker use when seeking a paid commission from a buyer? - >>>>Exclusive Buyer Brokerage Agreement Fair housing laws prohibit ______, ________, and _________. - >>>>Steering or Channeling, Blockbusting, Redlining _________ is the practice of inducing owners to sell by telling them that persons of a protected class are moving into the neighborhood and the results will be detrimental to the neighborhood. - >>>>Blockbusting __________ is the illegal practice of refusing mortgage financing or insurance based on a specific geographical location, age of the property, the income level of the residents, or the racial composition of the area. - >>>>Redlining _________ is the practice of directing homebuyers toward or away from homes in certain neighborhoods or in a multiunit building in order to preserve or alter the makeup of that neighborhood with respect to race, sex, religion, or national origin. - >>>>Steering The fair housing allows for exemptions in some areas but doesn't allow exceptions, excuses or exemptions for - >>>>racial discrimination The ___________ says that properties open to the public must remove any barriers that limit access or utility of the property for individuals with disabilities. (not small businesses) - >>>>Americans with Disabilities Act Some problems addressed by the ADA are: - >>>>Wheelchair ramps, support bars in restrooms, and handicap parking spaces (at least one for every 25 parking spaces) Some words that we aren't allowed to use in our marketing pieces are: - >>>>able-bodied, no handicap parking, mature individuals, no unemployed The first 3 things that need to be done in a closing transaction are: - >>>>copies of the contract, understand the timeline, MLS Status An inspection is limited to what can be readily observed; - >>>>Significant problems may not be detected without looking under a floor or inside a wall. What are the different types of insurance you may discuss with your client? - >>>>property insurance, flood insurance, title insurance What insurance must you not discuss with your client? - >>>>Life insurance RESPA stands for - >>>>Real Estate Settlement Procedures Act RESPA requirements include: - >>>>- lenders must provide a Loan Estimate of settlement costs no later than 3 BUSINESS days following the date of the mortgage loan application - each applicant must receive a book titled "Your Home Loan Toolkit." - Closing disclosure must be complete and provided to the borrower at least 3 days before closing. Some items on the Closing Disclosure are a debit to one party only and are referred to as - >>>>single entries The expenses between the 2 parties in a transaction with no third party involved are _______ and most likely result in a debit to the seller and a credit to the buyer - >>>>double entries _______ means that the buyer acknowledges the fact that the home they are buying has a lien against it but the buyer does not accept any personal legal responsibility for the repayment of the debt. - >>>>"Subject to" State Documentary Stamp Tax on Deeds needs to be payed when - >>>>deed transfers Purpose of the pre closing walkthrough inspections is to: - >>>>1. confirm that the seller has vacated the property, and that its ready for occupancy 2. determine that the seller did not damage the property during their move. 3. verify that any personal property included in the sale and purchase contract is there. Many lenders prefer to follow a procedure that prevents a foreclosure to - >>>>temporarily reduce the interest rate If the borrower can't make the payments, the lender may choose to waive the payments for the short term or even forgive the payments. These waivers are called - >>>>forbearance or moratoriums What is it when the lender may make or accepts an offer to take the title to the property back from the borrower in an attempt to save time and minimize the expense of a foreclosure? - >>>>Deed In Lieu of foreclosure When the lender consents to a sales price lower the than the loan amount that is - >>>>a short sale the foreclosure process officially begins when the lender records a _______ and files a lawsuit agains the defaulting borrower with the appropriate court where the property is located. - >>>>lis pendens When a mortgage foreclosure sale does not produce enough funds to pay the loan in full, the lender can obtain a ____________________ in order to try and satisfy the outstanding balance from the borrowers other properties, income, and assets. - >>>>Deficiency Judgment _______ are involved with the enforcement of liens due to borrowers defaulting on items such as property taxes, mortgages, income taxes, or community association fees or anything else leading to an actual auction of the real property for repayment of that debt. - >>>>Courthouse Auctions In a private auction there is an _______________ which means that what the buyer sees, is what the buyer gets. - >>>>"As is, where is" condition In a condo, the condo owner owns an undivided percentage of the _________ of the building along with other unit owners. - >>>>common elements