Fl Real Estate

How much personal money may a broker place in a property management escrow account?

$5000.00

Three approaches to value

(1) The Sales Comparison Approach, (2) The Cost Approach, (3) The Income Approach.

Gross Income Multiplier (GIM)

A method of appraising income-producing property based on a multiple of the annual gross income; also called a gross rent multiplier.

appraisal

An estimate of the current value of the property.

Each year in Florida property taxes for the previous year become delinquent on

April 1

The combining of two or more adjoining properties into one larger tract is called:

Assemblage

______________ value us the value used as a basis for the property taxation.

Assessed

There are many types of value that an Appraiser may be hired to estimate.

Assessed Value- is the the value that an appraiser may be hired to estimate. Insurance Value- is an estimate of the amount of money required to replace a structure in the event of some catastrophic event such as fire. Investment Value-is the price an investor would pay,given the investor's own financing requirements and income tax situation. This type of value is personal to a particular investor. Liquidation Value- is the value associated with a rapid sale. The dollar amount a property should bring in a foreclosure sale is an example of liquidation value. (going our of business) Going concern value- is the value of income producing property of business characterized by a significant operating history. Salvage Value is the estimated amount for which improvements can be sold at the end of a structure's useful life.

Which characteristics applies to both FHA and VA mortgage loans?

Assumable

The TILA-RESPA Disclosure Rule requires that the borrower be provided with which items at least three business days before closing?

Closing Disclosure

Single agents duty

Deal honest and fairly

How is mortgage interest on an assumed mortgage entered on the closing document?

Debit seller and credit buyer

Street parks and school sites are transferred from developers to counties or communities by act or process called

Dedication

Private restriction on ownership( DELL)

Deed Restrictions Easements Leases Liens

The clause in a mortgage that ensures that the mortgage cannot be foreclosed so long as all payments are current and other conditions are fulfilled is the

Defeasance Clause

Characteristics Value

Demand- Utility Scarcity Transferability (dust)

An up front fee paid to the lender in exchange for a reduced interest rate is referred to as

Discount points

The total estimated time in years that an improvement ca be profitably useful is called

Economic Life

Which estate is an example of a nonfreehold estate?

Estate for years

A closing agent who is preparing for a closing wants to very the balance of an existing mortgage before cutting a check to pay the lender in full at closing. Which document verifies this information

Estoppel certificate

Which parties are most involved in the secondary market?

Fannie Mae and Ginnie Mae

A _________ ________ transaction is any real estate related financial transaction that a federal financial institution regulatory agency has either contracted for regulates or requires the service of an appraiser.

Federally related

The risk associated with defaulting on borrowed funds to finance an investment is referred to as

Financial risk

Which characteristics applies to VA loan

Funding fee charged

What type of value is characterized by significant operating history

Going concern value

An FHA loan is

Government insured loan

Reliction

Gradual recession of water which uncovers land that usually belongs to the riparian owner.

A seller transfer title to a buyer with a general warrant deed. In which clause of the deed does the seller define the quality of ownership interest conveyed tot he buyer?

Habendum

What is the result of the fed increasing the discount rate?

Higher interest rates are charged for mortgage loans.

Three major categories of property used in the preparation of CMAs

Recently sold Currently on the Market Recently expired listing

The truth in lending act is implemented by

Regulation Z

The _________ ___________ approach to value is the most relevant approach for estimating the value of a vacant lot.

Sale Comparison

The mandatory distance between lot lines and building improvements is known as

Setback

Novation

Substituting a new obligation for an old one or substituting new parties to an existing obligation.

The subject property has 200 less square feet of living area than a comparable. The market area value of 200 square feet is $200,00. Which adjustment should the appraiser make?

Subtract $20,000 from the comparable.

Which Tenancy occurs when the tenant remains in the property after the tenancy has ended and without first getting the owner's approval

Tenancy at sufferance

Three individuals purchased a parcel of real property. One of the owners died and the deceased owner's interest passed according to his will,to become part of his estate. The three owners held title as

Tenants in common

vacancy and collection losses

The amount of income lost due to empty units or tenants not paying full rent. Turnover of renters

Sales Comparison Approach

The process of estimating the value of a property by examining and comparing actual sales of comparable properties.

subject property

The property being appraised

USPAP

Uniform Standards of Professional Appraisal Practice

The real estate term SITUS refers to

Value derived from preferred property locations

In the cost approach to estimating value land value is commonly estimated by

comparable sales analysis

Which fee does a lender charge for processing a mortgage application?

loan origination fee

Formula: Cost Depreciation Approach

reproduction cost of the structure - accrued depreciation = depreciated value of the structure + estimated value of the site = indicated value of the property

Formula: Gross Rent Multiplier (GRM)

sale price ÷ gross monthly rent = gross rent multiplier (GRM)

Freddie Mac is a

secondary market for SAs

To determined the correct amount of property tax for property multiply the tax rate by the

taxable value of the property

PRINCIPLE OF SUBSTITUTION (used in all appraisal techniques)

the maximum value of a property tends to be set by the cost of acquiring an equally desirable substitute property through purchase or construction

Local government exercises its greatest effect on the real estate on the real estate business by

using zoning, taxation and the planning process

Types of statutory deeds

1. General Warrant deed is the most comprehensive and common type of deed used in real estate. (always defaults to general warrant) 2. Special Warrant deed is used by lenders (banks) for foreclosed properties where the grantor only assumes title responsibility for the period that the property was owned by the grantor avoiding title liability for the period prior to foreclosure. 3. Bargain and sale deed contains the covenant of seisin (statement of ownership where grantor states right to convey) but does not warrant to defend future title. 4. Quitclaim deed is issued to cure title defects (clouds on title) and grantor makes no warranties or guarantees (no covenat seisin)

Three types of depreciation used in the coast approach

1. Physical Deterioration includes ordinary wear and tear cause by use,lack of maintenance,exposure to the elements,and physical damage. 2. Functional Obsolescence Anything that is inferior because of operational inadequacies,poor design,or change tastes and preferences is functional Examples include a poor traffic pattern,too few bathrooms or inadequate amount of insulation. 3. External Obsolescence Any loss in value due to influence originating outside the boundaries of the property such as an expressway adjacent to a residential subdivision or deterioration of the neighborhood. Beyond the control of the property owner it is considered incurable.

A broker who recieves conflict demands regarding the disbursement of escrow property must notify the FREC within what period of time?

15 business days

Current state law allows the buyer of property tax certificates to collect interest up to a maximum of

18%

Comparative Market Analysis (CMA)

A comparison of the prices of recently sold homes that are similar to a listing seller's home in terms of location, style, and amenities.

If a prospective buyer suspects that there is an encroachment on a property the buyer is considering purchasing, to which document should the buyer refer

A recent survey

When a loan is paid off in a lien theory state such as Florida the lender is required to give the borrower

A satisfaction of mortgage

__________ and ____________ are exempt from USPAP standards,

CMAs and BPOs

Florida real property taxes are levied on a

Calendar -year basis

Which entity may NOT register as real estate broker?

Corporation Sole

The __________ approach to value is the most relevant approach for estimating value of special purpose properties.

Cost

The total expenditure required to bring a new improvement into existence is called

Cost

Concept of Value

Cost is the total expenditure required to bring a new improvement into existence plus the cost of the land.(water,sewer,and so forth) Price refers to the amount of money actually paid in transaction. Price and value are not necessarily equal. Value is the monetary value of a good or a service to many buyers and sellers at a particular time.

General Warranty Deed Includes

Covenant of seisin -owns the property Covenant against encumbrances

Which BEST describes Fannie Mae's function

It acts as a secondary market in purchases of FHA, VA and conventional loans.

_____________ value is the value associated with a rapid sale

Liquidation

________ ____________ is the MOST probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale.

Market Value

The VA loan guarantee is referred to as the

Maximum entitlement

Which term refers to a situation where during the early years of a loan , the principal balance increase?

Negative amortization

________ _________ __________ is the income remaining after subtracting all relevant expenses from the effective gross income.

Net Operating Income

How will the binder deposit appear on the closing disclosure?

On page 3 as credit to the buyer

The income approach is based on the _____ ____ of ___ income from the subject property.

Present Value of Future _

what document would a licensee use to determine the lot size of a property when preparing a CMA or BPO

Property owner's survey

Which type of deed will provide the grantor the BEST assurance of no future liability

Quitclaim deed

Broker Price Opinion (BPO)

REAL ESTATE LICENSEES are allowed to prepare and charge for BPO provided the BPO is not label as an appraisal. A real estate licence who performs a BPO is not required to comply with USPAP.

A property management company represents a residential landlord who has obtained a writ of possession to evict a tenant. The writ has been executed by the sheriff. The tenant's belongings are inside the apartment. Which statement is true regarding this situation

The landlord or the property management company as agent may remove the personal belongings and place them on the property line.

Which action will terminate a brokerage relationship

The listing agreement expires

A buyer offered $350,000 fir a home. The seller countered at $360,000. The buyer did not accept the seller's counteroffer. The seller told her broker that she was revoking the counteroffer and accepting the buyer's original offer.

The seller cannot accept the original offer because it was extinguished by the counteroffer,

A tenant rents a college apartment and pays tent on the tenth of every month. The tenants has a written agreement with the property owner,however,there is no specified termination date Which statement is TRUE?

The tenant is a tenant at sufferance

Potential Gross Income (PGI)

The total annual income the property would produce if it were fully rented and had no collection losses.

The most profitable single use of a property is the Highest and best use . The use must be :

The use must be : legally PERMISSIBLE (ZONING) Physically possible (soil type,the site's shape,size and slope. Financially feasible (income generated considering cost of improvement.

Going Concern Value

The worth of a business, including real estate, goodwill, and earning capacity.

A written disclosure form is NOT required regarding which brokerage relationship

Transaction broker relationship

A Presbyterian church owns a nursing home for its members. The church admits only church members to the nursing facility. Is this legal

Yes, the church is exempt under the Fair housing act and may restrict the use of the facility to its member

stipulation

a demand or condition of an agreement/

The __________ approach to value is the most relevant approach for estimating the value of income producing property.

income

You have been hired to appraise the local public library building. The approach that is likely to be most relevant is the

cost approach

The interest that a buyer receives upon executing a contract for purchase and prior to the closing is

equitable title

When the probable cause panel decides that a real estate licensee's activites may have been grounds for suspension or revocation the DBPR files a

formal complaint

The purpose if recording documents relating to real property is to

give constructive notice to future purchasers and creditors

When using the metes and bounds method of legal description,the fixed objects used to identify the corner of a parcel are called

monuments

partially amoritized

mortgage loan requires a balloon payment at the end of the loan

If the interest paid for borrowed funds is greater than the overall rate of return to an investor,this is an example of

negative leverage

FHA requires borrowers to pay

one twelfth of the estimated property taxes with each monthly payment.

Fannie Mae does not

originate federal loans

Where the government survey system is used to describe real property the primary north-south line and the primary east-west line the form the basic reference point for the system are correctly called.

principal meridian and base line

The borrower's monthly mortgage payment consists of

principal,interest,taxes and insurance (PITI)

Formula: Estimated Market Value

rental income × market area GRM = estimated market value