Real Estate chapter 3-4

Homeowners 7 (mobile home)

Fomr manufactured home or mobile home. similiar to ho-3. covers many perils

Homeowners 4 (HO-4)

Tenant or cooperative owner policy (rental insurance)

All funds recieved by a broker, must be depostied in a _______ or _______ account

escrow or trust

Whe you fail to pay your license, you have ___ years to reinstate it.

2

Georgia commission must be notified within ___ days in writing of any broker address changes of offices.

30

Time-Share

A form of subdivision of real property into rights to the recurrent, exclusive use or occupancy of a lot, parcel, unit, or segment of real property, on an annual or some other periodic basis, for a specified period of time.

Straight Line Depreciation

A method of depreciation under which improvements are depreciated at a constant rate throughout the estimated useful life of the improvement.

Mobile Home

A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system.

Modular

A system for the construction of dwellings and other improvements to real property through the on-site assembly of component parts (modules) that have been mass produced away from the building site.

Cooperative

An apartment building, owned by a corporation and in which tenancy in an apartment unit is obtained by purchase of shares of stock of the corporation and where the owner of such shares is entitled to occupy a specific apartment in the building.

Condominium

An estate in real property wherein there is an undivided interest in common in a portion of real property coupled with a separate interest in space called a unit, the boundaries of which are described on a recorded final map, parcel map, or condominium plan.

Capital Gains

At resale of a capital item, the amount by which the net sale proceeds exceed the adjusted cost basis (book value). Used for income tax computations. Gains are called short or long based upon the length of the holding period after acquisition. Usually taxed at lower rates than ordinary income.

Homeowners 5 (Comprehensive Form)

Covers everything that isn't listed as exclusion, and you can add edorments to expand coverage.

Origination Points

Fees paid to a lender to write a mortgage to buy or refinance a house.

In most cases, all banks must be held in _____

Georgia.

Homeowners' 6 (Condominium)

Hybrid of HO-2 and HO-4,

Appreciation

Monetary gain resulting from the increase in the market value of an investment, excluding additions of capital. For example, a house which is sold five years after it was purchased for 50% more than the purchase price.

Tax-Deferred Exchange

The trade or exchange of one real property for another without the need to pay income taxes on the gain at the time of trade.

Should the commission be notified of any funds for real estate commissions being held?

Yes

Homeowners 3 (Special Form)

common plan, everything is covered unless specified. Person property applies to only the perils listed.

Homeowners' 8(Older homes coverage)

for older residence. usually pay cash value

Homeowners' O (HO-0, Dwelling & Fire)

is limited perils policy that does not provide coverage for person property, medical, or liability coverage.

Homeowners 2 (Broad Form)

named-perils policy that insures the dwelling, other structures, and personal property against loss form certain listed perils. 11 perils plus 6 more.

Funds can only be disbursed from the trust account when

properly authorized

Homeowners 1 (HO-1, Basic)

provides the same basic coverage for the ten perils listed above, plus glass breakage.

Earnest money, security deposits or other trust may not be used to pay a broker's commission until..

such time as the designated transaction has been completed.