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
