Principles Of Real Estate 2 Flashcards
(42 cards)
Loss of value due to lack of modernization is called…
Functional Obsolescence
The ____ is considered the most reliable approach to value because it is based on verifiable market events.
Sales comparison approach
A loss in a property’s value due to daily wear and tear is an example of…
Physical deterioration
The appraiser will use the cost approach to value…
A unique building
A real property appraisal will contain an analysis of each of the following, EXCEPT…
1 Improvements to the site
2 Site description
3 Neighborhood description
4 Personal Property
Personal property
The appraisal principle of conformity tells us that a house is worth the most when…
It is in a neighborhood of similar priced homes
Official property value for tax purposes is called…
Assessed value
The appraisal principle of ____ states that the purchase price of a property is affected by the expectation of future appeal and benefits.
Anticipation
The best definition of market value is…
The most probable price a property should bring in a competing and open market
The effective age of a house can be younger than its ____ if it has been well-maintained.
Chronological age
In which approach to value is the appraiser calculating depreciation as a factor along with land value and replacement cost for a structure?
The cost approach
The primary purpose of the FHA is…
To insure loans
When a loan is funded, the FHA charges a(n) ____ which can be paid at closing or added to the loan at funding.
Up-Front Mortgage Insurance Premium
The borrower’s monthly payment includes principal and interest plus one-twelfth of the annual property tax assessment and one-twelfth of the annual insurance premium. This is a…
Budget loan
What are three characteristics pertaining to the use of gift funds in government loans?
- Property must be owner-occupied
- Donor must be a relative, domestic partner, or finance
- Gift funds may be used for the entire down payment
A person who brings a borrower and lender together for a fee is called…
A mortgage broker
Most of the specific requirements imposed by TILA are found in….
Regulation Z
The ____ is the percentage of the lesser of the appraised value or sales price that the lender will lend.
Loan-To-Value Ratio
The Loan Estimate…
Is a detailed breakdown of the cost of the loan
The Equal Credit Opportunity Act prohibits credit discrimination on the basis of…(Name 3)
- Race
- Religion
- Sex
Some characteristics of property taxes?
- Property taxes create the highest priority lien against property
- Unpaid taxes are an automatic lien and at foreclosure will always be paid first.
- If property taxes are not paid, the property will be sized and sold
Which of the following is one of the four rights that the government retains in land?
A. Variance
B. Escheat
C. Allodial
D. Ad Valorem
Escheat
Police Power is the…
Right of the government to regulate and control the way land is used
If a landowner sues the government in order to force it to buy his or her land, this is called…
Reverse condemnation
