Aceable stuvia - Study guides, Class notes & Summaries

DEED OF TRUST - ANSWER-A security instrument that places the deed to the property in a trust held by the lender until a mortgage is paid off, when the trustee will transfer the deed to the borrower. TRUSTEE VS TRUSTOR - ANSWER-A trustee is an individual person given control of property in trust with a legal obligation to administer it solely for the purposes specified. The trustor is the borrower. ENCUMBRANCE - ANSWER-Any restriction, encroachment, claim, or lien on a property (such as a m...

Loss - ANSWER-a financial loss or decrease in value. Interest - ANSWER-money repaid regularly at a specified rate as compensation for money lent. Principal - ANSWER-the amount lent to a borrower to purchase a house. Mortgage - ANSWER-a secured loan that is tied to real estate, where the borrower has to pay the money back to the lender on a set schedule and amount of payments; also "liens against property" or "claims on property" Amortization - ANSWER-repayment of a loan principal...

REO - ANSWERSWhat term describes a property that is owned by a lender because a third-party buyer couldn't be found at a foreclosure auction? Real Estate Mortgage Investment Conduit (REMIC) - ANSWERSA type of SPV that holds commercial and residential mortgages in trust, assembles said mortgages into pools based on risk, and issues bonds (securities) on these pools to sell to investors in the secondary mortgage market is a(n): a concession - ANSWERSJulio considers leasing an apartment unit...

During the transaction process the buyer of a property is changed with knowledge of all the documents that are recorded in the public record as well as the responsibility to: - ANSWERSdetermine the marketability of seller's title to the property Sales comparison approach does NOT utilize: - ANSWERSThe principel of constribution Regulation Z applies to: - ANSWERSto credit transactions How is market value decided for a property? - ANSWERSIt is based on collected data taken about the prop...

What is investment gain? - ANSWERSan increase in property value due to active and purposeful developments or improvements Ben has recently purchased a policy for title insurance. Two weeks after making his purchase, it is revealed that there were unknown liens attached to the title. What is TRUE of this situation? - ANSWERSAny problems that arise after policy purchase are not covered. Which of the following is an example of something that would be listed on a Closing Disclosure as a credit...

When Brandon's listing agent pointed out the moisture stains in the corner of his basement, Brandon said that he'd repaint that area. He asked his agent not to mention to potential buyers that the basement can flood during spring rains. Does Brandon have a duty of obedience to his client in this situation? - ANSWERSNo, because the duty to obey does not apply if the request is unethical Which of these is the principle that a client or customer is must understand and agree to certain acti...

DEED - ANSWERSThe legal written document that conveys the intangible ownership rights (title) of a real estate property to another property. DEED OF TRUST - ANSWERSA security instrument that places the deed to the property in a trust held by the lender until a mortgage is paid off, when the trustee will transfer the deed to the borrower. TRUSTEE VS TRUSTOR - ANSWERSA trustee is an individual person given control of property in trust with a legal obligation to administer it solely for the p...

Which of the following would be considered a single agent? - ANSWERSBobby represents a seller in a transaction Which of the following would be considered a single agent? - ANSWERSan affiliate broker who works with a client on behalf of their sponsoring broker OR an unaffiliated licensee subagent - ANSWERSaffiliate broker who is working with a client on behalf of their sponsoring broker In which of these in-house transactions is dual agency being practiced? - ANSWERSmanaging broker Domin...

Here are the four major types of agency acts: - ANSWERSListing Buying Leasing Property Management TREC's purpose is to - ANSWERSregulate educational and licensing programs that maintain standards AND interpret legislation that affects the real estate profession — primarily the Texas Real Estate License Act (TRELA). Integrity - ANSWERSSatisfy to the commission (TREC) that the candidate meets and exceeds their character standards (honesty, trustworthiness, and integrity). Competen...

TEXAS REAL ESTATE COMMISSION (TREC) 1949 - ANSWER-Which commission was created to enforce TRELA (it's main purpose)? Also regulates educational and licensing programs that maintain standards AND interprets legislation that effects the real estate profession, but these are not it's main function. 1. INSPECTORS 2. EASEMENT/RIGHT OF WAY AGENTS 3. EDUCATION PROVIDERS FOR REAL ESTATE AND INSPECTION 4. DEVELOPERS OF TIMESHARES 5. RESIDENTIAL SERVICE COMPANIES 6. REAL ESTATE AGENTS AND SALES ...