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How many acres are in one square mile?
640 acres
1 section is equal to
one square mile. "sections" refer to the "subdivisions" within a township.
A special warranty deed differs from a general warranty deed in that the grantor's covenant in the special warranty deed:
Applies only to a definite limited time. Under a special warranty deed, an owner transfers property guaranteeing the quality of title only during the period of his or her ownership, leaving subsequent buyers vulnerable to prior claims.
What is the purpose of a building permit?
the evidence of compliance with municipal regulations.
Building permits assure that all structures within a municipality meet the minimum required standards for materials, construction and overall quality.
How does one determine the gross rent multiplier?
Property value divided by the monthly rent. A method of appraising single family or duplexes based on the monthly gross income.
Economic Obsolescence
a type of depreciation that is incurable. Implicit in the term "economic obsolescence" is the conclusion that repairs and upgrades have already been considered and would not present a cost-effective option. At this point, next to abandonment, demolition for re-use of the land is the only viable alternative.
The appraisal approach most likely to be used in valuing a public library building would be
The cost method. The cost method is most often used for buildings where actual income or comparative commercial value are unavailable--such as schools and libraries
nonconforming use
A pre-existing use of land which does not conform to the zoning ordinance but which may legally remain. Basically it means that businesses and buildings that were in compliance before the new code was established may continue to operate or exist under their present owners.
regression
The regression principle is the reason people are cautioned against owning the most expensive house in the neighborhood. It's an observation of the fact that lower priced homes (and commercial buildings) have a much greater downward pull on the value of higher end properties than the other way around.
Arms-length Transaction
Occurs between willing buyer and willing seller with each party completely knowledgeable about the market. A purchaser of property between relatives (father & son) would not be an "arms length transaction".
Cost Approach
A method of estimating value based on the economic principle of substitution; the value of a building cannot be greater than the cost of purchasing a similar site and constructing a building of equal utility.
Which appraisal approach would require the value of the land to be calculated separately from the value of the improvements?
The land is figured as a separate item because it already exists and wouldn't have to be reconstructed.
The loss of value due to the normal wear and tear on a property is called
Depreciation
If the net operating income and the capitalization rate were known, how would an appraiser find the value of a property using the income capitalization approach to value?
Divide the net operating income by the capitalization rate.
external obsolescence
Caused by events outside of the owner's control, such as a zoning change that makes the building's current use non-conforming.
To assign a contract for the sale of real estate means to
Transfer one's rights under the contract.
Chapter 119 of the NRS sets forth regulations in regard to
Land Sales
A real estate licensee has a buyer agency agreement. What is the seller in this situation?
A customer
The seller under a land contract is called?
the vendor.
The maximum permissible "loan to value ratios" are based on what?
sale price or appraised value, whichever is lower.
If a single parent is applying for a real estate loan, when would the fact have to be revealed that part of the parent's income is from child support?
If the parent was relying on the income for repayment of the loan
Federal National Mortgage Association (FNMA)
Commonly known as "Fannie Mae" this quasi-private corporation is the largest buyer of existing mortgages in the secondary mortgage market.
Discount Points
A fee charged by the lender at settlement that results in increasing the lender's effective yield on the money borrowed. One discount point equals one percent of the loan amount.
emblements
Refers to crops which require annual planting.
balloon payment
The remaining balance, at maturity, on a loan that has not been completely repaid through periodic payments. Once paid, the outstanding balance is zero. Partially amortized loan.
warehousing
when individual loans are bundled, often with a common element such as the size of the mortgage or credit worthiness of the borrowers, and sold as a single unit.
Part purchase mortgage
novation
Novation means to substitute a new contract for an old one; thus the holder of the original is relieved of his or her responsibilities.
Discrimination is prohibited in lending practices under.
ECOA. Passed in 1992, the Equal Credit Opportunity Act prohibits a broad spectrum of discriminatory lending practices, including the granting or denial of credit or the costs associated with borrowing based on race, gender, marital status, source of income (e.g., public assistance) and other factors.
How many miles are in an acre?
43,560 miles
Regulation Z
(Truth in Lending)
Issued by the Federal Reserve System to implement the Truth-In-Lending Law (National Consumer Credit Protection Act). Applies to credit and interest rates.
mortgagee
A lender who receives a pledge of property to secure a debt.
Trustee
A person who holds title and control over property and manages it for another person called a beneficiary. (Called "Naked Legal Title")
Trustor
The person who creates a trust and voices the instructions to the trustee. (The borrower.)
How many Feet are in a Yard.
3 feet or 36 inches.
market data approach
A means of estimating value by comparing similar properties. Used when there is an active market and where comparables can be identified. Also called comparable sales approach.
Economic obsolescence
A loss in value due to factors outside the subject property, such as changes in competition or surrounding land use. Also referred to as external obsolescence (i.e. airport is built near exisiting home)
Which transaction requires a securities license?
Selling shares in Fannie Mae.
amortized loan
A financial debt that is paid off over a period of time by a series of periodic payments. A loan can be fully amortized or partially amortized or partially amortized requiring a balloon payment to satisfy the debt at the end of the term.
functional obsolescence
A loss in value due to conditions within the structure which make the building outdated when compared with a new building. (4 bedrooms and 1 bath, insulation, narrow stairway, etc.)
Redlining
The practice of some lending institutions that restricts the number of loans or the loan-to-value ratio in certain areas of a community, i.e., it is illegal for a lending institution to require a higher down payment because the home the borrower is buying is located in a racially mixed area.
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