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Real Estate Crash Course

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PRZ BRNRD

on 5 February 2015

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Transcript of Real Estate Crash Course

Legal Aspects
Section 1 - Property

Section 2 - Estates

Section 3 - Title Vesting

Section 4 - Transfer of Title

Section 5 - Deeds

Section 6 - Recording

1. Legal Aspects
Chapter 3:

Myth 2: the media are not responsible for the negative effects of their violent messages.
Section 1 - THE PUBLIC
Myth 2 and Myth 3 pgs. 52-84
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Chapter 4:

Myth 3:
Children are especially vulnerable to the risk of negative exposure to media violence
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Chapter 5:

Myth 4:
There is too much violence in the media
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Chapter 6:

Myth 5:
Violence in the media reflects violence in society
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Chapter 7:

Myth 6:
The media are only responding to market desires.
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Chapter 8:

Myth 7:

Violence is an essential element in all fiction
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Chapter 9:

Myth 8:

Reducing the amount of violence in the media will solve the problem
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Chapter 10:

Myth 9:
The first Amendment protects the media from restrictions violence
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Chapter 11:

Myth 10:
The rating systems and V-Chip will help solve the problem
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Chapter 12:

Myth 11: There is nothing I can do to make an effect on reducing the problem
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Chapter 13: Prognosis for Improvement
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Section 1 - THE PUBLIC
Myth 2 and Myth 3 pgs. 52-84
Myth 4 and Myth 5 pgs. 85-114
Myth 4 and Myth 5 pgs. 85-114
Myth 6 and Myth 7 pgs. 115-139
Myth 6 and Myth 7 pgs. 115-139
Myth 8 and Myth 9 pgs. 140-167
Myth 8 and Myth 9 pgs. 140-167
Myth 10 and Myth 11 pgs 168-208
Myth 10 and Myth 11 pgs 168-208
Prognosis for Improvement pgs 209-228
Section 6 - Recording
1. Constructive Notice

2. Acknowledgment
Section 5 - Deeds
1. Grant Deed

2. Quitclaim Deed

3. Deed Essentials
Section 4- Transfer of Title
1. Cloud on Title
2. Quiet Title Action
3. Alienation
4. Eminent Domain
5. Police Power
6. Escheat
7. Accretion
8. Avulsion
9. Probate Sale - Commission
10. Intestate Succession
Section 1 - Property
1. Real Property
2. Fixtures
3. Run with the land
4. Personal Property
Section 2 - Estates
1. Fee Simple Estates (Fee Estate)

2. Fee Simple De-feasible

3. Life Estate, Property is Leased

4. Less-Than-Freehold Estates (Leases)
Section 3 - Title Vesting
1. Severalty

2. Joint Tenancy

3. Tenancy in Common

4. Community Property
1. Real Property
Right or interest in the thing own
1. Immovable
2. Bearing Wall
3. Not Leasehold Estate
2. Fixtures
Objects Incorporated into the land.

1. No Cost
2. No time of attachment
3. Run with the land
1. Easements
2. Water Company Stock
3. Covenants and Minerals
4. Not Separate
5. Conveyance
4. Personal Property
1. Collateral-Hypothecated
2. Alienated
3. Become Real Property
4. Less-Than-Freehold Estates (Leases)
1. Lesees
2. Not necessary to sign
3. 6 months - Estate for years
4. Personal Property
1. Cloud on Title
Single Women Married
3. Life Estate,
Property is Leased
1. Owner Dies
2. Lease Terminates
2. Fee Simple Defeasible
Legal Aspects
1. Fee Simple Estates
(Fee Estate)
1. Infinite Duration
2. Freehold
3. Most Interest
4. Not free of encumbrances
5. Inheritance
3. Tenancy in Common
1. Can convey separately
2. Unity of Possession
1. Severalty
Individual - Tenancy - Method
4. Community Property
Husband and Wife
Agreement to Sell - Unenforceable
2. Joint Tenancy
1. Equal Interest
2. One Title
3. Cannot Will
4. Free of Unsecured Debts

T-TIP

T-ime
T-itle
I-nterest
P-possession
3. Alienation
Convey
2. Quiet Title Action
Remove a Cloud
4. Eminent Domain
1. For public use, taken by the Government
2. Individuals do not have
3. Owner must be paid just compensation
6. Escheat
Individual Cannot Used
7. Accretion
Natural Causes
8. Avulsion
Dam Breaks
9. Probate Sale - Commission
Set by Court
5. Police Power
Zoning
10. Intestate Succession
No Will
1. Grant Deed
1. Executed when signed
2. not necessary to be recorded
2. Quitclaim Deed
1. Conveys rights of Grantor
2. No covenants
3. Deed Essentials
1. Granting Clause
2. Legal competence of Grantor
3. Not Acknowledge
4. Delivered and Accepted
1. Constructive Notice
1. Given by Recording

2. First to Record or Possess Gets Property
2. Acknowledgment
Employee without Interest
2. Encumbrances
Section 1 - Easements

Section 2 - Restrictions

Section 3 - Encroachments

Section 4 - Liens

Section 5 - Promissory Notes

Section 6 - Trust Deeds and Mortgages

Section 7 - Other Liens

2. Encumbrances
Section 6 - Trust Deeds and Mortgages
1. General Information
2. Foreclosure
3. Priority
4. Blanket Mortgages
5. Trust Deed and Mortgage Clauses
Section 4 - Liens
1. Specific Lien
2. General Lien
Section 5 - Promissory Notes

1. Amortization
2. Interest Rates Affected by
3. Simple Interest
4. Variable Interest
5. Effective Interest Rate - Nominal Interest Rate

6. Negotiable Instrument
7. Straight Note
8. Balloon Loan
9. Holder in Due Course
10. Discounting
11. Default
12. More than One Borrower
Section 1 - Easements
1. Prescriptive Easements

2. Termination of Easements

3. Appurtenant Easements

4. Confirmed By
Section 2 - Restrictions
1. Private Restrictions

2. Public Restrictions
Section 3 - Encroachments
1. Prescriptive Easements
Quiet Title Suit
2. Termination of Easements
Dominant Tenement Records Quit-Claim Deed
3. Appurtenant Easements
Buyer has same rights
4. Confirmed By
1. No Confrontation with owners
2. Can easily be terminated for non-use
1. Amortization
(Liquidation)
1. Level Payment - Payment applied to principal increases

2. Negative amortization - Payments do not cover interest

3. GPAM Loan - Defers some principal payments
2. Public Restrictions
1. 15,000 Square Feet
2. Grantor or Developer
3. Condition - Penalties are more severe
1. Private Restrictions
1. Public Health
2. Public Safety
3. Moral and General Welfare
4. One Lots Variance
3. Simple Interest
Home Loans
2. Interest Rates Affected by
Not unemployment
4. Variable Interest
Arm rate can increase or decrease
6. Negotiable Instrument
7. Straight Note
Not a mortgage
8. Balloon Loan
Partially amortized entire balance due
9. Holder in Due Course
No Knowledge of Defects
5. Effective Interest Rate -
Nominal Interest Rate
Effective - A.P.R Rate Paid
Nominal - Rate Specified in note
10. Discounting
Selling for Less
1. Specific Lien
Trust Deed
2. General Lien
All Property
1. General Information
1. Trustor - Signs the Trust Deed
2. Beneficiary - Loans money
3. Right to Sell - Trustor to Trustee
4. Terminated - Reconveyance Deed
2. Foreclosure
1. Court Sale - One year redemption Period
2. Trustee's Sale - Trustor Possesses the Property
a. 3 months before publishing
b. Right of Reinstatement
c. Most expedient
3. Deed in Lieu of Foreclosure - Lender assumes Junior Liens
4. Request for Notice Protects - Beneficiary of Second Loan
5. Lender's Basic Protection - Borrower's Equity
3. Title Insurance
Section 1 - General Information

3. Title Insurance
Section 1 - General Information
1. Chain of Title
2. Standard Policy of Title Insurance
3. Extended Policy
4. ALTA Policy
5. Exclusions
6. Search
1. Sue Neighbor

2. For Trespass
1. Chain of Title
1. Chain of Title - Important when deciding to issue Title Insurance
Abstract of Title - Written Summary of Documents
Preliminary Report - Sellor is Trustor/Remove Mechanic's Lien
3. Extended Policy
Covers Improvements on Adjoining Land
2. Standard Policy of Title Insurance
- Most Buyer Obtain
- No Survey or On-Site Inspection

a. Protects Against - Forgery, Improper Delivery,
4. ALTA Policy
Includes a Survey
5. Exclusions
1. Zoning

2. No Policy covers Everything
6. Search
County Clerk, County Recorder
4. Real Estate Law
Section 1 - Illegal Acts
Section 2 - Broker Relationships
Section 3 - Manage Property
Section 4 - Loan Broker Laws
Section 5 - Desk Cost
Section 6 - Company Dollar
Section 7 - Trust Fund Account
Section 8 - Ethical Practices
Section 9 - Recovery Account
Section 10 - Selling Trust Deeds
Section 11 - Mobile Homes
Section 12 - Real Estate License
Section 13 - Advance Fee Contract
Section 14 - Fair Housing

4. Real Estate Law
Section 6 - Company Dollar
Section 5 - Desk Cost
Section 4 - Loan Broker Laws
1. Misrepresentation
2. Commission to Buyer
3. Blind Ad
4. Misleading Advertising
5. Secret Profit by Non-Licensee

6. Referral Fees
7. Gifts
8. Commingling
9. Not a Member
Section 1 - Illegal Acts
(Illegal Acts - District Attorney Prosecutes)
1. Advertisement
Section 2 - Broker Relationships
1. Salesperson as Independent Contractor
2. Unlicensed Assistant
Section 3 - Manage Property
1. Advertisement
Disclosure given to Borrower when signed
1. Misrepresentation
Obvious, Knowledge, Caused
2. Unlicensed Assistant
1. Broker must read advertising
2. Must be supervised on Internet
3. Both Guilty if Solicits Buyers or Seller
1. Salesperson as Independent Contractor
Broker Still Liable for Conduct
Only Broker
3. Blind Ad
No Broker's Name
2. Commission to Buyer
Most Inform Seller
4. Misleading Advertising
1. Misleading Map
2. Move Right in Mayor Repairs
6. Referral Fees
Both Broker and Salesperson
7. Gifts
1. Flat Screen TVs are O.K. - Reveal to All
$500 is O.K.
8. Commingling
Funds from Brokers own Property
9. Not a Member
Not a Realtor
5. Secret Profit by Non-Licensee
No Cause for Action
Total expenses
(+)
Number of Salesperson
Income
(-)
Only Commissions
5. Financing
Section 1 - Economic Theory
Section 2 - Lenders
Section 3 - Lending Practices
Section 4 - Truth-in-Lending
Section 5 - Conditional Installment Sales Contracts
Section 6 - Types of Loans
Section 7 - Insurance
Section 8 - Escrow
Section 9 - Real Estate Settlement Procedures Act
Section 10 - Mandated Disclosures

Section 6 - Types of Loans
1. Loan Insured by

2. VA

3. Cal-Vet
Section 5 - Conditional Installment Sales Contracts
1. Default, Quitclaim Deed
Signed by Buyer (Vendee)
Section 1 - Economic Theory
1. Leverage
2. appreciation
3. Prices Decrease
4. Seller's Market
5. Impact Real Estate
6. GDP and Employment Rise
1. Purpose

2. Annual Percentage Rate

3. Tight to Cancel
Section 2 - Lenders
6. Contracts
Section 1 - Types of Contracts
Section 2 - Legal Essentials of a Valid Contract
Section 3 - Statue of Contract
Section 4 - Listings
Section 5 - Offers
Section 6 - Deposit Receipts
Section 7 - Options

6. Contracts
Section 6 - Deposit Receipts
1. Buyer Defaults, Deposit Is

2. Time is of the Essence
Section 5 - Offers
1. Terminated By
2. Counteroffer
Section 4 - Listings
Bilateral Employment Contract

1. Agency Creation
2 Fiduciary Obligations
3. Deposit
4. Commissions
5. Liability

6. Types of Listings
Section 1 - Types of Contracts
1. Bilateral
2. Executed
3. Voidable
Section 2 - Legal Essentials of a Valid Contract
1. Offer and Acceptance
2. Capable Parties
3. Consideration
Section 3 - Statue of Fraud
If not be performed within one year, must be in writing
1. Bilateral
Diligence
2. Executed
Completely Performed
3. Voidable
Binding until rescinded
Duress
Menace or Threats
Not illegal Purpose
3. Consideration
Valuable, Good, Sufficient, Adequate
1. Agency Creation
a. Oral Agreements
- Commission permisable
- Broker would sue Broker

b. Lease on Duplex - Broker is Agent
c. Sub-agent of Listing Broker - Duty to seller only
2. Capable Parties
Minors can Acquire
1. Offer and Acceptance
Must have Real Estate Contracts
3. Deposit
a. Present All written Offers - At same time
Unless express instructions

b. Seller Fires Broker - Liable for Damages

c. Broker Owes Buyer - Fair and Honest Deal

d. Broker as Agent of Buyer (Offeror) - Can present offers to seller and seller's agent

e. Material Facts -
1. Must Reveal Owes Fiduciary duty to buyer only
2. Leaky Roof
3. Septic Tank - Rescind

f. Puffing - Exaggerated Features or Benefits

g. Broker Promises Seller to Find House - Civil Suit for Damages

h. Agent Promises to Advertise and Does Not - Actual Fraud

i. Protect Confidential Information - After Listing Expires

2 Fiduciary Obligations
Licensee

Fiduciary - Integrity - Loyalty - Honesty
4. Commissions
Commission - Communicate Acceptance
If not share - Civil Suit
Cancels, Owes Both

a. Commission After Term of Listing - Protection Period Clause
5. Liability
Liability - Damages if acts in excess
a. Fraudulent Misrepresentation - Discipline, Civil, Criminal
6. Types of Listings
a. Exclusive Listing
b. Exclusive Agency
c. Exclusive Right to Sell - Pay Commission and No Procurring Cause
1. Terminated By
1. Terminated By Withdrawal
Gets Refund
Death of Buyer
Rejection by Offerror
For any Reason
2. Counteroffer
2. Counteroffer - Offer re becomes Offeror
2. Time is of the Essence
Deposit Receipts
1. Buyer Defaults, Deposit Is
Divided Between Seller and Agent
7. Taxation
Section 1 - Federal Income Taxes

Section 2 - Property Taxes

Section 3 - Assessment Liens

Section 4 - Transfer Tax

7. Taxation
Section 4 - Transfer Tax


$22
and
$138

This are always the right answer
Section 1 - Federal Income Taxes
1. General Rules
2. Personal Residence
3. Income Property
4. Exchanges
5. Sale-Leaseback
Section 2 - Property Taxes
1. Tax Bills
2. Ad Valorem
3. Property Reassessed
4. Dates
5. Delinquent Tax Sale
Section 3 - Assessment Liens
For Local Improvements
1. Mello-Roos
1. General Rules
a. Marginal Tax Rate - Next Dollar Earned
b. Unadjusted Basis - Cost
c. Adjusted Basis - Not Mortgage Payments
d. Tax Shelters - Income Taxes
e. Gain - $32,000 Gain {Always the right Answer}
2. Personal Residence
a. Deductions - Property Taxes and Interest $3,672
b. Adjusted Basis - Concrete Patio
3. Income Property
a. Deductions - Not for vacancy
b. Depreciation - Cost of Building, Not Land must be improved
c. Operational Loss - Might offset Capital Gain
d. Capital Expenditures - Added to cost basis and depreciated
e. Loss Upon Sale - Could deduct if rental Property
4. Exchanges (
Like Kind)
a. "Boot" - Debt Relieve or Cash
Receiver - May have recognized Gain
b. Basis of New Property - Basis of Old
4. Dates
February 1
and
April 10
3. Property Reassessed
When Sold
a. Over-Assessed - Assessment Appeal Board
2. Ad Valorem
According to Value
1. Tax Bills
Legal Aspects
1. Mello-Roos
Seller Cannot Purchase Land
Must Disclose
8. Subdivisions
Section 1 - Master Plan

Section 2 - Planning Commission

Section 3 - General Information

8. Subdivisions
Section 1 - Subdivision Map Act
City or County Governing Body
Section 2 - Planning
Commission
1. Condominiums
2. Land Project
3. Real Estate Commissioner
4. Public Report
Section 3 - General Information
1. Building Code
2. Building Permit
3. Developer
4. Time Share gifts
1. Master Plan
Districts; Streets, Seismic
2. Planing Commission
Zoning
4. Public Report
a. Given - Anyone, Anytime
b. receipts - Keep 3 years
Any type of receipt
c. Excessive Price - Not Included
3. Real Estate Commissioner
Desist and Refrain
2. Land Project
14 Days
1. Condominiums
5 or more units
3. Developer
Streets
1. Building Code
Higher Standard
a. Purpose - Minimum Standards
4. Time Share gifts
Must Reveal Required Attendance
2. Building Permit
Local Building Department
9. Business Opportunity
Section 1 - General Information

9. Business Opportunity
Section 1 - General Information
1. Franchise
2. Advance Fee for Advertising
3. Bill of Sale
1. Franchise
Marketing Plan
2. Advance Fee for Advertising
Deposit in Trust Account and use for Advertising
3. Bill of Sale
Not Real Property
10. Appraisal
Section 1 - Appraisal Theory

Section 2 - Market Data (comparison) Approach

Section 3 - Cost (Replacement) Approach

Section 4 - Capitalization Approach

Section 5 - Gross Multipliers

Section 6 - Depreciation

Section 7 - Construction Germs

10. Appraisal
Section 6 - Depreciation
1. Effective Age
2. Economic Life
3. Obsolescence
4. Functional Obsolescence
5. Economic Obsolescence
6. Obsolescence
Section 5 - Gross Multipliers
Price

$89,700
and
$308,736
Section 1 - Appraisal Theory
1. Appraiser
2. Fee Appraiser
3. Appraisal
4. Stability of Value
5. Market Value

6. Principle of Contribution
7. Highest and Best Use
8. Principle of Substitution
9. Principle of Regression
10. Unearned Increment

11. Plottage
12. Highest Value
13. Appreciation
4. Capitalization Approach
1. Effective Gross Income
2. Net Income
3. Present Worth
4. Capitalization Rate
4. Capitalization (Income) Rate
Section 2 - Market Data (comparison) Approach
1. Difficulty of Market Data
2. Least Reliable
3. Warehouse
Section 3 - Cost (Replacement) Approach
1. Upper Limits of Value
2. New Property
3. Cost of Construction
4. 1910 House
1. Effective Gross Income
Converts Income Into Value
2. Net Income
Do not Deduct Interest
3. Present Worth
Of Future Benefits
4. Capitalization Rate
Most Difficult Part
Summation, Comparison, Band of Investment
Post Office - Lower Rate
1. Appraiser
1. Disclose Interest
2. Date Contract was Signed
3. The Given Date
4. Building of no value -- Deduct Demotion
5. Unacceptable Methods - Felony

6. Marketability and Acceptability
7. Not Assessed Value
8 Strip Mall - Certified General
3. Warehouse
Rapid Economic Change or Inactive market
Square Root
2. Least Reliable
Rarely Similar Concerning Everything
1. Difficulty of Market Data
Adjusting for Differences
3. Cost of Construction
Legal Aspects
1. Upper Limits of Value
Set by Replacement Cost Approach

a. Replacement - Same Utility
4. 1910 House
Legal Aspects
2. New Property
Legal Aspects
3. Appraisal
Analysis of Facts
2. Fee Appraiser
Self Improved
4. Stability of Value
Conformity
6. Principle of Contribution
Swimming Pool
Effect on Net-Income
7. Highest and Best Use
1. First step for Vacant Land
2. Net Return
3. Site Analysis
4. If Temporary, Interim use
8. Principle of Substitution
Legal Aspects
9. Principle of Regression
a. No Prudent Person
b. Use, Design, Income
c. Lowest Price Preferred
5. Market Value
Present worth, Ability of one Commodity

DUST

D-emant
U-tility
S-carcity
T-ransferability

13. Appreciation
Increase in Value over-time
4. Functional Obsolescence
Not Nearby Nuisances
One Car Garage

a. Same Building Costs, Different Values - Functional Obsolescence
5. Economic Obsolescence
1. Economic Changes
2. Extraneous
3. Difficult to Cure
4. Not Heating System
5. Air-Planes

6. Overly-Supply or Zoning Changes
7. Abandoned Gas Station - Toxic waste Report
Section 7 - Other Liens
1. Mechanics Liens

2. Lis Pendens

3. Execution

4. Injunction
Section 8 - Ethical Practices
Section 10 - Selling Trust Deeds
Section 14 - Fair Housing
Section 11 - Mobile Homes
1. Can Sell

2. Most Remove Signs

3. Notice of Transfer
Section 9 - Recovery Account
Section 7 - Trust Fund Account
13. Advance Fee Contract
No Guarantee of Sale or Lease
Section 12 - Real Estate License
1. Expired License

2. Temporary (150 Day) License
Section 13 - Advance Fee Contract
5. Financing
1. Leverage
$300,000
Borrow the Maximum
2. Appreciation
or Inflation - Trustor
3. Prices Decrease
Value of money increases
4. Seller's Market
Prices Rise
3. Tight to Cancel
Residence
1. Loan-to-Value
Lower Ratio, Higher Equity
2. Annual Percentage Rate
Cost of Credit
Advertising - only APR is used - Other Disclosure not Required
1. Purpose
Meaningful Disclosure by Lender
Section 6 - Recording
Legal Aspects
5. Secondary Mortgage Market
Resale Market Place

a. Federal Home Loan Mortgage Corporation - Maintains Secondary Market
1. Insurance Companies
Portfolio Risk Management - Concerned with All
Individual Savings (Financial Deregulation)
Pay any rate of interest
7. Federal National Mortgage Association
Not a demand source for money finance
3. Mortgage Companies
Sell in Secondary Market
3. Construction Loan
Interim
a. Take-Out Loan - Long - Term
2. A Loan Commitment
Result of Income, Borrower, and Property
4. Debt-Income Ratio
Loan Qualifying Tool
6. Mortgage Yield
Investor's Interest Return
7. Lenders Minimize
Sub-Standard Loans
8. Late Payment
More than 10 Calendar Days
9. 100% Loan
Protected by Appreciation
5. Mortgage Loan
Investors Interest Return
10. Amortization Tables
Monthly Payment
1. Legal Titled Vendor
2. Security Denise
3. Transfer Equitable Title
1. Loan Insured by
FHA or Private Insurer

a. FHA Protects Lender Against Default
3. Cal-Vet
1. Land Contract

2. Department of Veterans Affairs
Section 8 - Escrow
1. Instrument Executed By
2. Purpose
3. Closing Statement
4. Prorations
5. Impounds

6. Two Termite Reports
7. Escrow Can
8. Report to IRS
9. Move in Early
10. Release Disputed Funds
Section 10 - Mandated Disclosures
1. Real Property Transfer Disclosure Statement

2. Alquist-Priolo Act
Section 14 - Fair Housing
1. Constructive Notice
2. Acknowledgment
Section 11 - Mobile Homes
1. Constructive Notice
2. Acknowledgment
Section 9 - Real Estate Settlement Procedures Act
1. 1-to-4-Family Residential Dwellings
2. Uniform Settlement Statement
3. Buyer Can Require
4. Good Faight Estimate
Section 7 - Insurance
1. Fire Insurance
Section 6 - Company Dollar
1. Constructive Notice
2. Acknowledgment
Section 12 - Real Estate License
1. Constructive Notice
2. Acknowledgment
Section 13 - Advance Fee Contract
1. Constructive Notice
2. Acknowledgment
Section 7 - Options
1. Agreement
2. Contract
3. Optionee
4. Option and Listing
Section 7 - Construction Germs
1. Bearing Wall
2. Joist
3. Ridge Board
4. Footing
5. Structural Pest Control Report

6. Deciduous
7. Roof Sloping on Four Sides
8. Higher EER
9. sheet Metal
10. Insulation
11. Turn Key Project
12. Elevation Sheet
13. Information Booth
14. Backfill
15. Cracked Foundation

16. Plot Plan
17. Foundation Plan
18. Substandard Building
19. Repairs to Building Equipment
20. Commercial Acre
21. Orientation
22. HVAC
11. Default
Fore-clouse for $15,000
12. More than One Borrower
Jointly and Severally
4. Blanket Mortgages
a. Release Clause - Release portions of the property
3. Priority
Recorded
5. Trust Deed and Mortgage Clauses
a. "Assume" - relieves Seller
"Subject To" - Sellers Liable: buyer not Liable

b. Subordination Clause - Future Loans have Priority
c. Acceleartion Clause - Unpaid Sum Due
d. Open-End - Borrow Additional Money
e. Beneficiary Statement - Gives Current Balance
f. Prepayment Penalty - Trustor making advance payments

Court Order to Sell
4. Injunction
Court order to Stop
1. Mechanics Liens
Mechanics Liens - Verified and Recorded
a. Priority - Beginning of Construction
Earlier than recording
Could Impair Trust Deed
b. Notices - Completion, Cessation, Non-Responsibility
1. Can Sell
Only If Registered
2. Most Remove Signs
within 48 Hrs
3. Notice of Transfer
Within 10 Calendar Days Important
1. Expired License
1. Can be renewed within 2 yrs after expiration
2. Renew it every 4 yrs
2. Temporary (150 Day) License
Delinquent Child Support
1. 1968
2. Provide Fair Housing
3. Steering
4. Unenforceable - No Effect
5. Refuse to show when out of town

6. Blockbusting, Panic Peddling no Duress
7. No Discrimination - Rejected Offeror
8. No Discrimination Against Singles
9. Department of Fair Employment and Housing
10. Different Prices - Money Damages
5. Impact Real Estate
Consumerism, Land use Controls
6. GDP and Employment Rise
Income Rises, Hoe Sales Increase
Section 3 - Lending Practices
Section 4 - Truth-in-Lending (Not Agriculture)
1. Loan-to-Value
2. A Loan Commitment
3. Construction Loan
4. Debt-Income Ratio
5. Mortgage Loan

6. Mortgage Yield
7. Lenders Minimize
8. Late Payment
9. 100% Loan
10. Amortization Tables

11. Warehousing
12. FICO Score
13. Security Interest
14. Discount Points
15. Document Preparation Charges

1. Insurance Companies
2. Savings and Loan Associations
3. Mortgage Companies
4. Private Lenders
5. Secondary Mortgage Market

6. Federal Reserve System
7. Federal National Mortgage Association
2. Savings and Loan Associations
Most funds in Real Estate
Primary Source is the General Public (You and Me)
4. Private Lenders
Junior Loans
6. Federal Reserve System
a. Increase Reserves - Decreases Loan Activity
b. Tight Money - More Second Trust Deeds
11. Warehousing
Collecting Loans
12. FICO Score
Credit History of Borrower
14. Discount Points
Percentage of Loan Amount
100K and 3 pts = 3,000 always the right answer
15. Document Preparation Charges
Loan Origination
13. Security Interest
Creditor's Interest in Debtors Property
2. VA
1. No Down Payment

2. Cannot be Rental Property
1. Instruction Executed By
Buyer, Seller, Third Parties
2. Purpose
Terms are met
3. Closing Statement
Buyer Debit - Purchase Price
Credit Seller - Pre-Paid Taxes
4. Prorations
Not Unsecured Loan
5. Impounds
Recurring Cost
6. Two Termite Reports
Get instructions from Buyer and Seller
7. Escrow Can
Call for Funding of Loan
8. Report to IRS
Escrow
9. Move in Early
Seller's Written Permission
10. Release Disputed Funds
Instructions From All Parties or Court Order
2. Uniform Settlement Statement
No Charge
3. Buyer Can Require
Specific Lender
4. Good Faight Estimate
Must be Furnished
1. 1-to-4-Family Residential Dwellings
Required
1. Real Property Transfer Disclosure Statement
a. Given by - Transfer or, even if sold "as is"
b. Must Reveal - All known defects
c. Amended Statement - buyer can rescind
d. Licensee Can Never - Fill-out seller's portion
e. Defective Statement - buyer's can sue within two - years
2. Alquist-Priolo Act
a. Requires Disclosure - nearby earthquake Fault - Lines
b. Zone Extends - 1/4 Mile Wide
1. Master Plan

2. Planing Commission
1. Bearing Wall
Remodeling, Stronger, Any Angle
2. Joist
Parallel beam That supports Ceiling or floor
3. Ridge Board
Highest
4. Footing
Anyone, From Structural Pest Control Board

Must give to buyer as soon as possible
5. Structural Pest Control Report
a. No Infestation or Damage - Buyer Pays
b. Best Time to Get Report - Before Marketing
6. Deciduous
Not Type of Soil
7. Roof Sloping on Four Sides
HIP
8. Higher EER
Unit is more Efficient
9. sheet Metal
Flashing
10. Insulation
Interior, Adequate
R-Value - Resistance to Heat
12. Elevation Sheet
Exterior Views of Building
13. Information Booth
Kiosk
14. Back-fill
Trenches and Foundations
15. Cracked Foundation
Soils Report
11. Turn Key Project
Ready for Occupancy
16. Plot Plan
Placement of Improvements
17. Foundation Plan
Footings, Piers, Sub Flooring
18. Substandard Building
Gross Area Less Streets, Curbs, Side-Walks etc..
19. Repairs to Building Equipment
Not Wiring
20. Commercial Acre
Corrective Maintenance
21. Orientation
Position on Site
22. HVAC
Heating, Venting, Air Conditioning, Cond
1. Agreement
Not to Revoke an offer
2. Contract
To keep on offer open
3. Optionee
Not bound to perform
4. Option and Listing
Disclose offers, Written Consent
5. Sale-Leaseback
Deduct 100% of future rent paid
No Seller's Book Value
5. Delinquent Tax Sale
Owner Remains in Possession and can redeem for 5 yrs
5. Capitalization (Income) Rate
Restaurant
10. Unearned Increment
Population
11. Plottage
Common Ownership of 2 or more units
12. Highest Value
Maximum Resources
6. Obsolescence
Cause, Not Method
1. Effective Age
15 Years Old - 6 Yrs
2. Economic Life
Sufficient Income
3. Obsolescence
Not Wear and Tear
2. Lis Pendens
Lis Pendens - May affect Title
Lis Pendends is Effective Until - Judgement, Rendered or Lawsuit Dismissed
3. Execution
M-ethod
A-adaptability
R-elationship
I-ntention
A-greement
1. Sublease
2. Quiet Enjoyment
3. Abandonment
4. Percentage Lease
5. Security Deposit
6. Estates for Years
7. License
1. Changes can be initiated by owner, sub-divider, government
2. Commercial to Residential - Down Zoning
3. Multi-Family Zone - R-3 (This is the answer always)
No Principal Payments made
Separate Trust Funds Employee
Honesty and Fairness
Only Pay Recovery Account
(+)
Interest
1. Advertising most Include
2. Interest Rate and Discount
All of the Above
Large Loans
Work through mortgage companies
1. Fire Insurance
Promise of Reimbursement for Damages
Neighter Gain or Lose
4 Elements Require
1. Mutual Consent
2. Consideration - Value
3. Capable Parties
4. Legal objects Lawful

Not Money
Performance
Nor Writing
1. Reveal as soon as possible
2. For any period of time
3. Written employment contract
4. Find purchaser; accept deposit
5. Payment of consideration is not required
6. Not voluntary offer
7. Terminated by Completion
Deposits - May be anything
a. Seller - Deposit Belongs to Sellers
b. Hold Deposit Check or Accept Promissory Note - Must Inform Seller
c. Conflict Between Buyer and Seller - Inter Pleader
a. Sidewalks - Common Area
b. Type of Property - Residential, Industrial, Commercial
c. Estate in Real Property - Condo and Apartment
d. Seller Provides Buyer - By-Laws, CC&Rs
a. Narrative Report - Not Buyer's Financial Condition
b. Type of Value - Statement of Purpose
1. Entire Property
2. Substitution
3. Sub-track Features from Comparable
4. Vacant Lot
5. Rent Schedules
6. Real Estate Licensees
Deduct Interest
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