Indiana Real Estate Exam

(Joint tenancy)The four unities that must exist for this type of ownership to exist are: - answer-1.Interest: Each owner has the same interest. 2.Possession: All owners hold an undivided interest. 3.Time: All owners receive their interest at the same time. 4.Title: All owners acquire their interest with the same deed. (Math) Interest Per year - answer-Loan $ (x) interest % (/) year = Interest Dollars Per Year A brokers commission is specified in the ______ with the principal. - answer-contract A salesperson can receive ______ ONLY from that broker. - answer-compensation A salesperson has _______ to make contracts with or ______ from any other party. - answer-no authority, receive compensation Abestos - answer-Friability, causes lung cancer, difficulty breathing. acceleration clause - answer-A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender. adjustable-rate mortgage (ARM) - answer-A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. Tied to indexes. adjustment date - answer-The date the interest rate changes on an adjustable-rate mortgage. Administrator - answer-the court appoints this person when no executor is named to administer a will Adverse possession - answer-When someone uses your property, you may end up losing the property or having your rights to the property restricted. amortization - answer-The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off in the specified time. amortization schedule - answer-A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero. annual percentage rate (APR) - answer-This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. Anti-trust violations - answer-price-fixing, group boycotting, allocation of customers and markets, tie-in agreements appraisal - answer-A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby. appraised value - answer-An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.It is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price. appraiser - answer-An individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent. appreciation - answer-The increase in the value of a property due to changes in market conditions, inflation, or other causes. assessed value - answer-The valuation placed on property by a public tax assessor for purposes of taxation. assessment - answer-The placing of a value on property for the purpose of taxation. assessor - answer-A public official who establishes the value of a property for taxation purposes. asset - answer-Items of value owned by an individual. These include bank accounts, stocks, bonds, mutual funds, and include real estate, personal property, and debts owed to an individual by others. assignment - answer-When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment. assumable mortgage - answer-A mortgage that can be assumed by the buyer when a home is sold. Usually, the borrower must "qualify" in order to take over the loan. assumption - answer-The term applied when a buyer assumes the seller's mortgage. Avulsion - answer-the sudden loss of land by an act of nature like a landslide balloon mortgage - answer-A mortgage loan that requires the remaining principal balance be paid at a specific point in time. balloon payment - answer-The final lump sum payment that is due at the termination of a balloon mortgage. bankruptcy - answer-By filing in federal court, an individual or individuals can restructure or relieve themselves of debts and liabilities. bill of sale - answer-A written document that transfers title to personal property. biweekly mortgage - answer-A mortgage in which you make payments every two weeks instead of once a month. The basic result is that instead of making twelve monthly payments during the year, you make thirteen. The extra payment reduces the principal, substantially reducing the time it takes to pay off a thirty year mortgage. Blanket Mortgage - answer-A loan that covers more then one property, ex subdivisions Blockbusting - answer-Encouraging people to sell their homes because of the entry of particular group into the area. broker - answer-Most Realtors are "agents" who work under a "broker." Some agents working for themselves or under another broker. Usually refers to a company or individual that does not lend the money for the loans themselves, but broker loans to larger lenders or investors. Is anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee for doing so. Calculation = Area - answer-L (x) W = Area cap - answer-The limit on how much the interest rates can fluctuate over a six month period, annual period or life of the loan or that payment can change each year. cash-out refinance - answer-When a borrower refinances his mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use CERCLA - answer-Comprehensive Environmental Response, Comp and Liability ACT. certificate of deposit - answer-A time deposit held in a bank which pays a certain amount of interest to the depositor. certificate of deposit index - answer-One of the indexes used for determining interest rate changes on some adjustable rate mortgages. It is an average of what banks are paying on certificates of deposit. Certificate of Eligibility - answer-A document issued by the Veterans Administration that certifies a veteran's eligibility for a VA loan. Certificate of Reasonable Value (CRV) - answer-Once the appraisal has been performed on a property being bought with a VA loan, the Veterans Administration issues this chain of title - answer-An analysis of the transfers of title to a piece of property over the years. Civil Rights Act - answer-Race 1866 clear title - answer-A title that is free of liens or legal questions as to ownership of the property. closing - answer-This is when the documents are recorded at the local recorders office or a meeting where all of the documents are signed and money changes hands. closing costs - answer-A lender makes an attempt to estimate the amount of these non-recurring costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application. cloud on title - answer-Any conditions revealed by a title search that adversely affect the title to real estate. Usually cannot be removed except by deed, release, or court action. collateral - answer-the property in a home loan. The borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust. collection - answer-The loan goes into this when a borrower falls behind and the lender contacts them in an effort to bring the loan current. The lender must mail and record certain documents in case they are eventually required to foreclose on the property. commission - answer-Most salespeople earn this for the work that they do. They are paid out of the charges paid by the seller or buyer in the purchase transaction. common area assessments - answer-In some areas they are called Homeowners Association Fees. They are charges paid to the Homeowners Association by the owners of the individual units in a condominium or planned unit development (PUD) and are generally used to maintain the property and common areas. common areas - answer-Those portions of a building, land, and amenities owned (or managed) by a planned unit development (PUD) or condominium project's homeowners' association (or a cooperative project's cooperative corporation) that are used by all of the unit owners, who share in the common expenses of their operation and maintenance. This includes swimming pools, tennis courts, and other recreational facilities, as well as common corridors of buildings, parking areas, means of ingress and egress, etc. common law - answer-An unwritten body of law based on general custom in England and used to an extent in some states. community property - answer-In some states, especially the southwest, property acquired by a married couple during their marriage is considered to be owned jointly, except under special circumstances. comparable sales - answer-Recent sales of similar properties in nearby areas and used to help determine the market value of a property. condominium - answer-A type of ownership in real property where all of the owners own the property, common areas and buildings together, with the exception of the interior of the unit to which they have title. Often mistakenly referred to as a type of construction or development, it actually refers to the type of ownership. Condominium - answer-owner actually owns real estate. This ownership is usually the air space and an interest as a tenant in common of the land. construction loan - answer-A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses. contingency - answer-A condition that must be met before a contract is legally binding. contract - answer-An oral or written agreement to do or not to do a certain thing. conventional mortgage - answer-Refers to home loans other than government loans (VA and FHA). convertible ARM - answer-An adjustable-rate mortgage that allows the borrower to change the ARM to a fixed-rate mortgage within a specific time. cooperative - answer-owner owns shares in a corporation that owns a building. The shareholder also gets a proprietary lease, which enables the shareholder to occupy a unit. cooperative (co-op) - answer-A type of multiple ownership in which the residents of a multiunit housing complex own shares in the corporation that owns the property, giving each resident the right to occupy a specific apartment or unit. cost of funds index (COFI) - answer-One of the indexes that is used to determine interest rate changes for certain adjustable-rate mortgages. credit - answer-An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date. creditor - answer-A person to whom money is owed. d