Jim Waddell
Jim Waddell

Jim Waddell

  • (404) 405-0676
  • (404) 843-2500

Jim's Real Estate Exam Study Notes

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Jim's Real Estate Exam Study Notes

I recruit Real Estate Brokers and Agents (new and existing) to come work with me at BHGRE Metro Brokers.

You too can earn a substantial residual income through recruiting!!!

Contact Jim Now to see how to go to Real Estate School for........FREE...

A 100% Salesperson's Pre-license Tuition Reimbursement Plan is available through Metro Brokers

If you understand the following,  you can pass the real estate exam!!!

Principle of LACHES – Statute of Limitations

Notice of Lis Pendes – action pending

Certificate of Estoppel – borrower acknowledges that he owes full amount of debt

Habendum – deed, extent of interest or estate granted

Hypothecation

Title theory – lender holds title

Lien theory – borrower holds title

Certificate of Reduction – Lender shows loan balance, rate, date of maturity

Alienation clause – loan to be repaid upon transfer (alienation)

Defeasance clause – null and void when paid in full

Subordination clause – waives right to priority of loans

Reconveyence clause – reconvey title to borrower when paid

Marginal release – written in margin of trust deed

Mortage = security collateral for note

Purchase Money Loan – taking back – carry back

Package Loan – real and personal property

Open end loan – home equity – can still get additional $$

Blanket Loan – more than one property

Graduated payment loan – Section 245 – low initial payments – negative amortization

Adjustable rate loan – keyed to an index with a margin

Term Loan = interest only loan = straight loan

Statutory Redemption – not in Ga

Deed in lieu of foreclosure – sign deed over to lender, lender must approve first

Deed of trust – naked title

Lender - Beneficiary

Borrower – Trustor

3rd Party – Truestee

GA - Security Deed – deed to secure debt – secures promissory note

Lender – Grantee – receives deed – defeasable fee estate

Borrower – Grantor – right of redemption – to get legal title – has equitable title

Has a power of sale clause

Redemption = redeem deed

Littoral rights – Stationary water

Riparian rights – Flowing water

Acts of nature to transfer title

Gained – Accretion – Gradual

  • Alluvion – Gradual Deposits
  • Reliction - Receding

Lost - Erosion – gradual

Avulsion – rapid/sudden

Chattel – personal property only

Attachment

Adaptation

Agreement

Emblements – Fructus Industriales – crops - corn, wheat

Appurtenance – right, privilege, improvements

Are

Joint Tenancy – PITTS Tenancy in Common

(inheritable)

  • Possession –undivided interest Y
  • Interest – equal shares N
  • Time – acquired at same time N
  • Title – one single title N
  • Survivorship N

Easements – POPCORN

  • Private Grant – written agreement
  • O
  • Prescriptive – continuous possession, 7 yr private, 20 yr corp
  • Condemnation
  • O
  • Reservation
  • Necessity

Terminate Easements by

  • Release
  • Abandonment
  • Vacation
  • Merger
  • Expiration

Valid Contracts – CALL

  • Consideration
  • Agreement
  • Legal objective
  • Legally competent parties

Adverse possession – ECHO

  • Exclusive
  • Continuous
  • Hostile
  • Open

Terminate Agency Relationship – READIE

  • Revocation or renunciation
  • Expiration
  • Agreement
  • Death of either party
  • Incapacity of either party
  • Extinction of property

Fudiciary Responsibilities – LOW PAIN

  • Loyalty to principal
  • Obedience to principal
  • Written offers must be submitted
  • Personally act for the principal
  • Account for all monies
  • Inform the principal of all material facts
  • Not be negligent

Elements of value – DUST

  • Demand
  • Utility
  • Scarcity
  • Transferability

BRRETA – Brokerage Relationships in Real Estate Transactions Act

Township = 6 miles x 6 miles

Acre = 209 feet x 209 ft = 209 feet square = 43650 square feet (208.71 actual)

Mile = 320 Rods

Rod = 16.5 feet

Wills

Real property = a devise, Devisor = decedent

Personal Property = Bequest – not $$, personal property

Legacy = $$

Encroachments = trespass, nuisance

GA – no community property

Corporations – no joint tenants

Key

FNMA – Oldest - Fannie Mae - Sells Bonds – purchases loans

FHLMC – Freddie Mac – Sells securities for $$

GNMA – Ginnie Mae – Guarantes payments – part of HUD

FHA – Insures loans –

3% down minimum on lessor of Sales Price or Appraisal Price

Pays off after foreclosure sale

Smaller down payment than conventional

Fee appraiser approved by FHA

MPR = Minimum Property Requirement

No due on sale clauses

No prepayment penalty

FHA sets max loan amount

Max 30 year loans

Must use excrow

2nd mortgage ok after loan is made

Must qualify to assume loan after 12/15/89

VA – guarantees loans

Max $60,000 entitlement

Zero down

No due on sale clauses

No Prepayment penalty

No insurance premium

Requires excrow

Funding fee paid into Guarantee and Indemnity Fund

MGIC – Mortgage Guaranty Insurance Corp – PMI

*****Check with a loan officer for current rates*****

95% loan - 2.5% PMI if paid in full at closing (.025)

90% loan - 2% PMI if paid in full at closing (.020)

¼ % per year = .0025 if PMI is financed (divide by 12 to get monthly amount)

RESPA –

Free HUD info booklet

Good Faith Extimate

Use HUD Uniform Settlement Statement

Intangibles tax – 3 + year loans, $1.50/$500 borrowed

Transfer fee - $.10 / $100 of taxable amount

Origination fee – FHA & VA - <= 1% of loan

Round loan amounts down to next lower even $100

Discount points = 1% of loan – prepaid interest – increases yield by 1/8 of 1 %

Convert difference in rate to eights & use numerator for points

Loan Discount = actual $$ amount

Price to control – Sales price is set, down payment fluctuates

Cash to Control = Cash down stays set, price fluctuates

Regulation Z – Consumer Credit Protestion Act – Truth in Lending

Can rescind some contracts

Regulates Advertising

Discloses credit costs

APR

Cash price

Look for triggering items

Now, you need to learn how to use the T to figure out the Math questions....

MetroBrokers Real Estate Pre-License School will teach you this and even offers an Exam Cram course.

Metro Brokers Financial, Inc., 5775-D Glenridge Drive, Suite 200, Atlanta, Ga. 30328 A Georgia Residential Mortgage Licensee # 5892. NMLSR Unique Identifier # 163853. 404-847-2525