Certain contracts must be in writing to prevent fraud.
If not in writing the are unenforceable even though you still have a contract.
100
What is a CMA and how is it determined?
Comparative Market Analysis based on resent sold properties that are similar to the subject property and also looks at homes currently for sale and under contract.
100
What type of agent is a property manager
General Agent
200
What is the purpose of RESPA (Real Estate Settlement Procedure Act)
Requires certain disclosures to borrows about the cost of the loan.
200
What is Plottage
merge two adjacent lots owned by different people making one larger lot will sometimes make a higher total value than the total value of the lots sold separately.
200
What are some of the duties of a Property Manager?
agent, maintenance, accountant, project manager, marketing expert (advertising and analyst), collections, diplomat, etc.
300
What is Regulation Z?
Implements Truth in Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining the credit
300
What is the law of diminishing returns?
improvements to land and structures will eventually reach a point at which they no longer increase property value.
300
What does the Net Operating Income leave out that you would normally include in an income statement?
Debt Service - or interest on the mortgage.
400
Name 3 laws that are designed to stop discrimination.
What is the difference between Regression and Progression
when dissimilar properties are near each other, the worth of the better property is significantly negatively affected (regression) and the worth of the lesser quality property increases slightly (progression)
400
What is the difference between a Fixed Expense and a Variable Expense in property management. Give an example of each.
Fixed is a regular and predictable expense such as utilities. Variable is one that you have but you never know when or how much it will be such as repairs
500
What is a transfer tax? Would that be good for a buyer?
Transfer Tax charges a fee most anytime that is a change to the title of a property to include refinance in many states. Utah does not have one since it is not good for the buyer.
500
Name the three ways an appraisal can value property
Sales Comparison Approach
Cost Approach
Income Approach
500
Name four laws or types of law that affect Property Management