Georgia Post License Real Estate Notes

Vocabulary flashcards covering senior market demographics, professional communication, mortgage financing (FHA/VA/Conventional), environmental hazards, and fair housing laws.

GI Generation (Century Generation)

The oldest seniors, born before $1925$ (the $+85$ group), who value hard work and education and often downsize for safety and proximity to family.

Silent Generation

Seniors born between $1925$ and $1945$ ($65$-$85$ years old) who are typically non-judgmental believers in open human relationships and successful financially compared to their parents.

Baby Boomer Generation

Individuals born roughly between $1945$ and $1965$ who high value prestige, self-gratification, and solid investments, while maintaining an inherent distrust of authority.

Generation X'ers

A practical and conservative generation that marries later, views the world cynically, and considers home offices a necessity.

Etiquette

Rules indicating the proper and polite way to behave in a public or professional setting, founded on the principle of respect.

Integrity

The professional trait defined as doing the right thing even when no one is looking.

Enunciation

The clear pronunciation of words, considered a vital element of effective communication.

Active Listening

A communication technique that involves giving full attention to the person who is speaking.

Email Etiquette

A code of conduct for electronic correspondence including appropriate language, spelling, grammar, and the use of clear subject lines.

Risk Management Strategies

The three general methods for handling risk in real estate brokerage: avoid the risk, share the risk, or transfer the risk.

Risk-Management Program Elements

The three major components consist of Education, a Paper Trail, and Risk Transfer Strategies.

FHA Minimum Down Payment

The required minimum down payment for an FHA mortgage loan is $3.5\%$.

FHA Ratios

Standard qualifying limits set at $31\%$ for the housing ratio and $43\%$ for the total debt ratio.

203(k) Funds

FHA funds used for structural alterations, modernization of systems, or elimination of health and safety hazards, requiring at least $\$5,000$ in rehab costs.

VA Mortgage Loan

A $0\%$ down mortgage option guaranteed by the U.S. Department of Veterans Affairs for veterans, active-duty members, and select spouses.

Entitlement

The total amount the VA will guarantee for a VA loan; the basic amount is $\$36,000$.

Certificate of Eligibility (COE)

A VA-generated document informing the lender that the applicant meets the necessary requirements for a VA loan.

Funding Fee

A percentage of the loan amount charged for obtaining a VA loan, typically $2.3\%$ for first-time use and $3.6\%$ for subsequent uses.

Georgia Dream Homeownership Program

A program providing affordable financing and down payment assistance for eligible low and moderate-income Georgians.

Reverse Annuity Mortgages (RAM)

Loans available to homeowners $62$ and older who have paid off or nearly paid off their mortgages, allowing them to use home equity without repayment while living in the home.

1031 Exchange

A tax-deferred strategy allowing an owner of an investment property to exchange it for another property of like-kind.

Fully-Amortized Loan

A loan characterized by equal payments over a set number of years that eventually pay off the entire balance.

Balloon Loan (Interest-Only)

A loan where payments apply only to interest, leaving the entire principal amount borrowed due at the end of the term.

Note Rate

The calculated interest rate for an ARM, determined by adding the index to the lender's margin.

Conforming Loans

Mortgage loans that adhere to the specific guidelines and maximum loan amounts established by Fannie Mae and Freddie Mac.

Jumbo Loans

Non-conforming loans that exceed the loan limits of Fannie Mae and Freddie Mac, often requiring higher interest rates and larger down payments.

Private Mortgage Insurance (PMI)

Insurance generally required on loans with less than $20\%$ down payment, typically insuring the top $30\%$ of the loan to protect the lender.

Predatory Lender

A lender that targets and takes advantage of customers who may be poorly educated, elderly, or non-English speakers.

Deed of Trust

A financing instrument that conveys title rights to an assigned trustee as security for a loan repayment.

Tenants in Common

A form of ownership where each party has a defined interest that can be sold or left in a will.

Joint Tenants with Right of Survivorship

Owners who take title at the same time with equal interests and a provision that interest transfers to survivors upon death.

Tenancy by the Entirety

A form of ownership for spouses where property automatically conveys to the surviving spouse without probate.

TRID Rule requirements

Under RESPA, lenders must provide a Loan Estimate within $3$ business days of application and a Closing Disclosure at least $3$ days before closing.

Truth in Lending Act (TILA)

Federal law requiring disclosure of the Annual Percentage Rate (APR) and all elements of financing (Regulation Z).

Radon

An odorless, colorless, tasteless radioactive gas created by uranium in the soil; classified as a Group A carcinogen.

Exposure Pathway

The route a hazardous substance takes from its source to enter the human body, such as air, soil, water, or food.

Estate for Years

A lease agreement established for a specific, fixed term.

Periodic Tenancy

A lease that automatically renews unless notice is given by either the tenant or the landlord.

Gross Lease

A lease where the tenant pays a fixed rent amount, common in residential properties.

Net Lease

A lease structure where the tenant is responsible for property taxes, maintenance, and other expenses.

Blockbusting

The illegal practice of inducing owners to sell by claiming that the entry of a certain ethnic group into the neighborhood will lower property values.

Steering

The illegal act of channeling home seekers toward or away from specific neighborhoods based on their protected class.

Redlining

The illegal refusal by a lender to make loans in a specific neighborhood regardless of the applicant's qualifications.