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269 Cards in this Set
- Front
- Back
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ETHICS- ARTICLE 1
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PROTECT AND PROMOTE THE BEST INTEREST OF YOUR CLIENT
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ETHICS- ARTICLE 2
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REALTORS MUST NOT MISREPRESENT FACTS BY EXAGGERATING OR CONCEALING PERTINENT FACTS ABOUT PROPERTY OR TRANSACTION
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ETHICS- ARTICLE 9
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R.E. TRANSACTIONS SHALL BE WRITTEN IN CLEAR AND UNDERSTANDABLE LANGUAGE
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ETHICS- ARTICLE 12
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REALTORS WILL PRESENT TRUTH IN ADVERTISING
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ETHICS- ARTICLE 16
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REALTORS SHALL NOT INTERFERE WITH THE AGENCY RELATIONSHIP OF ANOTHER REALTOR
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BROKERAGE OFFICE
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MUST DISPLAY "EQUAL HOUSING OPPORTUNITY SIGN"
MUST HAVE BROKERAGE AND DBA NAME CLEARLY VISIBLE ON SIGN IN OFFICE |
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ADVERTISING BY SALESPEOPLE
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MUST STATE NAME OF BOTH AGENT AND EMPLOYING BROKER ON ALL ADVERTISEMENTS
SAME RULES APPLY TO ADS ON INTERNET |
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RECOVERY FUND
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STATE-REGULATED FUND USED TO PAY PURCHASERS WHO HAVE SUFFERED A LOSS DUE TO ACTION OR INACTION OF LICENSEE
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CIVIL RIGHTS ACT OF 1866
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PROHIBITS DISCRIMINATION AGAINST RACE AND COLOR
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FEDERAL FAIR HOUSING ACT OF 1968
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PROHIBITS DISCRIMINATION AGAINST RACE, COLOR, RELIGION AND NATIONAL ORIGIN
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BLIND ADS
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ADVERTISEMENTS PLACED BY AGENT THAT DO NOT INCLUDE THE EMPLOYING BROKER'S NAME
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NATIONAL ASSOCIATION OF REALTORS (N.A.R.)
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ESTABLISHED MLS
3 LEVELS - LOCAL, STATE & NATIONAL |
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GENDER
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PROTECTED CLASS UNDER FEDERAL FAIR HOUSING ACT OF 1968 AMENDMENT IN 1974
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FAMILIAL STATUS AND HANDICAP
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PROTECTED CLASSES UNDER FEDERAL FAIR HOUSING ACT OF 1968 AMENDMENT IN 1988
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SHERMAN ANTITRUST ACT
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PRICE FIXING, BOYCOTTING & MAKING SALE OF PRODUCT CONTIGENT ON PURCHASE OF SECOND PRODUCT PROHIBITED
MAX. $100,000 FINE AND 3 YRS. PRISON FOR INDIVIDUALS...UP TO $1,000,000 FOR CORPORATIONS ENFORCED BY FEDERAL TRADE COMMISSION (FTC) |
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REAL ESTATE SETTLEMENT AND PROCEDURES ACT (R.E.S.P.A.)
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ENSURES BUYER AND SELLER ARE KNOWLEDGABLE ABOUT SETTLEMENT COSTS
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RECOVERY FUND DETAILS 1
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FEES: $10 INDIV., $20 BROKER AT TIME OF LICENSE
LICENSEE/SPOUSE CAN NOT CLAIM |
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RECOVERY FUND DETAILS 2
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5 YR. TIME LIMIT ON FILING CLAIM
PAYS OUT MAX. $30,000 PER INCIDENT, $90,000 PER LICENSEE CAN RESULT IN LOSS OF LICENSE |
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REALTOR CODE OF ETHICS
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17 ARTICLES AND ADDITIONAL STANDARDS OF PRACTICE
MEMBERS OF N.A.R. MUST FOLLOW THIS CODE |
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VIOLATIONS OF CODE OF ETHICS
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GENERAL PUBLIC OR REALTOR MAY FILE COMPLAINT WITHIN 180 DAYS OF KNOWLEDGE OF VIOLATION
REVIEWED BY GRIEVANCE COMMITTEE AND FORWARDED TO PROFESSIONAL STANDARDS HEARING PANEL OR ARBITRATION (FOR COMMISSION DISPUTES) |
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ADVERTISING OF CLIENT PROPERTY
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BROKER MUST OBTAIN CLIENT'S WRITTEN PERMISSION TO ADVERTISE A PROPERTY
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REAL PROPERTY
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LAND AND ANYTHING ATTACHED TO IT
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FIXTURE
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PERSONAL PROPERTY CHANGED TO REAL PROPERTY BY PERMANENTLY ATTACHING IT TO THE REAL ESTATE
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PERSONAL PROPERTY
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MOVABLE ITEMS NOT ATTACHED TO REAL ESTATE
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TRADE FIXTURES
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PERSONAL PROPERTY USED IN A BUSINESS OR TRADE THAT IS ATTACHED TO REAL ESTATE
MUST BE REMOVED PRIOR TO LEASE EXPIRATION OR LANDLORD TAKES OWNERSHIP |
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CONTIGUOUS
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TOUCHING AT ANY POINT
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ABUTTING
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BUTTING AGAINST EACH OTHER
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GOVERNMENT CHECK
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MADE UP OF 16 TOWNSHIPS IN A 24 MILE SQUARE PARCEL
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PLAT MAP
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SHOWS LOT LOCATIONS AND SIZE
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ENCUMBRANCE
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ANY CLAIM ATTACHED TO REAL PROPERTY THAT MAY LESSEN ITS VALUE OR IMPAIR ITS USE
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LIEN
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CLAIM AGAINST PROPERTY OR OWNER AS SECURITY FOR DEBT
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MECHANIC'S LIEN
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LIEN PLACED ON PROPERTY FOR LABOR AND/OR MATERIAL RENDERED IN THE IMPROVEMENT OF A PROPERTY
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EASEMENT APPURTENANT
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EASEMENT THAT IS ATTACHED TO AND PASSES WITH THE LAND
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DOMINANT ESTATE (TENEMENT)
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ESTATE THAT BENEFITS FROM EASEMENT
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SERVIENT ESTATE (TENEMENT)
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ESTATE THAT IS GIVER OF EASEMENT
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PARTY WALL
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COMMON WALL BETWEEN PROPERTIES
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LICENSE
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PERMISSION TO USE LAND OF ANOTHER FOR SOME LIMITED PURPOSE
FORM OF EASEMENT CAN BE REVOKED AT ANY TIME |
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ENCROACHMENT
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UNAUTHORIZED INTRUSION OF REAL PROPERTY, REDUCING ITS VALUE
MUST BE PHYSICAL IN NATURE (i.e. ROOF, FENCE, DRIVEWAY, BARN, SHED, ETC.) |
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EGRESS
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ABILITY TO EXIT A PROPERTY
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INGRESS
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ABILITY TO ENTER A PROPERTY
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CHATTEL
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ITEM OF PERSONAL PROPERTY
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EMBLEMENTS
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FORM OF CHATTEL
i.e. ANNUAL CROPS |
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TRANSFER OF PERSONAL PROPERTY VS. REAL PROPERTY
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PERSONAL PROPERTY TRANSFERRED BY BILL OF SALE
REAL PROPERTY TRANSFERRED BY DEED |
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TESTS OF A FIXTURE
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REMOVAL
INTENTION METHOD OF ADAPTATION & ATTACHMENT MUTUAL AGREEMENT |
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LEGAL LAND DESCRIPTION
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DESCRIBES REAL PROPERTY FOR LEGAL PURPOSES
REQUIRED TO CONVEY INTEREST OR ESTATE IN REAL PROPERTY ENSURES IDENTITY OF THE PROPERTY IN THE FUTURE |
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ACRE
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43,560 SQ. FT.
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MILE
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5,280 FT.
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PRINCIPAL MERIDIAN
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CENTRAL NORTH TO SOUTH LINE
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RANGE LINES
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NORTH TO SOUTH LINES PARALLEL TO PRINCIPAL MERIDIAN
6 MILES APART- ESTABLISHES RANGES |
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BASE LINE
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CENTRAL WEST TO EAST LINE
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TOWNSHIP LINES
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WEST TO EAST LINES PARALLEL TO BASE LINE
6 MILES APART- ESTABLISHES TIERS |
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GOVERNMENT CHECK
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24 MILE SQUARE PARCEL CONTAINING 16 TOWNSHIPS
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LEGAL DESCRIPTION METHODS
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GOVERNMENT RECTANGULAR SURVEY
METES AND BOUNDS LOT, BLOCK AND TRACT |
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GOVERNMENT RECTANGULAR SURVEY
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USES PRINCIPAL MERIDIANS AND BASE LINES
TIERS AND RANGES (i.e. T2N R1E) MORE COMMON WEST OF MISSISSIPPI 35 PRINICPAL MERIDIANS AND 32 BASELINES ACROSS U.S. |
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MONUMENT
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INTERSECTION OF PRINCIPAL MERIDIAN AND BASE LINE
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METES AND BOUNDS
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BEGINS AT WELL-DEFINED POINT AND FOLLOWS EXTERIOR BOUNDARIES USING POINTS AND ANGLES, DISTANCES AND DIRECTIONS
MUST RETURN TO POINT OF BEGINNING (P.O.B.) |
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LOT, BLOCK AND TRACT
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COMMON WITH SUBDIVISIONS
RECORDED PLAT OR SURVEY WITH COUNTY CLERK IN WHICH PROPERTY IS LOCATED DESCRIBES EVEN SMALLEST PARCEL OF LAND |
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TOWNSHIPS
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6 MILES BY 6 MILES (36 SQUARE MILES)
DIVIDED INTO 36 SECTIONS OF ONE SQUARE MILE (640 ACRES) EACH |
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SECTION
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ONE SQUARE MILE EACH
CONTAINS 640 ACRES LOCATED BY NUMBER, TOWNSHIP AND RANGE |
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CORRECTION LINES
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ADJUSTMENTS EVERY 24 NORTH/SOUTH OF BASE LINE AND EAST/WEST OF PRINCIPAL MERIDIAN
11 FRACTIONAL SECTIONS AND 25 STANDARD SECTIONS WITHIN EACH AFFECTED TOWNSHIP |
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TYPES OF PROPERTY RESTRICTIONS
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ENCUMBRANCES
LIENS EASEMENTS ENCROACHMENTS CC&Rs |
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ENCUMBERANCE EXAMPLES
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LIENS
MORTGAGE LOANS EASEMENTS ENCROACHMENTS LEASES UNPAID TAXES |
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TYPES OF LIENS
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SPECIFIC LIEN
GENERAL LIEN VOLUNTARY LIEN INVOLUNTARY LIEN |
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FRACTIONAL SECTIONS
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ALWAYS ON NORTH AND WEST SIDE OF EACH TOWNSHIP (1, 2, 3, 4, 5, 6, 7, 18, 19, 30, 31)
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SPECIFIC LIEN
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LIEN OR CHARGE AGAINST A SPECIFIC PROPERTY
i.e. PROPERTY TAXES |
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GENERAL LIEN
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CHARGE AGAINST ALL OF THE DEBTOR'S REAL AND PERSONAL PROPERTY
i.e. INCOME TAXES, JUDGEMENTS |
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VOLUNTARY LIEN
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CREATED BY INTENTIONAL ACTION OF PROPERTY OWNER
i.e. MORTGAGE LIEN |
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INVOLUNTARY LIEN
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CREATED BY LAW
i.e. PROPERTY TAXES, ASSESSMENTS |
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MECHANIC'S LIEN
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SPECIFIC, INVOLUNTARY LIEN AGAINST PROPERTY FOR LABOR/MATERIAL IMPROVEMENTS
PRIORITIZED BY WORK START DATE - MUST BE RECORDED TO ESTABLISH POSITION FILING TIMES: GENERAL CONTRACTOR- 120 DAYS FROM JOB COMPLETION SUBCONTRACTOR- 120 DAYS FROM COMPLETION OF ENTIRE PROJECT (NOT JUST SUB'S PART) |
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EASEMENT FACTS
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INTEREST IN LAND, BUT NOT OWNERSHIP
STATUTE OF FRAUDS APPLIES |
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TYPES OF EASEMENTS
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EASEMENT BY NECESSITY
EASEMENT BY PRESCRIPTION EASEMENT IN GROSS LICENSE EASEMENT APPURTENANT |
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EASEMENT BY NECESSITY
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CREATED BY COURT OF LAW IN CASES WHERE JUSTICE AND NECESSITY DICTATE IT
i.e. LAND-LOCK (NO INGRESS OR EGRESS) |
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EASEMENT BY PRESCRIPTION
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A RIGHT ACQUIRED BY AN ADVERSE USER TO US THE LAND OF ANOTHER
ACQUIRED BY ADVERSE POSSESSION REQUIRED USE OF AT LEAST 10 YEARS |
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RIGHT OF EJECTMENT
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THE RIGHT OF A PROPERTY OWNER TO EJECT AN ADVERSE USER WHO HAS NOT MET THE 10 YEAR USAGE REQUIREMENT TO OBTAIN EASEMENT BY PRESCRIPTION
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REQUIREMENTS OF ADVERSE POSSESSION (P.O.A.C.H.)
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USER HAS TO HAVE ADVERSE, HOSTILE, OPEN, ACTUAL, NOTORIOUS (NO PERMISSION) AND CONTINUOUS USE OF LAND
P.O.A.C.H. - Possession, Open, Actual, Continuous, Hostile |
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EASEMENT IN GROSS
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LIMITED RIGHT OF ONE PERSON TO USE ANOTHER'S LAND
SIMILAR TO LICENSE, BUT IRREVOCABLE FOR OWNER'S LIFETIME PERSONAL IN NATURE...DOES NOT ATTACH TO LAND. |
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PERSONAL EASEMENTS
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FORM OF EASEMENT IN GROSS
NOT ASSIGNABLE i.e. OWNER GIVES NEIGHBOR PERMISSION TO CROSS THROUGH LAND TO FISH IN LAKE |
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COMMERCIAL EASEMENTS
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FORM OF EASEMENT IN GROSS
ASSIGNABLE i.e. INSTALLATION OF PIPELINES OR POWER LINES |
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TERMINATION OF EASEMENTS
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OWNER OF DOMINANT ESTATE BECOMES OWNER OF SERVIENT ESTATE (MERGER)
ABANDONMENT OF EASEMENT (NOT USED FOR 10 YEARS) QUITCLAIM DEED PURPOSE OF EASEMENT CEASES TO EXIST EMINENT DOMAIN OR ADVERSE POSSESSION IMPROPER PURPOSE (OVERBURDENING) |
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COVENANTS, CONDITIONS AND RESTRICTIONS (CC&Rs)
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PRIVATE RESTRICTIONS ON USE OF REAL PROPERTY
ENFORCED IN COURT BY PROPERTY OWNERS |
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ADVERTISING BY BROKERAGES
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MUST DISPLAY "EQUAL HOUSING OPPORTUNITY" LOGO
MAY NOT BE MISLEADING, DECEPTIVE OR PREFERENTIAL TO CERTAIN POPULATION MUST STATE BROKERAGE AND DESIGNATED BROKER'S NAME |
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ADVERTISING BY SUBDIVIDERS
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CAN NOT ADVERTISE AS "NO RISK" OR SUGGEST ENDORSEMENT BY R.E. COMMISSIONER
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ADVERTISING BY GROUPS/TEAMS
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MEMBERS OF "GROUP" OR "TEAM" MUST BE EMPLOYED BY SAME BROKER
CANNOT REFER TO TRADE NAME OR DBA (DOING BUSINESS AS...) ONLY |
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UNIFORM RESIDENTIAL LANDLORD AND TENANT ACT OF 1973
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LANDLORD MUST PROVIDE 48 HOURS NOTICE TO ENTER PREMISES
TENANTS ARE RESPONSIBLE FOR THEIR GUESTS NO MORE THAN 2 PEOPLE TO EACH BEDROOM TENANT MUST KNOW RULES AT SIGNING OF RENTAL AGREEMENT |
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LEASE
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CONTRACT BETWEEN LESSOR AND LESSEE THAT TRANSFERS THE RIGHT TO POSSESSION AND USE OF A PROPERTY FOR A SPECIFIC PERIOD OF TIME IN EXCHANGE FOR RENT
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LANDLORD ON LEASE
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LESSOR
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TENANT ON LEASE
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LESSEE
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SUBLETTING
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TRANSFERRING PART OF A LESSEE'S INTEREST TO ANOTHER FOR A PORTION OF THE LEASE TERM
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ACTUAL EVICTION
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LEGAL PROCESS THAT RESULTS IN TENANT BEING PHYSICALLY REMOVED FROM THE LEASED PREMISES
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CONSTRUCTIVE EVICTION
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ACTIONS OF A LANDLORD THAT DISTURB OR IMPAIR A TENANT'S ENJOYMENT OF THE LEASED PREMISES AND CAUSES TENANT TO LEAVE
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ASSIGNMENT
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RIGHT AND INTEREST IN A PROPERTY IS TRANSFERRED TO ANOTHER FOR THE ENTIRE TERM
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DISTRAINT
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LANDLORD'S LEGAL RIGHT TO SEIZE A TENANT'S PERSONAL PROPERTY FOR DAMAGES OR RENTS IN ARREARS UNDER COURT ORDER
ILLEGAL IN ARIZONA |
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PUBLIC ACCOMODATION
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PRIVATELY OWNED ENTITY THAT PROVIDES SERVICES OR ACCOMMODATIONS TO THE PUBLIC
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REVERSIONARY RIGHTS
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RIGHT TO TAKE BACK POSSESSION OF A PROPERTY IF LEASE ENDS
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PROPERTY MANAGER
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MUST HOLD R.E. LICENSE IF MANAGING 2 OR MORE PROPERTIES FOR SOMEONE ELSE
GENERATE INCOME FOR OWNERS, MANAGE STAFF, SECURE TENANTS, CARE FOR PROPERTY, COLLECT RENTS, ETC. |
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MAINTENANCE OF RENTAL AGREEMENTS
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ALL RENTAL AGREEMENTS MUST BE KEPT FOR 1 YEAR FROM EXPIRATION DATE
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C.P.M
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CERTIFIED PROPERTY MANAGER
DESIGNATION GIVEN BY INSTITUTE OF REAL ESTATE MANAGEMENT |
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RESIDENTIAL PROPERTY MANAGERS
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MUST OBEY ALL FEDERAL FAIR HOUSING LAWS REGARDING RENTAL OF RESIDENTIAL PROPERTY
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COMMERCIAL PROPERTY MANAGERS
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INCOME PRODUCING PROPERTIES AND PUBLIC ACCOMODATIONS
MUST COMPLY WITH A.D.A. IF FEWER THAN 25 EMPLOYEES, ADA COVERS HIRING OF EMPLOYEES AND INTERVIEWING POTENTIAL TENANTS |
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A.D.A.
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AMERICANS WITH DISABILITIES ACT
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PUBLIC ACCOMODATIONS
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MUST OFFER PERSONS WITH DISABILITIES FULL ACCESS TO FACILITIES AND SERVICES
PURPOSE OF FACILITIES DICTATES DESIGN AND FUNCTION (i.e. NURSING/RETIREMENT HOMES, THEATRES, SCHOOLS, ETC.) |
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MANAGEMENT CONTRACT
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CONTRACT BETWEEN PROPERTY OWNER AND BROKER/PROPERTY MANAGER
NAMES PARTIES, STREET ADDRESS (INFORMAL DESCRIPTION) AND TERMS, SUCH AS POWER TO HIRE/FIRE/SUPERVISE EMPLOYEES, RENT/OPERATE/MANAGE PREMISES, ETC. MUST HAVE BEGINNING AND END DATE AND CONTAIN TERMINATION PROVISION |
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PAYMENT OF PROPERTY MANAGERS
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CAN BE PAID BY FLAT FEE OR PERCENTAGE OF PROPERTY'S REVENUE
MAY BE PAID SEPARATE FEE FOR CERTAIN ACTIVITIES (OVERTIME, CLEANING APARTMENTS, ETC.) BONUS CAN BE GIVEN FOR REACHING REVENUE GOALS |
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TERMINATION OF PROPERTY MANAGER
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PROPERTY MANAGER MUST:
PROVIDE COPIES OF RENTAL AGREEMENTS IMMEDIATELY PROVIDE LIST OF ALL SECURITY DEPOSITS WITHIN 5 DAYS PROVIDE REIMBURSEMENT OF ALL MONIES REMAINING IN PROPERTY ACCOUNTS (EXCEPT FOR UNPAID OBLIGATIONS) WITHIN 35 DAYS PROVIDE FINAL ACCOUNTING OF ALL MONIES, INCLUDING BANK RECONCILIATION, WITHIN 75 DAYS |
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FINDERS FEE FOR TENANTS
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CAN NOT EXCEED $100
CAN NOT EXCEED 6 TIMES IN ANY 12-MONTH PERIOD CAN ONLY BE APPLIED AS CREDIT TOWARDS RENT |
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LEASES
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ALL LEASES MUST BE IN WRITING UNLESS FOR A PERIOD OF ONE YEAR OR LESS
USUALLY NOT RECORDED BOTH LANDLORD AND TENANT MUST SIGN |
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CONTRACT RENT
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RENTAL AMOUNT ON LEASE CONTRACT
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ECONOMIC RENT
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RENTAL AMOUNT THAT CURRENT MARKET IS DEMANDING
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TYPES OF LEASES
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GROSS
NET GROUND PERCENTAGE LEASE OPTION SALE AND LEASEBACK |
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COMPONENTS OF VALID LEASE
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LEGAL ABILITY OF PARTIES TO ENTER INTO A VALID CONTRACT
MUST BE FOR LEGAL PURPOSE OFFER AND ACCEPTANCE - MEETING OF MINDS AND SIGNATURES OF LESSOR/LESSEE CONSIDERATION (RENT) PROPERTY DESCRIPTION (ADDRESS) TERMS CLEARLY LABELED |
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GROSS LEASE
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TENANT PAYS FIXED RENT
LANDLORD PAYS ALL TAXES, INSURANCE, MORTGAGE, REPAIRS, ETC. MOST COMMON FOR RESIDENTIAL PROPERTIES |
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NET LEASE
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TENANT PAYS RENT AND MOST OF ALL PROPERTY CHARGES
GENERALLY LONG-TERM USED PRIMARILY FOR COMMERCIAL/INDUSTRIAL |
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GROUND LEASE
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ALSO CALLED "LAND LEASE"
LEASING LAND ALONE SEPARATES OWNERSHIP OF LAND FROM BUILDING OWNERSHIP USUALLY 99 YEAR LEASE |
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PERCENTAGE LEASE
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LESSEE PAYS A PERCENTAGE OF INCOME (i.e. RETAIL)
USUALLY IN ADDITION TO GROSS OR NET LEASE |
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LEASE OPTION
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FIRST RIGHT OF REFUSAL
RUNS WITH THE LAND NO EXTENSION BEYOND TERM OF LEASE CONSIDERATION CAN BE RENT CAN BE ASSIGNED SEPARATELY (UNLESS NON-ASSIGNMENT CLAUSE IS USED) DELINQUENT RENT CAN TERMINATE OPTION |
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FIRST RIGHT OF REFUSAL
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TENANT GETS FIRST OPPORTUNITY TO PURCHASE PROPERTY
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SALE AND LEASEBACK
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OWNER SELLS PROPERTY AND LEASES IT BACK TO PREVIOUS OWNER
NEW OWNER BECOMES LESSOR, PREVIOUS OWNER BECOMES LESSEE |
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TERMINATION OF MONTH-TO-MONTH LEASE
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30 DAY NOTICE
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CHANGING OF PROPERTY RULES BY LANDLORD
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30 DAY NOTICE TO TENANTS
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EXEMPTIONS FROM AZ LANDLORD AND TENANT ACT
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MOBILE HOMES
HOTELS FRATERNITY, SORORITY DORMITORIES PUBLIC HOUSING (GOV'T. SUBSIDIZED, SECTION-8, ETC.) |
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AZ LANDLORD AND TENANT ACT
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AT MOVE-IN, TENANT MUST BE GIVEN:
NAME AND ADDRESS OF PROPERTY MANAGER OR OWNER NOTICE WHERE TO OBTAIN COPIES OF AZ LANDLORD TENANT ACT POOL SAFETY NOTICE LEAD-BASED PAINT DISCLOSURE (FOR PROPERTIES BUILT PRIOR TO 1978) INSPECTION FORM IDENTIFYING PRE-EXISTING CONDITIONS |
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MOVE-OUT INSPECTION OF LEASED PROPERTY
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TENANT SHOULD BE PRESENT (WRITTEN NOTICE GIVEN BY LANDLORD)
LANDLORD MAY APPLY DEPOSIT AGAINST ANY RENT IN ARREARS OR DAMAGES TO PREMISES ITEMIZED LIST OF DAMAGES MUST BE GIVEN TO TENANT AND ANY BALANCE RETURNED |
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RETURNING OF DEPOSITS FOR LEASED PROPERTY
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ANY BALANCE DUE MUST BE RETURNED TO TENANT WITHIN 14 BUSINESS DAYS
IF NOT RETURNED, TENANT MAY RECOVER UP TO TWICE AMOUNT WRONGFULLY WITHHELD |
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TERMINATIONS OF LEASE AGREEMENTS
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BREACH
CONSTRUCTIVE EVICTION ACTUAL EVICTION ABBANDONMENT (SKIPPING) DESTRUCTION OR CONDEMNATION OF PREMISES MUTUAL AGREEMENT EXPIRATION DEATH DOES NOT TERMINATE A LEASE (FALLS TO HEIRS) |
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ELEMENTS OF CONSTRUCTIVE EVICTION
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LANDLORD HAS 10 DAYS TO REMEDY/FIX PROBLEMS
TENANT CAN REPAIR PROPERTY AND BE REIMBURSED UP TO $300 OR HALF OF MONTHLY RENT AMOUNT, WHICHEVER IS GREATER TERMINATES LEASE WITHOUT LIABILITY FOR ANY FURTHER RENT |
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ELEMENTS OF ACTUAL EVICTION
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TENANT IS FORCED TO MOVE OUT
5 DAYS NOTICE IS REQUIRED DISTRAINT CAN NOT BE USED IN ARIZONA |
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ABANDONMENT (SKIPPING)
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TENANT MOVES WITHOUT NOTICE/PAYMENT OF RENT
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SECURITY DEPOSITS
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MAXIMUM DEPOSIT OF ONE AND ONE-HALF MONTH'S RENT AMOUNT
TREATED AS TRUST MONEY: CAN BE INTEREST BEARING MUST SPECIFY WHERE INTEREST WILL GO BROKER MAY HAVE $500 OF OWN MONEY IN TRUST ACCOUNT SIGNERS CAN BE ANY EMPLOYEE/AGENT OF BROKER |
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CLEANING AND DECORATING DEPOSITS
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FORM OF SECURITY DEPOSIT
MUST DISCLOSE WHEN NON-REFUNDABLE |
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BREACH
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VIOLATION OF ANY OF THE TERMS OF THE AGREEMENT WITHOUT LEGAL EXCUSE
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NON-DISTURBANCE CLAUSE IN LEASE
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TENANT CAN NOT BE DISTURBED IF THERE IS FORECLOSURE ON LESSOR
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ASSIGMENT OF RENTS CLAUSE IN LEASE
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LENDER MAY COLLECT RENT IN THE EVENT THAT LESSOR DEFAULTS ON LOAN
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SALESPERSON
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ONE WHO PERFORMS REAL ESTATE ACTIVITIES WHILE EMPLOYED BY OR ASSOCIATED WITH A LICENSED REAL ESTATE BROKER
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DESIGNATED BROKER
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INDIVIDUAL(S) WHO SUPERVISES ALL ACTIVITIES OF SALES AGENTS AND IS LIABLE FOR THEIR ACTIONS
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EMPLOYING BROKER
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FIRM NAME OR ENTITY UNDER WHOM SALESPEOPLE ARE EMPLOYED (i.e. CENTURY 21, REMAX, ETC.)
NOT A PERSON |
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ASSOCIATE BROKER
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A LICENSED REAL ESTATE BROKER WORKING UNDER A DESIGNATED BROKER
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REFERRING BROKER
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REAL ESTATE BROKER WHO RECEIVES A REFERRAL FEE
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AGENT
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CAN BE BROKER OR SALESPERSON
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TEMPORARY BROKER
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BROKER THAT MANAGES AGENTS IN ABSENCE OF DESIGNATED BROKER
NO MORE THAN 90 DAYS MAY BE RENEWED UP TO 15 MONTHS |
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COOPERATING BROKER
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A BROKER WHO ASSISTS ANOTHER IN A REAL ESTATE TRANSACTION
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WHEN LICENSE IS NEEDED
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LICENSE IS NEEDED TO DISCUSS PRICING, TERMS AND/OR AVAILABILITY OF REAL PROPERTY
EXEMPTIONS: EXECUTOR OF AN ESTATE "FOR SALE BY OWNER" ATTORNEYS: POWER OF ATTORNEY PROPERTY MANAGER OF JUST 1 PROPERTY |
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COMMISSIONS
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PAID AT CLOSE OF ESCROW
PAID TO LISTING FIRM NEGOTIABLE BETWEEN PRINCIPAL AND AGENT CAN NOT BE RECEIVED BY UNLICENSED PEOPLE |
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PAYMENT OF COMMISSIONS
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PAID TO AGENT THROUGH EMPLOYING BROKER
PARTIES RECEIVING COMMISSION MUST BE DISCLOSED IF AGENT LEAVES BROKERAGE WHILE TRANSACTION IS IN ESCROW, AGENT WILL BE PAID DIRECTLY BY FORMER EMPLOYING BROKER |
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EARNING COMMISSIONS
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COMMISSIONS ARE EARNED WHEN AGENT FINDS A READY, ABLE AND WILLING BUYER THAT WRITES AN ACCEPTABLE OFFER
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AREAS LICENSED AGENTS CAN WORK IN
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COMMERCIAL
NEW HOME SALES TIMESHARES RESIDENTIAL RESALE OR RENTALS PROPERTY MANAGEMENT MOBILE HOMES INCLUDING LAND (NOT REAL PROPERTY UNLESS IT GOES WITH LAND) |
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N.A.R.
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NATIONAL ASSOCIATION OF REALTORS
IF BROKER BELONGS TO N.A.R., SO MUST EMPLOYED SALESPERSONS |
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M.L.S.
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MULTIPLE LISTING SERVICE
SALESPEOPLE DO NOT HAVE TO BELONG, EVEN IF THEIR BROKER DOES |
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A.D.R.E.
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ARIZONA DEPARTMENT OF REAL ESTATE
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REQUIREMENTS FOR SALESPERSON LICENSE
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90 HOURS EDUCATION CERTIFICATE
PASS EXAM WITH 75% OR BETTER 18 YEARS OLD FINGERPRINTS 6 HOURS CONTRACT WRITING CERTIFICATE AZ RESIDENCY IS NOT REQUIRED |
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REQUIREMENTS FOR BROKER LICENSE
|
90 HOURS EDUCATION CERTIFICATE
PASS EXAM WITH 75% OR BETTER ACTIVE SALES LICENSE FOR 3 OUT OF PAST 5 YEARS FINGERPRINTS BROKER MANAGEMENT CLINIC CERTIFICATE AZ RESIDENCY IS NOT REQUIRED |
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LICENSE ACTIVATION
|
MUST ACTIVATE LICENSE WITHIN 1 YEAR OF PASSING EXAM
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LICENSE RENEWAL
|
EXPIRATION AFTER 4 YEARS (2 YEARS ON AZ TEST)
24 HOURS CONTINUING EDUCATION VALID UNTIL LAST DAY OF MONTH IN WHICH IT WAS ISSUED (i.e. JUNE 3, 2009 to JUNE 30, 20011) |
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CONTINUING EDUCATION
|
24 HOURS REQUIRED EVERY 2 YEARS:
3 HOURS LEGAL ISSUES 3 HOURS AGENCY LAW 3 HOURS FAIR HOUSING 3 HOURS CONTRACT LAW 3 HOURS DISCLOSURE 6 HOURS GENERAL 3 HOURS COMMISSIONER'S STANDARDS (DESIGNATED BROKER MUST HAVE A BROKER MANAGEMENT CLINIC) |
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FAILURE TO RENEW LICENSE
|
SEVERANCE OF LICENSE FROM EMPLOYING BROKER
CAN NOT PRACTICE R.E. 1 YEAR GRACE PERIOD TO MAKE UP CONTINUING EDUCATION AND PAY LATE FEE OF $10 PER MONTH (UP TO 6 MONTHS - $60) AFTER GRACE PERIOD, LICENSEE LOSES LICENSE AND MUST TAKE STATE EXAM AGAIN (PRELICENSING CLASSES GOOD FOR 10 YEARS) |
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NOTIFICATION TO A.D.R.E.
|
MUST NOTIFY A.D.R.E. WITHIN 10 DAYS OF:
CHANGE OF ADDRESS OF RESIDENCE OR BUSINESS CONVICTED IN LAWSUIT REGARDING REAL ESTATE OR ETHICS CONVICTION OF A CRIME BROKER MOVES |
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BROKER RELOCATION
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MUST NOTIFY A.D.R.E. WITHIN 10 DAYS OF DATE BROKER MOVES
MUST TAKE BROKER SIGN DOWN IMMEDIATELY ("ASAP" ON STATE TEST) |
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REAL ESTATE ADVISORY BOARD
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9 MEMBERS - 2 BROKERS, 2 RESIDENTIAL BROKERS, 2 SUBDIVIDERS AND 3 PUBLIC MEMBERS
GOVERNOR APPOINTS MEMBERS TO TERMS OF 6 YEARS EACH ZERO COMPENSATION, BUT REIMBURSED FOR EXPENSES EVALUATES COMMISSIONER ON YEARLY BASIS FOR GOVERNOR SUBMITS RECOMMENDATIONS TO COMMISSIONER |
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AZ REAL ESTATE COMMISSIONER
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APPOINTED BY GOVERNOR
NO TERM OF OFFICE CAN NOT HOLD ACTIVE R.E. LICENSE DURING TERM MUST HAVE 5 YEARS EXPERIENCE IN RELATED INDUSTRY (BANKING, R.E., TITLE INSURANCE, MORTGAGE, ETC.) AND 3 YEARS ADMINISTRATIVE EXPERIENCE |
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DUTIES OF R.E. COMMISSIONER
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GOVERNS REQUIREMENTS OF ALL AGENTS
HAS AUTHORITY TO INVESTIGATE ANY LICENSEE AT ANY TIME...MUST INVESTIGATE UPON WRITTEN COMPLAINT CREATES RULES AND REGULATIONS MANAGES ALL EMPLOYEES OF A.D.R.E. ADMINISTERS RECOVERY FUND ($600,000) PROVIDES APPROVAL FOR SUBDIVIDING LAND |
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EXEMPTIONS TO R.E. COMMISSIONER'S DUTIES
|
COMMISSIONER DOES NOT:
SET COMMISSION RATES CREATE LAWS TERMINATE R.E. LICENSES WITHOUT PROPER LEGAL HEARING SETTLE DISPUTES BETWEEN LICENSEES (MUST BE HANDLED BY COURT) |
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1896 - PLESSY VS. FERGUSON
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"SEPARATE BUT EQUAL" DOCTRINE LEGALIZED/INSTITUTIONALIZED SEGREGATION
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1948 - SHELLY VS. KRAEMER
|
RULED THAT RACIALLY RESTRICTIVE COVENANTS BY STATE COURTS VIOLATED THE 14TH AMENDMENT
JUDICIAL SYSTEM NO LONGER ALLOWED TO ENFORCE RACIAL DISCRIMINATION |
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1954 - BROWN VS. TOPEKA BOARD OF EDUCATION
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OUTLAWED SEGREGATION IN PUBLIC SCHOOLS
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1968 - JONES VS. MAYER
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RULED THE CIVIL RIGHTS ACT BARRED ALL RACIAL DISCRIMINATION PRIVATELY OR PUBLICLY IN THE SALE OR RENTAL OF A PROPERTY
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FEDERAL FAIR HOUSING ACT
|
PROHIBITS DISCRIMINATION BASED ON RACE, COLOR, NATIONAL ORIGIN.
PROHIBITS DISCRIMINATION IN CONTEXT OF ADVERTISING EXCLUDES COMMERCIAL/INDUSTRIAL PROPERTIES 1972 AMENDMENT INSTITUTED USE OF EQUAL HOUSING OPPORTUNITY POSTER |
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OFFICE OF EQUAL OPPORTUNITY (O.E.O.)
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ADMINISTERS FEDERAL FAIR HOUSING ACT UNDER DIRECTION OF THE SECRETARY OF H.U.D.
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EQUAL OPPORTUNITY POSTERS
|
MUST BE DISPLAYED AT BROKERAGE HOUSES, MODEL HOME SITES, MORTGAGE OFFICES AND RELATED BUSINESSES
MUST SHOW EQUAL HOUSING OPPORTUNITY LOGO AND STATEMENT FAILURE TO DISPLAY POSTER CONSTITUTES EVIDENCE OF DISCRIMINATION |
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REHABILITATION ACT OF 1973
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PROHIBITED DISCRIMINATION AGAINST PERSONS WITH DISABILITIES IN ALL FEDERALLY-ASSISTED PROGRAMS, INCLUDING HOUSING
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HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
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PROHIBITED DISCRIMINATION AGAINST GENDER (INCLUDES SEXUAL HARASSMENT, BUT NOT SEXUAL ORIENTATION)
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HANDICAP
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A PHYSICAL OR MENTAL IMPAIRMENT WHICH SUBSTANTIALLY LIMITS ONE OR MORE OF A PERSON'S MAJOR LIFE ACTIVITIES
INCLUDES CANCER, AIDS, ALCOHOLISM, SPEECH, VISUAL OR HEARING IMPAIRMENT, BUT NOT DRUG ABUSERS OR DRUG CONVICTS |
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AIDS DISCLOSURE
|
IF UNSOLICITED, DISCLOSURE IS ILLEGAL
IF SOLICITED, IT IS SUGGESTED NOT TO RESPOND...DIRECT BUYERS TO BUYER ADVISORY FOR MORE INFORMATION |
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1988 FAIR HOUSING AMENDMENTS ACT
|
ADDED FAMILIAL STATUS AND HANDICAP AS PROTECTED CLASSES TO F.F.H. ACT OF 1968
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MODIFICATIONS TO PREMISES FOR HANDICAP
|
PERSONS WITH DISABILITIES ARE ALLOWED, AT THEIR OWN EXPENSE, TO MAKE REASONABLE MODIFICATIONS TO A DWELLING (i.e. WIDENING DOORWAYS, INSTALLING GRAB BARS, ALLOWING ANIMAL ASSISTANCE TO VISUALLY IMPAIRED IN LIEU OF "NO PETS" POLICY, ETC.)
TENANT IS RESPONSIBLE FOR RESTORING PROPERTY ELEVATORS DO NOT HAVE TO BE INSTALLED IN MULTI-FAMILY BUILDINGS (DISABLED CAN RESIDE ON BOTTOM FLOOR) |
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FAIR HOUSING NON-COMPLIANCE EXAMPLES
|
REFUSING TO SELL, RENT, DEAL OR NEGOTIATE WITH ANY PERSON
MISREPRESENTING TERMS OR CONDITIONS TO INFLUENCE OR DETER A BUYER, SELLER, RENTER, ETC. PLACING A "SOLD" SIGN ON UNSOLD PROPERTY TO PREVENT CERTAIN INDIVIDUALS FROM GETTING IT |
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FAIR HOUSING NON-COMPLIANCE EXEMPTION
|
F.F.H. ACT DOES NOT REQUIRE THAT A DWELLING BE MADE AVAILABLE TO AN INDIVIDUAL WHOSE TENANCY WOULD CONSTITUTE A DIRECT THREAT TO THE HEALTH OR SAFETY OF OTHER INDIVIDUALS OR WHOSE TENANCY WOULD RESULT IN SUBSTANTIAL PHYSICAL DAMAGE TO THE PROPERTY OF OTHERS
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AMERICANS WITH DISABILITIES ACT (A.D.A.) OF 1990
|
ELIMINATED DISCRIMINATION DIRECTED TOWARDS INDIVIDUALS WITH DISABILITIES
APPLIES TO FACILITIES THAT OPERATE A PLACE OF ACCOMODATION PUBLIC FACILITIES, GOODS AND SERVICES MUST BE ACCESSIBLE TO PERSONS WITH DISABILITIES |
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TRUTH IN LENDING ACT
|
IMPLEMENTED BY REGULATION Z OF FEDERAL RESERVE BOARD
LENDERS MUST FULLY DISCLOSE ALL FINANCE CHARGES AND APR R.E. ADVERTISING MUST SHOW APR WHENEVER MONTHLY PAYMENTS OR INTEREST RATES ARE QUOTED |
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EXEMPTIONS FROM TRUTH IN LENDING ACT
|
COMMERCIAL AND AGRICULTURAL LOANS
PERSONAL PROPERTY CREDIT TRANSACTIONS OVER $25,000 |
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EQUAL CREDIT OPPORTUNITY ACT
|
ESTABLISHED IN 1974 UNDER CONSUMER CREDIT PROTECTION ACT
CREDIT MUST BE BASED ON FAIRNESS AND IMPARTIALITY WITHOUT DISCRIMINATION LENDERS MUST GIVE APPLICANTS WRITTEN REASONING FOR REJECTION WITHIN 30 DAYS |
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FAIR CREDIT REPORTING ACT
|
CREDIT AGENCIES MUST PROVIDE CURRENT, ACCURATE INFORMATION
LIMITS WHO HAS ACCESS TO A PERSON'S CREDIT HISTORY |
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STEERING
|
DIRECTING BUYER(S) TO OR AWAY FROM CERTAIN LISTINGS
CAN NOT ADVERTISE, WORD LISTINGS OR MAKE STATEMENTS DIRECTED TOWARDS ONE GROUP |
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REDLINING
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DENYING LOANS BASED ON OPINION OF PROPERTY VALUES, MINORITY GROUPS, SPECIAL CONDITIONS, ETC.
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BLOCKBUSTING
|
BROKER HOPES TO PROFIT BY PERSUADING OWNERS TO ENTER INTO REAL ESTATE TRANSACTIONS BY TELLING THEM THAT A CHANGE IS/MAY OCCUR IN THE NEIGHBORHOOD IN REGARDS TO RACE, SEX, RELIGION, COLOR, HANDICAP OR FAMILIAL STATUS
ALSO CALLED "INDUCING PANIC" |
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EXEMPTIONS TO FAIR HOUSING
|
SALE OR RENTAL OF SINGLE FAMILY HOUSING IF NO BROKER OR DISCRIMINATORY ADVERTISING IS USED
RENTAL OF ROOMS OR UNITS IN OWNER-OCCUPIED MULTIPLE FAMILY DWELLING FOR 2-4 FAMILIES PRIVATE CLUBS AND RELIGIOUS ORGANIZATIONS CAN GIVE PREFERENCE TO OWN MEMBERS COMMERCIAL OR INDUSTRIAL PROPERTIES HOUSING EXCLUSIVELY FOR OLDER PERSONS |
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HOUSING EXCLUSIVELY FOR OLDER PERSONS
|
ONLY FAMILIAL STATUS IS PROTECTED
62 YEARS OF AGE AND OLDER HOUSING INTENDED AND OPERATED FOR OCCUPANCY BY AT LEAST ONE PERSON 55 YEARS OF AGE OR OLDER PER UNIT IN AT LEAST 80% OF UNITS HOUSING PROVIDED UNDER ANY STATE OR FEDERAL PROGRAM THAT SECRETARY OF H.U.D. HAS DETERMINED IS SPECIFICALLY DESIGNED AND OPERATED TO ASSIST ELDERLY PATIENTS |
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REGULATION Z
|
IMPLEMENTED BY FEDERAL RESERVE BOARD
ESTABLISHED TRUTH IN LENDING ACT |
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NONCOMPLIANCE OF FAIR HOUSING
|
CIVIL ACTION IN A U.S. DISTRICT COURT WITHIN 1 YEAR
ENFORCED BY H.U.D. ADMINISTRATIVE LAW JUDGE |
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NONCOMPLIANCE PENALTIES FOR FAIR HOUSING
|
$10,000 FOR FIRST OFFENCE (MINIMUM PENALTY)
$25,000 FOR SECOND OFFENCE WITHIN 5 YEARS $50,000 FOR FURTHER VIOLATIONS WITHIN 7 YEARS |
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HYPOTHECATE
|
TO PLEDGE PROPERTY AS SECURITY FOR A LOAN WITHOUT GIVING UP POSSESSION
|
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COLLATERAL
|
PROPERTY THAT IS PLEDGED AS SECURITY FOR A DEBT
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EQUITY
|
VALUE OVER AND ABOVE WHATEVER IS NOT DEBT
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PROMISSORY NOTE
|
UNCONDITIONAL PROMISE MADE IN WRITING TO REPAY A DEBT
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MORTGAGE
|
WRITTEN INSTRUMENT TO SECURE REPAYMENT OF A DEBT FOR REAL PROPERTY
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MORTGAGOR
|
BUYER/BORROWER IN A MORTGAGE
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MORTGAGEE
|
LENDER IN A MORTGAGE
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ASSIGNMENT
|
WHEN A MORTGAGE IS SOLD OR ASSIGNED TO ANOTHER LENDER
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TRUST DEED
|
LEGAL DOCUMENT IN WHICH THE TITLE TO THE PROPERTY IS TRANSFERRED BY A BORROWER TO A THIRD PARTY AS SECURITY FOR THE BENEFICIARY
|
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TRUSTOR
|
BUYER/BORROWER IN A DEED OF TRUST
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TRUSTEE
|
IMPARTIAL THIRD PARTY IN A DEED OF TRUST
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BENEFICIARY
|
LENDER IN A DEED OF TRUST
|
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POWER OF SALE
|
PERMITS THE TRUSTEE TO SELL THE PROPERTY WITHOUT A COURT OF LAW IF THE BORROWER DEFAULTS
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CONTRACT LAW FOR MORTGAGES
|
MUST BE IN WRITING
NAME OF COMPETENT PARTIES LEGAL DESCRIPTIONS CONSIDERATION STATE THE DEBT SIGNED BY BORROWER DEFEASANCE CLAUSE |
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DISCOUNT POINTS
|
PERCENTAGE OF LOAN AMOUNT CHARGED TO BORROWER TO "BUY DOWN" LOAN
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LIEN THEORY
|
MORTGAGEE RECORDS A LIEN ON THE PROPERTY AND MORTGAGOR RETAINS TITLE
ARIZONA USES THIS THEORY |
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TITLE THEORY
|
MORTGAGEE HOLDS TITLE UNTIL MORTGAGOR REPAYS IN FULL (i.e. SELLER FINANCING)
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INTERMEDIARY THEORY
|
LENDER HAS TO FORECLOSE TO OBTAIN TITLE
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SATISFACTION OF MORTGAGE OBLIGATION
|
MORTGAGE PAID IN FULL
A SATISFACTION PIECE IS RECORDED TO RELEASE THE DEBT (DEED OF RELEASE OR RECONVEYANCE) MUST BE DONE WITHIN 30 DAYS OF FULL PAYMENT |
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TYPES OF MORTGAGE FORECLOSURES
|
JUDICIAL
NONJUDICIAL STRICT FORECLOSURE |
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JUDICIAL FORECLOSURE
|
PROPERTY MAY BE SOLD BY COURT ORDER AFTER MORTGAGEE GIVES PUBLIC NOTICE
|
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NONJUDICIAL FORECLOSURE
|
SALE OF PROPERTY WITHOUT COURT PROCEEDINGS
|
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STRICT FORECLOSURE
|
COURT GIVES LEGAL TITLE TO LENDER WITHOUT PUBLIC NOTICE
NOT USED IN ARIZONA |
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MORTGAGE FORECLOSURE
|
PUBLIC SALE OF PROPERTY TO SATISFY DEBT
SUCCESSFUL BIDDER GETS SHERIFF'S DEED 6-MONTH REDEMPTION PERIOD |
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DEFICIENCY JUDGEMENT
|
JUDGEMENT AGAINST FORECLOSED BORROWER FOR AMOUNT OF DEBT THAT SALE OF PROPERTY WAS INSUFFICIENT TO REPAY
|
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DEED OF TRUST FORECLOSURE
|
BENEFICIARY SENDS NOTICE OF DEFAULT TO TRUSTEE
TRUSTEE SENDS NOTICE OF TRUSTEE'S SALE TO TRUSTOR 90 DAYS PRIOR TO PUBLIC SALE TRUSTOR HAS 90 DAY REDEMPTION PERIOD PRIOR TO SALE SUCCESSFUL BIDDER AT PUBLIC SALE RECEIVES TRUSTEE'S DEED |
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DEED IN LIEU OF FORECLOSURE
|
TRUSTOR DEEDS PROPERTY BACK TO BENEFICIARY TO AVOID FORCLOSURE
DOES NOT WIPE OUT JUNIOR LIENS BENEFICIARY DOES NOT HAVE TO ACCEPT DEED ALSO CALLED "VOLUNTARY DEED" |
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EQUITABLE RIGHT OF REDEMPTION
|
RIGHT OF DEFAULTED BORROWER TO BRING IN MONEY OWED BEFORE FORCLOSURE SALE TO REGAIN PROPERTY
|
|
|
STATUTORY RIGHT OF REDEMPTION
|
TIME PERIOD ALLOWED FOR REDEMPTION:
MORTGAGES = 6 MONTHS DEED OF TRUS = 90 DAYS |
|
|
STRAIGHT LOAN
|
ALSO CALLED "INTEREST ONLY" OR "TERM LOAN"
ONLY INTEREST IS PAID DURING TERM OF LOAN WITH ENTIRE PRINCIPAL AMOUNT DUE WITH FINAL INTEREST PAYMENT |
|
|
PARTIALLY AMORTIZED LOAN
|
ALSO CALLED "BALLOON PAYMENT"
LOAN IS AMORTIZED ACROSS A LONGER TIME PERIOD FOR PAYMENT PURPOSES, BUT A LUMP-SUM PAYMENT IS DUE AT THE END OF A SPECIFIED TERM (i.e. 30 YEAR AMORTIZED LOAN AT 7% WITH 3 YEAR BALLOON) |
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|
AMORTIZED LOAN
|
PRINCIPAL AND INTEREST IS PAYABLE IN MONTHLY PAYMENTS OVER TERM OF LOAN, ENDING IN ZERO BALANCE AT END OF LOAN TERM
|
|
|
ADJUSTABLE RATE MORTGAGE (A.R.M.)
|
FLUCTUATING INTEREST RATE USUALLY TIED TO A BANK OR SAVINGS & LOAN ASSOCIATION COST OF FUNDS INDEX
PAYMENT AMOUNTS VARY, BUT RATE CAPS CONTROL FLUCTUATION PER YEAR AND OVER LIFE OF LOAN ALSO CALLED "VARIABLE RATE MORTGAGE" (V.R.M.) |
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|
BUDGET LOAN
|
"P.I.T.I." LOAN
PRINCIPAL, INTEREST, TAXES AND INSURANCE ARE ALL INCLUDED IN MONTHLY PAYMENT |
|
|
BLANKET LOAN
|
INCLUDES MORE THAN ONE PROPERTY
CONTAINS PARTIAL RELEASE CLAUSE FOR EACH PROPERTY |
|
|
PACKAGE LOAN
|
INCLUDES PERSONAL AND REAL PROPERTY
|
|
|
REVERSE ANNUITY LOAN
|
HOMEOWNER RECEIVES PAYMENTS FROM LENDER BASED ON ACCUMULATED EQUITY, RATHER THAN ONE LUMP SUM
DEBT IS REPAID UPON SALE OF PROPERTY OR DEATH OF OWNER INTENDED FOR ELDERLY |
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|
CONSTRUCTION LOAN
|
SHORT TERM FINANCING DURING CONSTRUCTION PHASE OF BUILDING THAT IS DUE WHEN PROJECT IS COMPLETED.
ALSO CALLED "INTERIM LOAN" |
|
|
SALE AND LEASEBACK
|
OWNER SELLS PROPERTY AND SIGNS LEASE TO REMAIN IN POSSESSION (POST-POSSESSION)
|
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|
WRAP AROUND
|
ENTIRE LOAN COMBINES TWO OR MORE DEBTS AND IS TREATED AS A SINGLE OBLIGATION
CANNOT WRAP LOANS WITH "DUE ON SALE" CLAUSES ALL TERMS OF LOAN MUST BE SPECIFIED ON CONTRACT THIRD PARTY COLLECTS THE PAYMENTS AND DISBURSES FUNDS |
|
|
CARRYBACK
|
ALSO CALLED "PURCHASE MONEY"
BUYER RECEIVES TITLE AND GIVES NOTE & MORTGAGE TO SELLER USUALLY USED TO FILL A GAP BETWEEN BUYER'S DOWN PAYMENT AND NEW FIRST MORTGAGE |
|
|
AGREEMENT FOR SALE (LAND CONTRACT, INSTALLMENT CONTRACT, CONTRACT FOR DEED)
|
SELLER IS VENDOR, BUYER IS VENDEE
PURCHASE PRICE MADE IN INSTALLMENTS BUYER HAS EQUITABLE TITLE, SELLER HOLDS LEGAL TITLE BUYER RECEIVES TITLE AFTER FULFILLMENT OF LAST PAYMENT REDEMPTION TIME PERIODS ARE BASED ON PERCENTAGE OF EQUITY (DOWN PAYMENT) |
|
|
REDEMPTION TIME PERIODS FOR AGREEMENT FOR SALE/LAND CONTRACT
|
LESS THAN 20% = 30 DAYS
20%, BUT LESS THAN 30% = 60 DAYS 30%, BUT LESS THAN 50% = 120 DAYS MORE THAN 50% EQUITY = 270 DAYS (9 MONTHS) |
|
|
DEFEASANCE CLAUSE
|
"TO BE VOID UPON FULL PAYMENT"
|
|
|
ACCELERATION/DUE ON DEFAULT CLAUSE
|
LENDER CALLS ENTIRE DEBT DUE IMMEDIATELY IF BUYER DEFAULTS ON A PAYMENT (JUDICIAL FORECLOSURE)
|
|
|
ALIENATION/DUE ON SALE CLAUSE
|
ENTIRE DEBT IS DUE IMMEDIATELY IF PROPERTY IS SOLD BY BORROWER
PREVENTS BORROWER FROM ASSIGNING THE DEBT WITHOUT THE LENDER'S APPROVAL |
|
|
NON-RECOURSE CLAUSE
|
CANNOT USE THE DEFICIENCY JUDGEMENT
|
|
|
SUBORDINATION CLAUSE
|
HOLDER OF A MORTGAGE PERMITS A SUBSEQUENT MORTGAGE TO TAKE PRIORITY
|
|
|
PREPAYMENT CLAUSE
|
EARLY PAYMENT OF DEBT WITHOUT PENALTY
|
|
|
PREPAYMENT PENALTY CLAUSE
|
PENALTY IS CHARGED IF BORROWER PAYS DEBT OFF EARLY
|
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|
LOCK-IN CLAUSE
|
PROHIBITS PREPAYMENT OF NOTE
|
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|
INTEREST
|
CHARGE FOR USING ANOTHER'S MONEY
|
|
|
USURY
|
CHARGING A RATE OF INTEREST ABOVE THAT ALLOWED BY LAW
|
|
|
ORIGINATION
|
FEE CHARGED BY LENDER FOR MAKING A LOAN
TYPICALLY 1% OF LOAN |
|
|
DISCOUNT POINT
|
FEE CHARGED BY LENDER TO GET A LOWER INTEREST RATE FOR BORROWER
|
|
|
ASSUMPTION
|
WHEN BUYER ASSUMES THE CURRENT LOAN UNDER THE SAME TERMS AND CONDITIONS OF THE ORIGINAL BORROWER
|
|
|
NOVATION
|
SUBSTITUTING A NEW OBLIGATION FOR AN OLD ONE OR ADDING NEW PARTIES TO AN EXISTING OBLIGATION
|
|
|
ESTOPPEL CERTIFICATE
|
LEGAL INSTRUMENT VERIFYING THE EXACT LOAN AMOUNT, THE CURRENT RATE OF INTEREST AND THE DATE TO WHICH INTEREST IS PAID
|
|
|
LOAN TO VALUE (L.T.V.)
|
RATIO OF A MORTGAGE PRINCIPAL TO THE PROPERTY APPRAISED VALUE OR SALE PRICE, WHICHEVER IS LOWER
|
|
|
CONFORMING LOAN
|
STANDARDIZED, CONVENTIONAL LOAN THAT MEETS REQUIREMENTS OF FANNIE MAE AND FREDDIE MAC
|
|
|
FHA ESCAPE CLAUSE
|
APPRAISAL MUST BE MADE BY FHA-APPROVED APPRAISER AND SHOWN TO BUYER
IF BUYER IS NOT SHOWN APPRAISAL, BUYER CAN WITHDRAW WITHOUT PENALTY SEPARATE FORM THAT MUST BE SIGNED BY BOTH SELLER AND BUYER |
|
|
PREQUALIFYING
|
LENDERS QUALIFY BORROWERS BY LOOKING AT:
ABILITY OF REPAYMENT (OCCUPATION, SALARY, ASSETS AND EQUITY, DEBT) PURPOSE OF LOAN (TITLE, SURVEY, TAXES, LEGAL DESCRIPTION, IMPROVEMENTS OF VALUE ESTABLISHED THROUGH APPRAISAL) AMOUNT OF LOAN |
|
|
LENDING CHARGES
|
INTEREST
ORIGINATION FEE DISCOUNT POINTS |
|
|
DISCOUNT POINTS
|
EACH "POINT" IS 1% OF LOAN
POINTS ARE NEGOTIABLE |
|
|
PRIMARY LENDERS
|
DEAL DIRECTLY WITH BORROWER
CREDIT UNIONS, SAVINGS AND LOAN ASSOCIATIONS AND MUTUAL SAVINGS BANKS COMMON FOR RESIDENTIAL MORTGAGES MORTGAGE BANKERS, MORTGAGE BROKERS, COMMERCIAL BANKS AND LIFE INSURANCE COMPANIES ARE OTHER TYPES OF PRIMARY LENDERS |
|
|
SECONDARY LENDERS
|
DEAL ONLY WITH LENDERS PURCHASING AND SELLING EXISTING MORTGAGES
EXAMPLES: FANNIE MAE, FREDDIE MAC, GINNIE MAE, ETC. |
|
|
FANNIE MAE
|
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA), NOW A PRIVATE CORPORATION
ESTABLISHED IN 1938 FHA, VA AND CONVENTIONAL LOANS |
|
|
FREDDIE MAC
|
FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC)
ESTABLISHED IN 1970 CONVENTIONAL LOANS DOES NOT GUARANTEE LOANS |
|
|
GINNIE MAE
|
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)
GUARANTEES PAYMENT OF RISKY FANNIE MAE LOANS BOTH CONFORMING AND NON-CONFORMING LOANS |
|
|
PRIVATE MORTGAGE INSURANCE (P.M.I.)
|
RISK INSURANCE FOR LENDER
PREMIUM IS DROPPED UPON BORROWER REACHING 20% EQUITY |
|
|
CONVENTIONAL LOAN
|
FIXED RATE OVER 15 OR 30 YEARS
GENERALLY NOT ASSUMABLE MOST HAVE "DUE ON SALE" CLAUSE MOST REQUIRE 20% DOWN OR PRIVATE MORTGAGE INSURANCE UNTIL 20% EQUITY IS ESTABLISHED NOT INSURED OR GUARANTEED BY FEDERAL GOVERNMENT |
|
|
FEDERAL HOUSING ADMINISTRATION LOAN (F.H.A.)
|
P.I.T.I. TYPE LOAN
REQUIRES 3% DOWN PAYMENT (KNOW FOR TEST...REAL WORLD IS 3.5%) PART OF H.U.D. FOR OWNER OCCUPIED 1-4 FAMILY RESIDENCES DO NOT LEND DIRECTLY TO BORROWER OR DO SECONDARY FINANCING FEDERAL GOVERNMENT INSURES THE LOAN MADE BY APPROVED LENDING INSTITUTION NO DOWN PAYMENT ASSISTANCE ALLOWED, BUT CLOSING COST ASSISTANCE "OK" |
|
|
MORTGAGE INSURANCE PREMIUM (M.I.P.)
|
REQUIREMENT OF ALL FHA LOANS
PAID FOR BY BORROWER UNTIL 20% EQUITY PAID UP FRONT AT CLOSING AND MONTHLY THEREAFTER COST = 2.25% OF LOAN UP FRONT AND 0.005% OF LOAN BALANCE ANNUALLY |
|
|
VETERANS ADMINISTRATION LOAN (V.A.)
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CAN BE USED FOR CONSTRUCTION, USED HOMES OR REFINANCE
NO DOWN PAYMENT AND LOW INTEREST RATES SELLER PAYS ESCROW FEES BUYER PAYS V.A. FUNDING FEE (2% OF LOAN AMOUNT) LOANS ARE GUARANTEED, NOT INSURED NOT ASSUMABLE AFTER 1988 MAXIMUM LOAN AMOUNT IS BASED ON PRICE OR APPRAISAL VALUE/CERTIFICATE OF REASONABLE VALUE (C.R.V.), WHICHEVER IS LOWER DEPARTMENT OF VETERANS AFFAIRS PAYS LENDER A PERCENTAGE OF LOAN, UP TO $60,000 MAX. ENTITLEMENT |
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VETERAN'S USE OF ENTITLEMENT
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A VETERAN MAY USE ENTITLEMENT MORE THAN ONCE IF:
PREVIOUS LOANS ARE SATISFIED RELEASE OF LIABILITY THROUGH CREDIT CHECK (VERIFICATION OF ZERO BALANCE) SUBSTITUTION OF ANOTHER VETERAN'S ELIGIBILITY |
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CERTIFICATE OF ELIGIBILITY
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DOCUMENT SHOWING MONETARY AMOUNT VETERAN IS ENTITLED TO
1940-1981: MINIMUM OF 181 DAYS OF ACTIVE DUTY OR 90 DAYS ACTIVE DUTY DURING WAR TIME 1980/81-CURRENT: MINIMUM 2 YEARS ACTIVE DUTY LENDER WILL LOAN UP TO 4 TIMES ENTITLEMENT VETERAN MUST CERTIFY THAT PROPERTY WILL BE OCCUPIED BY BORROWER (CERTIFICATION GIVEN BOTH AT TIME OF APPLICATION AND AT CLOSING) |
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AD VALOREM
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"ACCORDING TO VALUE"
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POLICE POWER
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GOVERNMENT'S RIGHT TO ENACT LEGISLATION FOR THE HEALTH, SAFETY AND GENERAL WELFARE OF THE PUBLIC (i.e. ZONING)
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EMINENT DOMAIN
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RIGHT OF GOVERNMENT TO TAKE PRIVATE PROPERTY FOR "NECESSARY PUBLIC USE" IN EXCHANGE FOR COMPENSATION
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CONDEMNATION
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PROCESS BY WHICH THE GOVERNMENT TAKES PROPERTY UNDER EMINENT DOMAIN
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INVERSE CONDEMNATION
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OWNER REQUESTS THAT PROPERTY BE CONDEMNED BECAUSE OF DAMAGES CAUSED BY GOVERNMENT ACTION
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