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75 Cards in this Set

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  • Back
a provision in a loan giving the lender the right to declare the intire amount due and payable upon a violation of a different loan provision, such as failure to make payments on time.
acceleration clause
a summary of all of the recorded instruments and proceedings that affect the title to property. (to be certain of ownership)
abstract of title
adjointing or meeting
the act of agreeing to accept an offer
additions to property as a result of annexing fixtures or alluvial deposits
the right of an owner to get to and from his/her propery
access right
addition to land through processes of nature,such as deposits of soil carried by streams
a meassure of land 43,500square feet
explusion of a tenant from the propery
actual eviction
americans with disabilities act
lying near but not necessarily in actual contact with.(propery across the street)
contiguous,attaching, in actual contact with (property actually touching)
a mortgage loan with an interest rate that is allowed to vary during the life of the loan, usually there are caps on the amount by which the interest rate can change annually and over the life of the loan
adjustable rate mortgage (arm)
a person appointed by a vourt to administer the estate of a deceased individual who left no will (appointed by the court/and receives a fee)
a deed conveying the property of a person who died without a will (intestate)
administrator's deed
a person who has attained the age of majority
according to valuation/ used in describing a propery tax rate
ad valorem
a tax based on the value of the thing being taxed/example if the effective tax rate is 1 percent the tax will be $1 per $100 of property value.
ad valorem tax
a means of acquiring title to real estate when an occupant has been in actual,open,notorious,exclusive, and continuous occupancy of the property for the period required by state law.
adverse possession
a statement or declaration in writing, sworn to or affirmed before some officer who is authorized to administer an oath or affirmation. / a contractor's lien has to be in affidavit form to be perfected.
to confirm to ratify to verify
the legal relationship between a pricipal and his/her agent arising from a contract in which the principal employs the agent to perform certain acts on teh principal's behalf.
a written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction. the purpose of disclosure is to wxplain whether the broker represents the buyer or seller or is a dual agent. this allows the customer to understand to which party the broker owes loyalty
agency disclosure
a person who undertakes to transact some business or to manage some affair for another, with the authority of the latter. the owner employs a broker to act as his agent in selling real property the broker in turn employs salespersonto act as her agents to sell the same property.
a written agreement between seller and purchaser in which the purchaser agrees to buy certain real estate,and the seller agrees to sell,upon the terms and conditions of the agreement
agreement of sale
the right to use, control, or occupy the space above a designated propety
air rights
transferring propety to another, as the transfer of propery and possesion of lands, by gift or by sale,from one person to another./ in some states, property may be transferred by voluntary alienation,as in a sale for cash, or involuntarily, as in a condemnation.
soil deposited by accretion,usually considered to belong to the owner of the land to which it is added.
in appraising, the nonmonetary benefits derived from propety ownership. /pride of home ownership,accessibility to good public schools,parks,and cultural facilities
a gradual paying off of a debtby periodic installments/most mortgages require the payment of interest plus at least some amortization of principal,so that the loan is eventually retired by the amortization payments
the time required to retire a debt through periodic payments, also known as the full amortization term. /many mortgage loans have an amortization term 15,20,25,or30years loa, but require a balloon payment in 5,10,or 15 years/both the lender and the borrower are assured that the loan will be retired through regular payments without the need to refinance.
amortization term
the cost of credit,expressed as an annual interest rate,which must be shown in consumer loan documents, as specified by the federal reserve's regulation Z that implements the federal truth-in-lending act.
annual percentage rate (apr)
a series of equal or nearly equal periodic payments or receipts. /the receipt of $100 per year for the next five years constitutes a $100 fiver-year annuity.
in real estate appraisal, the principle that the value of a property today is the present value of the sum of anticipated future benefits/the anticipation principle serves as the basis for the income appproach to appraisal
anticipation, priciple of
federal and state acts to protect trade and commerce from monopolies and restrictions
antitrust laws
(1)prorating property expenses, such as taxes and insurance,between buyer and seller. (2)the partitioning of property into individual parcels by tenants in common.
an opinion or estimate of the value of a property/if a buyer is unfamiliar with the value of real estate in an area, it is prudent to require that,as a condition of the agreement of sale,equal to the price being paid,also,lenders require an appraisal of property as a requirement for making a loan. the borrower will pay the appraisal fee.
one of three methods used in estimationg the value of property income approach,sales comparison approach,and cost approach./having three separate mehtods to estimate the value of property will add confidence to an appraiser's value estimate
appraisal approach
in an appraisal repor, the date to which the value applies,distinguished from report date./because market change,the appraisal date establishes the conditions for which the value is estimated
appraisal date
an organization that came into existence in 1987 in an effort to encourage uniform requirements for appraisal qualifications and reporting standards.
appraisal foundation
an organizationof professional appraisers that was formed in 1991 by the merger of the american institute of real estate appraisers and the society of real estate appraisers. it offers mai and sra designations
appraisal institue
a document that describes the findings of an appraisal engagement. reports may be presented in the following formats. oral,letter,form,or narrative,and may be selfcontained, summary,or restricted.
appraisal report
a person qualified to estimate the value of real propery. most states have three categories-
licensed appraiser
certified residential appraiser
certified general appraiser
an increase in the value of propery/appreciation is one of the most significant benefits from real estate ownership. gains from inflation as well as real income are included.
something that is outside the property itself but is considered a part of the property and adds to its greater enjoyment,such as the right to cross another's land (right of way or easement) /the right to use another's land for a special purpose can materially affect the value of the subject property
abreviation of annual percentage rate
the typical,normal transaction, in which all parties have reasonable knowledge of the facts pertinent to the transaction,are under no pressure or dures to transact,and are ready,willing,and able to transact.
arm's-length transaction
a senior professional designation offered by the american society of appraisers. the asa designation is awarded upon meeting rigorous requirements that include extensive experience,education,and approved sample reports
without guarantees as to condition,as in a sale
as is
a valuation placed upon property by a public officer or a board, as a basis for taxation/the assessed value of a property is typically a reasonable estimate by the tax assessor,who must periodically review all property in the jurisdiction. by contrast, an appraisal of a single property is more likely to approximate its market value.
assessed valuation
a charge against real estate made by a government to cover the cost of an improvement,such as a street or sewer line./property buyers and owners need to recognize that they may have to pay assessments for municipal improvements that affect their property. frequently, the owner has little or no influence on the decision
the ratio of assessed value to market value. / a county requires a 40 percent assessment ratio on all property to be taxed. property with a $100,000 value is therefore assessed at $40,000(40 percent of $100,00),and the tax rate is applied to $40,000.
assessment ratio
an official who has the responsibility of placing an assessed value on property./the assessor estimates the value of each piece of real estate in the tax jurisdiction,but does not fix the tax rate or amount.
the person to whom an agreement or contract is sold or transferred./this legal term refers to the person who receives the contract
the method or manner by which a right or contract is transferred from one person to another./contract for the sale of real estate are generally assignable,except when financing must be arranged or certain conditions are imposed on a party. in a lease, an assignment gives all the rights of the original tenant to the new tenant
a party who assigns or transfers an agreement or contract to another/although many contracts can be assigned,the assignor is not necessarily relieved of the obligation. for example: debts cannot be assigned. another party can assume a debt,but the original borrower remains liable
a mortgage loan that allows a new home purchaser to undertake the obligation of the existing loan with no change in loan terms. loans without due-on-sale clauses,including most fha and va mortgages,are generally assumable
assumable loan
thr purchase of mortgaged property whereby the buyer accepts liability for the debt that continues to exist. the seller remains liable to the lender unless the lender agrees to release him/her / when entering an agreement for the purchase or sale of real estate,the financing should be checked to determine whether the mortgage is assumable. if the mortgage carries favorable terms and is assumable, this fact will add value to the transaction.
assumption of mortgage
legal seizure of property to force payment of a debt/property can be taken as security for a debt provided that such action has court approval.
to witness to, to witness by observation and signature./ certain documents must be attested to as a condition for recording at the county courthouse
a person who is authorized to act for another under a power of attorney, which may be general or limited in scope./a person may give another the right to act for him/her in some or all matters(power of attorney)the designated person,called an attorney-in-fact, need not be an attorney at law.
the sudden removal of land from one owner to another that occurs when a river abruptly changes its channel/if a stream or river is a boundary line, the boundary may change with the addition or removal of land.
in real estate appraisal, the principle that there is an optimal mix of imputs that , when comcbined with land,will result in the greatest land value. inputs, or factors of production,include labor,capital,and entrepreneurship.
balance, principle of
the final payment on a loan, when that payment is greater than the preceding installment payments and satifies the note in full./ a debt requires interest-only paymentsannually for 5 years,at the end of which time the balance of the pricipal (a balloon payment) is due./in arranging financing for real estate,if a balloon is involved the borrower will need to plan for the large balance that will come due.
balloon payment
a weighted average of debt and equity rates
band of investment
a deed that conveys real estate, generally lacking a warranty. the grantor will thus claim to have ownership but will not defend against all claims /sometimes a property owner does not wish to offer a warranty deed, but will give more assurance than is offered by a quitclaim deed. a bargain and sale deed is a compromise between those two.
bargain and sale deed
imaginary lines used by surveyors to find and describe the location of land government survey method,these lines are similar to latitude and longitude
base and meridian
part of the government rectangular survey method of land description. the base line in the major east-west line to which all north-south measurements refer.
base line
in economic base analysis, the ratio of total population in a local area to employment in basic industry. basic industry is considered to be any concern that attracts income from outside the local area. the jobs added in basic sevice jobs (telephone operator,nurse,supermarket clerk,etc) and, if the workers have families,additional new people that was the result of condemnation
before-and-after rule
the person who receives or is to receive the benefits resulting from certain acts.
to give or hand down personal property by a will
personal property that is given by the terms of a will
a contract under which each party promises performance. contrast with unilateral contract
bilateral contract
recorded restrictions affecting a subdivision and a part of all deeds to lots therein
bill of assurance
a written instument that passes title of personal propertly from a seller to a buyer./a real estate sales agreement is prepared on an agreement of sale. a bill of sale is used when furniture and portable appliances are sold.
bill of sale