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137 Cards in this Set
- Front
- Back
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Abandonment
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Non-payment of taxes
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Abstract of Title
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A history of the ownership of a parcel of land which lists transfers of title, rights, and liabilities.
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Acceleration Clause
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States that upon default, all of the principal installments come due immediately
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Accession
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The idea that the owner of land is entitled to all that the soil produces or all that is added to the land either intentionally or by mistake. Trade fixtures not removed are "assessed" by the owner of the property.
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Accretion
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Refers to land which is accumulated by the gradual washing or motion of water.
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Acknowledgment
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A formal declaration made before an authorized person, e.g., a notary public, by a person who has executed an instrument stating that the execution was his or her free act. In California, is the statement by an officer such as a notary that the signatory to the instrument is the person represented to be
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Action to Quiet Title
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The lawsuit filed by a person to remove or clear the claims of others against property.
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Adverse Possession
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A method of acquiring original title to property by open, notorious and hostile possession for a statutory period of time; also referred to as prescription. POACH.
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Alienation Clause
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A provision in a mortgage requiring full payment of the debt upon the transfer of title to the property, due on sale. Prevents loan assumptions.
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Allodial
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The free and full ownership of rights in land by individuals, which is the basis of real property in the United States.
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Arrears
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Not on time; late in making payments or completing work.
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Assemblage
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Bringing two or more lots together under one ownership.
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Attestation
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The act of witnessing a person’s signing of an instrument by a notary public.
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Avulsion
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Occurs in cases where there is a sudden loss of land through nature.
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Bargain and Sale Deed
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An instrument conveying title which recites a valuable consideration and commonly uses the words "bargain and sale" or words of similar import.
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Bill of Sale
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A document used to transfer ownership of personal property.
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Blanket Mortgage
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A mortgage which covers more than one piece of real estate. Often used by a developer in the financing of undeveloped lots. Contains a partial release clause.
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Blockbusting
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Any activity which attempts to drive prices down for the purpose of causing transition from one ethnic group to another. This is a violation of Federal Fair Housing Laws. Also called "panic selling".
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California Environmental Quality Act of 1970 (CEQA)
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A law with the main purpose of providing procedures and information to ensure that governmental agencies will consider and respond to the environmental effects of their proposed decisions.
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Certificate of Eligibility Certificate
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Given to veterans bearing evidence of their qualifications for a VA mortgage loan.
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Chain of Title
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A history of the ownership affecting title to a parcel of land.
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Chattel Mortgage
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One in which personal property is pledged to secure a note.
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Civil Rights Act of 1866
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A law which prohibits discrimination in all real estate transactions based on race - commercial and residential.
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Commingling
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Illegally mixing deposits or monies, collected from a client, with one's personal or business account. Taking money out too soon or putting it into escrow too late (10 banking days).
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Condemnation
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The process of exercising eminent domain through court action.
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Constructive Notice
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The knowledge that the law presumes a person has about a particular fact irrespective of whether the person knows about the fact or not. (Recording).
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Conveyance
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The transfer of title to land from one party to another.
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Covenant
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Included in a deed; a guarantee.
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Covenant Against Encumbrances
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The assurance that no encumbrances other than those specified in the deed exist.
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Covenant of Seisin
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Gives the assurance that the grantor has the exact estate in the quantity and quality which is being conveyed. "I own and I have the right to sell it."
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Curtesy
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The rights that a husband acquires in the wife's property upon her death.
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Deed
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A written instrument, usually under seal, which contains an agreement to transfer some property interest from a grantor to a grantee.
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Deed in Lieu of Foreclosure
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Used by the mortgagor (borrower) who is in default to convey the property to the mortgagee (lender) in order to eliminate the need for a foreclosure.
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Deed of Trust
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A deed to real property, which serves the same purpose as a mortgage, involving three parties instead of two. The third party holds naked title for the benefit of the lender. Beneficiary (Lender), Trustor (Borrower), Trustee (Third Party)
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Defeasance Clause
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A necessary mortgage clause in title theory states. When the debt is satisfied, this clause causes title to pass automatically back to the borrower. Satisfaction of mortgage; release from records.
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Defeasible Fee Simple
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Ownership with conditional restrictions which, if broken, can result in title to the property reverting back to the grantor or his heirs.
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Discount Points
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A fee charged by the lender at settlement that results in increasing the lender's effective yield on the money borrowed.
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Documentary Transfer Tax
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A California State tax that is levied upon the transfer of real estate, at the rate of $0.55 per $500.00 of consideration, or fraction thereof
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Dominant Estate
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The tract of land in an easement appurtenant which benefits from the easement.
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Dower
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The rights that a wife acquires in her husband's fee simple property.
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Easement
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A right to limited use or enjoyment by one or more persons in the land of another.
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Easement Appurtenant
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An easement created to benefit adjacent land.
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Easement by Implication
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Occurs because of necessity, such as the conveyance of a land-locked property.
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Emblements
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Refers to crops which require annual planting.
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Encroachment
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The extension of some improvement or object across the boundary of an adjoining tract. (Off sides).
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Equal Credit Opportunity Act. (ECOA)
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A federal act, which prohibits discrimination by lenders on the basis of sex or marital status in any aspect of a credit transaction.
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Equitable Lien
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Created when justice and fairness would require a court of equity to declare such a lien exists or when conduct of parties would imply that a lien was intended.
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Escheat
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The right of government to ownership of property, which is left by a deceased property owner who leaves no will, and dies without descendants.
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Estate at Sufferance or
Tenancy at Sufferance |
Retention of possession without the consent of the landlord after the lease has expired.
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Estate at Will
Tenancy at will |
An occupation of space, for an indefinite period, which can be terminated by either the lessor or lessee at any time.
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Estate for Years
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A conveyance of realty for a definite stated period of time. The term may be one year, one month, one week or even one day. No notice needed to terminate.
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Estate from Period to Period or
Periodic Tenancy |
A leasehold, which is automatically renewed for the same term as in the original lease. Notice needed to terminate.
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Estate in Fee or
Fee Simple or Simple Absolute |
The maximum possible estate one can possess in real property.
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Federal Fair Housing Act of 1968
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An act prohibiting discrimination in the sale or rental of housing on the basis of race, color, religion or national origin sex, handicap and familial status.
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Federal Home Loan Mortgage Corporation (FHLMC)
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"Freddie Mac" is a wholly owned subsidiary of the Federal Home Loan Bank System, which serves as a secondary mortgage market for savings and loan associations, who are members of the FHLBB; also referred to as The Mortgage Corporation.
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Federal Housing Administration- (FHA)
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A federal agency established in 1943 to increase home ownership by providing an insurance program to safeguard the lender against the risk of nonpayment. Currently part of HUD.
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Federal National Mortgage Association (FNMA)
"Fannie Mae" |
this quasi-private corporation is the largest buyer of existing mortgages in the secondary mortgage market.
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Federal Reserve System (FRS)
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A federal agency which oversees and regulates monetary policy, which in turn affects interest rates and the availability of credit. All federally chartered commercial banks must be members.
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Fee Simple Absolute
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The maximum possible estate one can possess in real property
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Fee Simple Determinable
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An estate which has been created to exist only until the occurrence or nonoccurrence of a particular event. Returns automatically.
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Fee Simple Subject to a Condition Subsequent
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An estate which is subject to a power in the original grantor, or the grantor's heirs, to terminate the estate upon the happening of an event. Back to court.
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Freehold Estate
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One which continues for an indefinite period of time. For as "least a lifetime or greater" (will)
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Functional Obsolescence
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A loss in value due to conditions within the structure which make the building outdated when compared with a new building. (4 bedrooms and 1 bath, insulation, narrow stairway, etc.)
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General Warranty Deed
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Contains covenants in which the grantor formally guarantees that good and marketable title is being conveyed. Highest deed - 5 covenants.
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Government National Mortgage Association (GNMA): "Ginnie Mae,"
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agency of HUD that operates in the secondary mortgage market. It is involved with special government financing programs.
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Government Survey
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A method of land description based on townships and sections. (Rectangular survey system).
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Graduated Lease Provisions
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This lease provides for periodic step increases in the rental payments.
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Grant
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Transferring real estate by means of a deed.
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Grantee
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Purchaser or donee receiving title to property.
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Grantor
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Owner making conveyance of title or interest in property.
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Habendum clause
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That part of a deed beginning with the words, "To have and to hold", followed by the granting clause and reaffirming the extent of ownership that the grantor is transferring. Itlimits the extent of ownership in the estate granted as, for example, a fee simple, life estata or easement: "To have and to hold unto said Sally Smith, grantee, a life estate in the following property".
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Housing Financial Discrimination Act Of 1977, or the Holden Act
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A California law designed primarily to eliminate discrimination in lending practices based upon the character of the neighborhood in which real property is located. (This is found under the California Health and Safety Code Section 35800, et seq.)
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Hypothecate
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process of pledging something (house) as security, but retaining possession of it.
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Institutional Lenders
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In California, the three major lenders are commercial banks, savings banks (formerly known as savings and loan associations), and life insurance companies.
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Intestate
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Dying without a will.
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Joint Tenancy
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An agreement by two or more individuals or entities to engage in a single project or undertaking.
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Judgment Lien
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The charge upon the land of a debtor, resulting from the decree of a court, entered in the judgment docket. Lawsuit
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Laches
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Delay or negligence in asserting one’s legal rights.
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Land Contract
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A contract used in a sale of real property whereby the seller retains title to the property until all or a prescribed part of the purchase price has been paid. Also commonly called a conditional sales contract, installment sales contract or real property sales contract.
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Land Project
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A speculative subdivision development of 50 or more vacant lots, that are located in a rural area that has less than 1,500 registered voters within 2 miles.
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Leasehold
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The interest that the tenant has created by a lease.
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Less than Freehold Estate
or non-freehold estates |
Estates in possession generally referred to as leaseholds. Considered to exist for a definite period of time, or successive periods, of time until terminated by notice;
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Life Estate
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An interest which only lasts for the term of a life, or lives, of one or more persons. Death terminates.
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Life Estate Pur Autre Vie
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A life estate in one person with another person serving as the measuring life.
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Lis Pendens
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A notice filed for he purpose of serving constructive notice that title, or some matter involving particular real property, is in litigation.
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Marketable Title
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One which is free from reasonable doubts or objections, and which the courts would compel a purchaser to accept under the terms of a sales contract.
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Mello-Roos Community Facilities Act of 1982
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A law used to finance public services, such as waste treatment plants, parks, and schools, in newly developed areas; this can result in extra-high taxes, in addition to the normal property taxes, and MUST be made known to any buyer before a purchase taxes place.
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Mill
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equal to one-tenth of one cent and is used to state the property tax rate. (.001)
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Mutual Assent
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An offer and acceptance which together form the terms of a contract.
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Nonconforming Use
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A pre-existing use of land which does not conform to the zoning ordinance but which may legally remain.
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Novation
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Occurs when the person in a contract, to whom the duty was owed, expressly agrees to substitute the delegate, or new obligor, for a consideration, and agrees to discharge the old obligor from the obligations under the contract. For example, loan assumptions.
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Obsolescence
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A loss in value due to reduced desirability and usefulness of a structure because its design and construction have become out dated. A loss due to a structure’s becoming old fashion, not in keeping with today’s standards or needs, with consequential loss of income.
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Ownership in Severalty
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Individual ownership.
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Package Mortgage
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A mortgage, used in the purchase of new residential property which, in addition to real property, covers certain personal property items and equipment. (Washer, dryer, drapes, refrigerator, stove)
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Parol Evidence Rule
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A rule of evidence designed to achieve a degree of certainty in a transaction and to prevent fraudulent and perjured claims.
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Participation Mortgage
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An agreement between a mortgagee and a mortgagor which provides the lender with a certain percentage of ownership in the project once the lender makes the loan.
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Partition suit
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The dividing of real estate held by two or more people which results in each of the parties holding individual or severalty ownership. (Tenants in common and joint tenants)
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Percolation
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Ability of soil to absorb water; used for septic systems.
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Plottage
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Occurs when two or more sites are combined, with the result that the value of the assembled site is worth more than the value of the sum of each of the individual sites.
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Police Power
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The inherent power of the state to regulate in order to promote public health, safety, morality or welfare. For example, zoning and building codes.
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Prescription
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A means of acquiring title to property through open and continuous use.
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Purchase Money Mortgage
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A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.
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Quiet Title
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A court action to remove a cloud on the title.
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Quitclaim Deed
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Only conveys what present interest a person may have in a particular property but makes no representations or warranties of title.
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Real Estate Settlement Procedures Act (RESPA)
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A law which covers most mortgage loans made for one to four-unit residential property. It requires the lender to provide the loan applicant with pertinent information so that the borrower can make informed decisions as to which lender will be used to finance the purchase.
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Recording
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The process of placing a document on file with a designated public official for public notice.
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Redemption Period
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The right of a mortgagor (borrower) to make good on the default within a specified time and receive the property back.
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Redlining
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The practice of some lending institutions that restricts the number of loans or the loan-to-value ratio in certain areas of a community, i.e., it is illegal for a lending institution to require a higher down payment because the home the borrower is buying is located in a racially mixed area.
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Regulation Z
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disclosure of all costs of financing the purchase of owner occupied residential purchases of one to four units. It also requires disclosure of the annual percentage rate of the loan. Implementation is over seen by the Federal Reserve Board.
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Rescission
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Repealing a contract either by mutual consent of the parties to the contract or by one party when the other party is in breach of the contract.
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Restrictive Covenant
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A clause in a deed which restricts use of property for a specified time.
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Right of Redemption
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The legal ability to buy back one's property within the time specified in each state after a judicial sale by paying the debt, interest and certain costs.
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Right of Survivorship
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Upon the death of a joint tenant or tenant by the entirety the interest does not pass to the tenant's heirs but to the other join tenant(s).
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Riparian Rights
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A legal right of a landowner who owns land next to a natural watercourse to reasonable use of whatever water flows past the property.
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Seisin
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The actual possession of land by one who claims rightful ownership of a freehold estate therein.
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Servient Estate
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The tract of land burdened by an easement.
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Situs
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Refers to the economic location of real estate.
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Special Assessment
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From time to time jurisdictions levy a charge on certain pieces of property for the purpose of paying for the cost of a public improvement such as sewers or sidewalks, which particularly benefit properties being assessed as opposed to those improvements benefiting the public at large. Considered a tax.
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Steering
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The channeling of prospective home purchasers or renters, by real estate brokers or salespersons, into racially homogeneous neighborhoods, and actively discouraging them away from neighborhoods of different racial or ethnic composition.
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Street Improvement Act of 1911
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A law used by cities and counties for street improvements; a typical example of this is that the local government hires a contractor to improve streets, and then each owner along that street is liable for paying a pro rata share of that cost. The owner might either pay the contractor in full within 30 days, OR the local government might sell bonds to raise revenue to pay the contractor.
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Subdivision Map Act
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A law that requires the mapping of all new subdivisions, which regulates the division of 2 or more lots for the purpose of selling, leasing, or financing said lots, either at that time or in the future.
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Subrogation
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The substitution of a third person in place of a creditor to whose rights the third person succeeds in relation to the debt. (Title company)
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Tenancy at Sufferance
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A tenancy which is created when one is in wrongful possession of realty, even though the original possession may have been legal.
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Tenancy at Will
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An occupation of space for an indefinite period which can be terminated by either the lessor or lessee at any time.
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Tenancy by the Entireties (Entirety)
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A special joint tenancy between a lawfully married husband and wife, which places all title to property (real or personal) into the marital unit, with both spouses having an equal undivided interest in the whole property. In essence, each spouse owns the ENTIRE estate.
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Tenancy in Common
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A form of concurrent ownership where two or more persons hold separate titles in the same estate. May have equal or unequal shares. Right of partition.
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Term Mortgage (Straight Term)
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A method of financing in which interest only is paid during the time of the loan. At maturity, generally five years or less, the entire principle is due.
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Trust Deed
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A legal document by which a borrower pledges certain real property or collateral as guarantee for the repayment of a loan that differs in several ways from a mortgage. There are 3 parties to the transaction, the borrower (trustor), the trustee (the neutral party to whom the trustor deeds the property as security for the payment of the debt), and the beneficiary (lender).
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Trustee
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A person who holds title and control over property and manages it for another person called a beneficiary. (Called "Naked Legal Title")
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Trustor
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The person who creates a trust and voices the instructions to the trustee. (The borrower.)
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Truth-in-Lending Law
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Common name given to the National Consumer Credit Protection Act. Requires lenders to make credit disclosures to individual borrowers for certain types of loans. (Regulation Z)
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Vendor's Lien
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The amount of the purchase price still due to the seller.
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Voluntary Alienation
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The transfer of title by a deed.
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Warranty Deed
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A deed in which the grantor makes formal assurance as to quality of title.
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Wrap-around Mortgage
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A junior mortgage which provides an owner additional capital without refinancing the first mortgage. (The original mortgage is not disturbed)
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Writ of Execution
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A court order to an officer to carry out judicial decree.
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Covenant of Further Assurance
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-"If there is a defect, I promise to take care of any problems."
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