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330 Cards in this Set
- Front
- Back
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Abondonment
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The voluntary surrender of a right, claim, or interest in a piece of property without naming a successor as owner or tenant
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Abstract of Title
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a certified summary of the history of a title to a particular parcel of Real Estate (RE) that includes the original grant and all subsequent transfers, encumbrances, and releases
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Abutting
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sharing a common boundary; adjoining
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Acceleration Clause
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a clause in a note, morgage, or deed of trust that permits the lender to declare the entire ammount of principal and accrued interest due and payable immediately in the event of default
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Accretion
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the increae or addition of land resulting from the natural deposit of sand or soil by streams, lakes or rivers
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Accrued depreciation
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1) The ammount of depreciation ( Loss in Value) tat as accumulated since initial construction
2) the difference between the current appraised value and the cost to replace the building new |
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Acknowledgment
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a formal declaration before a public official, ussualy a notary, by a person who has signed a deed, contract, or other document that the execution was a voluntary act
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Acre
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a measure of land equal to 43,560 square feet
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Actual Eviction
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the result of legal action brought by a landlord against a defaulted tenant, whereby the tenant is p hysically removed from rented or leased property by court order
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Addendum
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any provision added to a contract, or an addition to a contract that expands, modifies, or enhances the clarity of the agreement. To be legally enforceable, must be referenced within the contract
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Adjacent
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Lying near to but not necessarily in actual contact with
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Adjustable-rate Mortgage (ARM)
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A mortgage in which the interest changest periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.
Ex: a 7 year ARM is a loan where the rate remains fixed for the first 7 years, then fluctuates according to index. |
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Adjusted basis
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the original cost of a property, plus acquisition costs, plus the value of added improvements to the porperty, minus accrued depriciation
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Administrator
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a person appointed by a court to settle the estate of a person who has died without leaving a will
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Ad Valorem tax
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tax in proportion to the value of a property
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Adverse Possesion
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a method of acquiring title to another person's property through court action after taking actual, open, hostile, and continuous possession for a statutory period of time
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Affidavit
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a written statement made under oath and signed before a licensed public official, usually a notary
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Agency
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the legal relationship between principal and agent that arises out of a contract wherein an agent is employed to do certain acts on behalf of the principal who has retained the agent to deal with a third party
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Agent
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one who has been granted the authority to act on behalf of another
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Agreement of sale
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a written agreement between a seller and a purchaser whereby the purchaser agrees to buy a certain piece of property from the seller for a specified price
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Alienation
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the transfer of ownership of a property to another, either voluntary or involuntary
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Alienation Clause
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Clause in a mortgage or deed of trust that permits the lender to declare all unpaid principal and accrued interest due and payable if the borrower transfers title to the property
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Allodial System
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in the US a system of land ownership in which land is held free and clear of any rent or services due to the gov't
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Amenities
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features or benefits of a particular property that enhance the property's desirability and value, such as a scenic view or a pool
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Amortization
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the method of repaying a loan or debt by making periodic installment payments composed of both principal and interest. When all principal has been repaid, it is considered fully amortized
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Amortize
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to repay a loan through regular payments that are comprised of principal and interest
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Annual percentage rate (APR)
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the total or effective ammount of interest charged on a loan, expressed as a percentage, on a yearly basis. Created according to a gov't formula intended to reflect the true annual cost of borrowing
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Anti-deficiency law
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laws used in some states to limit the claim of a lender on default on payment of a purchase money mortgage on owner-occupied residential property to the value of the collateral
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Anti-trust laws
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laws designed to protect free enterprise and the open marketplace by prohibiting certain business practices that restrict competition.
These laws would prevent such practices as price-fixing or agreements by brokers to limit thier areas of trade |
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Apportionments
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adjustment of income, expenses, or carrying charges related to RE, usually computed to the date of closing so that the seller pays all expenses to date, then the buyer pays all expenses beginning on the closing date
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Appraisal
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an estimate or opinion of the value of an adequately described property, as of a specific date
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Appraised Value
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an opinion of a propertys fair market value, based on an appraiser's knowledge, experience, and analysis of the property, based on comparable sales.
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Appraiser
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and individual qualifited by education, training, and experience to estimate the value of real property.
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Appreciation
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an increase in the market value of a property
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Approbation
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a right of gov't to set aside land for public use. It may also take something that is public and make it private, such as diverting water from a public stream or river onto private property
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Appurtenance
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something that transfers with the title to land even if not an actual part of the property, such as an easement
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ARELLO
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the Association of Real Estate License Law Officials
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Assessed value
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the value of a property used to calculate RE taxes
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Assessor
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a public official who establishes the value of a property for taxation purposes
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Assessment
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The process of assigning value on property for taxation purposes
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Asset
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items of value owned by an individual. Assets that can be quickly converted into cash are considered 'liquid assets' such as bank accounts. Other assets include RE, personal property, debts owed.
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Assignment
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the transfer of rights or interest from one person to another
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Assumption of mortgage
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the act of acquiring the title to a property that has an existing mortgage and greeing to be liable for the payment of any debt still existing. However, the lender must accept the transfer of liability for the original borrower to be relieved of the debt
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Attatchment
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the process whereby a court takes custody of a debtor's property until the creditor's debt is satisfied
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attest
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to bear witness by providing a signature
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Avulsion
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the removal of land from one owner to another when a stream or other body of water suddenly changes its channel
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Balloon morgtgage
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a loan in which the periodic payments do not fully amortize the loan, so that a final payment (balloon payment) is substantially larger than the ammount of the periodic payments that must be made to satisfy the debt
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Balloon payment
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the final, lump-sum payment that is due at the termination of a balloon mortgage
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Bare title
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aka "Naked title". This form of title lacks any ownership interests. IN a trust deed, the trustee holds bare title, but only to the extent of the foreclosing on the property for the beneficiary
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Bargain and Sale deed
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a deed that conveys title, but does not necessarily carry warranties against liens or encumbrances
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Base Line
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one of the imaginary East-West lines used as a reference point when descriving property with the rectangular or gov't survey method of property description
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Basis
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the cost of purchase plus any capital improvements, less depreciation. It is the number used for calculating profits and losses when selling property
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Beneficiary
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1) One who benefits from the acts of another
2) the lender in a deed of trust |
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Bequest
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personal property given by provision of a will
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Betterment
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an improvement to property that increases its value
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Bilateral contract
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a contract in which each party promises to perform an act inexchange for the other party's promise also to perform an act
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Bill of sale
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a written instrument that transfers ownership of personal property. A bill of sale cannot be used to transfer ownership of Real property, which is passed by deed
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Binder
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an agreement, accompanied by an earnest money deposit, for the purchase of a piece of RE to show the purchaser's good faith intent to complete a transaction
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Blanket mortgage
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a morgage in which more than one parcel of RE is pledged to cover a single debt
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Blockbusting
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the illegal and discriminatory practice of inducing homeowners to sell thier properties by suggesting or implying the introduction of members of a protected class into the neighborhood
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Bond
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evidence of personal debt secured by a mortgage or other lien on RE
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Breach of contract
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violation of any conditions or terms in a contract without legal excuse
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Broker
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owner-manager of a business that brings together the parties to a RE transaction for a fee.
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Broker's price opinion (BPO)
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a broker's opinion of value based on a competitive market analysis, rather than a certified appraisal
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Building code
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local regulations that control construction, design, and materials used in construction that are based on health and safety regulationhs
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Building Line
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the distance from the front, rear, or sides of a building lot beyond which no structures may extend
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Building restrictions
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limitations listed in zoning ordinances or deed restrictions on the size and type of improvements allowed on a property
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Bundle of Rights
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the concept that ownership of a property includes certain rights regarding the property such as, - Possession, Enjoyment, Control of Use, and Disposition
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Bylaws
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rules and regulations adopted by an association---For example, a condominium
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Cancellation clause
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a provision in a lease that confers on one or all parties to the lease the right to terminate the parties' obligations, should the occurrence of the condition or contingency set forth in the clause happen
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Canvassing
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the practice of searching for prospective clients by making unsolicited phone calls and/or visiting homes door-to-door
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Cap
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the limit on fluctuation rates regarding ARMs. Limitations or caps, may apply to how much the laon may adjust over a six-month period, an annual period, and over the life of the loan
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Capital
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money used to create income, or the net owrth of a business as represented by the amount by which its assets exceed its liabilities
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Capitalization
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the process of estimating the present value of an income-producing piece of property by dividing anticipated future income by a capitialization rate
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Capitalization rate
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the rate of return a property will generate on an owner's investment
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Cash flow
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the net income produced by an investment property, calculated by deducting operating and fixed expenses from gross income
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CC&R
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covenants, conditions, and restrictions of a cooperative or condominium development
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Certificate of Discharge
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a document used when the security instrument is a mortgage
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Certificate of Eligibility
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document issued by the Veterans Administration that certifies a veteran's eligibility for a VA loan
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Certificate of reasonable Value (CRV)
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once the appraisal has been performed on a property being bought with a VA loan, the veterans administration issues a CRV
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Certificate of sale
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the document given to a purchaser of RE that is sold at a tax foreclosure sale
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Certificate of title
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a report stating an opinion on the status of a title, based on the examination of public records
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Chain of Title
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the recorded history of conbeyances and encumbrances that affect the title to a parcel of land
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Chattel
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personal property
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Chattel mortgage
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a loan in which personal property is pledged to secure the debt
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Clear title
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a title that is free of liens and legal questions as to ownership of a property that is a requirement for the sale of RE; sometimes referred to as just title, good title, or free and clear
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Closing
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The point in a RE transaction when the purchase price is paid to the seller and the deed to the property is transferred from the seller to the buyer
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Closing costs
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1) 'Nonrecurring closings costs'-- any items paid once as a result of buying the property or obtaining a loan.
2) 'prepaid items'.--- items that recur over times, such as property taxes and homeowners insurance. |
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Good Faith Estimate
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A lenders attemt to estimate the amount of nonrecurring closing costs and prepaid items. This is issued to the borrower within three days of revieving a home loan application
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Closing date
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the date on which the buyer takes over the property
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Closing statement
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a written accounting of funds received and disbursed during a RE transaction. The buyer and seller receive separate closing statements
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Cloud on the title
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an outstanding claim or encumbrance that can affect or impair the owner's title
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Clustering
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the grouping of home sites within a subdivision on smaller lots than normal, with the remaining land slated for use as common areas.
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Codicil
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a supplement or addition to a will that modifies the original instrument
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Coinsurance clause
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a clause in an insurance policy that requires the insured to pay a portion of any loss experienced
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Collateral
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Something of value hypothecated (Real property) or pledged (personal property) by a borrower as security for a debt
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Collection
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when a borrower falls behind, the lender contacts the borrower in an effort to bring the loan current. The laon goes to 'collection'
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Color of Title
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an instrument that gives evidence of title, but may not be legally adequate to actually convey title
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Commingling
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the illegal act of an agent mixing a client's monies, which should be held in a separate escrow account, with the agent's personal monies
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Common Law
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the body of laws derived from local custom and judicial precedent
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Common Areas
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portions of a building, land, and amenities owned by a planned unit development or condominium projects homeowners association or a cooperative projects co-op corporation. These areas are used by all of the unit owners, who share in the common expenses of thier operation and maintenance.
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Community Property
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a system of property ownership in which each spouse has equal interest in property acquired during the marriage
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Comparable sales
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recent sales of similar properties in enarby areas that are used to help estimate the current market value of a property
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Competent parties
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people who are legally qualified to enter a contract, usually meaning that they are of legal age, of sound mind, and not under the influence of drugs or other mind-altering substances
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Competitive market analysis (CMA)
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an analysis inteded to assist a seller or buyer in determining a property's range of value
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Condemnation
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the judicial process by which the gov't exercises its power of eminent domain
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Condominium
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a form of ownership in which an individual owns a specific unit in a multiunit building and shares ownership of common areas with other unit owners
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Conformity
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an appraisal principle that asserts that property achieves its maximum value when a neighborhood is homogenous in its use of land
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Consideration
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something of value that induces parties to enter into a contracts, such as money or services
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Construction Mortgage
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a short-term loan used to finance the building of improvements to RE
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Constructive eviction
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action or inaction by a landlord that renders a property uninhabitable, forcing a tenant to move out with no further liability for rent
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Constructive notice
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notice of a fact given by making the fact part of the public record. All persons are responsible for knowing the information, whether or not they have actually seen the record
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Contingency
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a condition that must be met before a contract is legally binding. A satisfactory home inspection report from a qualified home inspector is an example of a common type of contingency
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Contract
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an agreement between two or more legally competent parties to do or to refrain from doing some legal act in exchange for consideration
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Contract for deed
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a contract for the sale of a parcel of RE in which the buyer makes periodic payments to the seller and recieves title to the property only after all, or a substantial part, of the purchase price has been paid, or regular payments have been made for one year or longer.
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Conventional loan
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a loan that is neither insured nor guaranteed by an agency of gov't
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Conversion option
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an option in an ARM to convert it to a fixed-rate mortgage
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Conveyance
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the transfer of title from the grantor to the grantee
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Cooperative
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a form of property ownership in which a corporation owns a multi-unit building and stock holders of the co. may lease and occupy individual units of the building through a proprietary lease
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Correlation
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or 'reconciliation' is the final step in an appraisal. The appraiser weighs the purpose of the appraisal against the estimated values.
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Cost Approach
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an appraisal method whereby the value of a property is calculated by estimating the cost of constructing a comparable building, subtracting depreciation, and adding land value.
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Credit
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an agreement in which a borrower recieves something of value in exchange for a promise to repay the lender
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Decedent
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a person who dies
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Dedication
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the donation of private property by its owner to a governmental body for public use
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Deed
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a written document that, when properly signed and delivered, conveys title to real property from the grantor to the grantee
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Deed-in-lieu
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a foreclosure instrument used to convey title to the lender when the borrower is in default and wants to avoid foreclosure
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Deed of trust
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a deed inwhich the title to property is transferred to a third-party trustee to secure repayment of a loan
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Deed restriction
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an imposed restriction for the purpose of limiting the use of land, such as the size or type of improvements to be allowed. AKA restrictive covenant.
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Depreciation
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a loss in value due to physical deterioration, functional, or external obsolescence
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Descent
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the transfer of property to an owner's heirs when th eowner dies intestate
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Devise
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the transfer of title to real estate by will
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Devisee
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one who recieves a bequest of real estate by will
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Devisor
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one who grants real estate by will
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Discount Point
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1% of the loan amount charged by a lender at closing to increase a loan's effective yield and lower the fare rate to the borrower
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Discount rate
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the rate that lenders oay for mortgage funds--a higher rate is passed on to the borrower
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Dispossess
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ro remove a tenant from property by legal process
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Dominant estate (tenement)
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property that includes the right to use an easement on adjoining property
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Dual Agency
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an agent who represents both parties in a transaction
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Due-on-Sale clause
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a provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage
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Duress
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the sue of unlawful means to force a person to act or to refrain from an action against his or her will
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Earnest Money
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down payment made by a buyer of Real estate as evidence of good faith
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Easement
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the right of one party to use the land of another for a particular purpose, such as to lay utility lines
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Easement appurtenant
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easements created for the beneficial use of an adjoining property. They are created in the name of the property, not the property owner. Appurtenant means 'belongs to', consequently, easements appurtenant belong to or run with the land
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Easement by necessity
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an easement, granted by law and requiring court action, that is deemed necessary for the full enjoyment of a parcel of land.
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Easement by prescription
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a means of acquiring an easement by continued, open, and hostile use of someone else's property for a statutorily defined period of time
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Easement in gross
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a personal right granted by an owner with no requirement that the easement holder own adjoining land
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Economic life
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the period of time over which an improved property will generate sufficient income to justify its continued existence
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Effective age
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an appraister's estimate of the physical condition of a building. The actual age of a building may be different than its effective age
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Emblements
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Cultivated crops; generally considered to be personal property
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Eminent Domain
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the right of a gov't to take private property for public use upon payment of its fair market value
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Encroachment
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a trespass caused when a structure, such as a wall or fence, invades another person's land or air space
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Encumbrance
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Anything that affects or limits the title to a property such as easements, leases, mortgages, or restrictions
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Equitable title
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the interest in a piece of real estate held by a buyer who has agreed to purchase the property, but has not yet completed the transaction; the interest of a buyer under a contract for deed
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Equity
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the difference between the curent market value of a property and the outstanding indebtness due on it
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Erosion
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the gradual wearing away of land by wind, water, and other natural processes
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Escalation clause
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a caluse ina lease allowing the lessor to charge more rent based on an increase in costs; sometimes called a pass-through clause
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Escheat
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the claim to property by the state when the owner dies intestate and no heirs can be found
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Escrow
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the deposit of funds and/or documents with a disinterested third party for safekeeping until the terms of the escrow agreement have been met
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Estate
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an interest in real property. The sum total of all the eral property and personal property owned by an individual
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Estate at sufferance
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exists when a tenant, without the consent of the owner, refuses to move out of a facility after the expiration of a lease
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Estate at will
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exists when a tenant stays in a facility after the expiration of a lease, but with the ownter's permission. This may occur when the two parties are negotiating new lease terms
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Estate for years
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a leasehold estate granting possession for a definite period of time
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Estoppel certificate
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a document that certifies the outstanding amount owed on a mortgage loan, as well as the rate of interest
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Exchange
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a transaction in which property is traded for another property, rather than sold for money or other consideration
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Exclusive agency listing
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a contract between a property owner and one broker that only gives the broker the right to sell the property for a fee within a specified period of time but does not obligate the owner to pay the broker a fee if the owner produces his or her own buyer without the brokers's assistance. but Barred from appointing another broker within this time period.
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Exclusive right to sell
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a contract between a property owner and a broker that gives the broker the right to collect a commission regardless of who sells the property during the specified period of time of the agreement
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Execution
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the signing of a contract
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Executor/Executrix
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a person named in a will to administer an estate. The court will appoint an administrator if no executor is named
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Executory contract
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a contract in which one or more of the obligations have yet to be performed (executed)
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External obsolescence
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a loss in value of a property due to factors outside the property, such as a change in surrounding land use
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Fair housing law
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a term used to refer to federal and state laws prohibiting discrimination in the sale or rental of residential property
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Fair market value
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the highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept
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Federal housing Administration (FHA)
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an agency within the U.S. department of housing and Hurban Development (HUD) that insures mortgage loans by FHA-approved lenders to make loans available to buyers with limited cash
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Federal National Mortgage Association (Fannie Mae)
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a privately owned corporation that buys existing government-backed and conventional mortgages
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Federal Reserve System
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the central banking system of the US, which controls the monetary policy, and therefore, the money supply, interest rates, and availability of credit
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Fee Simple
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the most complete form of ownership of Real Estate
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FHA-insured loan
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a loan insured by the federal housing administration
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Fiduciary relationship
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a legal relationship with an obligation of trust, as that of agent and principal
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First mortgage
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a mortgage that has priority to be satisfied over all other mortgages
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Fixed-rate loan
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a loan with an interest rate that does not change during the entire term of the loan
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Fixture
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an article of personal property that has been permanently attatched to the real estate so as to become an integral part of the real estate
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Forfeiture
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the loss of money, property, rights, or privileges due to a breach of legal obligation
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Franchise
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in RE, an organization that lends a standardiezed trade name, operating procedures, referal services, and supplied to memeber brokerages
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Freehold estate
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an estate of ownership in real property
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Functional obsolescence
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a loss in value of a property due to causes within the property, such as outdated style, or inadequacy to funciton properly
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General Agent
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an agent who is authorized to act for and obligate a principal in a specific range of matters, as specified by thier mutual agreement
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General lien
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a claim on all property, real and personal, owned by a debtor
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General warranty deed
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an instrument in which the grantor guarantees the grantee that the title being conveyed is good and free of other claims or encumbrances
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Government-backed mortgage
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a mortgage that is insured by the FHA or guaranteed by the Dept of VA or the Rural housing Service. Mortgagest that aren't govt loans are identified as conventional loans
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Government National Mortgage Association (Ginnie Mae)
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a govt-owned corporation within the U.S. dept of housing and Urban Development (HUD). Ginnie Mae manages and liquidates govt-backed laons and assists HUD in special lending projects
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Government survey system
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a method of land description in which meridians (longitude) and base lines (latitude) are used to divide land into townships and sections
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Graduated lease
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a lease that calls for periodic, stated changes in rent during the term of the lease
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Grant deed
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a deed that includes 3 warranties: 1) that the owner has the right to convey title to the property 2) there are no encumbrances other than those noted specifically in the deed 3) the owner will convey any future interest that he or she may acquire in the property
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Grantee and Grantor
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Grantee--One who receives title to real property
Grantor-- One who conveys title to real property; the present owner |
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Gross income
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the total income reveived from a property before deducting expenses
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Gross income multiplier
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A rough method of estimating the market value of an income property by lutiplying its gross annual rent by a multiplier discovered by dividing the sales prices of comparable properties by their annual gross rent
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Gross lease
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a lease in which a tenant pays only a fixed amount for rental and the landlord pays all operating expenses and taxes
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Ground lease
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a lease of land only, on which a tenant already owns a building or will construct improvements
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Guaranteed sale plan
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an agreement between a broker and a seller that the broker will buy the seller's property if it does not sell within a specified period of time
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Highest and best use
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the legally permitted use of a parcel of land that will yield the greatest return to the owner in terms of money or amenities
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Holdover tenancy
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a tenancy where a lessee retains possession of the property after the lease has expired, and the landlord, by continuing to accept rent, agrees to the tenant's continued occupancy
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Holographic will
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a will that is entirely handwritted, dated, and signed by the testator
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Home equity conversion morgage (HECM)
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aka "reverse-annuity mortgage"; instead of making payments to a lender, the lender makes payments to you. It enables older homeowners to convert the equity they have in thier homes into cash, usually in the form of monthly payments
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Home equity line of credit
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a mortgage loan that allows the borrower to obtain cash drawn against the equity of his or her homes, up to a predetermined amount
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Home inspection
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a thorough inspection by a professional that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser
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Homeowner's insurance
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an insurance policy specifically designed to protect residential property owners against financial loss from common risks such as fire, theft, and liability
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Homeowner's warranty
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an insurance policy that protects purchasers of newly constructed or pre-owned homes against certain structural and mechanical defects
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Homestead
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the parcel of land and improvements legally qualifying as the owner's principal residence
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HUD
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Department of housing and urban development, a federal agency that enforces federal fair housing laws and oversees agencies such as FHA and GinnieMae
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Hypothecate
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provides borrowers a way to use thier real or personal property as collateral for loans, without giving up possession of the property
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Implied contract
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a contract where the agreement of the parties is created by their conduct
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Improvement
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human-made addition to Real Estate
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Income capitalization approach
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a method of estimating the value of income-producing property by dividing its expected annual net operating income of the property by a capitalization rate
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Income property
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real estate developed or improved to produce income
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Incorporeal right
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intangivle, non-possessory rights in RE such as an easement or right of way
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Installment loan
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borrowed money that is repiad in periodic payments, known as installments
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Insured Mortgage
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a morgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (PMI). If borrower defaults on the loan, the insurer must pay the lender the insured amount
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Interest
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1) a fee charged by a lender for the use of the money loaned
2) a share of ownership in real estate |
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Intestate
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to die without having authored a valid will
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Investment property
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a property not occupied by the owner
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Joint Tenancy
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co-ownership that gives each tenant equal interest and equal rights in the property, including the right of survivorship
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Judgment
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a decision rendered by court determining the rights and obligations of parties to an action or lawsuit
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Judgment lien
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a lien on the property of a debtor resulting from a court judment
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Junior Mortgage
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any mortgage that in inferior to a first lien and that will be satisfied only after the first morgage
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Lease
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a contract between a landlord and a tenant wherein the landlord grants the tenant possesion and use of the property for a specified period of time and for a consideration
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Leased Fee
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the landlord's interest in a parcel of leased property
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Leasehold
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a tenant's right to occupy a parcel of RE for the term of the lease
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Lessee and Lessor
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Lessee--The one who recieves that right to use and occupy the property during the term of the leasehold esate
Lessor-- the owner of the property who grants the right of possesions to lessee |
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Leverage
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the use of borrowed funds to purchase an asset
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Lien
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a legal claim against a property to secure payment of a financial obligation
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Life estate
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a freehold esate in real property limited in duration to the lifetime of the holder of the life esate or another specified person
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Lis Pendens
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'suit pending'; a public notice that a lawsuit has been filed that may affect the title to a particular piece of property.
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Littoral rights
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landowner's claim to use water in large, navigable lakes and oceans adjacent to property; ownership rights to land bordering bodies of water up to the high-water mark
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Lot and Block Description
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a method of describing a particular property by referring to a lot and block number within a subdivision recorded in the public record
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Market data Approach
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a method of estimating the value of a property by comparing it to similar properties recently sold and making monetary adjustments for the differences between the subject property and the comparable property
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Mechanics Lien
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a statutory lien created to secure payment for those who supply labor or materials for the contruction of an improvement to land
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Metes and bounds
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a method of describing a parcel of land using direction and distance
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Mortgage
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a written instrument that pledges property to secure payment of a debt obligation as evidenced by a promissory note. A mortgage creates a lien against the title to a property
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Multiple listing system/service (MLS)
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the method of marketing a property listing to all participants in the MLS
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Mutual rescission
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and agreement by all parties to a contract to release one another from the obligations of the contract
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Negative amortization
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occurs when an ARM is allowed to fluctuate independently of a required minimum payment. A gradual increase in mortgage debts happens when the mo payment isnt large enough to cover the entire prinicipal and interest due. Shortfall is added to remaining balance to create negative amortization
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Net Income
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Income produced by a property calculated by deducting operating expenses from gross income
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Net Lease
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a lease that requires the tenant to pay maintenance and operating expenses, as well as rent
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Non-Conforming use
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a use of land this is permitted to continue, or grandfathered, even after a zoning ordinance is passed that prohibits the use
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Novation
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the subsitution of a new contract for an existing one; the new contract must reference the first and indicate that the first is being replaced and no longer has any force and effect
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Obsolescence
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a loss in the value of a property due tu functional or external factors
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Open-end mortgage
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a loan containing a clause that allows the mortgagor to borrow additional funds from the lender, up to a specified amount, without rewriting the mortgage
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Open listing
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a listing contract given to one or more brokers in which a commission is paid only to the broker who procures a sale. If the owner sells the house without the assisstance of one of the brokers, no commision is due
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Opinion of title
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an opinion, usually given by an attorney, regarding the status of a title to property
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Option
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an agreement that gives a prospective buyer the right to purchase a seller's property within a specified period of time for a specified prices
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Obsolescence
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a loss in the value of a property due tu functional or external factors
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Open-end mortgage
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a loan containing a clause that allows the mortgagor to borrow additional funds from the lender, up to a specified amount, without rewriting the mortgage
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Open listing
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a listing contract fiven to one or more brokers in which a commission is paid only to the broker who procures a sale. If the owner sells the house without the assisstance of one of the brokers, no commision is due
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Opinion of title
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an opinion, usually given by an attorney, regarding the status of a title to property
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Option
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an agreement that gives a prospective buyer the right to purchase a seller's property within a specified period of time for a specified prices
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Ordinance
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a muncipal regulation
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Ownership
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the exclusive right to use, possess, control, and dispose of property
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Package Mortgage
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a mortgage that pledges both real and personal property as collateral to secure repayment of a loan
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Participation mortgage
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a type of mortgage in which the lender receives a certain percentage of the income or resale proceeds from a property, as well as interest on the loan
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Partition
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the division of property held by co-owners into individual shares
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Partnersihp
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an agreement between two parties to conduct business for profit. In a partnership, property is owned by the partnership, not the individual partners, so partners cannot sell their interest in the property without the consent of the other partners
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Percentage lease
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a lease in which the rental rate is based on a percentage of the tenant's gross sales. This type of lease is most often used for retail space
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Periodic estate
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tenancy that automatically renews itself until either the landlord or tenant gives notice to terminate it
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Physical Deterioration
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a loss in the value of property due to impairment of its physical condition
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PITI
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Principal, interest, taxes, and insurance--- Components of a regular mortgage payment
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Planned Unit Development (PUD)
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a type of zoning that provides for residential and commercial uses within a specified area
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PMI
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private mortgage insurance
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Point
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a point is one percent of the loan
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Police Power
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the right of the government to enact laws, ordinances, and regulations to protect public health, safety, welfare, and morals
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Prescription
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a method of acquiring an easement to property by prolonged, unauthorized use
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Principal
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1) one who authorizes another to act on his or her behalf
2) one of the contracting parties to a transaction 3) the maount of money borrowed in a loan, separate from the interest charged on it |
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Probate
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the judicial procedure of proving the validity of a will
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Promissory note
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details the terms of the loan and is the debt instrument
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Puffing
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inflated or embellished comments that are neither facts nor the comments on which prospects would normally base a purchase decision
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Quitclaim deed
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a conveyance where the grantor transfers without warranty or obligations whatever interest or title he or she may have
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Range
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an area of land six miles wide, numbered East or West from a principal meridian in the rectangular survey system
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Real Estate
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land, the earth below it, the air above it, and anything permanently attatched to it
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Real Estate Settlement Procedures Act (RESPA)
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a consumer protection law that requires lenders to give borrowers advance notice of closing costs and prohibits certain abusive practices against buyers using federally related loans to purchase their homes
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REALTOR
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a registered trademark for use by members of the National Association of REALTORS and affiliated state and local associations
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Recording
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entering documents, such as deeds and mortgages, into the public record to give constructive notice
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Redlining
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the illegal practice of lending institutions refusing to provide certain financial services such as mortgage loans, to property owners in certain areas
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Regulation Z
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a federal reserve regulation that implements the federal Truth-in-Lending act
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Remainder estate
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a future interest in an estate that takes effect upon the termination of a life estate
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Rescission
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canceling or terminating a contract by mutual consent or by the action of one party on default by the other party
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Reversion
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the return of interest or title to the grantor of a life estate
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Right of egress (or ingress)
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the right to enter or leave designated premises
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Right of survivorship
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in joint tenancy, the right of survivors to acquire the interest of deceased joint tenant
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Riparian rights
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the rights of a landowner whose property is adjacent to a flowing waterway, such as a river, to access and use the water
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Salvage value
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the value of a property at the end of its economic life
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Section
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as used in the rectangular survey system, an area of land measuring one square mile, or 640 acres
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Servient tenement
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a property on which an easement or right-of-way for an adjacent (dominant) property passes
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Settlement statement (HUD-1)
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the form used to itemize all costs related to closing of a residential transcation covered by RESPA regulations
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Severalty
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the ownership of a property by only one legal entity
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Sheriff's sale
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a court ordered sale of real property so satisfy a judgment
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Specific lien
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a lien, such as mortgage, that attaches to one defined parcel of real esate
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Specific performance
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a legal action in which a court compels a defaulted party ot a contract to perform according to the terms of the contract, rather than awarding damages
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Statute of frauds
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the state law that requires certain contracts to be in writing to be enforceable
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Statute of limitations
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the state law that requires that certain actions be brought to court within a specified period of time
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Statutory lien
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a lien imposed on property by statute, such as a tax lien
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Steering
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the illegal practice of directing prospective homebuyers to or away from particular areas
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Straight-line depreciation
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a method of computing depreciation by decreasing value by an equal amount each year during the useful life of the property
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Subsitution
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the principle in appraising that a buyer will be willing to pay no more for the property being appraised than the cost of purchasing an equally desirable property
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Subrogation
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the subsitution of one party into another's legal role as the creditor for a particular debt
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Suit for possession
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a lawsuit filed by a landlord to evict a tenant who has violated the terms of the lease or retained possession of the property after the lease expired
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Tenancy at sufferance
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the tenancy of a party who unlawfullt retains possession of a landlord's property after the term of the lease has expired
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Tenancy at will
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an indefinite tenancy that can be terminated by either the landlord or the tenant at any time by giving notice to the other party one rental period in advance of the desired termination date
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Tenancy by the entirety
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ownership by a married couple of property acquired during the marriage with right of survivorship; not recognized by community property states
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Tenancy in common
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a form of co-ownership in which two or more persons hold an undivided interest in property without the right of survivorship
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Testate
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to die having created a valid will directing the testator's desires with regard to the dispotition of the estate
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Title
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a legal document that demonstrates a person's right to, or ownership of, a property. NOT an instrument, such as a deed, that gives evidence of title or ownership
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Township
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a division of land, measuring 36 square miles, in the government survey system
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Trade fixtures
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an item of personal property installed by a commercial tenant and removable upon expiration of the lease
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Truth-in-lending act
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also known as regulation Z; requires to make full disclosure regarding the terms of a loan
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Unilateral contract
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a one-sided contract in which one party is obligated to eprform a particular act completely, before the other party has any obligation to perform
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Unlawful detainer
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a court action that provides one of the first steps in the eviction process. If a defaulting tenant does not leave the premises after a three-day notice to quit, he or she may suffer triple damages if an Unlawful detainer action is filed. Once filed, tenant has 5 days to vacate the property
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VA guaranteed loan
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a mortgage loan made to a qualified veteran that is guranteed by the Department of Veterans Affairs
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Variance
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permission obtained from zoning authorities to build a structure that is not in complete compliance with current zoning laws. A variance does not permit a non-conforming use of property
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Writ of execution
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a court order to the sheriff or other officer to sell the property of a debtor to satisfy a previously rendered judgment
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Writ of possession
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a court order issued if a defaulting tenant does not answer un unlawful detainer action. It gives the sheriff five days to remove the tenant from the facility
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Zoning Ordinance
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the ecercise of regulating and controlling the use of a property in a municipality
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Tests of a Fixture
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M-ethod of attachment
A-daptability R-elationship of the parties I-ntention of the parties A-greement between the parties |
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Essentials of a Valid Deed
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1.Must be in writing
2.Parties must be correctly described 3.Grantor/ee is competent 4. Have clear description 5. Must be granting clause 6. Signed by grantor 7. Delivery and acceptance |
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Characteristics of Joint Tenancy
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Four Unities-
TIME-same hour & minute TITLE-same document INTEREST-same shares POSSESION-same usage Cannot will interest. Right of survivorship |
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Characteristics of Tenants in Common
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No right of survivorship. OK to will. Unequal shares allowed.
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Homestead Protection
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$75,000= Head of household(under 65 yrs & not low$)
$50,000= Single Person (under 65 yrs & not low$) $150,000= Head of household 65+ years and/or 55-64 yrs and low income |
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Creation of Real estate Agencies
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1. Agreement
2. Ratification 3. Estoppel |
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Subdivision Map Act
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2 or more lots
local control physical aspects No public report |
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Subdivided lands Act
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5 or more lots
CA RE commisioner control Sales Aspects Public Report |
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Unruh Civil Rights Act
|
Business cannot discriminate
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Housing Financial Discrimination( Holden)
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lenders cannot "redline"
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