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111 Cards in this Set

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General agent
One who has authority to bind his/her principal in a particular business.
General lien
A lien against all of the property owned by the debtor.
General taxes
See ad valorem taxes.
General warranty deed
A deed which offers the most comprehensive title protection of any deed. The grantor fully warrants good title to the property through the expressed or implied covenant of seizing covenant against encumbrances; covenant of quiet enjoyment; covenant of warranty forever; and the covenant of further assurances. The covenants apply to defects occurring at any time before title is conveyed by the grantor.
Genuine assent
An essential element of a contract which requires that all parties enter into the contract under their own free will absent of fraud; misrepresentation; duress; menace; or undue influence.
Georgia Administrative Procedures Act
A state law which requires administrative bodies such as the Georgia Real Estate Commission to follow certain procedures in its investigative process and before exercising its disciplinary powers. For example; before the Commission can impose a sanction against a license; the licensee must be given a hearing.
Gift deed
A deed in which the consideration is love and affection. Such deeds are normally used to make a gift of real property to a relative or friend. Sometimes called a voluntary deed.
Ginnie Mae
Government National Mortgage Association (GNMA) was established in order to buy special assistance mortgages carrying below market interest rates. GNMA is a government agency under HUD and deals only in VA and FHA mortgages (see Pass Through Securities).
Good consideration
Something without monetary value; love and affection.
Good faith estimate
A RESPA required estimate of all settlement charges to be assessed against the borrower at closing. The lender must provide this estimate at the time of loan application or within three business days.
Government survey system
See rectangular survey system.
Graduated lease
Any lease which provides for rental changes in the future.
Graduated Payment Mortgage (GPM)
A mortgage loan which provides for reduced payments in the first five to ten years in exchange for higher than usual payments which then remain fixed for the balance of the loan term.
Grant deed
"A deed in which the covenant of seizin and covenant against encumbrances are implied by statute when the word ""grant"" is used in the words of conveyance. Used in some states instead of a warranty deed."
Grantee
A person who receives the grantor's interest in real property by deed.
Granting clause
"A deed provision whereby the grantor clearly expresses the intent to make a present conveyance to the grantee also called ""words of conveyance""."
Granting clause in a mortgage
In title theory states; this provision makes the mortgage an outright conveyance of title to the lender.
Grantor
A person or legal entity that conveys an interest in real property by deed.
Grantor-grantee index
A public recording system which lists alphabetically all grantors and grantees named in documents recorded for each calendar year. A separate index book is maintained for grantors and grantees so the book and page number of a document can be located by searching under either name.
Gross lease
Also called flat lease or straight lease. The tenant pays a fixed amount at specified intervals. The landlord pays all expenses associated with owning the leased premises.
Gross rent multiplier
A number that; when multiplied by a property's estimated gross rent; produces an indication of the property's value.
Ground lease
A long-term; net lease of unimproved land with permission for the tenant to make improvements.
Guardian
One appointed by a court to take care of and manage property and affairs of another person judged legally incompetent.
Guardian's deed
A deed executed by a court-appointed guardian to convey title to property owned by a minor; insane person; or the aged.
Habendum clause
A deed provision which defines the extent of ownership rights granted; such as a life estate; a fee simple estate; or an easement. Usually part of the granting clause.
Highest and best use
That use of a property which will yield the greatest return on the property or greatest current value; the most profitable use to which a property is adapted.
Holder in due course
One who; in good faith and without notice of defect; pays valuable consideration to receive a note before it is due.
Holdover tenant
A tenant who remains in possession of leased premises after the right of possession has ended. The possession may be with or without the landlord's consent.
Holographic will
A will written; dated; and signed in the testator's handwriting which need not be witnessed.
Homestead exemption
An ad valorem tax reduction for persons who own the home they occupy.
Homestead protection
A right which protects a portion of a family's primary residence in the event a creditor forces a sale to satisfy an outstanding debt. The amount of protection is determined by state law.
Hypothecation
The borrower's retaining possession of property pledged as security for a mortgage loan.
Implied authority
Authority of an agent arising from custom rather than expressed agreement.
Implied contract
A contract in which the promises are not expressed but manifested by the conduct of the parties.
Implied warranty of habitability
The landlord's implied duty to keep a dwelling unit at a minimum level of livability.
Impounds
A property owner's monthly payment of taxes and insurance into an escrow account maintained by the lender who holds the mortgage. The funds are set aside to pay the tax bill and insurance premium when they become due.
Improvement
Any permanent; man-made attachment to the land; such as buildings; fences; roads; or pipelines. Also known as artificial attachment.
Improvement district
An area designed to benefit from certain improvements for which the property owners will be levied a special assessment.
Inactive license
Status of a licensee temporarily unemployed; or who has otherwise ceased his/her active involvement in the real estate business on behalf of a broker. During such time; the license is held by the Commission and may remain there indefinitely; but must be renewed and fees must be paid the same as active licensees.
Incapacity
See incompetent.
Inchoate dower
A wife's interest in her husband's property while he is stilt living.
Income approach
One of three approaches to value; it converts the property's net operating income into an indication of value; also called capitalization.
Incompetent
One who is not legally capable of entering into a binding contract due to age; insanity; or other causes.
Incorporeal
An intangible interest in land; such as an easement.
Incurable depreciation
Items of economic obsolescence (sometimes physical deterioration or functional obsolescence) which are beyond the owner's control or which cannot be justified by the anticipated increase in value; not economically feasible to correct.
Independent contractor
One who contracts to do work according to his/her own methods and is responsible to his/her employer only as to the results of that work. The employment relationship with salespersons used most often by a broker.
Index lease
One which requires that rent be adjusted up or down periodically based upon changes in a designated index; such as the Consumer Price Index.
Infant
See minor.
Ingress
Access to a parcel of land.
Inheritance tax
Tax on property received by will or by inheritance through the probate court; when there was no will.
Injunction
Court order requiring a person to whom it is directed to do or refrain from doing a particular thing. A legal recourse that may be taken against one who violates a restrictive covenant in a lease or deed.
Innocent misrepresentation
Misstatements of fact made without the intent to deceive and without a breach of duty.
Installment land contract
See land contract.
Interest
The amount paid or accrued in return for the use of money.
Interpleader
A legal action that can be taken by a broker to settle an earnest money dispute by paying the funds into court. The court will determine how the funds are to be disbursed.
Intestate
To die without a will or having left an invalid will.
Involuntary alienation
A transfer of title to real property without the owner's consent.
Involuntary lien
A lien permitted by law and recorded without the landowner's consent. The lien may affect only one particular property; such as a mechanic's lien; or it may affect all of the debtor's property; such as a judgment lien. Also known as a statutory lien.
Jointly and severally liable
Where more than one person signs a note; they are not only liable for their proportionate share; but each is responsible for the entire debt.
Jones vs. Mayer
A landmark discrimination case in which the U.S. Supreme Court in August; 1968 upheld the Civil Rights Act of 1866 in its ruling that discrimination on racial ground is unlawful.
Judgment
A court's official decision regarding the rights and claims of the parties in a lawsuit. A judgment in a suit for damages is the amount of indebtedness set by the court.
Judgment lien
A creditor's legal claim on all of the judgment debtor's property located in the county where the judgment is recorded. The lien enables the creditor to have the property sold to satisfy a debt.
Judicial foreclosure
Legal proceeding where a lender files a lawsuit against a defaulting borrower in order to force the sale of property held as collateral.
Junior mortgage
Any mortgage recorded after the first mortgage.
Key lot
One that joins the rear of a corner lot. For residential use; such lots are not desirable because of the view of the neighbor's back yard. For commercial use; a key lot can be advantageous because of its importance in an attempt to assemble several lots under one ownership (assemblage).
Kickbacks
The practice of accepting fees for referrals without providing an actual service.
Kicker
The equity return received by a partner who is also the lender.
Kiting
See falsifying contracts.
Land
An area which starts at the center of the earth; passes through the earth's surface; and extends on into space.
Land contract
Also known as installment contract; installment land contract; or contract for deed. A contract in which the buyer typically makes a small downpayment; takes possession; pays the taxes; and makes installment payments of principal and interest to the seller until the purchase price is paid in full. The seller retains title until the buyer has paid all installments and otherwise performed under the contract.
Landlocked
Land which has no means of access except over neighboring land.
Landlord
One who leases real property to another. Also called lessor.
Land-use districts
Areas in a community which are classified (zoned) according to their intended use; such as residential; commercial; and industrial.
Lashes
Undue delay or failure to exercise one's legal right; resulting in the loss of the ability to exercise the right.
Last will and testament
A person's written or oral declaration of arrangements to be made for the disposition of real and/or personal property owned at the time of death.
Latent defect
Defects not readily apparent from an ordinary inspection of the property. Concealed defects that affect the value of the property and must be disclosed by the seller and broker (when known or apparent to them) to third parties.
Law of agency
That body of law that governs the relationship between principal; agent and third parties.
Law of capture
The law which allows a well drilled on one property to extract oil or gas reserves from adjoining properties.
Laws of descent and distribution
State laws which transfer property to the heirs of a person who dies without leaving a valid will.
Laws of succession
See laws of descent and distribution.
Lease
A contract which also conveys an estate by granting one person the exclusive right to temporarily use the property of another; and at the same time specifies the rights and obligations of the parties. A lease is the personal property of the lessee.
Leased fee estate
The landlord's estate in property leased to another.
Leasehold estate
A tenant's rights in real property granted by a lease.
Leasehold improvements
Improvements made to leased premises by the tenant.
Legacy
A gift of personal property by will. A bequest.
Legal capacity
Legal ability to form a contract.
Legal description
A description of land legally sufficient to distinguish it from all other parcels.
Legal life estate
A life estate created by state law; the holder of which has a nonpossessory interest in real property. Legal life estates include dower; courtesy; and homestead protection.
Legates
A person who receives a gift of personal property by will.
Legatos
A person who disposes of personal property.
Lessee
See tenant.
Lesser estate
An estate created when an owner of property conveys part of his/her rights to another.
Lessor
See landlord.
License
An owner's permission for another to use the land for a specific purpose. The permission does not grant a right in the land but a personal privilege; which is neither transferable nor inheritable and may be terminated by either party.
Lien
A monetary claim against real estate which serves as security for a debt.
Lien theory
The legal position adopted by some states; holding that a mortgage only creates a lien rather than conveying title to the lender.
Life estate
A freehold estate (i.e.; ownership interest in real property). The indefinite duration of the estate is measured by the life of some person. Also called conventional life estate.
Life estate put autre vie
A life estate whose duration is measured by the life of someone other than the life tenant.
Life tenant
One to whom a life estate is granted; the owner of the estate.
"Limited agent under ""BRRETA"" "
A limited agent is a broker acting under a brokerage engagement agreement who solicits offers to purchase; sell; lease or exchange real property without being subject to the control of the client except as to the result of the work. Since real estate covers so many areas in which the broker may be held liable; the General Assembly has attempted to limit liability to specifically the result of the work being performed by the broker.
Limited warranty deed
See special warranty deed.
Liquidated damages
A sum of money specified in a contract as compensation to be paid to one of the parties if the other defaults.
Lis pendens
Legal notice that a lawsuit is pending; and the outcome could affect the title to certain real estate.
Listing agreement
A contract of employment between a property owner and a broker who authorizes the latter to find a buyer who is ready; willing and able to purchase the property according to the owner's terms.
Littoral rights
A landowner's lawful claim to use and enjoy the water of a large lake or ocean bordering the owned property.
Loan deed
See security deed.
Loan discount
Prepaid interest paid to a lender at the time a loan is made. The fee is charged to increase the yield because the interest rate on the loan is less than the lender could earn from similar investments.
Loan servicing
The lender's administrative duties after a loan is placed; for instance; mailing out bills; keeping records of loan payments; maintaining escrow accounts; making payments for taxes and insurance; and sending out delinquent notices.
Loan transfer fee
A charge for changing the lender's records when a buyer takes over the seller's existing loan.
Loan-to-value ratio
The percentage relationship between the amount of loan and the value of the property pledged as security. For example; a property valued at $100;000 with an $80;000 loan has an 80% loan-to-value ratio. ($80;000 / $100;000 = 80%)
Lock-in clause
Mortgage provision which prevents the loan from being paid off early.