Margaret's Flashcards For Real Estate School Lodolce Academy Of Real Estate

Front 1

acceleration clause

Back 1

clause in a mortgage or trust deed that can be enforced to make the entire debt due immediately if mortagagor defaults on an installment payment or other covenant

Front 2

alienation clause

Back 2

clause in mortgage making the balance of the secured debt due & payable immediately at the mortgagee's option if the mortgagor sells the property. This clause protects the mortgagor from assigning the debt without the mortgagee's approval

Front 3

amortized loan

Back 3

loan in which the principal as well as the interest is payable in monthly(or periodic) installments over life (term) of the loan

Front 4

appraisal

Back 4

estimate of quantity, quality, or value of something. Process by which property values are obtained, report that sets forth the process of estimation and conclusion of value

Front 5

balloon payment

Back 5

final payment of a mortgage loan hat is CONSIDERABLY higher than the required periodic payments as the loan amount was not fully amortiized

Front 6

blanket loans

Back 6

mortgage covering more than one parcel of real estate, providing or each prcel's partial release from the mortgage lien upon repayment of a definite portion of the debt

Front 7

blue sky laws

Back 7

common name for those state and federal laws that regulate registration and sale of investment securities

Front 8

boot

Back 8

money or property given to make up any difference in value or equity between two properties in an exchange

Front 9

buyer agency representation

Back 9

a principal agent relationship in which the broker is the agent for the buyer, with fiduciary responsibilities to the buyer. The broker represents the buyer under the law of agency

Front 10

capitalization

Back 10

a mathematical process for estimating the value of a property using a proper reate of return on the investment adn the annual net income expected to be produced by the property FORMULA: INCOME divided by RATE = VALUE

Front 11

contingency

Back 11

provisions in a contract that require a certain act to be done or a certain event to occur before the contract becomes binding

Front 12

conventional loans

Back 12

a loan that is not insured or guaranteed by a government or a private source

Front 13

equity

Back 13

interest or value that an owner has in property over and above any indebtedness

Front 14

escrow account

Back 14

the trust account established under provisions of the license

Front 15

Escrow account

Back 15

the trust account established by a broker under the provision of the license law for th epurpose of holding funds on behalf of the brokers principal or some other person until the consumatin or termination of a transaction

Front 16

estoppel certificate

Back 16

a document in which a borrower certifies the amount owed on a mortgage loan and the rate of interest

Front 17

ethics

Back 17

the system of moral principals and rules that becomes the standards for professional conduct

Front 18

exclusive agency

Back 18

a listing under which the owner appoints a real estate broker as his or her exclusive agent

Front 19

exclusive right to sell agency

Back 19

a listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property on the owners states terms adn agress to pay the broker a commission when the property is sold, whether by the broker, the owner or another broker

Front 20

fiduciary

Back 20

one in whom trust and confidence is olace under the common law of agency; usually a reference to a broker employed under the terms of a listing contrat or buyer agency agreement

Front 21

independent contractor

Back 21

someone who is retained to perform a certain act, but who is subject to the control and direction of anohter only as to the end result and not as to the way in which the act is performed. Unlike an employee, an independent contractor pays for all expensese and employee benefits. Many real estate people are independent contractors

Front 22

LOAN-TO-VALUE RATIO

LTV

Back 22

relationship between the amount of the mortgage loan and the value of the real estate being pledged as collateral

Front 23

mortgage

Back 23

a conditional transfer or pledge of real estate as security for payment of a debt. Also the document creating a mortgage lien

Front 24

Prime Rate

Back 24

...

Front 25

principal

Back 25

a sum loaned or employed as a fund or an investment as distinguished from income or profits

The original amount (as in a loan) of the total due and payable at a certain date

A main party to a transaction --the person for whom the agent works

Front 26

puffing

Back 26

exaggerated or superalative comments or opinions

Front 27

purchase money mortgage

PMM

Back 27

A note secured by a mortgage or deed of trust given by a buyer, as borrower, to a seller, as lender, as part of the purchase price of the real estate

Front 28

Redlining

Back 28

the illegal practice of lending institutions denying loans or restricting their numbers for certain areas of a community

Front 29

Sherman Antitrust Act

Back 29

...

Front 30

Steering

Back 30

the illegal practice of channeling home seekers to particular areas to maintain the homogeneity of an area or to hange the character of an area in orer to create a speculative situation

Front 31

subagent

Back 31

one who is employed by a person already acting as a agent. Typically a reference to a salesperson licensed under a broker (agent) who is employed under the terms of a listing agent

Front 32

allodial system

Back 32

a system of landownership in which land is held free and clear of any rent or service due to the government, comonly contrasted to the feudal system. land is held under the allodial system in the United States

Front 33

Abstract of Title

Back 33

the condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumberances affecting the property and a certification by the abstractor that the history is complete and accurate

Front 34

ad valorem tax

Back 34

tax levied according to value; generally lused to refer to real estate tax, also called general tax

Front 35

consideration

Back 35

1) that received by the grantor in exchange for his or her deed. 2) something of value that induces a person to enter into a contract

Front 36

conventional loan

Back 36

a loan that is not insured or guaranteed by a government or private source

Front 37

covenent

Back 37

a written agreement between two or more parties in which a party or parties pledge to perform or not perform specified acts with regard to property, usually found in such real estate documents as deeds, mortgages, leases and contracts for deeds

Front 38

deed

Back 38

a written instrument that, when executed and delivered, conveys title to or an interest in real estate

Front 39

defeasance clause

Back 39

a clause used in leases and mortgages that cancels a specified right upon the occurrence of a certain condition, such as cancellation of a mortgage upon repaymentof the loan

Front 40

device

Back 40

a gift of real property by will. The donor is the devisor and the recipient is the devicee

Front 41

easement

Back 41

a right to use the land of another for a specific purpose, such as for a right-of-way or utilities; an incorporeal interest in land

Front 42

eminent domain

Back 42

the right of a government or municipal quasi-public body to acquire property for public use through the legal process called comdemnation

Front 43

fee simple

Back 43

the maximum possible estate or right of ownership of real property, continuing forever, also known as fee simple absolute

Front 44

freehold estate

Back 44

an estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate

Front 45

grantee

Back 45

a person who receives a conveyance of real property from a grantor

Front 46

grantor

Back 46

the person transferring title or an interest in real property to a grantee

Front 47

leasehold estate

Back 47

a tenants right to occupy real estate dduring the term of a leasel generally considered to be a personal property interest

Front 48

legacy

Back 48

a disposition of money or personal property by will

Front 49

mill

Back 49

one tenth of one cent. Some states us a mill rate to compute real estate taxes. For example, a rate of 52 mills would be $0.052 tax for each dollar of assessed valuation of a property

Front 50

note

Back 50

see promissory note

Front 51

novation

Back 51

substitution a new obligation for an old one or substituting new parties to an existing obligation

Front 52

personal property

Back 52

items, called chattels, which do not fit into the definition of real property, movable objects

Front 53

police powers

Back 53

the governments right to impose laws, statutes adn ordinances, including zoning ordinances and building codes, to protect the public health, safety adn welfare

Front 54

primary mortgage market

Back 54

the mortgage market in which loans are originated and consisting of lenders such as commercial banks, savings and loans associations, and mutual savings banks

Front 55

quitclaim deed

Back 55

a conveyance by which the grantor transfers whatever interest interest he or she has in teh real estate without warranties or obligations

Front 56

real property

Back 56

the interests, benefits adn rights inherent in real estate ownership

Front 57

redemption

Back 57

the right of a defaulted property owner to recover his or her property by curing the default

Front 58

redemption period

Back 58

a period of time established by state law druing which a property owner has the right to redeem his or her real estate from a foreclosure or tax sale by paying the sales price, interest, and costs. Many states do not have mortgage redemption laws.

Front 59

situs

Back 59

the personal preference of people for on earea over another, not necessarily based on objective facts and knowledge

Front 60

statute of frauds

Back 60

that part of a state law that requires certain instruments, such as deeds, real estate sales contracts, and certain leases to be in writing to be legally enforceable

Front 61

statute of limitations

Back 61

that law pertaining to the period of time within which certain actions must be brought to court

Front 62

superfund

Back 62

popular name of the hazardous waste cleanup fund established by the COmprehensive Environmental Respons, Compensation, and Liability Acxt (CERLA)

Front 63

Syndicate

Back 63

a combination of people or firms formed to accomplish a business venture of mutual interest by pooling resources. Ina real estate investment syndicate the parties own and /or develop property with the main profit generally arisin gfrom the sale of the property

Front 64

fixture

Back 64

an item of personal property that has been converted to real property by being permanently affixed to the realty

Front 65

independent contractor

Back 65

someone who is retained to perform a certain act but who is subject to the control and direction of another only as to the end result and not as to the way in which the act is performed. Unlike an employee, an independent contractor pays for all expenses adn Social Security and income taxes and receives no employee benefits. Many real estate sales people are independent contractors.