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382 Cards in this Set
- Front
- Back
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Abstract of Title |
A brief, chronological summary of the recorded documents affecting title to a particular parcel of real property.
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Acceleration Clause
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A contract clause giving the lender the right to declare the entire loan amount due immediately because of borrower's default, or other reasons as stated in the contract.
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Accord and Satisfaction |
An agreement to accept something different (usually less) than what the original contract required.
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Accretion
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A gradual addition to dry land by the forces of nature, as when the tide deposits water-borne sediment on shoreline property.
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Accrued Items
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expense items on a settlement statement for which the cost has been incurred, but the expense has not been paid yet.
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Acknowledgment
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When a person who has signed a document formally declares to an authorized official (usually notary public) that he or she signed voluntarily. The official certifies that the signature is voluntary and genuine.
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Acquisition Cost
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The purchase price of a property, plus (allowable) buyer paid closing costs.
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Acre
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43,560 square feet.
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Ad Valorem |
A latin phrase meaning "according to value." used to refer to taxes assessed on the value of property.
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Adjustable-Rate Loan
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A loan made by savings and loan associations that is very similar to an adjustable-rate mortgage.
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Adjustable Rate Mortgage
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A mortgage that permits the lender to periodically adjust the interest rate so that the rate reflects fluctuations in the cost of money.
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Adjustment Period, Mortgage Payment
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The interval at which a borrower's actual mortgage payments change with an ARM (adjustable rate mortgage).
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Adjusted Sales Price
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The amount of money received from the sale of property minus the selling expenses.
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Administrator
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A person appointed by the probate court to manage and distribute the estate of a deceased person when no executor is named in the will or there is no will.
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Adverse Possession
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Acquiring title to someone else's real property by possession of it. The possession must be open and notorious, hostile and adverse, exclusive, and continuous, for statutory period of time.
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Advertisements |
any public notification of property being offered for sale, and thus must follow guidelines of Regulation Z of Truth-In-Lending Act.
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Affidavit
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A sworn statement that has been written and acknowledged
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Affidavit of Title
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A statement, sworn in front of notary public or authorized official, by the seller or grantor of property that identifies the grantor, identifies the grantor's marital status, and certifies that the grantor has no new judgements, liens, divorces, unrecorded deeds, or other potential title defects since the title examination was completed. It also certifies that the grantor is indeed in possession of the property.
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Affiliated LIcensee
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Individuals licensed as salespersons or associate brokers who are employed by the same broker.
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Affirm
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An appeals court ruling that the lower court's decision was correct, rejecting the appellants arguments.
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Against Encumbrances
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A guarantee in a deed that the property will not have any encumbrances except for those listed on the deed.
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Agency |
A relationship of trust created when one person (the principal) gives another person (the agent) the right to represent the principal in dealings with thrid parties.
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Agency Disclosure statement
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Form that states whether an agent is representing the seller or the buyer, or both, in a transaction.
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Apparent Agency (Ostensible agency)
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1. When someone who has not been authorized to represent another acts as if he or she is that person's agent. 2. When an agent acts beyond the scope of his or her authority, giving a third party the impression that the acts are authorized.
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Designated Agency
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An agency relationship where a licensee is assigned by a broker to represent a buyer or seller in a transaction, usually in an in-company dual agency situation.
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Dual Agency
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When a broker or salesperson represents both parties (buyer and seller) in a transaction, AND all management level licensees at a brokerage.
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Agent
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A person licensed to represent another in a real estate transaction; or a person authorized to represent another (the principal) in dealings with third parties.
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General Agent
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An agent authorized to handle ALL of the principal's affairs in one area or in specified areas.
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Special Agent
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An agent with limited authority to do a specific thing or conduct a specific transaction.
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Split Agent
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A licensee assigned by a broker to represent a buyer or seller in a transaction ,usually in an in company dual agency situation.
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Universal Agent
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An agent authorized to do everything that can be lawfully delegated to a representative.
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Alienation Clause
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A contract clause that gives the lender certain stated rights when there's a transfer of ownership in the property. Upon sale of, or even transfer of, significant interest in the property, the lender will often have the right to accelerate the debt (here called a due on sale clause), change the interest rate, or charge a hefty assumption fee (FHA and VA loans cannot have this).
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Involuntary Alienation
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The transfer of an interest in property against the will of the owner, or without action by the owner, occurring through operation of law, natural processes, or adverse possession
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Voluntary Alienation
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When an owner voluntarily transfers an interest to someone else.
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Alimony
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Money paid to an ex-spouse as part of a divorce settlement (it does not have to be revealed as a source of income if its not counted to help repay the loan, but must be revealed as debt obligation).
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Allocation Method
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A site valuation method that separates the value of the land from the structures that sit on it by taking a ratio of the land or site value to the total property value, based on a typical property in the area.
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Allodial System
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The system of land ownership where anyone can own land.
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Amenity
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A tangible or intangible feature that enhances and adds value to real estate.
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Amortization
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When a loan balance decreases because of periodic installments that pay principal and interest.
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Amortization provision
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In a zoning law, a provision that places time limits on nonconforming uses.
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Amortization schedule
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a table or chart that shows the periodic payments, interest and principal requirements, and unpaid loan balance for each period of the life of a loan.
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Amortize
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To calculate payments to pay off a debt by periodic installments, with payments going to pay principal and interest.
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Amortized Loan
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loan where payments are applied to principal and interest.
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Annexation
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Attaching personal property to land so that the law views it as a part of the real property.
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Actual Annexation
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A physical attachment of personal property to land.
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Constructive Annexation
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When personal property is associated with real property in such a way that the law treats it as a fixture, even if its not physically attached to the real property.
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APR (Annual Percentage Rate)
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Relationship between the coast of borrowing and the total amount financed represented as a percentage.
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anticipatory repudation
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When one party to a contract informs the other before the time set for performance that he or she does not intend to perform as agreed.
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Antitrust
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An area of law concerned with maintaining competition in private markets by prohibiting any restraint on trade.
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Appeal
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The process in which a higher court reviews the decision of a lower court or an administrative tribunal.
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Apellee
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In an appeal, the party (also called the respondent) who did NOT file the appeal.
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Appraisal
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A professional estimate or opinion of the value of a piece of property (parcel of land), as of a certain date, that's supported by objective data.
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Appraisal Foundation
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Non-profit organization, created by the nine (now eight) leading appraisal organizations, which is recognized as authority for professional appraisal standards.
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Appraisal Institute (AI)
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Professional organization for appraisers, created in 1990 by merger of American Institute of Real Estate Appraisers and Society of Residential Appraisers.
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Appropriation (condemnation)
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Taking private property for public use, through the governments power of eminent domain.
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Appurtenance
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A right that goes along with ownership of real property; usually transferred with the property, but may be sold separately. (both physical and non physical)
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Arbitration
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An alternative to a court proceeding where the parties agree to submit facts and evidence to an impartial third party.
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Arm's Length Transaction
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A transaction that occurred under typical conditions in the marketplace, with each party acting in his or her own best interest.
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Articles of Incorporation
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A document filed with state that forms a corporation; generally details the purpose of the corporation, its principal place of business, the names of its initial directors, and the breakdown of the stock it issues.
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"As Is" clause
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a provision in a purchase agreement stating the buyer accepts property in its present condition.
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Assemblage
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The combining of two or more parcels of land into one larger parcel
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Assent (Genuine Assent)
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Consent given freely to create a binding contract. Consent given as a result of fraud, undue influence, duress, or mistake can be deem a contract voidable.
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Assessment
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1. A government's valuation of property for tax purposes. 1. A special assessment.
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Assessor
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An official who determines the value of property for taxation.
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Assign
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To transfer a right or interest to another. (subleasing)
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Assumable
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Any loan for which an assumption may be exercised
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Assumption
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When one party takes over responsibility for the loan of another party, usually lender approval is needed.
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Attachment
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Court-ordered seizure of property belonging to a defendant in a lawsuit, so that it will be available to satisfy a judgement. In the case of real property, attachment creates a lien.
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Fructus industriales; Fructus Naturales; Natural Attachments (emblements)
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Plants growing on a piece of land, such as trees, shrubs, or crops.
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Attestation
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When witnesses sign a legal document to affirm that the parties signatures are real; the act of witnessing the execution of a legal document (such as a deed or will).
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Attorney in Fact
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Any person authorized to act for another by power of attorney (not necessarily a lawyer who is attorney at law).
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Actual Authority
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Authority intentionally given to an agent by the principal, either expressly or by implication
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Express Authority
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Authority expressly communicated in words or in writing, by the principal to the agent.
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Implied Authority
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Authority indirectly given to an agent to do everything reasonably necessary to carry out the principals express orders.
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Avulsion
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A natural process in which land is removed from one person's property and deposited onto another's. Flash flood, or landslide.
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Balance
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A condition that exists in the real estate market when there are slightly more homes available than buyers.
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Balloon Payment
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A condition that exist in the real estate market when there are slightly more homes available than buyers.
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Baloon payment
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A final payment at the end of a loan term to pay off the entire remaining balance of principal and interest not covered by payments during the loan term.
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Bankruptcy
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A legal proceeding that relieves a debtor of the responsibility of paying debts or provides protection while attempting to repay debts.
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Base Lines
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Main east-wet lines designated and named throughout the country for use with the government survey system.
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B-C Credit
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Refers to credit condition of people with less-than-perfect credit, or serious blemished on teir credit report. (sub-prime loans)
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BEACON Score
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A type of credit scoring, where a number from 300-900 is assigned to a credit report. The lower the score, the greater the risk of default. Above 660 is an acceptable risk, 620-660 is a marginal risk, below 620 is a high risk. (another type is FICO Score).
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Beneficiary
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One who recieves a benefit; refers to the lender in a trust deed
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Bequeath
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to transfer personal property to another by a will.
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bequest
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personal property transferred by a will
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Bill Consolidation
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borrowing a larger sum of money to pay off many smaller debts
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Bill of Sale
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A document used to transfer title to personal property from one person to another
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Blank Endorsement
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When the holder of a note simply signs his or her name on the back of the note.
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Blockbusting (panic selling)
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The illegal practice of inducing owners to sell their homes (often at a deflated price) by suggesting the ethnic or racial composition of the neighborhood is changing, with the implication that property values will decline as a result.
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Board of Governors
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A seven member committee that controls the Federal Reserve System. (Federal Reserve Board)
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Bona Fide
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In good faith; genuine
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Bond-type Securities
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Mortgage backed securities issued by GNMA, which are long-term, pay interest semi-annually, and provide for repayment at a specified date.
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Boot
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Unlike property thrown into a deal to balance the value.
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Brick Veneer
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A home exterior material
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Broker
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One who is licensed to represent one of the parties in a real estate transaction, for compensation.
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Associate Broker
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One who has qualified as a real estate broker but works for another broker.
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Builder's Acre
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an informal unit of measurement-- usually 40,000 square feet. used to describe lots for new construction.NOT A LEGAL ACRE
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Bump Clause
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A provision in a purchase agreement that allows the seller to keep the property on the market until a condition in the contract is fulfilled.
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Bundle of Rights
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All real property rights that are conferred with ownership, including right of use, right of enjoyment and right of disposal.
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Buydown
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When additional funds in the form of points are paid to a lender at the beginning of a loan to lower the interest rate an monthly payments on the loan.
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Permanent Buydown
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When points are paid to a lender to reduce the interest rate and loan payments for the entire life of the loan.
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Temporary Buydown
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When points are paid to a lender to reduce the interest rate and payments early in a loan, with interest rate and payments rising later.
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Buyer Broker
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An agent representing the interests of the buyer of a property.
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Buyer's Market
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A situation in the housing market giving buyers a large selection of properties from which to choose.
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Calendar Year
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365 days.
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Call Provision
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Clause that lets lender demand full payment of a loan now.
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Cap
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Limit, usually used with ARMs, to protect borrowers from large increases.
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Capital
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Money used to create income, either as investment in a business or income property.
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Capital Exenditures
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Money spent on improvements such as land, buildings, machinery, and similar major expenditures which are not inventory.
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Capitalization Rate
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A percentage rate of return used by investors to calculate the present value of future income. Used for an income approach to appraisal.
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Case Law
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Rules of law developed in court decisions, as opposed to constitutional law, statutory law, or administrative regulations.
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Cash Flow
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Money available to an individual on a regular basis, after subtracting all expenses.
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Caveat Emptor
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A latin phrase meaning "let the buyer beware." The rule that says a buyer is expected to examine property carefully, instead of relying on the seller to point out problems.
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CC&Rs
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A declaration of Covenants, Conditions and Restrictions; usually recorded by a developer to create a general plan of private restrictions for a subdivision.
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Certificate of Eligibility
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A certificate issued by VA to establish status and amount of a veteran's eligibility to qualify for loan guarantee.
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Certificate of Judgement
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A summary of the provisions of a court judgement; when recorded, it creates a lien on all real property of the debtor in the county where recorded.
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Certificate of reasonable value
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A document issued by the VA which states the value of the subject property based on an approved appraisal.
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Certificate of Title
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A document prepared by an attorney stating the attorney's opinion of the status of the title to a piece of property, after performing a title search and reviewing the public records.
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Certificate of Transfer |
A document issued by a probate court showing a transfer of title from a deceased person to his or her heirs or devisees. |
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Chattel |
A piece of personal property. |
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Chattel real |
personal property that is closely associated with real property, such as a lease. |
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civil law |
the body of law concerned with the rights and liabilities of one individdual in relation to another; includes contract, tort, and property law. |
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Civil Rights Act of 1866 |
Federal law prohibiting public and private racial discrimination in any property transaction in the U.S. |
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Civil Rights of 1968 |
Federal law prohibiting discrimination based on race, color, religion, sex, national origin, disability or familial Status (also called the FEDERAL FAIR HOUSING ACT). |
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closing costs |
expenses incurred int he transfer of real estate in addition to the purchase price; for example, the appraisal fee, title insurance premiums, broker's commission, transfer tax. |
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Cloud on the Title |
A claim, encumbrance, or defect that makes the title to real property unmarketable. |
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cluster zoning |
A zoning provision, unlike traditional lot-by-lot zoning, where a specific residential or unit density is prescribed, but the developer is allowed to concentrate or disperse the location of units to create different configuartions of open space. |
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collateral |
property pledged as security for a debt. |
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collusion |
an agreement between two or more persons to defraud someone. |
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color of title |
title taht appears to be good title but which, in fact, is not. |
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Competitive Market Analysis |
A method of determining the approximate market value of a home by comparing the subject property to other homes that have sold, are presently for sale, or did not sell in a given area. |
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contract escrow |
an aproach used to ensure that payments are made on an existing mortgage, whereby an escrow account or servicing agreement is setup. Buyer makes payments into the escrow account; escrow agent then pays the existing mortgage and passes the surplus money to seller (often used for land contracts with existing mortgages). |
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bilateral contract |
a contract in which each party promises to do something |
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express contract |
a contract that has been put into words (spoken or written). |
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implied contract |
a contract that has not been put into words, but is implied by the actions of the parties. |
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land contract |
a real estate installment agreement where buyer makes payment to seller in exchange for right to occupy and use property, but no deed or title is transferred until all, or a specified portion of, payments have been made. |
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unenforcable contract |
a contract taht a court would refuse to enforce. (ex: its contents cannot be proven, or because it is not in writing, or because the statue of limitations has run out). |
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unilateral contract |
when only one party makes a legally binding promise and the other has not. The promise will become legally binding if the other party chooses and accepts it. |
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contribution |
a "rule" that says a particular item or feature of a home is only worth what it actually contributes in value to a piece of property. |
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courtesy |
at common law, a husband's interest in his wife's property. |
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covenant |
a contract, a promise, a guarantee in a document such as a deed or lease (typically they compel or prevent certain actions by the property owner or usese for the property). |
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covenant of quiet enjoyment |
a guarantee that a buyer or tenant has the riht to exclusive, undisturbed possession of a leasehold estate, and will not be disturbed by the previous owner, the lessor, or anyone else claiming an interest in the property. |
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credit |
1. the availability of money; the ability to borrow money. |
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cubic feet |
length x width x depth = cubic feet. cubic feet divided by 27 cubic feet give you cubic yards. |
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curable |
repariable or able to be fixed at a reasonable cost, with the value added to the property being more thant the cost of repair |
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customer |
a party in a transaction to whom an agent does not have a fiduciary duty or relationship, but to whom an agent must still be fair and honest. |
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damages |
an amount of money a defendant is ordered to pay to a plaintiff. |
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compensatory damages |
damages award, usually of money, intended to compensate the plaintiff for harm caused by the defendant's act or failure to act, including personal injuries, property damage, and finanacial losses. |
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liquidated damages |
a sum of money that the parties to a contract agree in advance (at the time of entering into a contract) will serve as compensation in the vent of a contract breach. |
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punitive damages |
damages award taht is added to compensatory damages, to punish the defendant for malicious or outrageous conduct and discourage others from engaging in similar acts. |
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debit |
a sum of money that is owed. |
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debt |
recurring monetary obligation that cannot be cancelled. |
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deed |
an instrument that conveys ownership of real property from the grantor to the grantee. |
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deed in lieu of foreclosure |
deed given by borower to lender to satisfy a debt, avoiding foreclosure. |
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deed of trust |
an instrument held by a third party as security for the payment of a note--creates a voluntary lein on real property to secure repayment of debt |
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general warranty deed |
a deed in whcih the grantor warrants title against defects taht might have arisen before or during his or her period of ownership |
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limited warranty deed |
a deed in which the grantor warrants title only against defects arising during the time he or she owned the property, and not against defects arising before that time of ownership. |
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Quietclaim Deed |
A deed taht conveys any interest in a piece of real property the grantor has at the time the deed is executed. often used to clear up a cloud on a title-- contains no warranties of any kind. |
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sheriff's deed |
a deed issued by the cout to a property purchaser from a foreclosure sale. |
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wild deed |
a recorded deed taht will not be discovered using the grantor-grantee indexes because of a break in the chain of title. |
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warranty deed |
a deed carrying warranties (guarantees) of clear title and the grantor's right to convey (carry). |
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defeasance clause |
a clause used to defeat or cancel a certain right upon the happening of a specific event (may be used to give a borrower the right to redeem real estate after default on note, by paying the full amount due plus fees and court costs. this clause is also used in title theory states, whereby a mortgageee agrees to deed property back to the mortgager after all contract terms have been performed as agreed. |
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deffered interest |
accrued interest that is not paid by regularly scheduled payments; interest that is accumulated during payment periods but is not paid until a later date. (common element of ARMs, and may cause negative amortization). |
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deposit |
1. money offered as an indication of good faith regarding future performance of a purchase agreement. Also called earnest money. 2. a tenants security deposit. |
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devisee |
a recipient of real property under a will. |
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Discount Points |
An amount paid to a lender when a loan is made to make up the difference between the current market interst rate and the rate a lender gives a borrower on a note-- allowing the lender to give a borrower a lower interest rate. |
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disparate impact |
when a law that isn't discriminatory on its face value has a greater impact on a minority group than it has on other groups. |
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domicile |
the state where a eprson has his or her permanent home. |
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Duress |
Threatening violence against or unlawfully confining someone to force the person to sign a document; or threatening or confining a signer's spouse, child, or other close relative. |
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D-U-S-T |
Demand-Utility-Scarcity-Transferability-- the four value characteristics that must be presentfor anything to have value. |
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Easement |
A right to use some part of another person's real property for a particular purpose. An easement creates an interest in the property and can be terminated in several ways. |
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Easement by Express Grant |
An easement granted to another in a deed or other document. |
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Easement by Express Reservation |
An easement created in a deed when landowner is dividing the property, transferring the servient tenement but retaining the dominant tenement |
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Easement by Implication (implied easement(. |
An easement created by operation of law when land is divided, if there is a longstanding, apparent use that is reasonably necessary for enjoyment of the dominant tenement.
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Easement by Necessity |
A special kind of easement by implication that occurs when the dominant tenement would be completely useless without an easement, even if it is not a longstanding, apparent use. |
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Easement by Prescription |
An easement acquired by prescription. |
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Easement in gross |
An easement that benefits a person instead of a piece of land; there is a dominant tenant but no tenement. |
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Appurtenant Easement |
An easement that benefits a particular peice of property. |
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Negative Easement |
An easement that prevents the servient tenant from sing his or her own land in a certain way |
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Easement Policy |
A type of title insurance which is used to protect easement owner's interests across another's property. |
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Positive Easement |
An easement that allows the dominant tenant to use the servient tenement in a particular way. |
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Easy Qualifier Loan |
A conventioanl loan a loan to value ratio (LTV) of 75% or less; a loan where lenders require the same documentation as other conventional loans, but relax qualifying standards due to increased equity borrower is putting into the home. |
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Economic Base |
The main business or industry in an area which a community sues to support and sustain itself. |
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Economic LIfe |
The time during which a building can be used for its intended purpose and generate more income than operating expenses cost. |
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Effective Age |
The age of a structure based on the actual wear and tear taht the building shows from physical, functional, or external obsolence; not necessarily structure's age. |
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Effective Gross Income |
Potential gross income, less a figure for vacancy andn collection losses. |
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Eligibility for VA Loans |
Certificate of Eligibility |
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Emblement |
A crop that is planted and cultivated through someone's labor and industry. Emblements are considered to be personal property. (fructus industriales). |
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Eminent Domain |
the RIGHT. the government's institutional power to take (appropriate or condemn) private property for public use, as long as the owner is paid just compensation). |
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Encroachment |
A physical object intruding onto neighboring property, often due to a mistake regarding the boundary. |
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Encumbered Property |
Property which has mortgages, lein, easement, or restrictive convenant, burdening the property owner's title. |
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Encumberance |
a non-possessory interest in property; a lein, easement, or restrictive convenant, burdening the property owner's title. |
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EIS (Environmental Impact Statement) |
Study required for all federal and federally related proejcts by the National Environmental Policy ACt which details a development project's impact on energy use, sewage, drainage, etc and other environmental, economic and social areas. |
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Equitable Remedy |
a judgement granted to a plaintiff that is something other than an award of money; for example, an injunction, quiet title, recission, and specific performance. |
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Equity |
An owner's unecumbered interest in property; the difference between the value of the property and the leins against it. 1. A judge's pwoer to soften or set aside strict legal rules, to bring about a fair and just result in a particular case. |
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Escheat |
When property reverst to teh state after a person dies without leaving a valid will and without heirs. |
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Escrow |
The system in which things of value ar eheld on behalf of the parties to a transaction by a disinterested third party, utnil the specified conditions have all been complied with. |
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Escrows |
Prepayable expenses that he lender required a borrow to set aside prior to closing. |
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Estate |
1. a possessory interest in real property; either a freehold estate or a leasehold estate 2. the real and personal property left by someone who has died. |
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Estate for Years |
A leasehold estate set to last for a definite period, after which it automatically terminates (term tenancy) |
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Estoppel |
A legal doctrine taht prevents a person from asserting rights or facts taht are inconsistent with his or her earlier actions or statemetns, which he or she failed to obejct or stop another person's actions. |
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Promissory Estoppel |
A doctrine applied when someone makes a technically unenforcable promise, but another personal acts in reasonable reliance on the promise. If the person who relied on the promise will suffer harm unless it is enforced a court may enforce it. |
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Actual Eviction |
Physically forcing someon out, preventing from reentering, or using the legal process to make someone leave. |
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Constructive Eviction |
When a landlord's act or failure to act intereferes with teh tenant's quiet enjoyment of the property, or makes the property unfit for its intended use, to such an extent ath the tenant is force to move out. |
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Self Help Eviction |
When a landlord uses physical force, a lockout or utility shutoff to remove a tenant instead of the legal process. |
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Evidence of Title |
Evidence of the title to a piece of real esatea is provided through a title report or the issuance of title insurance. |
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Farming an Area |
A marketing technique of working a specific area over a period of time. |
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Familital Status |
A protected group under the Federal Fair Housing act, making it illegal to discriminate against a person because he or she is the parent or guardian ofa child under 18 years of age. |
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Failure of Purpose |
When the intended purpose of an agreement or arrangement can no longer be achieved; in most cases, this releases the parties from their obligations. |
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Failure of Consideration |
When the maker of anote never gets what the orginial holder promised in return for the note. |
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Federal Fair Housing Act |
Common name for Title VII of the Civil Rights Act of 1968. |
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Federal Housing Administration (FHA) |
Government agency that insures mortgage loans. |
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Federal National Mortgage Association (Fannie Mae) |
The nation's largest, and privately owned, investor in residential mortgages. |
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Fee Simple Absolute (fee simple or fee title) |
The greatest estate (ownership) one can have in real property because it is freely transferable and inhertiable, and of indefinite duration, with no conditions on the title.
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Fee Simple Determinable (Determinable Fee) |
A defeasible fee that's terminated automatically if certain conditions occur. Grantor (or heirs) has possibility of reverter. |
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Conditional Fee |
A type of defeasible fee; title may be terminated by former owner if conditions state in deed ar enot met. Former owner has power of termination. |
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FHA (Federal Housing Administration) |
government agency taht insures mortgage loans. |
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Fiduciary |
Person in a position of trust, held by law to high standards of good faith and loyalty. |
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Fiscal Policy |
The government's plan for spending, taxation and debt management. |
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Fixed Rate Loan |
Loan with an interest rate that remains constant for the duration of the loan. |
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Fixture |
A man-made attachment; an item of personal property taht has been attached to or closely associated with real property in sucha way that it has legally become part of the real property. |
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Judicial Foreclosure |
A lawsuit filed by a lender or other creditor to foreclose on a mortgage or other lien; a court ordered sheriff's sale of the property to repay the debt. |
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Non-Judicial Foreclosure |
Foreclosure by a trustee under the power of sale clause in a deed of trust, without the involvement of a court. |
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Actionable Fraud |
Fraud that meets certain criteria, so that a civtim can successfully sue. |
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Actual Fraud |
An intentional misrepresentation or concealment of a material fact; when a person actively conceals material information, or makes statements that he or she knows are false or misleading. |
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Constructive Fraud |
A negligent misrepresentation or concealment of material fact; when a person carelessly fails to disclose material information, or makes statements that he or she should realize are false or misleading. |
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Front Feet |
The portion of the lot that faces the street. In a measurement, front feet is always the first number (65' x 150' lot; 65' frontage). |
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Fructus Industriales |
Plants planted and cultivated by people ("fruits of industry"). |
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Fructus Naturales |
Naturally occurring plants ("Fruits of nature"). |
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Fully Amortized Loans |
Loans where the total payments over the life of the loan will pay off the entire balance of principal and interest due at the end of the loan term. |
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Fully Amortized Second Mortgage |
A second mortgage that is fully amortized loan. |
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Functional Obsolescence |
When a building is less desirable because of something inherent in the design of the structure. |
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Future Interest |
An interest in real property that may, or will, become a possessory interest at some point in the future. |
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Good Faith Estimate |
An estimate made by the elnder of the closing costs taht the borrower must pay for a real estate loan. The lender must give this to the borrower at the time the loan application is made. G |
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Government Financing |
Real estate loans taht are insured, guaranteed or in some other way sponsored by government programs (on the federal law). |
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Government National Mortgage Association (Ginnie Mae) |
Government-owned corportation that guarantees payment of principal and interest to investors taht buy its mortgage-backed securities on teh secondary markets. |
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Graduated Lease |
A lease that specifies step-by-step rent increases, genearlly paid at set intervals. |
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Grant |
To transfer or convey an interst in real property by means of a written instrument. |
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Gross Lease |
Lease for which the landlord pays all property taxes, insurance, etc. |
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Habendum Clause |
Clause included after granting clause in many deeds; begins "to have and to hold" describing the type of estate granted. |
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Hidden Risk |
A title risk that is not apparent during an examination of public records, such as forgery. Hidden risks are covered under standard title insurance policies but not covered by a certificate of title. |
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Home Equity Loan |
A loan taken out by a homeowner, secured by a second mortgage on his or her principal residence-- usually a one time loan for a specific amount of money. |
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Hostile and Adverse |
Possession or use of land without the owner's permission and against the owner's interests; one condition necessary for an easement by prescription and adverse possession. |
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HUD (Department of Housing and Urban Development) |
government agency taht deals with housing issues. |
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Hypothecate |
to make property security for aloan without giving up possession of it. |
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Improvements |
Additions to real property-- can be natural, but usually they are man-made; substantial fixtures, such as buildings. |
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Income Approach |
an appraisal method which estimates the value of real estate by analyzing the amount of revenue, or income, the property currently geneartes, or could genearte, often comparing the subject property to other similar properties. |
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Index lease |
A lease in which the amount of the rent is tied to some common index indicatior such as the Consumer Price Index or Wholesale Price Index-- as the agreed upon index increases, the rent goes up by the same percent of change. |
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Installment Note |
A note taht calls for periodic payments of principal and/or interest during the term of the note. |
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Intestate |
Dying without leaving a will. |
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Intestate Succession |
Distribution of property to the heirs of a person who died intestate. |
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Joint Venture |
Two or more individuals or companies joining together for one project or a series of related projects, but not as ongoing business. |
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Just Compenstation |
Appropriate or fair value for private land taken by the government for public use. |
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Laches |
Loss of a right through undue delay or failure to assert it. |
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Land Lease |
Lease under which tenant lease only the land from the owner, but the teanant owns the building. (ground lease) |
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Latent Defect |
A defect that is not visible or apparent; a hidden defect taht would not be discovered in a reasonably thorough inspection of property. |
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Patent Defect |
A visible, apparent defect that can be seen in a reasonably thorough inspection of property |
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Lease/Option |
When a seller leases property to soemone for a specific term, with an option to buy the property at a predetermined price during the lease term, usually with a portion of the lease payments applied to the purchase price. |
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Leasehold Estate |
An estate that gives the holder (tenant) a temporary right to possession, without title. |
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License |
1. Official permission to do a particular thing that the law does not allow everyone to do. 2. Revocable non-assignable permission to enter another person's land for a particular purpose. |
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Attachment Lein |
A lien intended to prevent transfer of property pending the outcome of litigation. |
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Judgement Lein |
A general lien against a judgement debtor's property, which the judgement creditor creates by recording a certificate of judgement in county where property is lcoated. |
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Specific Lein |
A lien that attaches only to aparticular piece of property (a opposed to a general lein, which attaches to all of the debtor's property). |
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Life Estate |
A freehold estate taht lasts only as long as a specified person lives. that person is referred to as teh measuring life. |
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Life Estate Pur Autre Vie |
A life estate "for the life of another" where the measuring life is someone other than the life tenant. |
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Statutory Life Estate |
A life estate held by a person whose dower rights have vested (because the person's spouse sold the property without a dower release and subsequently died). |
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Life Tenant |
Someone who owns a life estate; the person entitled to possession of property during the measuring life |
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Lis Pendens |
A recorded notice stating that a lawsuit is pending that may affect title to the defendant's real estate. |
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Listing |
A written agency contract between a seller and a real estate broker, stating that the broker will be paid a commission for finding a buyer for the seller's real property. |
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Listing Broker (Listing Agent) |
The broker with whom a seller signs a listing agreement and to whom comission is typically paid upon the successful procurement of a buyer. |
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Exclusive Agency Listing |
A listing agreement that entitles the broker to a commission if anyone other than the seller finds a buyer for the property during the listing term. |
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Exclusive Right to Sell |
A listing agreement that entitles the broker to a commission if anyone, including the seller, finds a buyer for the property during the listing term. |
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Net Listing |
A listing agreement in which the seller sets a net amount that is acceptable for the property; if the actual selling price exceeds that amount, the broker is entitled to keep the excess as commission. |
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Open Listing |
A nonexclusive listing, given by a seller to as many brokers as he or she chooses. If the property is sold, a broker is only entitle to a commission if he or she is the procuring cause of the sale. |
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Littoral Rights |
Water rights associated with a commercial body of water such as a lake or ocean. |
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Loan to Value Ratio |
The amount of money borrowed compared to the value (or price) of the property. |
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Long-Term |
Loans in real estate that have payments spread out over 25-30 years. |
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Lot |
A parcel of land, especially a parcel in a subdivision. |
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Lot and Block Description |
the type of legal description used for plattted property ( to find out the exact location of boundaries the plat map for that subdivision must be consulted at the county recorder's office). |
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Market Price |
The price that a piece of real estate sold for in an actual transaction. |
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Market Rent |
What the property could rent for in the open market if it were currently vacant and available. |
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Market Value |
The theoretical price that a piece of real estate is most likely to bring in a typical transaction. |
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Marketable Record Title |
Under the Marketable Title Act, an unbroken chain of recorded title going back at least 40 years. |
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Metes and Bounds |
a legal description that starts at an easily identifiable point of beginning then describes teh property's boundaries in terms of compass directions and distances, returning to the point of beginning. |
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Millage |
A tax rate, expressed as mills per dollar; 1/10 of 1 cent. |
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Mitigation |
When the non-breaching party takes action to minimize the losses resulting from a breach of contract. |
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Adjustable Rate Mortgage (ARM) |
A mortgage taht permits the lender to periodically adjust the interest rate so that the rate reflects fluctuations in the cost of money. |
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Blanket Mortgage |
1. Mortgage that covers more than one parcel of real estate 2. mortgage taht covers an entire building or development, rather than an individual unit or lot. |
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Cash-out Mortgage |
A mortgage that a borrower gives to lenders so that he or she can get cash for the equity that has built up in property. |
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Conventional Mortgage |
A loan that is not insured or guaranteed by a government entity. |
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Graduated Payment Mortgage |
Mortgage that allows borrower to make smaller payments in early years of the mortgage, with payments increasing yearly until payments are high enough taht they'll fully amortize the loan. |
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Wraparound Mortgage |
When an existing loan on a property is retained, while the lender (or seller) gives teh buyer another, larger loan. |
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Purchase Money Mortgage |
A mortgage where the seller finances all or part of the sale price of a piece of property for a buyer. |
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Mrs. Murphy Exemption |
An exemption to the Federal Fair Housing Act which holds that the rental of a unit or a room in an owner-occupied dwelling containing four units or less is exempt from the Fair Housing Law, provided rental ads are not discriminatory and real estate agent is not used to locate tenants. |
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Negative Amortization |
When a loan balance grows because of deferred interest. |
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Net lease |
lease for which tenants pay all tazes, insurance, etc. plus utilities and rent. |
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Nonconforming Use |
property that doesn't confrom to current zoning laws, but is allowed beacuse the property was being used taht way before the new zoning law was passed. |
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Non-possessory interest |
An interest in property that does not incldue the right to possess and occupy the property; an encumberance, such as a lien or an easement. |
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Promissory Note |
An instrument that is evidence of a promise to pay a specific debt. |
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Actual Notice |
Actual knowledge of a fact, as opposed to knowledge imputed or inferred by law. |
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Novation |
1.When one party to a contract withdraws a new party is substituted with the consent of all parties, relieving the withdrawing party of liability. 2. the substitution of anew obligation for an old one. |
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Option |
A contract giving one party the right to do something within a designated time period, without obligation to do it. |
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Option to Purchase |
A contract giving the optionee the right, but not the obligation, to buy property owned by the optionor at an agreed price during a specified period. |
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Ownership in Severalty |
Ownership by a single individual, as opposed to co-ownership. |
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Parcel |
A lot or piece of real estate, particularly a specified part of a larger tract. |
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Partially Amortized Loans |
Loans where payments are applied to principal and interest, but the paymetns do not reitre the debt when the agreed upon loan terms expires, thus requiring a baloon paymetn at the end of the loan term. |
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P-E-G-S |
Physical-Economic-Governmental-Social; four braod forces taht affect value. |
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Percentage Lease |
Lease under which a tenant pays a percentage of gross sales in addition to rent. |
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Personal Property |
Tangible items that (usually) ar enot permanently attached to or part of real estate; any property that is not real property; movable property not affixed to land. |
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Plottage |
an increase in value by successful assemblage, usually due to a change in use. |
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Police Power |
The constitutional power of state and local governments to enact and enforce laws taht protect the public's healthy, safey, morals, and general welfare. |
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Principal |
1. A person who grants another person (an agent) authority to represent him or her in dealings with third parties. 2. one of the paties to a transaction as opposed to those who are involved as agents or employes. 3 with regard to a loan, the amount originally borrwed as opposed to the interest. |
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Promissory Note |
A writeen, legally binding promise to repay a debt. |
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Puffing |
Superlative statements abou tthe quality of a property that should not be considered assertion of fact |
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Purchase Agreement |
A contract in which a seller promises to convey title to real property to a buyer in exchange for the purchase price. |
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Quiet Enjoyment |
Use and possession of real proerty without interference from a previous owner, the lessor, or anyone else caliming title. |
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Quiet title action |
a lawsuit to determine who has title to a piece of property, or to remove a cloud from the title. |
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Real Estate |
The actual physical land and everything, both natural and man-made, which is attached (or appurtenant) to it. |
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RESPA |
Federal law dealing with real esteateclosings which sets forth specific procedures and guidlines for disclosure of settlement costs. R |
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Real Property (realty) |
Not only the physical land and everything attached to it, but also the rights of ownership (bundle of rights) in the real estate |
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Reciprocity |
A mutual exchange of privileges, such as recognizing a license issued in one jurisdiction in another jurisdiction. |
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Reconciliation |
The appraisal process of analyzing the values derived from the different appraisal approaches to arrive at a final value estimate or opinion. |
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Reconveyance |
Instrument that releases security property from the lien created by a deed of trust; equivalent of satisfaction of mortgage. |
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Redlining |
When a lender refuses to make loans secured by a property in a certain neighborhood because of the racial or ethnic composition of the neighborhood. |
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Regression |
A principle that says the value of a home is held down by the other homes in an area. |
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Regulation Z |
Federal guidelines under the Truth-in-Lending aCt taht require full disclosure of all credit terms for consumer loans. |
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Remainder |
A future interest that becomes possessory when a life estate terminates, and that's held by someone other than the grantor of the life estate. |
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Renunciation |
When someone who has been granted something or has accepted something later gives it up or rejects it; as when an agent withdraws from the agency relationship. |
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Repudiation |
When one party to a contract informs the other before the time set for performance that he or she does not inted to perform as agreed. |
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Rescission |
When a contract is terminated and each party gives anything acquired under the contract back to the other party. |
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Deed Restriction |
Restrictive coventant in a deed that limits or curtails certain specified sues of the land. |
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Reversion |
1. A future interest that becomes possessory when a temporary estate (such as a life estate) terminates, and that is held by the grantor (or grantor's successors in interest) |
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Revocation |
1. When someone who granted or offered something withdraws it; as hwen a principal withdraws the authority granted to teh agent, an offerer withdraws the offer. |
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Rezone |
An amendment to a zoning ordiance, usually changing the uses allowed in a particular zone |
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Right of Preemption |
A right to have the first change to buy or lease property if the owner decides to sell or lease it. |
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Right of Survivorship |
A characteristic of statutory survivorship tenancy, join tenancy, and teneacy by the entireties; surviving co-tenants automatically acquire a deceased co-tenant's interes in the property. |
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Riparian Rights |
water rights--river |
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sales comparison approach |
an apprisal method which estimages the value of real property by performing a marekt analysis of the area where the subject property is located. |
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salesperson |
a licensed agent associated with a broker, and as such may perform most of acts a broker can on behalf of the broker. |
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scarcity |
characteristic of real property that says there is a limited supply of real estate. |
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Secondary Mortgage Markets |
the private investors and government agenciestaht by and sell real estate mortgages. |
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Seizen |
The possession of a freehold estate; ownership. |
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Seller's agent v. Selling Agent |
Seller's Agent/Listing Agent: an agent representing the interests of the seller of a property Selling Agent/Selling Broker: the agent who finds a buyer in a real estate transaction |
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Severable |
When one part or provision in a contract can be held uneforceable without making the entire contract unenforceable. |
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Sheriff's Deed |
A deed issued by the court to a property purchaser from a foreclosure sale. |
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Sheriff's Sale |
A foreclosure sale held after a judicial foreclosure. |
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Simple Interest |
Interest calculated as a percentage of the principal only. |
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Statute of Frauds |
A law that requires certain types of contracts to be in writing and signed to be enforceable. |
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Statute of Limitations |
A law requiring a particular type of lawsuit to be filed within a specified time after the event giving rise to the suit occurred. |
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Steering |
Channeling prospective buyers or tenants to particular neighborhoods based on their race, religion, national origin, or ancestry. |
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Subagent |
An agent of an agent; a person that an agent has delegated authority to, so taht the subagent can assist in carrying out the principal's orders. |
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Subdivision |
A piece of land divided into two or more parcels; a residential development. |
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Sublease |
When a tenant transfer only part of his or her right of possession or other interest in leased property to another person for part of the remaining lease |
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Sub-Prime loans |
Loans that have more risks than are allowed in the conforming market. |
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Substitution |
A "rule" that says an informed buyer will not pay more for a home than a comparable substitute. |
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Survey |
The process of locating and measuring the boundaries of a property, and identifying the improvements, encroachements, and easements taht are associated with that land. |
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Syndicate |
An association of people or entities formed to operate an investment business; is not a recognized legal entity. |
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Tenancy at Sufferance |
Possession of property by a holdover tenant |
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Tenancy at Will |
When a tenant is in possession with the owner's permission but with no definite lease term and no rent being paid (or rent is not paid on a regular basis); ex: a landlord lets a holdover tenant remian ont eh premises without paying rent until a new tenant is found. |
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Tenancy by the Entireties |
A form of property co-ownership by husband and wife, in which each spouse has an undivided one-half interest an the right of survivorship, with neither spouse able to convey or encumber his or her interest without the other's consent. |
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Tenancy in Common |
A form of co-ownership in which two or more persons each have an undivided interest in teh entire property (unity of possession), but no right of survivorship. |
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Joint Tenancy |
A form of co-ownership in which the co-owners have equal undivided interests and the right of survivorship. |
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Periodic Tenancy |
A leasehold estate that continuesfor successfive periods of equal elngth, until terminated by proper notice from either party. |
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Dominant Tenant |
A person who has easement rights on another's property; either the owner of a dominant tenement or someone who has an easement in gross. |
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Holdover tenant |
a lessee who remains in possession of property after the lease has expired; a tenant who refused to surrender possession of property at the tenancy's end. |
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Servient Tenant |
The owner of a servient tenement; that is someone whose property is burdened by an easement. |
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Testate |
Refers to someone who ahs died and left a will. |
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Time is of the essence |
a contract clause that means performace on teh exact dates specified is an essential element of the contract; failure to perform on time is a material breach. |
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Title |
Lawful ownership of real property. Also, in informal usage, the deed or other document taht is evidence of that ownership. |
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Title Insurance |
insurance that indemnifies against losses resulting from undiscovered title defects and encumberances. |
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Title Report |
A report issued by a title company, disclosing the condition of the title to a specific piece of property. |
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Chain of Title |
The chain of deeds and other documetns transferring titel to apiece of property from one owner to the next, as disclosed in the public record. |
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Arm's length transaction |
A transaction taht occurred under typical conditions in the marketplace, with each party actin gin his or her own best interest. |
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Truth-in-Lending Act (TIL) |
Act that requires lenders to disclose consumer credit costs in order to promote unformed use of consumer credit. |
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Unencumbered property |
Property where the seller has clear title, free or mortgages or other liens. |
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Uniqueness |
A physical characteristic of real property that says that each piece of land, each building and each house are said to be a different piece of real estate. |
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Unity of Interest |
each co-owner having an equal interest(share of ownership) in a piece of property. |
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Unity of Possession |
Each co-owner being equally entitle to possession of the entire proeprty, because the ownership interests are undivided. |
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Unity of Time |
When each co-owner acquired title at teh same time. |
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Unity of Title |
When each co-owner acquired title through the same instrument (deed, will or court order). |
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Usury |
Chargin an interest rate that exceeds legal limits. |
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VA |
Government Agency that guarantees mortgage loans for eligible veterans. |
