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129 Cards in this Set
- Front
- Back
- 3rd side (hint)
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General agent |
Someone hired to represent a person with a variety of transactions like a property manager |
Does several things |
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General lien |
A lien attached to several properties |
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Intestate |
No will |
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Escheat |
Process where government takes property when there's no will. |
No will, one of 4 government powers. Taxation, eminent domain, police power |
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Specific lien |
A lien attached to one specific thing like a mortgage to a property |
One thing |
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Economic obsolescence |
A form of depreciation caused by problems outside the property lines as in owning a house next to an airport or sewage treatment plant |
Outside property lines |
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Functional obsolescence |
A form of depreciation due to probs inside the property lines. Does not function the way modern properties do |
Inside property lines |
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Physical deterioration |
When the property is physically falling apart for ex sagging floors, hole on the patio |
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Easement |
A right held by one person to use the land of another for a specific purpose. For ex using a neighbors land to get to your property |
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Freehold estate |
An estate in which you have the exclusive right to enjoy the possession of a property for an undefined length of time |
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Deed |
Evidence of transfer |
Passing along |
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Quitclaim deed |
Immediate transfer of title |
Immediate |
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Chain of title |
History of ownership. If all deeds have been recorded then ea owner is linked to the previous owner. If the deed was not recorded then the chain would be broken and a gap would be created in the chain |
History |
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Ad valorem |
According to value |
According to |
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Adverse possession |
When someone uses someone else's property continuously without permission for a certain period of time and eventually gain title if nothing is done |
Squatter's rights |
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Appurtenant easement |
Easement that runs with the land ex, shared driveway |
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Eminent domain |
The right of the government to take property against the owner's will for a public purpose. Owner gets compensated |
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Acceleration clause |
A clause in a mortgage loan that allows the lender to declare the entire balance of the loan due immediately once the loan is declared in default after the borrower misses a certain num of payments |
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Alienation clause |
Clause in mortgage loan that requires the loan to be paid off upon sale of the property |
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arm's length |
A type of transaction where there is no relationship between 2 parties such as being fam member |
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Avulsion |
Sudden loss of land due to natural forces |
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Blanket mortgage |
A mortgage loan used to cover more than one property as in a condo building |
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Codicil |
An addition or change to an existing will made by the person for whom the will is written |
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Community property |
A legal life estate in which the spouse is entitled to one half interest in real property acquired during marriage |
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Cercla |
Federal legislation designed to identify sites of environmental pollution and provide funds for cleanup |
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Construction loan |
A loan made to a contractor where the funds are released in increments as the project is being finished |
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Sherman antitrust law |
Prevents price fixing or in real estate commission fixing |
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Group boycott |
When competitors get together and agree not to do business with another business |
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Special agent |
An agent who helps a client buy or sell a property but the client makes all contracts decisions and signs on their own. There's no written contract, just an oral agreement |
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General agent |
An agent who represents someone with more than one activity like a property manager who collects rent, pays bills, negotiates leases, authorizes repairs, etc |
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Universal agent |
An agent who acts on a client's behalf in all matters and situations. Someone who has power of attorney over a client |
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Principal/client |
Person we represent as an agent |
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Customer |
Other 3rd party in a transaction such as the buyer think fsbo are also customers |
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Express agency |
Where a relationship is established through a verbal or written agreement |
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Implied agency |
A relationship that is established through the actions of both parties |
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Exclusive right to sell |
When an agent gets paid regardless of who sells the property |
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Exclusive agency listing |
Is where an agent only gets paid if he sells the property. If the owner of property sells the house without help the agent doesn't get paid |
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Open listing |
Where the owner uses multiple agents to sell his property and the one who sells it gets paid but if owner sells no one gets paid |
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Net listing |
When an agent sells a property for a certain amount of money. Then broker keeps any amount of the excess price. For ex, a house sells for 225000 and owner wants to keep 200,000 we keep 25k |
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Option listing |
Is a clause in a listing agreement giving the broker the right to buy the property |
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Exclusive buyer agency agreement |
Where the broker gets paid no matter who finds a property. Even if buyer finds a property agent still gets paid |
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Exclusive agency buyer agency agreement |
Where the agent only gets paid if he finds a property. If buyer finds property agent doesn't get paid |
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Open buyer agency agreement |
Buyer can have an agreement with several brokers and only pays agent who finds the property |
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What are the 6 fiduciary duties |
Accountability, care, confidentiality, disclosure (to disclose any facts we're aware of that benefits our client, even disclose things that client says to keep a secret if it's illegal), loyalty( means to put client’s interest above our own), obedience ( means to follow client 's instructions except if it's illegal |
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Latent defect |
Probs with property where agent or buyer can't see through a Normal inspection like a prob with the foundation |
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Material defect |
Important defects in property that have to be disclosed like the presence of a nearby nuclear power plant, |
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Puffing |
Exaggerating how nice a property looks |
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Patent defect |
When buyer can see defect therefore no obligation to disclose |
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Tenancy in severalty |
Owning real estate by yourself |
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Tenancy in common |
When 2 or more people own property. Ea person owns a percentage or share of the property and the percentage doesn't have to be equal. One person can own 70% and the other 30%. Any owner can sell their share as well without receiving permission from the others. The new owner is a tenant in common with the other owners. If one owner dies he/she leaves his share to his heirs. The other owners don't have a right to the share of the property |
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Joint tenancy |
In joint tenancy everyone has equal shares, all owners take title of property at the same time, a later owner can't be added as a joint tenant unless new docs are created, a joint tenant can also sell his share without receiving permission and if one owner passes his share goes to the remaining owners not his heirs and all joint tenants names are on deed |
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Tenancy by entirety |
When a married couple acquires property during marriage. Both have an equal interest in the property. Upon death the property automatically goes to the surviving spouse |
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Package mortgage |
Uses both real and personal property as security for a loan |
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Contract for deed |
Owner financing where the seller keeps the warranty deed for the entire duration of the contract therefore seller has legal title and buyer gets equitable title and possession of property. Buyer gets deed after contract is paid off |
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Truth in lending act or regulation z |
Disclosure of loan costs like interest applies only to residential loans not business or commercial |
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Real estate settlement procedures act or respa |
Deals with disclosing total closing costs like surveys, inspections, etc |
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Designated agent |
When there's a written contract with client when signing a listing agreement and are now the client’s legal representation |
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Civil right act of 1866 |
First law that prohibits discrimination against race |
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Fair housing act |
Prohibits discrimination in housing against race, color, religion, national origin, sex, disability, age, Marital and familial status |
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Jones vs mayer |
Prohibits discrimination against race no exceptions |
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Usury |
Laws that set the maximum interest that a lender can charge |
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Package loan |
A loan that uses real and personal property as security |
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Amortized loan |
A loan that has payments going to principal and interest |
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Straight loan aka term loan |
Payments only go towards interest |
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Deed in lieu of foreclosure |
When the borrower deeds the property to the bank to avoid foreclosure so if a bank wants to resell fast they can use this |
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Equitable redemption |
A borrower's right to stop the foreclosure process by paying off the loan before the sale |
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Statutory redemption |
Borrowers right to buy back property after the sale from the purchaser at the foreclosure sale |
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Trust deed |
A doc where property is used as security for the debt |
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Defeasance |
A clause that renders the mortgage null and void when the note is paid |
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Alienation |
A clause that calls the note due upon sale or transferred |
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Acceleration |
A clause that calls the note due upon default |
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Bill of sale |
Used to transfer personal property |
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Chattel |
Is Personal property |
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Emblements |
Are growing crops in field and are considered personal property so if a farmer sells his farm he can still harvest his crops since it's considered personal property |
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Void |
A contract with no legal effect like one of the parties not of sound mind. A void contract lacks mutual consent, lawful object, consideration and capable parties. Don't have the right to go through with contract |
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Voidable |
A contract that can be voided by one of the parties for ex a contract signed by a minor, someone under duress or due to misrepresentation. You still have the right to go through with the contract |
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Tenancy for years |
Lease with a definite beginning and ending date |
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Constructive notice |
Any recorded item on public records where anyone can have access to the info |
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Actual notice |
Is where a person actually gets first hand notice or is aware of an item |
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Easement by prescription |
Crossing over someone's property continously, openly and without permission for a long time |
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Easement in gross |
When utility companies, railroad Co, etc have access rights to cross your property |
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Cloud on title |
Means something is not right with deed such as an ownership dispute or misspelled name |
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Easement by necessity |
When your landlocked and the only to get access to a street or road is by going through someone else's property |
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Fee simple absolute |
When you're given control of a property with very little restrictions |
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Writ of execution |
Where the court orders a sheriff to seize property and sell to satisfy a judgement |
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Abstract |
History of all recorded documents that affect the title |
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Gross lease |
When we pay a set amount every single month. It's also an apartment lease |
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Net lease |
When we pay taxes, insurance and maintenance. It's used with commercial properties |
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Percentage lease |
An amount paid based on the profits coming in. Usually used by stores |
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What are the 4 elements of a valid contract |
Mutual consent (offer, acceptance and communicate back the acceptance) , capable parties (must be of sound mind and over 18 ) lawful object (it must be legal in nature) consideration( anything considered of value like money, love and affection, etc ) |
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Unenforceable |
A contract that needs to be in writing and it's not |
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Periodic tenancy |
Where Lease Has no specific end date as in estate for yrs |
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Quit claim deed |
Transfers all property rights to someone else but it's not a guarantee that the person has any rights to the property and therefore should only be used between trusted people |
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Bargain and sale deed |
Used when there's limited or no warranties provided but title can be proved |
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General warranty deed |
States that the grantee or buyer is the legal owner of the property, the property has no claims against it and the grantor or seller will hold the grantee harmless in the event that claims do arise (double check who's grantee and grantor) |
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Special warranty deed |
Only cover claims that happened while the grantor held title to the property. If a claim pops up that happened before the grantor took title the buyer is on their own. Normally used in foreclosures or when a general warranty can't be used |
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Emblements |
Annual crops which are considered personal property so if a property is sold and has a new owner the crops still belong to the tenant who rented the land to farm crops |
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Actual notice |
A notice someone receives in fact or in reality for ex reading of a legal notice in a newspaper or giving notice in person |
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Constructive notice |
A notice that is implied for ex when a lender puts a lien on the property is implied to give constructive notice |
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Titel insurance |
Protects policy holder from losses arising in defects of title. For ex docs may have been forged, liens may not have been recorded, etc title insurance can have standard and extended coverage. Standard is: defects that are found in public records, forged docs, incompetent grantor, incorrect Marital statements and improper delivery of deeds. Extended is: everything in a standard plus defects found in a property inspection, unrecorded rights of parties in possession, unrecorded liens not known by a policy holder and encroachment and boundary conflicts shown by surveys |
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Estate at will |
A lease that can be terminated at any time |
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Estate at sufferance |
When tenant won't leave the apartment after lease has expired |
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Lease |
It's considered a personal property and doesn't always run with the land. If a property is sold the new owner would have to honor the lease but it's not always the case |
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Life estate |
To have a property for the duration of someone 's life |
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Serviant |
The property being walked on |
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Dominant |
Property being walked to where the serviant is serving the purpose of the dominant |
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Police power |
Controls zoning, building codes and rent control |
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What are the 5 types of land use |
Residential, commercial, agriculture, industrial and special purpose properties like churches, schools, libraries, etc |
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Blockbusting |
When a salesperson tells a seller that minorities are moving into the neighborhood and might devalue the properties |
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Redlining |
Where lenders refuse to make loans in questionable areas |
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Gross rent multiplier |
Price of property divided by rent is grm |
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What are the 4 essential elements of value |
Demand(anyone want it) scarcity( is there a lot of it) utility( can I use it) tranferability (can I sell it) |
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Cost approach |
Estimating the value of a special purpose property by looking at the replacement cost of improvements as if it were being built brand new |
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Market data approach/ sales comparison approach |
Estimating value of a property by comparing it to other similar properties in the area. It's used with vacant lots and residentials. If one property has a swimming pool and the other doesn't then we need to deduct price of swimming pool |
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Progression |
When a less expensive property is surrounded by more expensive properties and as a result the value of the less expensive property is increased |
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Regression |
When the value of a property decreases when its surrounded by less expensive homes |
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Economic obsolescence |
When the value of a property is affected by outside factors like an abandoned gas station, noisy airport, cemetery |
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Functional obsolescence |
Are issues related to the property that are inside the property/ boundary lines. For ex poor design, too many or too few materials, costly operating expenses, etc |
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Regulation Z aka truth in lending |
A federal law that requires lenders to disclose all loan costs |
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Deed in lieu of foreclosure |
An agreement where the lender receives the deed to a property from the defaulting borrower rather than foreclosing. It saves the borrowers credit |
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Estoppel certificate |
States loan balance on a note |
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Subordinate clause |
A mortgage clause where lenders change the lien priority that is different than the recording date so they move from 1st position to 2nd |
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Legal title / equitable title |
Right to sell property/ right to possess or live in property |
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Redemption |
Right to buy back your property from whoever bought it at a foreclosure sale |
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Subordination clause |
Clause in a mortgage that switches lien priority between a first and second mortgage |
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Bilateral contract |
Both parties make a promise |
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Unilateral contract |
Only one person makes a promise |
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Gross rent multiplier |
Price div by rent is grm |
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Unenforceable |
Contract that should be in writing but it's not |
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