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334 Cards in this Set
- Front
- Back
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Personal Property
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Anything thats moveable (potted plants, furniture, documents, ect.)
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Bill of Sale
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the document that says you bought it
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Real property
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Land, and everything thats attached to the property
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Erosion ( Avulsion)
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The tearing away of land due to natural causes
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Accretion
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the increase of land due to natural causes
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Heterogeneity
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Dissimilarities in land
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Appurtenance
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Belongs to the land
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Emblements
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Lets farmers harvest crops after the lease has expired
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Riparian rights
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Water rights ( next to a River or Stream
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Littoral rights
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Water rights ( next to a Ocean or Lake)
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Fixture
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was Personal Property, and became Real Property
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Conversion
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Changing Real Property into Personal Property
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Affidavit of Affixture
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real property, and taxed as real property
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Police power
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The right to make laws for the health and safety of the public (ex. Zoning laws, health codes)
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Eminent Domain
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the right to take private property for the public with compensation paid
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Condemnation
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Taking property away through Eminent Domain
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Taxation
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taxing properties to pay for different things
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Escheat
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Property going to the state because owner dying without a will and no heirs
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Dedication
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private land given to the public by owner
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zone
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The law that separates privately owned properties into "zones" (Residential, commercial, argicultural, industrial, ect.)
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Buffer Zone
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a piece of land between two different zoned area. ( ect. a park between a commercial and residential area)
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Setback
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the smallest distance on the property to the street to where you can built something (garage)
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Variance
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Violating the zoning ordinance
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Nonconforming use
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"if it was ok for grampa to do it, you can still do it"
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Encumbrance
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A claim against property by another party
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Deed Restriction (Restrictive covenant)
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Restrictions on what the property can and cannot have
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Easement
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the right to use someone else's property for a purpose (ex. run a pipeline under someone else's property)
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Dominant parcel
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a property that has to use other peoples properties (ex. driveway that has to go through another persons property to get to the main road)
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Servient Parcel
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a property that other property owners have to use (Ex. other property owners using their drive way to get to a main road)
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Easement in gross
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an agreement between two property owners for use of that property that doesn't transfer out if one of the owners sells their property
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Easement in personal
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one party letting another party use there property, but it can be revolked (Ex. private hunting licens
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Prescriptive Easement
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acquiring use of someone elses property for a long period of time (Ex. a garage that goes over the property lines) Does not show up on title reports.
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Adverse Possession
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If build something that crosses your property lines and its been there for awhile, you may be able to claim legal title of that property
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Merger
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the combining of two or more things (Ex. Two companies coming together)
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Quit Claim Deed
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when you "Quit claim deed" your property, you can no longer benefit from it
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Quiet Title Action
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A lawsuit filed to establish ownership
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Encroachment
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a piece of "real property" that hangs over someone else's property line
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Lien
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legal claim against property which is used to secure a loan (a money encumbrance)
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Involuntary lien
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a claim made against property to which the property owner did not consent to
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voluntary lien
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a claim made against real property with the consent of the owner
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specific lien
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binds only a specific asset or property
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general lien
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something placed against an indivisual and all he or she owns, both real and personal
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real estate taxes
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taxes imposed on real estate based on value of property
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Assessment
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market value based on assets
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mechanic's lien
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legal process to guarentee payment for contracted services on a property
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judgment lien
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court ruling that gives creditor the right to take possession if debtor doesnt pay
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income tax lien
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lien on property to secure payment of taxes owed on property
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contract
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agreement between parties
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statute of frauds
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(king chairles 1800's) if its not in writing it doesnt count
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competent parties
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there not competent if there under 18, or under the influence of drugs or sick
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consideration
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is usually money, but can be anything else of value
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offer and acceptance
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purchaser makes an offer and vendor accepts
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legal object (legal purpose)
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?
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expressed contract
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everything in the contract has to be stated
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implied contract
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not expressed in words but assumed. (Ex. going to a restraunt and ordering breakfest. its implied your going to pay afterwords
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executed contract
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everything in the contract is completed and both parties have signed
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executory contract
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one of more of the parties have not yet preformed their duties (Ex. signatures, money)
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Bilateral contract
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when both parties make a contract
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unilateral contract
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when one party makes a promise and the other party may or may not exept
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option
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the broker has an option, the other party can accept or not. they promise to sell the property for a certain price, the buyer has the option to buy or not
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right of first refusal
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the owner can say " if i decide to sell i promise that you will have the first right to buy
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valid contract
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legal contract
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void contract
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not enforceable
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voidable contract
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looks like its valid, but because of minor deffects, it can become a void contract
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listing agreement
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contract between seller and agent
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open listing
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allows owner to sell home on their own
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exclusive agency listing
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gives the broker exclusive rights to earn a commission for selling property
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unilateral contract
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when one party makes a promise and the other party may or may not exept
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option
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the broker has an option, the other party can accept or not. they promise to sell the property for a certain price, the buyer has the option to buy or not
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right of first refusal
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the owner can say " if i decide to sell i promise that you will have the first right to buy
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valid contract
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legal contract
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void contract
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not enforceable
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voidable contract
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looks like its valid, but because of minor deffects, it can become a void contract
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listing agreement
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contract between seller and agent
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open listing
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allows owner to sell home on their own
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exclusive agency listing
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a broker represents the owner
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Bilateral contract
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when both parties make a contract
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unilateral contract
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when one party makes a promise and the other party may or may not exept
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option
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the broker has an option, the other party can accept or not. they promise to sell the property for a certain price, the buyer has the option to buy or not
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right of first refusal
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the owner can say " if i decide to sell i promise that you will have the first right to buy
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valid contract
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legal contract
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void contract
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not enforceable
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voidable contract
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looks like its valid, but because of minor deffects, it can become a void contract
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listing agreement
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contract between seller and agent
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open listing
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allows owner to sell home on their own
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exclusive agency listing
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gives the broker exclusive rights to earn a commission for selling property
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exclusive right to sell listing
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gives the broker exclusive rights to earn a commission for selling property
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net listing
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the client says " if i can get 190k for my house, you can keep the rest of the money
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option listing
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buyer brokerage agreement
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agreement that broker represents buyer
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sherman anti trust act
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"competition law" prevents monopolies
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agency
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a relationship when one person hires another to represent them
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principle
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the client hires the agent
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client
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someone whos being represented by your brokerage firm
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customer
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anyone whos not represented by your brokerage firm
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agent
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represents the principle. the broker is the agent of the client
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confidentiality
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the agent must keep certain things confidential
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accounting
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the agent must account to the parties for all monies the agent accepts in transaction
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reasonable skill and care
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must preform the standards set by there proffession
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loyalty
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must put the clients intrest above his
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obedience
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must follow the clients instructions unless it violates the law
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disclosure
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the agent must make full dusclosure to the clients conflicts of intrest
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expressed agency
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made by specific authorization from the principle (client)
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implied agency
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made by actions of statements of the parties
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confidentiality
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the agent must keep certain things confidential
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accounting
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the agent must account to the parties for all monies the agent accepts in transaction
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reasonable skill and care
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must preform the standards set by there proffession
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loyalty
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must put the clients intrest above his
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obedience
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must follow the clients instructions unless it violates the law
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disclosure
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the agent must make full dusclosure to the clients conflicts of intrest
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expressed agency
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made by specific authorization from the principle (client)
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implied agency
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made by actions of statements of the parties
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confidentiality
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the agent must keep certain things confidential
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accounting
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the agent must account to the parties for all monies the agent accepts in transaction
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reasonable skill and care
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must preform the standards set by there proffession
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loyalty
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must put the clients intrest above his
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obedience
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must follow the clients instructions unless it violates the law
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disclosure
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the agent must make full dusclosure to the clients conflicts of intrest
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expressed agency
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made by specific authorization from the principle (client)
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implied agency
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made by actions of statements of the parties
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power of attorney
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a person authorized to represent another through a power of attorney
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attorney-in-fact
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document through which the client authorizes the agent to at on there behalf
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purchase contract
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a copy of the buyers offer, upon acceptance, becomes a legally binding contract
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offer
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when a buyer wishes to purchase the property (must be in writing)
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counter offer
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seller makes an offer to the buyer
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earnest money
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a deposit showing the buyer is serious about buying the property
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trust account
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a brokers account into which the clients money is deposited
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contingency
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makes the sale certain, if you dont fullfill the contingency the contract becomes void
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mortgage contingency clause
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makes the sale contingent upon the buyer obtaining financing
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escrow
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neutral, third party
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escrow instructions
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third party hired to close transaction
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liquidated damages
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money pre-determermed that would be paid to one party if the other party breaches the contract
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purchase contract
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a copy of the buyers offer, upon acceptance, becomes a legally binding contract
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offer
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when a buyer wishes to purchase the property (must be in writing)
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counter offer
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seller makes an offer to the buyer
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earnest money
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a deposit showing the buyer is serious about buying the property
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trust account
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a brokers account into which the clients money is deposited
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contingency
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makes the sale certain, if you dont fullfill the contingency the contract becomes void
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mortgage contingency clause
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makes the sale contingent upon the buyer obtaining financing
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escrow
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neutral, third party
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escrow instructions
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third party hired to close transaction
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liquidated damages
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money pre-determermed that would be paid to one party if the other party breaches the contract
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specific performance
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a court order to enforce a specific part of the contract
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puffing
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making an overstatement of personal opinion (not misrepresentation)
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misrepresentation
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false statements of material facts which a party relies onto his damage
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fraudulent misrepresentation
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a person intentionally misrepresents a fact
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errors and omissions (E & O) insurance
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insures licensees against mistakes of omissions the agent makes (like malpractice insurance for doctors)
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rescission
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the legal remedy of canceling a contract
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Mortgage or trust deed
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hypothecates the property as collateral for the debt (includes, provision for the lender to foreclose if the borrower is in default)
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amortized (amortization)
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constant payments, including principle and interest
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balloon payment
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one payment is larger then the monthly payment (could be partly amortized with the last payment
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budget loan
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payments are made, taxes and insurance go into an escrow account (3rd party) the lender pays taxes and insurance when due
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straight loan
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intrest only during the term of the loan with principle (Ex. Construction loans) aka term loans
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FHA
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Federal housing administration
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VA
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veteran's affair
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conventional
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made by the lending institution s but without government guarantee or insurance
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Purchase money loan
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the title is transferred, seller becomes the lender, buyer is the borrower (usually used when the borrower has an insufficient down payment)
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adjustable rate (ARM)
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intrest rate and payment change periodically during the life of the loan
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graduated payment loan
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specific increase (or decrease) in payments over time (lender) increases it
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blanket loan
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a loan that is secure with more then one property
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package loan
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a loan that includes items of personal property
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open end loan
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allows borrower to borrow more money within the same loan (ex. home equity loans)
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construction loan (interim loan)
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taking out a loan to build a home or find a buyer
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take out loan
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normal long term financing replacing and paying off construction loan
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Gap loan (bridge loan)
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if you cant pay for your construction loan you go to the bank and ask for another loan to pay off your previous loan
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superior loan
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the highest priority loan
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junior loan
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the lowest priority loan
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reverse annuity loan (reverse payments)
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the lender makes monthly payments to the borrower ( ANNUITY means "payment"
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non recourse loan
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the borrower is not held personally responsible for the debt
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acceleration clause
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if borrower defaults, it allows lender to declare the loan balance immediately due and payable
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Alienation clause (due on sale)
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lets lender declare debt due and payable if property is sold ( ALIENATION means "sell, transfer or assign"
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prepayment clause
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lets lender charge prepayment penalty if loan is paid off early
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defeasance clause
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the note and mortgage are void when the borrower pays off the dept
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release clause
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allows individual parcels to be released from a blanket mortgage
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subordination clause
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calls for existing loan it be placed in lower priority (junior) position to another lien
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usury
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charging more then the rate set by law (Arizona does not set a maximum on contract rates of interest on real estate loans
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contract rate
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(face rate, nominal rate) the rate specified in the note or contract
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legal rate
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in Arizona this is the rate that would apply when no specific rate appears in an agreement, it is also the rate which would apply to judgments unless the court stipulated a different rate
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HUD
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"Housing and Urban Development"
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MIP
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"Mortgage Insurance Premium
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Conditional Commitment
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FHA appraisal
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FHA escape clause
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the buyer can back out if the appraisal clause is to low
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certificate of reasonable value (CRV)
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a VA appraisal
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MI (Mortgage insurance)
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required on conventional loans higher then 80% above value and lets lenders lend up to 97% of appraised value
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loan assumption
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the seller must obtain written release of liability (Probably never going to use this)
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AV Valorem Tax
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real property based on value ( VALOREM means "according to value"
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primary market
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where loans are originated (banks insurance agency, ect)
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Federal National Mortgage Association (FNMA)
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(Frannie Mae) secondary market for FHA loans
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Government National mortgage Association (GNMA)
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(Ginnie Mae) Issues certificates promising FHA and VA loans to their secondary market purchasers, offers government subsidy in low income housing
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Federal Home Loan Mortgage Corporation (FHLMC)
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(Freddie Mac) Set standards for most conventional loans
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Truth in lending Act (Regulation Z)
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Federal law that makes lenders tell all the terms and cost in having a consumer loan. protects the public from hidden cost and easier to compare loans from different companies
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Annual Percentage rate (APR)
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Intrest discount points and loan costs expressed as an annual percentage rate and all finance charges in dollars and cents
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Trigger Terms
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amount of any money charge (down payment, number of payments, period of payments, ect.)
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Real Estate Settlement & Procedures Act (RESPA)
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Disclosure of settlement cost
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Good Faith Estimate (3 days)
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The lender (bank) has 3 business days to come up with how much they think its going to cost
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Fair Credit Reporting Act (FCRA)
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The consumer has the right to inspect the information in their file at the credit bureau and correct any inaccurate information
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Equal Credit Opportunity Act
(ECOA) |
Can't deny credit to anyone based on race, religion, gender, ect.
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Americans with Disabilities Act (ADA)
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Commercial properties have requirements like handicapped parking, wheel chair ramps, and handicapped accessible bathrooms
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Interstate Land Sales Full Disclosure Act
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Require full disclosure of material information to buyers through a property report. Also regulates interstate land sale
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Fair Housing Laws
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stop discrimination
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Civil Rights Act of 1866
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cant discriminate based on race or color
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Fair Housing Act of 1964
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Cant discriminate based on color, race, religion, gender, ect.
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steering
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denying that housing is available for sale or rent
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Block Busting
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Telling owners to sell or rent their homes become of minority families are entering the neiborhood
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Redlining
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changing the terms and conditions for home loans as a way of discrimination
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Fair Housing Amendments Act of 1988
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You have 1 year to file a complaint in writing to HUD
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Appraisal
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Estimate or opinion of value
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Value
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what its worth
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Demand
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the need or desire with ability to purchase
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Utility
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the ability to satisfy the product
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Scarcity
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limited supply
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Transferability
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ability to be able to deliver clear title
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Market value
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the amount a willing buyer would pay and a willing seller would accept
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market price
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the amount of money paid for the property
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cost
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how expensive it is
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principle of supply and demand
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when supply is high the demand is low, when demand is high the supply is low
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Principle of Highest and best use
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use of the property will produce the greatest net return
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Excess land
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land that is not needed to support the highest and best use
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Principle of substitution
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The highest amount for a property, usually determined by how much it cost to buy another property just like that one
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Principle of regression
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if there are lesser properties around, it will affect the value of greater properties
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Principle of contribution
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whatever you add to the property can make the value of the property go up or down
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Principle of Change
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Real Estate values do not stay the same
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Principle of development, equilibrium & disintegration
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Principle goes through phrases of growth, stabile and decline
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Principle of competition
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the profit leads to competition, which can reduce the profit
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Principle of Anticipation
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value is affected by the expectation of future events
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Appreciation
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increase in value for any reason
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Earned increment
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making improvements to your property
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Unearned increment
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the value of the property going up without owner doing anything
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Plottage (assemblage)
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taking multiple pieces connecting properties, buying them and turning them into 1 parcel
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Depreciation
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loss in value for any reason (usually fixable)
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Deterioration
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increase in value for any reason
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Functional obsolescence
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outdated, out of style
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economic obsolescence
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owner doesn't have control of the surrounding area
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Comparison approach (market data approach)
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relied on existing homes and vacant homes
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cost approach (summation approach)
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how ever much it's going to cost to build the structure is added up, then subtracted by depreciation (loss of value) and land value is added up
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replacement cost
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what it cost you to replace it
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square footage of living area
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determined by measuring the exterior dimensions of the building and calculating the area, does not included porches, garages, carports, or any area not heated or cooled
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Capitalization
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process of converting net income into value
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economic life
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a period of time in which the property will produce income and be economically beneficial to the owner
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Gross income
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the total rent income
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Gross Rent Multiplier (GRM)
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sometimes used to estimate values of small income properties
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Environmental Protection Agency (EPA)
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Regulates federal environment rules and laws
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aArizona Department of Environmental Quality (ADEQ)
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Sets states environmental standards
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Arizona Department of Water Resources (ADWR)
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Regulates use of ground water
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Lead Based Paint
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Paint with lead in it
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Radon
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a naturally occurring gas that can cause lung cancer
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Asbestos
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Tiny airborne fibers of asbestos that can cause respiratory disease
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Discovery
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investigating the property to see if it has any hazardas substances or polution
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Superfund
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a fund set up by the Federal Comprehensive Environmental Response Compensation and Liability Act, (WQARF) to bear the cost of cleaning up polluted communities
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Fee simple Absolute
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highest and most common form of ownership
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Defaceable Fee Simple
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ownership last as long as the conditions say
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Life Estate
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owner is the life tenant, owns it till he dies, has the right to sell, lease, or mortgage
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Life Tenant
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the holder of the property, gets it till they die, can sell, lease, or mortgage
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Conventional Life Estate
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A Life estate made by one person for another
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Waste
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intentional damage to a property
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Estate in Reversion
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Ex: son makes a life estate for his mom, then his mom dies, it goes back to the son
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Reverter
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(Grantor) holds the interest, requires the g ranted interest
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Estate in remainder
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if the son has a life estate for mom and at moms death it goes to the sister, sister is the Estate in remainder
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Demise
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a lease
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Lessor
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Gives the lease
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Lessee
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Receives the lease
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Estate for years
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a lease with an ending date. No automatic renewal, no notice to end lease
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Estate from period to period
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a month to month lease, automatic renewal, no ending date, must give notice to end lease
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Estate at will
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Ex: Letting a friend go to the mountains and stay in your log cabin
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Estate at sufferance
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the tenant won't pay rent or somehow screws over the land lord
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Holdover Tenancy
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Tenant staying on property after the lease is over
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Gross lease
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land lord pays for all property expenses
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Net Lease
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tenant pays for all property expenses
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Percentage lease
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the standard rent is paid and then a percentage rate of how much the lessee 's making
EX: A store in a shopping mart |
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Ground lease
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lease for the land only
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Sale leaseback
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seller sells property to an investor, seller becomes the tenant and buyer becomes owner/landlord
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Graduated lease
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lease with an escalator clause that calls for increase or decrease in rent at specified intervals
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Index lease
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rent is tied to an index, such as the consumer price index can go up or down
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Lease-Option
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lease with option to buy or re-lease
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Sandwich lease
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lease with a sun lease
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Anchor lease
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lease with a major tenant, like a department store or supermarket
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Proprietary lease
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lease in a Co-Op in which the tenant has the right to Rent a particular Unit
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Surrender and Acceptance
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a Mutual agreement to End the Lease
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Condemnation Clause
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cancels the lease if Eminent Domain is Exercised
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Actual eviction
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if the Tenant doesn't fulfill their obligations, the lessor sues for possession
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Ejectment
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legal way to regain your property
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Constructive eviction
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if LandLord fails to fulfill his obligations, the tenant can end the lease and sue for damages
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Quiet enjoyment
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use of property Without the Lessor or others claiming a superior title
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Page of Exceptions
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Existing liens and Encumbrances
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ALTA Title Policy (Lender's Policy)
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Protects the lender, Buyer (borrower) usually pays, one time Premium gets owner's policy coverage and Mechanics lien
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Title Plant
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Duplicate records
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Preliminary Title Report
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Issued before closing, a Commitment for Title Property
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Subrogation
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Substituting one Creditor for another
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Uniform Commercial Code (UCC)
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Covers the sale and financing of Personal Property and Security Agreements
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Security agreement
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Document describing Loan Collateral
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Deed
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legal Document that grants Ownership
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Grantor
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Seller
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Grantee
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Buyer
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Warranty deed
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Granter guarantees he holds a clear Title and has the right to Sell it
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Bargin and sale deed
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No Warranty deed (usually Foreclosures)
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Quit claim deed
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allows you to Transfer your share of Property to Another person
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Granting clause
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Transferring Ownership
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Habendum clause
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Explains or defines the Title being Transferred
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Reservation and exception clause
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Resevers a Right (like Easement or Life estate
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Testimonium clause
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citing the Act and Date of Execution
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Acknowledgment
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you must have it to be a Valid Deed (a Notarization)
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Delivery and Acceptance
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Final step necessary in Transferring Title
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Recordation
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gives Constructive Notice
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Constructive notice
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people can look there info
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Actual notice
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can Actually Inspects property (Conveying facts to a person)
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Affidavit of value
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Buyer and Seller have to Sign it, states the Sales price (Replaced transfer Stamps
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Disclaimer Deed
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a deed a spouse signs to it Doesn't go to Community Property
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Merchantable Title
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No Problems with that Title
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Abstract of Title
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Summary of the Chain Of Title (complete history)
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Chain of Title
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Complete History of that Property
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Owner's Title Policy
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Seller usually Pays, one time Premium
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Leverage
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how much in Debt they are
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Security Agreement
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Contract between Lender and Buyer (lender can take the property away and offer it as Collateral if Loan is not paid
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Bulk Sales Affidavit
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Group of Real Estate Assets in different Locations
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Principle of Conformity
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a House will a Fair Price if it is Located near other houses Similar to it. (size & condition)
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Deferred maintenance
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Postponing Maintenance & repairs
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Rehabilitation
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Restoring to GOOD Condition
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Trade Fixtures
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Personal property attached to real estate for Business purposes (Ex: display counters & restraunt booths)
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Escalator clause
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a Change in a Contract that can INCREASE PRICE in the event of an INCREASE in COST
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Tenancy pur autre vie
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Tenant for LIFE, designates Ownership for the duration of a persons life
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Remainderman
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Person who INHERITS Property upon TERMINATION of the Estate of the Former Owner
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Correlation (reconciliation)
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a Relationship between 2 Variables
EX: Economy/Homesales |
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Subrogation
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INSURANCE COMPANY tries to RECOUP Expenses for a Claim IT paid out
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Principle
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Amount BORROWED that is Still UNPAID
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Intrest
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a FEE paid on BORROWED money
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Promissory note
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contract Promising REPAYMENT
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Wraparound loan
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allows your to Purchase WITHOUT qualifying for a Loan. seller carries Mortgage
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Loan to value ratio
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how much you OWE in relation to VALUE of PROPERTY
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Certificate of Eligibility
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issued by VA showing Eligible to service
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VA funding fee
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fee charged by Veterans Affair to manage LOAN PROGRAM
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Discount point
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PREPAID Interest. one point = one % of Loan Amount
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Origination fee
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fee CHARGED for Handling the Processing of a loan
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Reduction certificate
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DOCUMENT that the LENDER acknowledges the amount DUE on Mortgage
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