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162 Cards in this Set
- Front
- Back
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Adverse Possession
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Acquiring title to someone else's real property by possession of it. Must be open and notorious, hostile and adverse, exclusive and continuous for a prescribed number of years. (NY=10 years)
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Air Rights
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Right to undisturbed use and control of air space over a parcel of land. within reasonable limits. May be transferred separately from land.
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Appropriative Rights
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Water Rights allocated by government permit, according to an appropriation system. Not necessary to own property beside the body of water in order to apply for permit.
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Appurtenance
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A Right that goes with real property ownership; usually transferred with the property, but may be sold separately.
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Beneficiary
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Person designated to receive benefits from a certain act.
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Bundle Of Legal Rights
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All real property Rights conferred with ownership, Including the right of use, right of enjoyment, and the right of disposal.
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Chattel
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Personal Property
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Common Areas
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Land and improvements in a condominium, planned unit development, or cooperative that all residents use and own as tenants in common, such as a parking lot, hallway, and recreational facilities.
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Dominant Tenement
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Property that receives the benefit of an appurtenant easement.
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Easement
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A right to use some part of another person's real property. Irrevocable and creates an interest in the property.
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Easement Appurtenant
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An easement that grants access.
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Easement by Condemnation
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1.Taking private property for public use through govt's power of eminent domain. 2. A declaration that a structure is unfit for occupancy and must be closed or demolished.
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Easement by Express Grant
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An easement granted to another in a deed or other document.
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Easement by Implication
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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
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A special kind of easement by implication that occurs when the dominant tenement would be useless without an easement, even without a longstanding, apparent use.
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Easement by Perscription
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An Easement acquired by prescription.
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Easement For Light and Air
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A View Easement, considered a negative one. In the case of negative easement, the dominant tenement can prevent the subservient tenement from doing something on the land because it could affect the dominant land.
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Easement in Gross
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An easement that benefits a person instead of the land; there is a dominant tenant, but no dominant tenement.
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Embelements
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Another term for, fructus industrials, meaning fruits of industry
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Enroachment
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Physical object intruding onto neighboring property often due to a mistake regarding the boundary lines.
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Estate at Sufferance
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Possession of a property by a tenant who came into possession of the property under a valid lease, but stays on the property after the lease expires with no permission.
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Estate at Will
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A leasehold Estate with no specified termination date and with no regular rental period.
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Fee On Condition
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Defeasible fee that may be assigned and terminated by the grantor upon the occurrence of an event.
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Fee Simple Estate
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The greatest estate one can have in real property; freely transferrable and inheritable, and of indefinite duration, with no conditions on title.
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Fixture
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Man-made attachment, an item of personal property attached to or closely associated with real property in such a way that it has legally become part of the real property.
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General Lien
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A lien against all property of a debtor, instead of a particular piece of property.
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Homestead Laws
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Laws that protect property owners from lien foreclosure by exempting some of their equity in real estate. In NY, homestead protection is limited to 10,000 dollars individually, and 20,000 dollars for land co-owned by a married couple.
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Involuntary Lien
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A lien that arises by operation of law, without the consent of the property owner. Also Called, Statutory Lien
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Joint Tenancy
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A form of co-ownership in which the co-owners have equal undivided interests and the right of survivorship.
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Joint Venture
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Two or more individuals or companies joining together for one project or a series of relate projects, but not as an ongoing business.
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Leasehold Estate
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An Estate that gives the holder (tenant) temporary right of possession, without title.
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Life Estate
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A freehold estate that lasts only as long as the specified person lives.
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Non-Possessory Interest
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An interest in property that does not include the right to possess and occupy the property, an encumbrance, such as a lien or an easement.
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Party Wall Easement
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A wall shared by two separate properties, the owners on each side share the right of use.
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Periodic Estate
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A leasehold estate that continues for successive equal periods of time until terminated by proper notice from either the lessor or lessee.
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Possessory Interest
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An interest in property that entitles the holder to possess and occupy the property, now or in the future. An estate, which may either be a freehold or a leasehold.
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Qualified Fee
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When a grantor puts a condition or requirement in the deed and limits the title to real property.
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Right of Survivorship
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A characteristic of statutory survivorship tenancy, joint tenancy, and tenancy by the entireties; surviving co-tenants automatically acquire a deceased co-tenants interest in the property.
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Severalty
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When one part of the contract can become unenforceable without making the entire contract unenforceable.
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Servient Tenement
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property burdened by an easement. The owner of the servient tenement is required to allow someone who has an easement to use his or her property.
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Special Purpose Property
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Properties that are considered to have a limited use, such as a church.
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Specific Lien
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A lien that attached only to a particular property.
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Subordination Agreement
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A contract that gives a mortgage recorded at a later date the right to take priority over an earlier recorded mortgage.
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Subsurface Rights
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The implication that an owner of land has rights to the land below the surface to the center of the earth, even though undocumented
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Tenancy by the Entirety
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a form of co-ownership by husband and wife, in which each spouse has an undivided one half interest and 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
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A form of co-ownership in which two or more persons each have an undivided interest in the entire property, but no right of survivorship.
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Assignment
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One party transferring rights or interests under a contract to another person. In NY, all contracts are assignable unless the contract states otherwise.
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Bilateral
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A Contract in which each party promises to do something.
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Consideration
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Anything of value such as money, goods, services, or promises, given to induce another person to enter into a contract. also called valuable.
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Constructive Eviction
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When a landlords act interferes with the tenant's quiet enjoyment of the property, or makes the property unfit for its intended use, to such an extent that the tenant is forced to move out
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Covenant
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1. Contract 2. Promise 3. A guarantee in a document such as a deed or lease. 4. A Restrictive covenant.
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Forbearance
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A legally binding promise to refrain from doing a particular act.
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Graduated Lease
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A lease in which the rent changes throughout the lease term.
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Ground Lease
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a lease in which a tenant leases unimproved land on a long-term basis. Ground leases typically include a provision that provides the tenant will construct a building on the property, which he will own upon completion
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Holdover Tenant
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A lessee who remains in possession of property after the lease has expired; A tenant who refuses to surrender possession of property at the tenancy's end.
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Index lease
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Method used to determine rent for long leases.
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Land Contract
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A real estate installment agreement where a buyer makes payment to a seller in exchange for the right to occupy and use property, but no deed or title transfers until all, or specified portion, of payments have been made.
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Land Lease
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Lease in which a tenant leases unimproved land on a long-term basis.
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Novation
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1. When one party to a contract withdraws and a new party is substituted, with consent of all parties, relieving the withdrawing party of any liability. 2. The substitution of a new obligation for an old one.
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Proprietary Lease
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Exclusive, longer term lease given to a person who lives in a cooperative and owns stock in the cooperative
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Reformation
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A legal action to correct a mistake, such as a typographical error, in a deed or other document.
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Rider
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An amendment to a contract.
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Statute of Frauds
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A law that requires certain types of contracts to be in writing and signed to be enforceable.
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Uniformed Commercial Code (UCC)
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sets out certain requirements for negotiable instruments.
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Appraisal
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An estimate or opinion of property value as of a certain date, supported by objective data.
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Assemblage
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Combining two or more parcels of land into one larger parcel
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Assessed Value
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Value placed on property to which a local tax rate is applied to calculate the amount of real property tax.
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Comparative Market Analysis (CMA)
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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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Conformity
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Rule that says a particular home achieves maximum value when it is surrounded by homes similar in style and function.
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Contribution
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Rule that says a particular item or feature of a home is worth only what is actually contributes in value to that property.
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Cost Approach
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Appraisal method that estimates the value of real estate by figuring the cost of building the house or other improvement on the land, minus depreciation, plus the value of the vacant land.
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Direct Cost
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The cost in labor and materials
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Evaluation
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Determining the usefulness or utility of property without specifying an estimate of value.
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External Obsolesence
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Any influence that falls outside the actual property site and negatively affects a property's value.
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Functional Obsolescence
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Loss in property value resulting from changes in tastes, preferences, or market standards.
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Highest and Best Use
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Most profitable, legally permitted, feasible, and physically possible use of a property.
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Income Approach
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Appraisal Method that estimates the value of real estate by analyzing the amount of revenue, or income, the property currently generates or could generate, often comparing the subject property to other similar properties.
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Indirect Cost
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Costs associated with a construction project, other than labor and materials.
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Insurable Value
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The amount that property can be insured for, usually only representing the replacement costs of the structure and disregarding any value for land.
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Investment Value
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The highest price an investor would pay for a property based on how well it will server her investment goals.
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Market Position
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The position an agent's listing is in compared to similar homes in the same neighborhood at a similar price.
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Market Price
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The actual open market price paid in an arm's length transaction
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Mortgage Value
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The Value of an asset for purposes of securing a mortgage loan.
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Market Value
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The theoretical price a property is most likely to bring in a typical transaction.
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Physical Deterioration
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The actual wear and tear due to age, the elements, unrepaired damage, or other forces.
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Plottage
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An increase in value by successful assemblage, usually due to use.
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Progession
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When the value of the worst home in a particular area is positively affected by other homes in the area.
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Property Valuation
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The process of gathering and analyzing information to determine the value of a piece of property.
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Regression
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When the value of the best home in a given area is negatively affected by other homes in the area.
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Residential Market Analysis
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In-depth study of a listing as it stands on it's own, as well as in light of current market conditions.
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Sales Comparison Approach
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An Appraisal method that estimates the value of real property by performing a market analysis of the area where the subject property is located. data are collected and adjustments are made for differences.
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Site
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A plot of land with enhancements that make it ready for a building or structure.
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Situs
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Place where something exists; an area of preference thus giving it value
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Substitution
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Theory that an informed buyer will not pay more for a home than a comparable substitute
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Value in Use
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The present worth of the future benefits of ownership
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Abstract of Title
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A brief summary of the history of title to a property, listing all recorded documents that affect the title.
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Accession
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Gives property owners the right to everything produced by their land. Also, the acquisition of title to land by its addition to real state already owned, through human actions or natural processes.
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Acknowledgement
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The act of a party signing a document before a notary public, stating it was signed voluntarily.
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Actual Notice
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Actual Knowledge, that which is known.
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Alluvion
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Solid Material deposited along a shore by accretion.
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Assessments
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A percentage of a property's market value
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Avulsion
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When real property is lost due to sudden acts of nature like tornadoes or earthquakes.
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Bargain and Sale Deed
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Deed without any warranties against liens or other encumbrances but does imply grantor has the right to convey title.
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Chain of Title
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Chain of deeds and other documents transferring title to land from one owner to the next, as disclosed in public records.
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Closing Statement
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Document prepared by the closing agent itemizing all expenses and costs paid by the buyer and seller to close the real estate transaction.
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Clouds on a Title
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Claim, Encumbrance, or defect that makes title to real property unmarketable.
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Constructive Notice
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Provides protection to landowner against all unrecorded titles.
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Conveyance
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Instrument that conveys a grantors interest, if any, in real property.
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Credits
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Money received for an obligation given.
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Debits
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An expense or money applied against a credit.
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Dedication
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Gift from landowner to the government.
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Deed
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An instrument that conveys a grantors interest, if any, in real property.
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Devise
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To transfer land through a will.
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Executor
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Person named in a will to carry out it's provisions, including disbursement of land.
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Full Covenant and Warranty Deed
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Contains the strongest and broadest form of guarantee of title of any type of deed, and provides the greatest protection of any deed to the grantee. The grantor makes various covenants or warranties.
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Grant
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To transfer or convey an interest in real property by means of a written instrument.
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Grantee
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The person who receives a conveyance of real property in a real estate transaction.
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Habendum Clause
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Clause within a deed that describes the type of estate granted and that must always agree with the granting clause.
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HUD-1 Settlement Statement
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An accurate accounting of all expenses buyers and sellers pay in a real estate transaction; required by RESPA
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Involuntary Alienation
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When title to property is transferred during the owners lifetime without his consent.
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Lot and Block
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A type of legal description used for platted property. The description states only the property's lot number and block number in a particular subdivision.
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Marketable Title
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Title free and clear of objectionable encumbrances or defects, so that a reasonable prudent person with full knowledge of the facts would not hesitate to purchase the property.
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Proration
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The division of expenses between buyer and seller in proportion to the actual usage of the item represented by a particular expense.
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Quitclaim Deed
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Conveys any interest in a parcel of land the grantor has at the time the deed is executed. it conveys whatever right, title, or interest the grantor holds in the property without representation that there is any interest at all.
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Real Estate Settlement Procedures Act (RESPA)
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Requires Lenders, Mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosures of the nature and costs of the real estate settlement process.
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Reconciliation
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Verifying debits and credits have been added and subtracted correctly on a real estate settlement statement.
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Referee's Deed
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Deeds that contain no covenants or warranties although ownership is implied.
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Sheriff's Deed
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A deed issued by the court to a property purchaser from a foreclosure sale.
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Survey
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The process of locating and measuring the boundaries of a property, and identifying improvements, enroachments, and easements associated with the land.
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Title
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The actual lawful ownership of real property and refers to holding the bundle of rights conveyed. Not a document, rather a theory pertaining to ownership.
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Title Closing
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Final stage in a real estate transaction; transfer of real property ownership from seller to buyer occurs.
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Title Insurance
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An insurance policy that protects the lender against loss due to disputes over the ownership of a property and defects in the title that were not found in the search of the public record.
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Title Search
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An inspection of the public record to determine all rights and encumbrances affecting title to a piece of property.
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Voluntary Alienation
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When title to property is transferred voluntarily through a sale, gift, dedication, or grant.
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Acceleration Clause
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Contract clause giving the lender the right to declare the entire loan balance due immediately because of default, or other reasons stated in the contract.
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Alienation Clause
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Contract clause giving the lender certain stated rights when there is a transfer of ownership in the property; prohibits loan assumption.
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Amortizing Loans
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When monthly payments retire the debt over the life of the loan instead of leaving the borrower with a large balloon payment at the end of the loan term.
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Buydown
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Additional funds in the form of points paid to a lender at the beginning of a loan to lower the loans interest rate and monthly payments.
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Conforming Loan
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A loan that meets Fannie Mae and Freddie Mac Standards, and thus can be sold on the secondary market.
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Conventional Loan
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Mortgage Loan not insured or guaranteed by a government entity.
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Default
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Failure to fulfill an obligation, duty, or promise, as when a borrower fails to make payments.
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Defeasance Clause
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1. clause used to defeat or cancel a certain right upon the occurrence of a specific event. 2. Clause used to give borrower the right to redeem real estate after default on a note by paying the full amount due plus fees and court costs.
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Discount Points
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Amount paid to a lender when a loan is make to lower the interest rate, one point equals one percent of the loan amount.
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Fannie Mae (Federal National Mortgage Association)
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Nation's largest investor in residential mortgages
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Finance Instruments
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Legal Documents that establish the rights and duties of all parties involved in transaction.
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Freddie Mac (Federal Home Loan Mortgage Corporation)
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Non-Profit federally chartered institution that functions as a buyer and seller of savings and loan residential mortgages.
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Ginnie Mae (Government National Mortgage Association)
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Government-owned corporation that guarantees payment of principal and interest to investors who buy it's mortgage-backed securities on the secondary market.
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Grace Period
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The time a borrower is allowed after a payment is due to make that payment without incurring penalties.
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Graduated Payment
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A buydown plan for which payment subsidies in the early years keep payments low, but payments increase each year until they are sufficient to fully amortize the loan.
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Hypothecate
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To make property the security for a loan without giving up possession of it.
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Mortgage Banker
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One who originates, sells, and services mortgage loans, and usually acts as the originator and servicer of loans on behalf of large investors, such as insurance companies, pension plans, and the secondary market.
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Mortgage Broker
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One who, for a fee, places loans with investors, but typically does not service such loans.
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Mortgage Insurance Premiums (MIP)
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Insurance offered through FHA to insure a lender against default on a loan by a borrower.
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Prepayment Penalty Clause
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Additional money charged by a lender for paying off a loan early.
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Primary Mortgage Markets
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Lenders who make mortgage loans directly to borrowers.
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Private Mortgage Markets (PMI)
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Insurance offered by private companies to insure a lender against borrower default.
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Promissory Note
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A written, legally binding promise to repay a debt.
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Purchase Money Mortgage
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A mortgage used to finance the purchase of a home; may be used specifically when the seller finances all or part of the sale price of property for a buyer. here the seller retains a mortgage and the title passes to the buyer.
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Securitization
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Act of pooling mortgages and then selling them as mortgage-backed securities.
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State of New York Mortgage Agency (SONYMA)
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Offers programs funded by the sale of tax-exempt bonds and designed to make housing affordable to low and moderate income households.
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Usury
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Laws Limiting the maximum interest rate that can be charged.
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Wraparound Mortgage
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When a seller keeps the existing loan and continues to pay on it, while giving the buyer another mortgage..
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