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91 Cards in this Set
- Front
- Back
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Acceleration Clause |
When Lender demands entire loan amount due immediately if borrower defaults on loan |
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Ad Valorem |
"according to value" taxes assessed on value of property |
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General Agent |
Agent who handles all transactions in a specific area |
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Special Agent |
Agent with limited authority to do specific transaction |
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Universal Agent |
Agent can do anything that is laufuly delegated as representative |
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Dual Agent |
Agent acting as both the seller and buyer agent as long as both parties agree on it. |
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Alienation |
The transfer of ownership or interest in property, part of conveyance |
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(due-on-sale) |
Gives lendor the right to declare entire loan balance immediately if borrower sells property. |
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Amortized Loan |
gradually pay off debt with installment payments that include both interest and principle |
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Appurtenances |
The rights that come with ownership... Air/Mineral rights |
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Assumption |
When buyer takes liability for paying off the sellers existing mortgage or deed |
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Income approach to value |
Convert anticipated net income from property into present value |
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Capitalization |
To appraise real property by anticipated net income into present value |
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tenancy by the entirities |
only between husband and wife |
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Land Contract |
Buyer takes possession of property immediately, payments are made and when full amount has been paid Then seller gives title |
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Conveyance |
Transfer of title to real property from one person to another by means of a written contract or deed. |
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Cost approach to value |
estimated market value plus cost of replacement minus depreciation equals the estimate of property value |
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Creditor |
One who is owed the debt |
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Covenant |
A contract, promise, or guarantee in a document |
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General warranty Deed |
A deed that warrants the title against defects before or during period of ownership |
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Debtor |
One who owes money to another |
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Warranty Deed |
A general warranty deed |
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Special warranty Deed |
A deed that warrants title only against defects during ownership (not before) |
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Department of Licensing |
The state agency in charge of real estate law |
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Deferred Maintenance |
maintenance or repairs that were postponed causing depreciation |
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Easement |
The right to use part of anothers property for particular purpose |
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Covenant |
An agreement |
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Grantee |
One who recieves grant of real property |
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Grantor |
One who grants an interest in real property to another |
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Joint Tenancy |
Co-Ownership both have title, interest, possession, and rights of survivorship |
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Exclusive agency |
Listing in which agent receives commission if anyone but the seller finds a buyer |
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Exclusive Right to Sell |
Listing in which agent receives commission no matter who finds a buyer |
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Conventional loan |
A loan that is not insured or guaranteed by a government agency |
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Federal Housing Administration Loan |
A loan insured by FHA in that if borrower defaults FHA will reimburse bank for losses |
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Purchase money agreement/loan |
When seller extends credit to buyer to finance the purchase of property for deed of trust/mortgage instead of cash |
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Loan-to-Value Ratio |
The loan amount with either sales price or appraised value as expressed as a % |
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A section of land is equivalent to what |
one square mile, 640 acres |
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the Buyer should record the mortgage |
A seller who wants to make public notice of their interest in property they are seller financing should: |
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Latent Defect |
A problem that wouldnt be discovered in ordinary inspection |
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One side of a section in government survey is how many feet |
5280 |
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Title insurance |
protection against Latent or undiscovered defects in title |
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Economic Charactoristics |
Scarcity, demand, transfer-ability, utility |
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What is ad Valorem |
real property taxes |
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Injunction |
Homeowner files with court to enforce deed restrictions upon others in community |
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written agreement |
contractors and Real estate licensee firms must have what if they are working together |
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Vendee or optionee |
in an option contract, the potential buyer is also known as the? |
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Emblements |
crops, who has rights to them |
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Express Agency |
Oral or Written |
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Fiduciary responsibilities to a client |
ACOLD- accountability, care and skill, obey, loyalty, and disclosure. |
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Special Agent |
one who has limited authority. A listing contract |
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Broker Protection Clause |
Extender clause. |
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Datum |
point, line, or surface from which elevations are measured. |
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the Mortgagee is the |
Lender |
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Comparitive Market analysis |
Agent determines competitive price for property
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BPO |
Broker Price Opinion |
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Broker Price Opinion |
May be used when owner is refinancing or to determine the value of property for a short sale |
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Internal BPO |
Physical inspection of inside the home |
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External BPO |
property has been inspected by a drive by or walk around property |
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Open Market |
Buyer doesnt have to buy, Seller doesnt have to sell |
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Market data approach |
generally used for single family homes, based on principle of substitution and comparable properties |
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Appraiser never makes adjustments to what property? |
The Subject Property, always to the comparable property |
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When a comparable property has superior improvement or addition, the comparable property is adjusted |
Down |
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When a comparable property has inferior amenities, the comparable property is adjusted |
UP |
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Capitalization |
To compute present value of an income |
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Income Capitalization Approach |
Uses in Apartment buildings |
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Annual Net Operating Income |
Potential Gross income - vacancy rates +Additional Income - Exspences = Annual Net Operating/ Cap Rate= Value |
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Net cash flow |
Annual Net Operating-Dept Service |
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Cost Approach |
Used for Churches, Libraries, New construction |
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Quantity Survey Method |
Item, Labor, and Profic |
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Value of the land |
Market Data Approach - depreciation |
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Cost Approach formula |
Replacement cost - Depreciation + Land =Value |
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Value in Exchange |
Present worth of Future benifits |
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Novation |
the substitution of one contract for another and when given releases liability
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Assignment |
Transfer of right, title, or interest in property. type of conveyance |
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Voidable |
A contract entered into under misrepresentation, duress, or fraud
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Devise |
the act of giving real estate through a will and the party receiving real property through a will
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Deed Covenant |
limits the owners use of property, if it is not followed you need to conform back to beginning but title will not be taken away |
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Deed Condition |
must follow, if promise is broken, title can be taken away |
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non-conforming use |
used when property is already zoned residential and commercial property is bought and built in same area |
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conditional-use permit |
used to build on property for benifit of public, ie Church |
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Certificate of Occupancy |
issued after building has been appraised and concurs with all zoning ordinances |
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an appraisal is best described as |
The O,O. Objective Opinion |
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what method of Appraisal would be used for single family home |
Market Data Approach or Direct Sales Approach |
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Method of Appraisal used in Multi unit dwellings such as apartment building |
Income Approach |
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Appraising a Hospital, Church, Profit organizations |
Cost Approach |
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Discribes the owners profit or the return of the return investment |
Cap Rate |
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Appraisers Do not know --- when they are appraising a property, therefore they cannot use the income approach to Value |
The amount of Mortgage is Unknown to Appraiser |
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Unit in place method, index method, comparative unit method are all forms of this appraising approach |
Cost Approach, replacement or reproduction method |
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Incurable Depreciation |
The amount to fix the problem exceeds value of the property |
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Straight-line method |
Investors are allowed to depreciate the value of property IMPROVEMENTS |
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Highest and Best in Use |
Legal use that will yield greatest income |
