Real Estate Finance - Chapters 1-4

Front 1

Acre

Back 1

An important measure of land area containing 43,560 square feet

Front 2

Capitial Market

Back 2

The financial sector of the economy that serves to allocate financial resources among households and firms requiring funds

Front 3

Improvements on the Land

Back 3

Any fixed structures such as buildings, fences, walls and decks

Front 4

Improvements to the Land

Back 4

The components necessary to make the land sutiable for buildings construction or other uses and includes infrastructure, such as streets, walkways, utilities, storm water drainage system, and other systems that may be required for land use

Front 5

Institutional - grade property

Back 5

larger, more valuable commercial properties, generally well over $10 million.

Front 6

Intangible Assets

Back 6

Non-physical assets such as patents and copyrights

Front 7

Investment - grade property

Back 7

synonymous with institutional property - grade real estate, large, relatively new and fully leased commercial properties located in major metropolitan areas

Front 8

land

Back 8

commonly used to refer to a parcel that does not include any structures but may include some improvements to the land

Front 9

personal property

Back 9

objects that are movable and not permanently affixed to the land or structure, including furniture and tenants fixtures that are often purchased in conjunction with real property

Front 10

property

Back 10

anything that can be owned, or possessed. it can be either tangible or intangible

Front 11

Raw Land

Back 11

land that does not include structures or any improvements

Front 12

Real Estate

Back 12

Only the tangible assets of the land and buildings

Front 13

Real Property

Back 13

Rights associated with ownership of land and all permanent attachments to the land

Front 14

Tangible Assets

Back 14

Physical things, such as automobiles, clothing, land or buildings

Front 15

User markets

Back 15

potential occupants, both owner occupants and tenant or renters competing for physical location and space

Front 16

Assessment Lien

Back 16

Lien assessment by local government to ensure that those who receive the primary benefit of neighborhood improvements will be charged with "fair share"

Front 17

Attach

Back 17

to place a lien on real property

Front 18

Community Property

Back 18

the automatic right of husband and wife in property acquired by their spouse during the marriage

Front 19

Condominium

Back 19

an ownership form that combines a fee simple estate for ownership of individual units and tenancy in common for ownership form and not a type of construction

Front 20

Condominium Bylaws

Back 20

The official rules and regulations that govern condominium property

Front 21

Condominium declaration

Back 21

the master deed creating or establishing the condominium ownership

Front 22

Cooperative

Back 22

a form of individual ownership of apartments, the property is owned by a corporation, of which each resident is a shareholder entitled to a proprietary lease for a particular apartment

Front 23

Deed restrictions

Back 23

limitations imposed on the use of land and structures by clauses in a deed

Front 24

Dominant Parcel

Back 24

a parcel that benefits from a subservient parcel in an easement apartment

Front 25

Dower

Back 25

a common law provision that grants a wife a one-third life estate in all of the real property of a decedent husband

Front 26

Easement

Back 26

a right the the owners of another property may have to use one's land for a specific and limited purpose

Front 27

Easement Appurtenant

Back 27

a right of use the continues from owner to owner that involves a relationship between two parcels of land

Front 28

Easement in gross

Back 28

the right to use land for a specific limited purpose unrelated to any adjacent parcel

Front 29

Elective share

Back 29

provision that gives a surviving spouse a share of most of the wealth of the decedent

Front 30

Estate

Back 30

interests in real property that include possession

Front 31

Fee simple absolute

Back 31

an estate in land that provides the owner with a complete set of legal rights, limited only by the powers of government

Front 32

fee simple conditional

Back 32

ownership that is subject to a condition or trigger event

Front 33

fee simple estate

Back 33

the complete ownership of a property may be either absolute of conditional

Front 34

fixtures

Back 34

personal property that becomes real property by virtue of its permanent attachment to the property

Front 35

Freehold

Back 35

estate interests in real estate having unlimited duration

Front 36

General Lien

Back 36

a security of interest or lien that arises out of actions unrelated to ownership of the property

Front 37

Interest

Back 37

rent or a charge paid for the use of money.

Front 38

Joint tenancy

Back 38

a form of co-ownership in which two or more owners hold equal share and have equal rights of possession.

Front 39

Leasehold

Back 39

the interest or rights of a lessee or tenant in a leased property, including the possessor interest that are temporary conveyance of the rights of exclusion, use and enjoyment

Front 40

Legal life estate

Back 40

a life estate created by the actions of law

Front 41

License

Back 41

the permission to use another's land for a specific and limited purpose

Front 42

Lien

Back 42

an interest in real property that serves as a security for a loan obligation. in case of default the holder of the lien is entitled to have the property sold to satisfy the debt

Front 43

Mechanics' lien

Back 43

Liens that arise from construction and other improvements to real estate

Front 44

Mineral Rights

Back 44

rights to the subsurface, including rights to oil, gas, coal and other substances that are mined and can be separated from land ownership

Front 45

Mortgage

Back 45

a lien on a real property as security for a debt.

Front 46

Ordinary life estate

Back 46

estate in which the property owner retains all right of exclusive possession, use and enjoyments for while a subsequent owner hold a remainder interest that follows the life estate

Front 47

periodic tenancy

Back 47

any lease agreement that has no definite term at the start

Front 48

personal rights

Back 48

personal freedoms derived primarily from the bill of rights and other amendments and clauses of the U.S. constitution

Front 49

Property rights

Back 49

rights in property that include possession, use and disposition

Front 50

Property tax lien

Back 50

automatic lien placed by local governments to assure payment of property taxes

Front 51

Proprietary lease

Back 51

a lease of indefinite lengths in which the lessee pays expenses but not rent, associated with coorperative

Front 52

remainder estate

Back 52

the ownership interest subsequent to a life estate which, upon the death of the life estate owner, becomes a fee simple absolute interest

Front 53

Restrictive covenants

Back 53

see deed restrictions

Front 54

reverter

Back 54

an uncertain interest held by the previous owner associated with a conditional fee

Front 55

rights of survivorship

Back 55

the right of surviving partners on a joint tenancy to divide the interest of a deceased partner

Front 56

Rule of capture

Back 56

the owner of an oil or gas well could claim all that is pumped from it, regardless of whether the oil or gas migrated from adjacent property

Front 57

separate property

Back 57

in community property states, property that the husband or wife acquired prior to the marriage or gifts or inheritance received during the marriage

Front 58

Specific Lien

Back 58

an interest that derives directly from events related to a property such as property tax and assessment liens, mortgages, and mechanics' liens

Front 59

Tenancy at sufferance

Back 59

a tenancy that occurs when a tenant that is suppose to vacate does not but continues to pay rent and the landlord accepts it

Front 60

tenancy at will

Back 60

a tenancy granted by landlords to tenants allowing them to remain in possession without written agreement.

Front 61

Tenancy by entireties

Back 61

a form of joint tenancy ownership for husband and wife

Front 62

Tenancy for years

Back 62

a leasehold interest for a definite period of time exceeding one year

Front 63

Tenancy in common

Back 63

the "normal" form of direct co-ownership, which is as close to the fee simple absolute estate as is possible

Front 64

Timesharing

Back 64

property occupancy arrangement in which multiple individuals have use of property but unlike traditional forms of co-ownership the interest are at different time intervals rather than simultaneous

Front 65

Trade fixtures

Back 65

personal property usually paid for by the tenant that may be removed by the tenant at lease expiration

Front 66

Accretion

Back 66

growth in size by addition or accumulation of soil to land by gradual natural deposits

Front 67

Acknowledgment

Back 67

confirmation that deed reflects the intention and action of the grantor

Front 68

Actual notice

Back 68

an assertion of real property interests that is open continuous and apparent to all who examine the property

Front 69

adverse possession

Back 69

involuntary conveyance of real property right by an individual demonstrating a use that is hostile, actual, open and notorious, continuous and exclusive

Front 70

bargain-and-sale deed

Back 70

a deed that conveys the land itself rather than ownership interest through warrents

Front 71

baseline

Back 71

a point of reference that runs east and west and is a feature of government rectangular survey

Front 72

chain or title

Back 72

a set of deeds and other documents that traces the conveyance of the fee and any interest that could limit it, down from the earliest time to the current owners

Front 73

checks

Back 73

a components of a grid system, defined as an area of 24 miles x 24 miles

Front 74

consideration

Back 74

anything of value given to induce another party to enter into a contract

Front 75

covenant against encumbrances

Back 75

a promise that the property is not encumbered with liens, easements, or other such limitations except as noted in the deed.

Front 76

covenant of quiet enjoyment

Back 76

a promise that the property will not be claimed by someone with a better claim to title

Front 77

covenant of seizin

Back 77

a promise that the grantor truly has good title and that he or she has the right to convey it to the buyer

Front 78

covenants

Back 78

legally binding promises for which the grantor becomes liable

Front 79

dedicate

Back 79

to convey certain lands of subdivision to the local government

Front 80

deed

Back 80

a special form of written contract used to convey a permanent ownership interest in real property

Front 81

deed of bargain and sale

Back 81

see bargain-and-sale deed

Front 82

delivery

Back 82

an observable, verifiable intent that the deed is to be given by the grantor to the grantee

Front 83

devised

Back 83

conveyance or distribution of a decedent's real property through a will

Front 84

doctrine of constructive notice

Back 84

a common law tradition stating that is a person is capable of knowing about a claim or a rule then he or she can be bound by it

Front 85

easement by estoppel

Back 85

the right to use created stating that if a landowner gives an adjacent landowner permission to depend on her land

Front 86

Easement by prescription

Back 86

the acquisition of a right of easement by open, notorious and continuous assertion of the right, hostile to the subservient land owner's interest.

Front 87

Easement by prior use

Back 87

an implied right of use that allows the owner of a landlocked parcel the right to use a previously existing path across another property for access and agress

Front 88

Easement by necessity

Back 88

a created implied right of use that allows the owner of a landlocked parcel the right to use a path across another property for access and agress

Front 89

Encroachmet

Back 89

unauthorized intrusion of a building or other improvements onto property owned by another

Front 90

Evidence of title

Back 90

substantiation that demonstrates that good and marketable title is being conveyed as part of a real estate transaction

Front 91

exceptions and reservations clause

Back 91

a clause in a deed that can contain a wide variety of limits on the property interest convenyed

Front 92

general warranty deed

Back 92

highest form of deed in which the grantor becomes liable for all possible covenants or legal promises assuming good title,

Front 93

grant deed

Back 93

a deed containing an implied promise that the grantor actually has title and that is not encumbered in any way except as described in the deed

Front 94

grantee

Back 94

the recipient of a conveyance of a real property interest

Front 95

grantor

Back 95

the person or entity conveying the real property interest to the grantee

Front 96

habendum clause

Back 96

clause in a deed that defines or limits the type of interest being conveyed

Front 97

implied easement

Back 97

a right of use not created by an explicit deed or explicit clause in a deed. it often is created when a subdivision map is placed in the public records

Front 98

intestate

Back 98

conveyance of a decedent;s property without a will

Front 99

judicial deed

Back 99

a deed issued through a court-ordered proceeding

Front 100

law of descent

Back 100

the laws and procedures controlling how a state will convey a decedent's estate among their heirs if no will exists

Front 101

marketable title

Back 101

title to real property that is free of reasonable doubt

Front 102

marketable title laws

Back 102

"state laws intended to limit the number of years that title search must""reach back" through the title chain

Front 103

metes and bounds

Back 103

oldest method of describing real estate; in which a mete is a unit of measure and a bound is a boundary marker.

Front 104

officer's deed

Back 104

same as definition of executor's deed

Front 105

patent

Back 105

special type of deed that conveys title to real property owned by government to a private party

Front 106

plat books

Back 106

register of recorded plat maps maintained by a city or county which shows boundaries, shapes, and sizes of land parcels

Front 107

plat lot and block number

Back 107

an unambiguous means to provide a description of property that identifies each parcel in a surveyed map of a subdivision

Front 108

principal meridian

Back 108

a line of geographic reference that runs north and south in a government rectangular survey

Front 109

probate

Back 109

state law that governs the disposition procedure of the conveyance of real property upon the death of a property owner

Front 110

quitclaim deed

Back 110

deed that conveys an individuals property rights to another but has none of the covenants of the warranty deed

Front 111

range line

Back 111

a feature of a government rectangular survey that separates townships by east and west

Front 112

recorded plat map

Back 112

see plat books

Front 113

recording statues

Back 113

state laws requiring documents that convey an interest in real property to be placed in the public records on order to be binding on the public

Front 114

reliction

Back 114

receding water line that leaves dry land to be added to an adjacent landowner's property

Front 115

section

Back 115

a specifically surveyed and identified square mile within the framework of the rectangular survey system

Front 116

sheriff's deed

Back 116

same as definition of executor's deed

Front 117

special warranty deed

Back 117

identical to a general warranty deed except that the covenant against encumbrances applies only to the time that the grantor owned the property

Front 118

statute of frauds

Back 118

provision adopted by all state requiring that ll deeds, long term leases, and mortgages, must be in writing to be enforceable

Front 119

testate

Back 119

conveyance of real property upon the death of a property owner in accordance with a will

Front 120

tier line

Back 120

a feature of a government rectangular survey that serves to number townships south or north from the base line

Front 121

title abstract

Back 121

the compilation of all documents summarizing the chain of title into a chronological volume and then given to an attorney for final interpretation

Front 122

title abstract with attorney's opinion

Back 122

traditional evidence of title

Front 123

title insurance

Back 123

insurance paying monetary damages from loss of property from unexpected superior legal claims or for litigation to protect title

Front 124

title insurance commitment

Back 124

a commitment to issue a title insurance policy

Front 125

title search

Back 125

the task of examining the evidence of title on the public records

Front 126

Torrens certificate

Back 126

a rarely used means to providing evidence of title

Front 127

township

Back 127

a unit within government rectangular survey system having an area of six miles by six miles and containing 36 fully described, 1 square mile sections

Front 128

trustee

Back 128

in mortgage lending, person who holds the deed on behalf of both the borrower and lender in a deed of trust

Front 129

trustee's deed

Back 129

a deed issued by the trustee in a court-supervised disposition of property, for example by an executor and administrator of an estate

Front 130

words of conveyance

Back 130

"early in the deed will be words such as "does hereby grant bargain, sell, and convey unto"

Front 131

"Spaceship earth"

Back 131

a perception of the environment as a closed system with limited state, air, water or other resources

Front 132

Ad valorem taxes

Back 132

property taxes that are based on the market value of the property type

Front 133

affordable housing allocation

Back 133

"a requirement that encourages or mandates a "reasonable and fair" component of new housing construction for lower-income families

Front 134

assessed value

Back 134

the value determined as the basis on which an owner's property tax liability is calculated, usually a percentage of market value

Front 135

board of adjustment

Back 135

in local zoning law, a board of citizens, appointed by the governing body, to hear and make determination on appeals for zoning variances.

Front 136

comprehensive plan

Back 136

a local government general guide to a community growth and development based on the community's goals and objectives.

Front 137

concurrency

Back 137

the requirement that public facilities and services roads, sewers, and schools, be available at the same time

Front 138

condemnation

Back 138

the legal procedure involved with eminent domain, the right of government to acquire private property, without the owner's consent.

Front 139

dedicated

Back 139

the conveyance of property from a private owner to government for public use

Front 140

economic and enviromental impact statements

Back 140

studies of the effect that a new development will have on the economy or the environment of the region.

Front 141

effective tax rate

Back 141

the tax liability divided by the property's market value or sale price

Front 142

eminent domain

Back 142

the power of government in the united states to take private property for a public purpose by paying the owner just compensation

Front 143

equity of redemption

Back 143

a period of time allowed by courts in every state that grants delinquent mortgage borrowers the opportunity to make overdue payments and come current on the mortgage before foreclosure begins.