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30 Cards in this Set

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Assignment
With regard to a lease it is when the tenant transfers all his interest under the lease and retains nothing.

ASSUMING THE LEASE
Sublet
With regard to a lease it is whent the tenant transfers only a portion of his lease and retains some interest.

SUBJECT TO THE LEASE
Net Rent Lease
Lease in which the tenant is responsible for all expenses of the lease premises, such as utilities, taxes and insurance.
Gross Lease
Lease where in the tenant pays only the rent; operating costs are paid by the landlord.
Common Law of Leases
The failure of one party to perform their obligations is not an excure for the other party not to perform. HAS TO BE HABITABLE!
Difference between Condos and Co-ops
FINANCING
CONDO-each owner owns a unit and pledges their unit as security for the loan. Actually owns.
Co-OP:Blanket mortgage. Pay your percentage of the blanket mortgage. Large down payment. Don't actually own.
Subrogation
Right to be subsituted to the rights of another person. EX: Car insurance company acts on your behalf to receive compensation for your claim against someone who caused your damage.
Condominium
Form of property ownership in which the owners owns an individual unit in a multiunit building and is a tenant in common with other owners in the building in certain common areas.
OWN YOUR OWN UNIT
RIGHT TO SELL
EACH OWNER RESPONSIBLE FOR A PERCENTAGE
Cooperative
Form of ownership of real property in which a corporation owns a multiunit building and leases living space in the buildings to the shareholders of the corporation.
Who has the right to rescind?
Any natural person with an ownership interest in a dwelling who uses it as a principal residence has the right to rescind if that ownership is or may be encumbered in connection with the real estate loan transaction.
NATURAL CONSUMER WHOSE PRINCIPAL DWELLING HAS RIGHT TO RESCIND.
Rescission
Act of repealing or voiding something or some action.
Bona Fide Purchaser for Value
Person who purchases real property in good faith for valuable consideration without notice of any claim to or interest in the real property by any other party. HAS NO PRIOR KNOWLEDGE OF PROBLEMS. HOLDER IN DUE COURSE-INNOCENT PURCHASER
Actual Notice
Title matters about which a purchaser has direct knowledge or information.
WHAT YOU SHOULD DO
REASONABLE MAN RULE
CAN SEE IT, HEAR ABOUT IT
SEE IT WITH YOU EYES-REASONABLE MAN WOULD LOOK INTO IT
Constructive Notice
A presumption of the law that charges a person with notice of all title matters that can be discovered from in an inspection of the real property or an examination of public real property records.
Recording Statutes
State statutes that regulate the recordation of real property documents.
Race Recording Statute
Determined by who wins the race to the recording office.
Notice Recording Statute
"CLEAN HANDS"
Last innocent buyer gets it.
Race Notice Recording Statute
A pure notice statute until a subsequent purchaser takes title from the common grantor as a bona fide purchaser without any notice of the prior recorded instrument. When this happens it operates as a pure race statute.
BUYS IN GOOD FAITH AND RECORDS IT.
NOTICE:INNOCENT PURCHASER
RACE:RECORDS IT FIRST
Lis Pendens
Notice recorded in the real propert records that informs that there is a lawsuit affecting title to real property described in the notice has been filed and is pending.
CHARGES 3rd Party WITH NOTICE AND IF THEY PURCHASE THEY WILL BE BOUND BY THE SUBSEQUENT JUDGEMENT OF THE LAWSUIT
Quiet Title Action
Judicial proceeding to establish the ownership of real property.
Owner's Policy
Policy of title insurance that insures an owner's title to real property.
Affidavit
Sworn statement of fact.
Schedule A
Title Insurance
An identification schedule that sets forth the date of the policy, amount of insurance, identity of the insured, estate/interest covered, description of property insured
Schedule B
Title Insurance
Contains policy exceptions to the insurance coverage. 2 categories 1. Standard Exceptions 2. Exceptions found in the title examination of the insured property.
Mortgage Endorsement
Endorsement to a policy of fire and hazard insurance whereby the owner of the insured property and the insurance company agree that any and all proceeds payable under the policy are to be paid directly to the lender who has a mortgage on the insured property.
Mortgage Loss Payable Clause
Endorsement to a policy of fire and hazard insurance whereby the owner of the insured property and the insurance company agree that any and all proceeds payable under the policy are to be paid directly to the lender who has a mortgage on the insured property.
Escrow
Agreement that requires the deposit of a document or money into the possession of the 3rd party to be held by that party until certain conditions are fulfilled.
Loan Commitment
Contract between a borrower and a lender to make and accept a mortgage loan secured by real property. The loan commitment sets forth the terms, requirements, and conditions for the mortgage loan.
Real Estate Settlement Proceeding Act (RESPA)
A federal law designed to reform the real estate settlement process and to ensure that consumers receive more info about real estate settlement costs. To protect consumers from unnecissarily high settlement costs.
Escrow Limitations
RESPA allows a lender to establish an advance deposit escrow account to ensure the payment of recurring charges or assesments that affect the lender's security. Escrow items include taxes and insurance. The lender may escrow an amount sufficient for the lender to pay the charges as they become due, plus a cushion of 2 months. The lender can collect 1/12 the estimated annual total charges for escrow items with each monthly mortgage installment.