Real Estate Vocab 3

Front 1

Procuring Cause

Back 1

The effort that brings about the desired result.
An unbroken chain of events that results in the sake of a property.
Under an open listing, the broker who is the procuring cause of the sales receives the commission.

Front 2

Proration

Back 2

The division of ongoing expenses and income items between the buyer and seller proportionately to the time of use, or the date of closing.

Front 3

Puffing

Back 3

Exaggerated or superlative comments or opinions.

"This is the most beautiful home in the neighborhood!"

Front 4

Purchase Money Mortgage

Back 4

A mortgage given by the buyer to the seller as a portion of, or the entire purchase price, of the property.
Here the seller us acting as the lender.

Front 5

Quitclaim Deed

Back 5

A DEED that grants ANY INTEREST in property which the grantor may have.
The grantee takes the property "AS IS" because the deed contains the operative words "release, remiss, or forever quit" and does not warrant title or possession.
"I will quit claiming all interest in the property, if I have any."
Used to release dower or clear clouds on titles.

Front 6

Quite Title Action

Back 6

ACTION BY A COURT to remove a cloud or claim that has been placed on title to property.

Front 7

Real Estate

Back 7

Land and anything permanently affixed to the land.
"real property"

Front 8

Real Estate Recovery Special Account

Back 8

MAX Amount an injured claimant may recover is $40,000 PER LICENSEE involved in the transaction.

Established in lieu of a security bond covering each licensee.

Front 9

Recapture

Back 9

The return of monies invested in a property, through reduction of the loan amount and/or appreciation.

Recapture rate is equal to the rate of depreciation that is allowed for one year.

Front 10

Recording

Back 10

Filing or entering a legal instrument into the county recorder's office, which causes it to become a public record giving constructive notice of its existence to the world.

Front 11

Rectangular Survey

Back 11

Federal Government system of accurate land survey and description using BASE LINES and PRINCIPAL MERIDIANS,
There are 36 SECTIONS in a township.

Front 12

Right of Redemption

Back 12

They right of a LANDOWNER to reclaim property after foreclosure.

Front 13

Equitable Right of Redemption

Back 13

A right of a BORROWER, who has defaulted on a mortgage note to redeem his title by paying entire debt BEFORE the foreclosure sale.

Front 14

Statutory Right of Redemption

Back 14

A right of BORROWER who has defaulted on a mortgage note to redeem his title by paying entire debt AFTER the foreclosure sale.
Statutory period can be as long as ONE YEAR.
NOT USED IN ALL STATES

Front 15

Redemption Certificate

Back 15

A certificate used to reclaim a piece of real estate by paying off the debt owed on the property along with any court fees.
This procedure is done after a foreclosure sale has been conducted and during the redemption period.

Front 16

REITs
Real Estate Investment Trusts

Back 16

Joint ventures, usually in the form of a limited partnership, through which real estate is purchased. A person must have securities license to sell REITs. REITs avoid double taxation as they are taxed to the beneficiary.

Front 17

RESP
Real Estate Settlement Procedures Act

Back 17

A federal statute requiring disclosure of certain costs and prohibits certain acts in the sale of residential (one-to-four-family) improved property which is to be financed by the federally insured lender.

Front 18

Redlinning

Back 18

The illegal process of a LENDER denying loans in certain areas of a community because of race, color, creed, etc.
Any decision made that is not based on buyers' qualifications!

Front 19

Regulation Z

Back 19

The implementing provision of the Consumer Sales Practice Act enacted in 1969, which requires disclosure of the cost of credit and various terms available for credit to borrowers and consumers seeking credit.
This is a Federal Statute, regulated by HUD, which is NOT part of any other sections of HUD.
Requires disclosure of interest rates as an APR for all consumer loans.

Front 20

Release

Back 20

The discharge or relinquishment of a right, claim, or privilege.

Front 21

Release of Mortgage

Back 21

A document signed (and usually recorded) by the lending institution when a mortgage has been satisfied in full.

Front 22

Rescission

Back 22

The annulment of a contract so the the parties to it are put in a position as thought the contract never existed.

E.x Earnest Money is RETURNED.

Front 23

Reversionary Interest

Back 23

The interest in a life estate that reverts to a GRANTOR or GRANTOR'S HEIRS if no remainderman is named.

Front 24

Section

Back 24

A measure of land equal to one square mile, 640 acres, 1/36th of a township.

Front 25

Sequestration

Back 25

The taking of custody of one's personal or real property to compel compliance with a court order.

Front 26

Setback

Back 26

A term used in local zoning ordinances that represents the distance between lot lines and improvements.

Front 27

Settlement Agent

Back 27

An individual, normally working for the title company, who closes real estate loans. The agent is required by FHA guidelines to sign the closing documents along with the seller and the buyer.

Front 28

Severalty

Back 28

Property held by ONE person or entity (corporation).
Also called sole ownership.

Front 29

Sherman Antitrust Act

Back 29

Name of the federal antitrust law that makes it illegal for brokers to set uniform commission rates and prohibits other acts of collusion.

Front 30

Special Agency

Back 30

Authorizes the agent to represent the principal in a specific activity or transaction.

Front 31

Special Warranty Deed

Back 31

A deed by which the GRANTOR covenants or guarantees the title from the time he received it until it is conveyed to the grantee. The operative words of such a deed are "by, through, or under the grantor but not otherwise." This deed does not have all of the 5 warranties of a general warranty.

Front 32

Specific Lien

Back 32

A lien affecting or attaching only to a certain specific parcel of land or piece of property.
Mortgage, mechanic's, and or ad valorem taxes.

Front 33

Specific Performance

Back 33

A legal action available to a buyer to compel the performance of the terms of an agreement, such as a sale of a home.

Front 34

Statute of Frauds

Back 34

A law requiring that certain instruments can be in writing to be enforceable.
Deed, lease, option, but NOT listing agreement.

Front 35

Steering

Back 35

The illegal practice of trying to influence a buyer's choice of housing by racial, religious, ethnic, national origin, ancestry factors etc.
This includes only showing certain neighborhoods "slanting" property descriptions, and downgrading non-integrated neighborhoods to influence minority buyers.