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112 Cards in this Set
- Front
- Back
Abstract of Title
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A complete history of the title of a piece of property
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Accretion
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Addition to the land by action of water
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Actual Authority
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When an agent has been appointed either in writing or orally by the principle
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Adjustable Rate Mortgage
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Has payments of principle and interest, but at specified times the interest rate adjusts to some readily available market index
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Administrator
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A party appointed by the court to handle the property of an individual, who dies without a will
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Adverse Possession
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When an individual acquires title from the rightful owner through hostile, actual, continuous occupation of the land for the statutory period
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Agency
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A relationship in which one party acts for another
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Agent
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The one who acts for the principle
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Alienation
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Any change in the ownership real property
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Alluvion
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The soil added to the land by the accretion
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Amortized Loan
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A loan with equal regular payments over the life of the loan
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Appraisal
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An estimate or opinion of value
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Appurtenance
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A right or privilege or improvement that belongs to and passes with land but is not necessarily part of the land
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Assignment
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Total transfer of rights and liabilities under a contract
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Avultion
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Water washes away the land from one property and deposits it on another
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Beneficiary
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One who receives property through a will
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Bequres
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Personal property that is inherited
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Bill of Sale
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Used for transfer of personal property
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Blanket Loan
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A loan which covers two or more pieces of property
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Breach of Contract
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When one party fails to perform as promised in a contract
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Codicil
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An addition or an amendment to an existing will
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Condemnation
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The government, under its power of eminent domain, takes an easement
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Constructive Notice
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Notice to the world
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Cost Approach
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Mathematical formula for calculating the replacement value of unique, one-of-a-kind properties, where there are no comparable
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Cost Approach Formula
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Land + Building Replacement Cost – Depreciation
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Curtesy
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Interest a husband has in the property of his wife
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Dedication
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An individual who wishes to transfer title to the government
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Deed of Trust
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A three party mortgage
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Dower
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Interest a wife has in the property of her husband
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Duties of the Agent
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Care, Obedience, Accounting, Loyalty, Disclosure
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Duties of the Principle
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Compensation, Reimbursement, indemnification, performance
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Easement Appurtenant
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A right for the benefit of a piece of land
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Easement in Gross
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This belongs to a person or corporation and does not belong to the land
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Easements
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Can be terminated by merger, release, abandonment (end of need), or death in the case of a personal easement
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Eminent Domain
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The right of the government to take private land for public use
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Encroachment
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The unauthorized intrusion of another’s property onto an adjoining property
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Encumbrance
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A claim, lien, charge, or liability attached to and binding real property
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Escheat
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If a person dies intestate (without a will) and without heirs, the government will take title to his real property
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Estate at Will
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Either the landlord or tenant may agree to terminate the lease “at will”
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Eastate for Years
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Any lease with a specific starting and ending date
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Estates in Land
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Freehold, Leasehold, Statutory, Equitable
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Fee Simple Absolute or Fee Simple
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The type of ownership in which a person has the most rights in his/her property
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FHA (Federal Housing Administration)
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Insures loans
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Fixture
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A piece of personal property that has become attached to the land in such a way as to become real property
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Formal or Witnessed Will
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A will prepared by an attorney
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General Agency
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Exists when an agent is authorized to carry out the affairs of a business for his employer, sometimes within a certain area
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General Lien
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A lien against all the property of the debtor
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Government Survey System
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A description of property using base lines and meridians, ranges, townships, and sections
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Gross Lease
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One in which the landlord pays all the expenses of the property
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Hereditament
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Any property, whether real of personal, which is capable of being inherited
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Holographic
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Handwritten will
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Homestead Laws
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Prevent forced sale of the home by creditors, and provide a surviving spouse with shelter
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Improvments
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Buildings, landscaping, fences, patios, decks, roads, curbs, etc.
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Income Approach
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Converting an income stream into an indication of value
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Intestate
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An individual who dies without a will
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Leasehold Estate
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Gives one possession and use of a property without ownership
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Lien
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A claim against a property
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Life Estate
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Ownership for the duration of someone’s life
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Loan to Value
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The percent of market value that a lender is willing to lend
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Lot and Block
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A description of property by lot and block numbers that refer to a recorded map or plat
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Market Data Approach
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Based on the comparison of the subject property to similar properties in the area
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Market Value
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As the price a willing buyer will pay and a willing seller will sell for, if neither is under undue pressure
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Metes and Bounds
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A description using terminal points and angles to describe a piece of property
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Mortgage
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An instrument that pledges real property as security for debt
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Mortgage Bankers
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Originate loans, lend money, sell loans, and continue to service loans they have sold
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Mortgage Brokers
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Specialists in bringing together borrowers and lenders
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Necessity
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The court requires the easement or states its necessity for the benefit of the owner
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Net Lease
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The tenant pays rent plus a portion of the expenses of the property, such as taxes, maintenance, or utilities
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Note
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Actual evidence of the debt and the personal promise to pay
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Nuncupative Will
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An oral or deathbed will
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Ostensible Authority
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An agent acts as if he has the right to represent a principle, even if he does not
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Package Loan
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A loan that includes both real and personal property as security
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Patent
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Title can be conveyed from the state to an individual by the use of
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Percentage Lease
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The tenant’s rent is based in whole or part on the receipts of the business
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Periodic Estate
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A lease that automatically renews itself for like periods
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Personal Property or Chattel
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Things of a temporary, or moveable nature
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Police Power
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The right of the government to regulate and control the way you use your land
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Prescription
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Continuous use of the land over a period of time establishes the right to use the land
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Primary Market
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Where individuals go to borrow money
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Principle
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One who empowers another to act for him
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The Principle of Conformity
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Maximum value is achieved when there is homogeneity or similarity in an area
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The Principle of Highest and Best Use
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The use of a property that gives the greatest return in money or amenities
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The Principle of Increasing and Decreasing Returns
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Continue to invest in an improvement as long as for each dollar spent, value increases a dollar or more
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The Princeiple of Regression
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The presence of lower priced properties in the area will cause a decline in the value of the subject property
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Quitclaim Deed
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Deed with no guarantees, warranties, or covenants
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Requirements of a Valid Contract
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Competent parties, mutual agreement, consideration, legal objective and in writing, where required by law
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RESPA
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Prohibits kickbacks or fees for services not performed during the closing
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Riparian Rights
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Rights to use water from a river or a stream on or next to your property
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Secondary Market
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Where lenders go to borrow money
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Section
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One square mile or 640 acres
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Severalty
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Ownership by one person or one legal entity
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Situs
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The location of the property or land from an economic, not a geographic, viewpoint
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Special Agency
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An agent has a limited authority to act for his principle in a particular situation
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Specific Lien
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A lien that attaches to one or more specific or listed properties
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Statute of Frauds
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Requires the transfer of ownership of real property to be accomplished in writing and signed in order to be enforceable in a court of law
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Suit for Specific Performance
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The injured party sues the defaulting party
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Taxation
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The government retains the right to tax your land
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A Tenancy at Sufferance
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Created when a lease expires and the tenant remains on the premises
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Testate
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And individual who dies leaving a valid will
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Time is of the Essence
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Means that all agreements in the contract must be performed or carried out exactly on time
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Title
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The evidence an individual has of his right to possess land
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Title by Descent
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Real property is inherited without a will
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Title Commitment
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A statement of the condition of the title at a moment of time
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Title Insurance
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A policy of insurance that protects the insured against the loss resulting from defects of title to a specifically described parcel of real property
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Trade Fixtures
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Items necessary for an individual to carry out his trade or profession
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Unenforceable Contract
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One that will not hold up in a court of law
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Universal Agency
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Exists when a principle has granted an agent unlimited authority to act for him
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VA Loan
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Loan guaranteed by the Veteran’s Administration
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Valid Contract
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One that meets all the requirements of the law
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Void Contract
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One that has no effect on the parties signing it
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Voidable Contract
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One that can be cancelled or voided by one of the parties
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Will
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A written expression of the desire of a person as to the disposition of that person’s property after death
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