Sc Real Estate Terms

Front 1

shared appreciation(equity) mortgage

Back 1

The lender not only collects interest on the loan, but when the property is sold, the lender will receive a portion of the profits from the increase in the property’s value since the time it was purchased.

Front 2

4 Unities of Joint Tenancy

Back 2

PITT: Possession, Interest, Time and Title. All four must exist simultaneously for joint tenancy to exist

Front 3

abandonment

Back 3

When a tenant leaves a property before the expiration of the lease agreement.

Front 4

abrogation

Back 4

To nullify or replace. Signing of the closing documents nullifies the real estate purchase contract except for warranties which extend beyond the closing date.

Front 5

Abstract of Title

Back 5

Certification by abstractor that condensed history of title to a particular parcel of real estate, including, conveyances and encumbrances, is correct

Front 6

Acceleration clause

Back 6

Allows a loan to become due and payable immediately if certain requirements are not met, such as making payments, maintaining the physical condition of the property or paying property taxes and hazard insurance. Clause in mortgage or deed of trust that can be enforced to make the entire debt payable immediately if borrower defaults

Front 7

Accession

Back 7

The process of adding to real property. Acquiring title to additions or improvements to real property as a result of the annexation of fixtures or the accretion of alluvial deposits along the banks of streams

Front 8

Accretion

Back 8

The increase or addition of land by the deposit of and or soil washed up naturally from a river, lake or sea

Front 9

Accrued Items

Back 9

On a closing statement, items of expense that are incurred but not not yet payable, such as interest on a mortgage loan or taxes on real property

Front 10

Acknowledge

Back 10

The legal process of having the signature on a contract or other legal document verified by a notary public.

Front 11

Acknowledgment

Back 11

Formal declaration by someone like a notary that the signature is both voluntary (no force) and genuine (no forgery)

Front 12

Acre

Back 12

43,560 square feet

Front 13

Actual Delivery

Back 13

transferring a deed from the grantor to the grantee by handing the deed to the grantee or sending it by certified mail.

Front 14

Actual eviction

Back 14

The legal process by which a lessor evicts the lessee and regains possession of the property. The legal process that results in the tenant's being physically removed from the leased premises

Front 15

Actual Notice

Back 15

Express information or fact; that which is known, direct knowledg

Front 16

ad valorem tax

Back 16

A tax levied according to the value of the property used to refer to real estate taxes

Front 17

addendum

Back 17

additions or changes incorporated into the REPC by reference.

Front 18

adjustable rate mortgage (ARM)

Back 18

A loan where the interest rate is periodically adjusted based on a specific economic indicator. Loan that has a fluctuating interest rate, usually one tied to a cost-of-funds index; the cost of doing business is the margin that stays fixed and is added to the base rate

Front 19

Adjusted cost basis

Back 19

cost basis plus improvements, minus depreciation claimed during the years the property was owned.

Front 20

Administrator

Back 20

A person appointed by the court to carry out the terms of a will.

Front 21

Adverse Possession

Back 21

The process whereby a non-owner can gain ownership of property by occupying it in hostile, continuous, open, and notorious possession, and in Utah, paying the property taxes for the statutory period of time (20 years in SC). Possession of another's land as if the owner for a statutory period which may lead to acquiring title

Front 22

Affidavit of Title

Back 22

Written statement, made under oath, that grantor identifies himself and marital status, certifies that there are no new defects on title

Front 23

Agency

Back 23

The relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transaction a relationship between two parties wherein the principal hires another person to represent him or her.

Front 24

agency by estoppel

Back 24

The principal seeks to deny an agency relationship, but the court stops him from denying the agency, and thereby confirms it.

Front 25

agency by ratification

Back 25

the agency is created by implication, or actions, and the principal approves it by agreeing after the agency service has been performed to compensate the agent.

Front 26

agency by statute

Back 26

the law has given rise to the agency, such as a sheriff appointed by the court to be the agent of the owner in a foreclosure sale.

Front 27

Agency Coupled with an interest

Back 27

An agency relationship in which the agent is given an estate or interest in the subject of the agency (the property)

Front 28

agent

Back 28

The person hired by a principal to act for and in behalf of, or to represent the principal, always acting in the principal’s best interest.

Front 29

Air Lot

Back 29

Designated airspace over a piece of land; may be transferred; used in describing a condominium unit

Front 30

Air Rights

Back 30

The right to use the open space above a property usually allowing the surface to be used for another purpose

Front 31

Alienation

Back 31

The act of transferring property to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession

Front 32

Alienation Clause

Back 32

Also know as “due on sale” clause permits lender to declare balance of loan immediately due if property is sold; prevents loan assumption without lender approval

Front 33

alienation of title

Back 33

a change of ownership. May be voluntary (sold the property) or involuntary (foreclosure sale.)

Front 34

all-inclusive trust deed (AITD)

Back 34

A state-approved document used for security, usually in seller financing, where the financing is structured as a wraparound.

Front 35

Allodial

Back 35

A socio-economic system that allows for private ownership off real property.

Front 36

Allodial System

Back 36

A system of land ownership in which land is held free and clear or any rent or service due to the government; commonly contrasted to the feudal system is held under the allodial system in the United States

Front 37

alta or lender's policy

Back 37

The lender’s title insurance policy which offers coverage in the amount to the loan which includes a site visit to discover unrecorded encumbrances.

Front 38

amenity

Back 38

A “nice, but not necessary” feature which provides personal pleasure to the owner of real property. It can be tangible or intangible.

Front 39

American Land Title Association (ALTA) Policy

Back 39

A title insurance policy that protects the interest in a collateral property of a mortgage lender who originates a new real estate loan

Front 40

americans with disabilities act (ADA)

Back 40

created to make building more accesable to the handicapped Protects rights of disabled individuals in employment and public accommodation; requires reasonable accommodation that enable disabled persons to work with dignity

Front 41

Amortized Loan

Back 41

Loan in which the monthly payment consists of principal and interest that partially pay off both each month over the term of the loan

Front 42

Annexation

Back 42

Change personal property to real property, such as mising sand, stone and cement, and making a sidewalk

Front 43

Annual percentage rate (APR)

Back 43

The interest rate plus any other charges for the loan, including such things as discount points and origination fee; computed as a yearly This must be disclosed to borrowers by lenders under the Truth In Lending Actpercentage rate. It is used for comparing loans.

Front 44

Anticipation

Back 44

Appraisal principle that holds that value can increase or decrease based on the expectation that some future event may or may not occur

Front 45

Antitrust Laws

Back 45

Laws to minimize unfair competition. Illegal to conspire to fix prices, allocate customers or markets

Front 46

Appraisal

Back 46

An estimate of the quantity, quality, or value of something. The process through which conclusions of property value are obtained; also refers to the report that set forth the process of estimation and conclusion of value

Front 47

Appraisal Report

Back 47

An opinion of market value on a property given to a lender or client with detailed and accurate information

Front 48

Appraiser

Back 48

An independent person trained to provide an unbiased estimate of value

Front 49

appreciation

Back 49

a percentage of increase in the value of the property over it’s value when it was originally purchased.

Front 50

Appurtenance

Back 50

Right, privilege or improvement belong to, and passing with the land

Front 51

Appurtenant

Back 51

Attached to the land (such as a house) or the deed (such as a recorded easement).

Front 52

Appurtenant Easement

Back 52

Easement that is attached to and travels with the ownership of one parcel allowing the owner the use of the use of the neighbor's land

Front 53

as is clause

Back 53

The clause in the real estate purchase contract that stimulates the buyer is buying the property in its current condition and with the faults that have been disclosed.

Front 54

Asbestos

Back 54

Mineral used extensively in insulation; inhaling fibers can cause sever respiratory diseases; particularly dangerous if friable, i.e., easily crumbled

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Assemblage

Back 55

Combining of two or more adjoining lots into one larger tract to increase their total value

Front 56

assessed value

Back 56

A percentage of the appraised value, as determined by law, upon which the tax rate will be levied to determine the property tax.

Front 57

Assessment

Back 57

The imposition of a tax, charge, or levy, usually according to established rates

Front 58

Assignment

Back 58

Transfer in writing of interest in a bond, mortgage, lease

Front 59

Assignment

Back 59

In a lease, transferring all of one's remaining interest in the property, although the original lessee is till responsible for the financial obligations

Front 60

assignment of contract

Back 60

One party in a contract substitutes another party in his place. The original party retains secondary liability for the performance of the contract. It does not require the agreement of the other original party in the contract

Front 61

assignment of lease

Back 61

A contract that substitutes a new tenant in the lease. The assignee becomes liable for the remaining term of the lease. Unless prohibited by the lease contract, this can be done without the approval of the lessor, but the original lessee retains secondary liability.

Front 62

associate broker

Back 62

a person with a broker's license who works under the supervision of an employing principal broker.

Front 63

Assumption of Mortgage

Back 63

Acquiring title to property on which there is an existing mortgage and agreeing to be personally liable for the terms and condition of the mortgage, including payments

Front 64

Attachment

Back 64

The act of taking a person's property into legal custody by writ or other judicial order to hold it available for application to that person's debt to a creditor

Front 65

attorney in fact

Back 65

A person who has been given power to sign in behalf of another.

Front 66

attorney's opinion

Back 66

a lawyer’s examination and evaluation of the history of title. It includes a brief summary of all recorded instruments which affect the title, including records of taxes, special assessments, judgments, mortgages and trust deeds.

Front 67

Automated Underwriting

Back 67

Computer system that permits lender to expedite the loan approval process and reduce lending costs

Front 68

Automatic Extension

Back 68

A listing agreement clause stating that the agreement will continue automatically for a certain period of time after its expiration date. In many state this clause is discouraged or prohibited

Front 69

Avulsion

Back 69

The sudden tearing away of land, as by earthquake, flood, volcanic action, or the sudden change in the course of a stream

Front 70

Balance

Back 70

The appraisal principle that states that the greatest value in a property will occur when the type and size of the improvements are proportional to each each as well as the land

Front 71

balloon mortgage

Back 71

a loan with a balloon payment at the end of its term. It could be a partially amortized or a straight loan or note.

Front 72

balloon payment

Back 72

Required payments larger than the regular payment. These payments are often made at the end of the loan, retiring the loan early; but can be made at other times during the term of the loan.

Front 73

Balloon Payment

Back 73

Final payment of mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized

Front 74

Bargain and Sale Deed

Back 74

This deed makes no guarantees as to the condition of the title, but unlike the Quit claims Deed, the grantor implies some actual interest in the property.

Front 75

Bargain and Sale Deed

Back 75

A deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his or her discretion

Front 76

Base Line

Back 76

Imaginary line running east and west used by surveyors as a reference in describing land under the rectangular survey system

Front 77

Baseline

Back 77

An east-west line which intersects the meridian and creates a point from which land can be measured under the Government or rectangular survey method.

Front 78

Basis

Back 78

The financial interest that the Internal Revenue Service attributes to an owner of an investment property for the purpose of determining annual depreciation and gain or loss on the sale of the asset. If a property was acquired by purchase, the owner's basis is the cost of the property plus the value of any capital expenditures for improvements to the property, minus any depreciation allowable or actually taken. This new basis is called the adjusted basis.

Front 79

Benchmark

Back 79

Permanent reference mark of point established for use by surveyors in measuring differences in elevation

Front 80

beneficiary

Back 80

the lender under a trust deed & note.

Front 81

Beneficiary

Back 81

(1) The person for whom a trust operates or in whose behalf the income from a trust estate is drawn. (2) A lender in a deed of trust loan transaction.

Front 82

Bequest or Legacy

Back 82

A gift of personal property given in a will.

Front 83

bilateral contract

Back 83

A contract wherein a promise is exchanged for a promise, thus making the contract binding on both parties.

Front 84

Bilateral vs. Unilateral Contract

Back 84

Bilateral contract: both parties are legally bound to act as they promised, i.e., lease, purchase agreement. Unilateral contract: only one party is bound to act (option, promissory note)

Front 85

Bill of Sale

Back 85

Evidence of transfer of ownership of personal property.

Front 86

Binder

Back 86

An agreement that may accompany an earnest money deposit for the purchase of real property as evidence of the purchaser's good faith and intent to complete the transaction

Front 87

Blanket Loan

Back 87

Mortgage loan secured by more than one parcel of real estate, provides for each parcel's partial release for mortgage lien upon some repayment; used by developers

Front 88

blanket mortgage

Back 88

A loan that uses two or more parcels of real property as security.

Front 89

blind ad

Back 89

An advertisement which fails to indicate that the advertiser is a real estate brokerage or that sales agents or brokers are selling their own property.

Front 90

blockbusting

Back 90

The illegal practice of inducing panic selling in a neighborhood by starting rumors involving minorities moving in.

Front 91

Blockbusting

Back 91

Illegal practice of inducing homeowners to sell their properties by telling them that a certain people of a certain race, national origin or religion are moving into the area

Front 92

Blue Sky Law

Back 92

Common name for those state and federal laws that regulate the registration and sale of investment securities

Front 93

board of adjustment

Back 93

The body to which one would appeal in order to obtain a variance to do something contrary to the current zoning law.

Front 94

board of equalization

Back 94

The body of appeal if you think your property tax appraisal is too high.

Front 95

boot

Back 95

Personal property or money needed to make up a difference in value when exchanging real property.

Front 96

Boot

Back 96

Money or property given to make up any difference in value or equity between two properties in an exchange

Front 97

branch office

Back 97

Any remote operation of the main real estate office which will be in operation more than 12 months and must be registered with the real estate division.

Front 98

Branch Office

Back 98

A secondary place of business apart from the principal or main office from which real estate business is conducted. A branch office usually must be run by a licensed real estate broker working on behalf of the broker

Front 99

Breach of Contract

Back 99

Failure to perform a condition of a contract, such as not paying the rent or mortgage payment

Front 100

bridge, swing or gap loan

Back 100

a short term loan to help the buyers have up-front funds to get into their new home, when the sale on the old one is going to close later than the closing to purchase the new one.

Front 101

Broker

Back 101

One who acts as an intermediary on behalf of others for a fee or commission

Front 102

Broker Protection Clause

Back 102

Protects broker from buyer and seller making contract behind broker's back. Provides for commission if broker's buyer purchases a period after listing expires.

Front 103

Brokerage

Back 103

Bringing together parties interested in a real estate transaction

Front 104

Broker's Price Opinion

Back 104

An opinion of real estate value commissioned by a bank or attorney and provided by a broker

Front 105

Brownfields

Back 105

Defunct, derelict, or abandoned commercial or industrial sites; many have toxic wastes

Front 106

Brownfields Legislation

Back 106

Provides federal funding to states and localities to clean up brownfields sites.

Front 107

buffer zone

Back 107

An area established by the zoning and planning commission to separate commercial and industrial areas from residential. Its purpose may be safety or economics.

Front 108

Buffer Zone

Back 108

Strip of land separating one type of use from another; i.e., a park or running trails between the commercial buildings and the residential neighborhood

Front 109

Build Related Illness (BRI)

Back 109

An illness due to air quality problems, typically toxic substances or pathogens and is a clinically diagnosed condition. Symptoms include asthma, allergies, and hypersensitivity

Front 110

Building Code

Back 110

Ordinance that specifies minimum standards of construction for buildings to protect public safety and health

Front 111

building codes

Back 111

Rules set by government to establish minimum standards of construction.

Front 112

Building Permit

Back 112

Written governmental permission for the construction, alteration, or demolition of an improvement, showing compliance with building codes and zoning ordinances

Front 113

Bundle of Legal Rights

Back 113

Ownership of all legal rights: control, possession, use, disposition, enjoyment

Front 114

Bundle of Rights

Back 114

All rights and interests that can be legally held in real property. They are separated in possession, use and control, quiet enjoyment and disposition.

Front 115

business plan

Back 115

A written overview that reveals the basic philosophy and strategy for an investment property.

Front 116

buydown

Back 116

a financing technique in which a borrower is able to obtain a lower interest rate by paying discount points at the time the loan is originated. (1point=1% of the loan amount.)

Front 117

Buydown

Back 117

A financing technique used to reduce the monthly payments for the first few years of a loan. Funds in the format of discount points are given to the lender by the builder or seller to buy down or loser the effective interest rate paid buy the buyer, thus reducing the monthly payments for a set time

Front 118

Buyer Agency Agreement

Back 118

Employment contract in which the buyer hires the broker to find a property to buy. Broker owes fiduciary responsibilities to buyer/client

Front 119

Buyer's Agent

Back 119

A residential real estate broker or salesperson who represents the prospective purchaser in a transaction. The buyer's agent owes the buyer-principal the common law or statutory agency duties.

Front 120

Buyer's Broker

Back 120

A residential real estate broker who represents prospective buyers exclusively. As the buyer's agent, the broker owes the the buyer-principal the common law or statutory agency duties.

Front 121

capital gain

Back 121

The taxable profit derived from the sale of a capital asset, such as real property.

Front 122

Capital Gain

Back 122

Profit earned from the sale of an asset

Front 123

Capitalization

Back 123

A mathematical process for estimating the value of a property using a proper rate of return on the investment and the annual net operating incomes expected to be produced by the property. The formula is expressed as: Income ÷ Rate = Value.

Front 124

Capitalization Rate

Back 124

The rate of return a property will product on the owner's investment

Front 125

capitalization rate or cap rate

Back 125

The ratio created when the net operating income is divided by the value of the property. It is also called the rate of return.

Front 126

Capping

Back 126

Process of laying two to four feet of soil over the top of a landfill site and planting grass to enhance aesthetic value and to prevent erosion

Front 127

Carbon Monoxide

Back 127

Colorless, odorless poisonous gas produced as a by-product of incomplete combustion; can be dangerous if not properly ventilate

Front 128

Cash Flow

Back 128

The net spendable income from an investment, determined by deducting all operating and fixed expenses from the gross income. When expenses exceed incomer, a negative cash flow results

Front 129

Cash Rent

Back 129

In an agricultural lease, the amount of money given as rent to the landowner at the outset of the lease, as opposed to sharecropping

Front 130

Casualty Insurance

Back 130

Coverage against theft, burglary, vandalism and machinery dames; health and accident insurance; often written for specific risks, i.e., theft, rather than all inclusive

Front 131

Categories of Real Property

Back 131

Residential, Commercial, Industrial, Agricultural, Special Projects

Front 132

caveat emptor

Back 132

the philosophy that says "Let the buyer beware"

Front 133

Caveat Emptor

Back 133

A Latin phrase meaning Let the Buyer Beware

Front 134

CC & R's

Back 134

The abbreviation given to restrictions and requirements created in the Uniform Declaration of restrictions for condominiums.

Front 135

certificate of eligibility

Back 135

Endorsement from the veterans administration indicating the right of a veteran to obtain a VA loan and the amount of his eligibility.

Front 136

certificate of reasonable value

Back 136

The document required for a VA loan that verifies the value of property being used as security for the

Front 137

Certificate of Reasonable Value (CRV)

Back 137

A form indicating the appraised value of a property being financed with a VA loan

Front 138

certificate of sale

Back 138

The document given to the individual who successfully bids and purchases a property at a sheriff’s sale. It does not convey title to the property.

Front 139

Certificate of Sale

Back 139

The document generally given to the purchaser at a tax foreclosure sale. A Certificate of Sale does not convey title; normally it is an instrument certifying that the holder received title to the property after the redemption period passed and that the holder paid the property taxes for that interim period.

Front 140

Certificate of Title

Back 140

Based on examination of public records, a statement of opinion on the status of the title to a parcel of real estate

Front 141

Chain of Title

Back 141

Succession of conveyances from some accepted starting point, whereby the present hold of title derives the title, there should be no “breaks” in the succession

Front 142

chain of title or abstract of title

Back 142

A historical record of land ownership and liens or encumbrances against the property.

Front 143

Change

Back 143

The appraisal principle that holds that no physical or economic conditions remains constant

Front 144

change (cycle of change)

Back 144

This appraisal principle involves activity which goes from growth or integration to equilibrium to disintegration and perhaps to growth again.

Front 145

Chattel

Back 145

A synonym for personal property. It comes for the word “cattle.”

Front 146

chattel mortgage

Back 146

a loan secured by personal property

Front 147

Civil Rights Act of 1866

Back 147

Act that prohibits any racial discrimination in the sale or rental of housing

Front 148

Client

Back 148

34-27-81 (6) A person who has an agency agreement with a broker for brokerage service, whether he or she be buyer or seller.

Front 149

closing

Back 149

When any loan funds are received from the lender and the applicable documents are recorded. This comes after the settlement.

Front 150

Closing

Back 150

An event where promises made in a sales contract are fulfilled and mortgage loan funds (if any) are distributed to the buyer

Front 151

Closing Statement

Back 151

Detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made and all cash paid out in the transaction

Front 152

cloud on the title

Back 152

a term that refers to any kind of lien or encumbrance against the title.

Front 153

Cloud on Title

Back 153

Any document, claim, unreleased lien, or encumbrance that may impair the title to real property or make the title doubtful; usually revealed by a title search and removed by either a quitclaim deed or suit to quiet title

Front 154

Clustering

Back 154

Grouping of home sites within a subdivision on smaller lots than normal with the remaining land used as common areas

Front 155

Code of Ethics

Back 155

Written system or moral standards for ethical behavior that often goes goes beyond the letter of the law

Front 156

Codicil

Back 156

An addition or change to an existing will.

Front 157

Codicil

Back 157

A supplement or an addition to a will, executed with the same formalities as a will, that normally does not revoke the entire will

Front 158

Coinsurance Clause

Back 158

Requires policyholder to maintain fire insurance, coverage equal to at least 80% of property's actual replacement value

Front 159

collateral or Security

Back 159

a term that refers to security used for a loan. it may be real or personal property.

Front 160

Color of title

Back 160

To all outward public appearance, or form a document that seems to be valid, the possessor of the property would seem to have ownership.

Front 161

commingling

Back 161

A broker puts personal funds in excess of

Front 162

Commingling

Back 162

The illegal act by a real estate broker of placing client or customer funds with personal funds. By law brokers are required to maintain a separate trust or escrow account for other parties funds held temporarily by the broker

Front 163

commission

Back 163

One entity of the division of real estate composed of five people, one of whom is a chairman.

Front 164

Commission

Back 164

Payment to broker for services rendered. In the sale of real property, often a percentage of the selling price.

Front 165

Common Elements

Back 165

Parts of a property that are necessary or convenient to the existence, maintenance, and safety of a condominium or are normally in common use by all of the condominium residents. Each condominium owner has an undivided ownership interest in the common elements

Front 166

Common Law

Back 166

The body of law based on custom usage and court decisions

Front 167

communication

Back 167

the process of notifying the offeror that the offer has been accepted.

Front 168

Community Association Management

Back 168

Provides a team of property manager, accounting staff, office staff and property consultants to manage property

Front 169

Community Property

Back 169

A form of ownership between husband and wife where each has an equal interest in property obtained during their marriage. The only way either can hold separate property is to obtain it before marriage, after the marriage is ended or during the marriage by gift or inheritance.

Front 170

Community Property

Back 170

System of ownership; each spouse has an equal interest in property acquired during marriage: separate property is that acquired before marriage

Front 171

Community Reinvestment Act of 1977 (CRA)

Back 171

Under the act, financial institutions are expected to meet the deposit and credit needs of their communities; participate and invest in local community develo0pment and rehabilitation projects; and participate in loan programs for housing, small business and small farms.

Front 172

Comparable

Back 172

Properties used in an appraisal report that are substantially equivalent to the subject property

Front 173

competency or capacity

Back 173

the ability to understand the terms of a contract and to make a rational decision as to whether or not to enter into it.

Front 174

competition

Back 174

An appraisal principle: when a particular use of property is bringing a high return, others enter into the same business or purchase property for the same purpose.

Front 175

Competition

Back 175

The appraisal principle that state that excess profits generate competition

Front 176

Competitive Market Analysis (CMA)

Back 176

Analysis of market activity among comparable properties; not an appraisal

Front 177

Complaint, filing a

Back 177

filing this document with thte court initiates foreclosure under a mortgage.

Front 178

compound interest

Back 178

Interest paid on earned interest as well as on the principal. It is used in savings accounts.

Front 179

Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)

Back 179

Passed in 1980, established Superfund to clean up uncontrolled hazardous waste site and to respond to spills

Front 180

Comprehensive Loss Underwriting Exchange (CLUE)

Back 180

A database of consumer claim history that allows insurance companies to access prior claim information in the underwriting and rating process

Front 181

Computerized Loan Origination

Back 181

Electronic network for handling load applications through remote computer terminals linked to various lenders' computer; borrower must pay for this extra service

Front 182

Condemnation

Back 182

A judicial or administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and compensates the owner

Front 183

condemnation action

Back 183

A legal action initiated by the government to seek the right to purchase land from a private individual by eminent domain.

Front 184

Conditional Use Permit

Back 184

Written governmental permission allowing the use inconsistent with the zoning, but necessary for the public good; i.e., emergency medical facility in residential area

Front 185

Conditional Use Permit

Back 185

Written governmental permission allowing a use inconsistent with zoning buy necessary for the common good, such as locating an emergency medical facility in a predominately residential area

Front 186

condominium

Back 186

one owns the air space of one’s own unit and own undivided interest in the common area.

Front 187

condominium ownership act

Back 187

The act which governs ownership and related issues when one owns airspace and undivided interest in the common area.

Front 188

Condominiums

Back 188

Ownership of the airspace of a unit, plus undivided interest in common elements

Front 189

Confession of Judgment Clause

Back 189

Permits judgment to entered against a debtor without the creditor's having to institute legal procedures

Front 190

conformity

Back 190

an appraisal principle which states that because all homes in a particular area are harmonious in design and value, their value is sustained and tends to increase over time.

Front 191

Conformity

Back 191

Appraisal principle that holds that the greater the similarity among properties in an area, the better they will hold their value

Front 192

consideration

Back 192

The process wherein each party to a contract makes a sacrifice and each party receives a benefit. It is an essential element of any contract.

Front 193

Consideration

Back 193

Something of value that gets a person to enter into a contract; owner of property promises to convey marketable title and the buyer promises a certain amount of money

Front 194

construction loan

Back 194

An open ended loan funded in installments as various portions of the work are completed.

Front 195

Constructive Delivery

Back 195

The process of transferring a deed from the grantor to the grantee by recording the deed at the country recorder’s office.

Front 196

constructive eviction

Back 196

When the landlord violates the terms of the lease by not keeping the property livable or habitable, the tenant can legally vacate the property and not be held liable for further rent payments.

Front 197

Constructive Eviction

Back 197

When the tenant is forced to vacate the property because the landlord failed to provide essential services; tenant is no longer obligated for any further rent

Front 198

constructive fraud

Back 198

A party misrepresents innocently, with no evil intention, but that misrepresentation could have been avoided with reasonable care.

Front 199

Constructive Notice

Back 199

Notice given to the world by recorded documents; possession of property may also be considered constructive notice

Front 200

Contingency

Back 200

A provision in a contract that requires a certain act to be done or a certain event to occur before the contract becomes binding

Front 201

contingency clause

Back 201

Sometimes know as a “subject to” clause, it requires completion of certain acts before the contract is fully binding.

Front 202

contract

Back 202

An agreement between two or more parties to do or not to do certain things. It may be oral or in writing.

Front 203

Contract

Back 203

A legally enforceable promise or set of promises that must be performed and for which, if a breach of the promise occurs, the law provide a remedy. A contract may be either unilateral, by which only one party is bound to act, or bilateral, by which all parties to the instrument are legally bound to act as prescribed

Front 204

Contract Broker

Back 204

34-27-81 (17) A licensee who assists one or more parties in a contemplated real estate transaction without being an agent or fiduciary or advocate for the interest of that party to a transaction.

Front 205

contribution

Back 205

The appraisal principle which states that an improvement to a property must add its cost to the value.

Front 206

Contribution

Back 206

The appraisal principle that states that the value of any component of a property is what it gives to the value of the whole or what its absence detracts from that value

Front 207

Controlled Business Arrangement

Back 207

One stop shopping for real estate consumers; consumer must be informed of relationship among the service providers and that other are available

Front 208

Conventional Loan

Back 208

Loan that is neither FHA nor VA; does not require insurance or guarantee, although today high LTV loans are made along with PMI (private mortgage insurance

Front 209

Conveyance

Back 209

A term used to refer to any document that transfers title to real property. The term is also used in describing the act of transferring

Front 210

cooperative

Back 210

A form of ownership in multiple unit housing where the owner purchases shares of stock in the entire development, then obtains exclusive use of a unit by means of a proprietary lease.

Front 211

Cooperative

Back 211

Multi tenant building owned by trust or corporation; tenants own share of stock and proprietary lease

Front 212

Co-Ownership

Back 212

Title ownership held by two or more persons who must agree on how the property is used

Front 213

Co-Ownership

Back 213

Title ownership held by two or more persons

Front 214

corporation

Back 214

A legal person. It cannot die or go to jail.

Front 215

Corporation

Back 215

An artificial entity created by operation of law whose rights in business are similar to those of an individual. Continuous existence until it is legally dissolved

Front 216

Corporeal Rights

Back 216

Something that is physical or tangible, such as land or buildings.

Front 217

Correction Lines

Back 217

Provisions in the rectangular survey system made to compensate for the curvature of the earth' surface. Every fourth township line (at 24 mile intervals) is used as a correction line on which the intervals between the north and south range lines are remeasured and correct to a full six mile

Front 218

Corrective Maintenance

Back 218

Actual repairs that keep building equipment functioning; i.e., repairing a boiler, fixing a leaky faucet, fixing an air conditioner

Front 219

correlation (reconciliation)

Back 219

An appraiser should use as many of the approaches to appraising as possible. This technique synthesizes the results into a single estimate of value. It is sometimes called correlation.

Front 220

cost approach

Back 220

an approach to appraisal which considers the price of resources necessary to build the same or a similar property. It is the only approach which places a separate value on the land.

Front 221

Cost Approach

Back 221

Process of estimating property value by adding to estimated land value the appraiser's estimate of the cost of the building new, less depreciation

Front 222

cost basis

Back 222

what you paid for the product or property when you bought it.

Front 223

cost or cost basis

Back 223

what you paid for the product or property when you bought it.

Front 224

cost plus

Back 224

A contract where payment Is for material and labor, with a profit factor added.

Front 225

Cost Recovery

Back 225

An Internal Revenue Service term for depreciation

Front 226

cost recovery (depreciation)

Back 226

An income tax deduction allowed on investment property to treat the improvements as thought they will waste away in a certain number of years. It cannot be applied to raw land or personal residence. Also known as depreciation.

Front 227

counter offer

Back 227

A response to an offer wherein the offeree changes one or more of the terms of the contract, becomes the offeror, and sends the offer back to the original offeror.

Front 228

Counteroffer

Back 228

A new offer made in response to an offer received. It has the effect of rejecting the original offer, which cannot be accepted thereafter unless revived by the offeror

Front 229

Covenant

Back 229

A written agreement between two or more parties in which a party or parties pledge to perform or not perform specified acts with regard to property; usually found in such real estate documents as deeds, mortgages, lasses and contracts for deed

Front 230

Covenant Against Encumbrances

Back 230

This covenant in a deed assures the grantee that the title has no leans for encumbrances except those that have been revealed by the grantor.

Front 231

Covenant of further assurance

Back 231

In the event someone makes a claim against the property, the grantor has the full responsibility to defend the title against the claimant. This includes producing the proper documents to substantiate the ownership of the grantee, and going to court if necessary.

Front 232

Covenant of Quiet Enjoyment

Back 232

in a deed, the guaranteed right of an owner or lessee legally in possession of property to uninterrupted use without interference from any third party claiming superior title.

Front 233

Covenant of Quiet Enjoyment

Back 233

The covenant implied by law by which a landlord guarantees that a tenant may take possession of leased premises and that the landlord will not interfere in the tenants;s possession or use of the property

Front 234

Covenant of Seizin

Back 234

This covenant in a deed guarantees the grantor holds title to the property and has the right to convey it to a grantee.

Front 235

covenant of Warranty forever

Back 235

If the grantor were to lose in defense of the title, this covenant guarantees payment for the defense of the title and for damages caused the grantee, including buying the property back from the grantee if necessary.

Front 236

credit

Back 236

An amount of money which will reduce what the buyer has to bring to closing, or increase the amount the seller gets at closing.

Front 237

Credit

Back 237

On a closing statement, an amount entered in a person;s favor – either an amount the party has paid or an amount for which the party must be reimbursed

Front 238

Credit, Debit

Back 238

On closing statement, amount entered in a person's favor; either an amount that party has paid or amount for which party must be reimbursed; debit is amount charged

Front 239

cubic foot method

Back 239

Under the cost replacement approach, this method determines the cost per unit of volume and then multiplies it by the number of units of volume. It is most often used with warehouses.

Front 240

Curtesy

Back 240

A life estate, usually a fractional interest, given by some states to the surviving husband in real estate owned by his deceased wife. Most states have abolished Curtesy

Front 241

Customer

Back 241

The third party or non represented consumer for whom some level of service is provided

Front 242

damages

Back 242

a money adjustment ordered by the court for actual losses suffered.

Front 243

Datum

Back 243

Horizontal plane from which heights and depths are measured

Front 244

debit

Back 244

an amount of money which will increase what the buyer brings to close, or will reduce what th seller gets at closing

Front 245

debt service

Back 245

loan payments of principle and interest.

Front 246

Dedication

Back 246

A private individual’s girt of property for public use. It may be voluntary (giving land for a public park) or statutory (subdivide giving land for roads).

Front 247

Dedication

Back 247

The voluntary transfer of private property by its owner to the some public use, such as for streets or schools

Front 248

deductions

Back 248

Items which the IRS allows to be subtracted from your gross taxable income in order to determine your taxable income.

Front 249

Deed

Back 249

The document that serves as evidence of ownership of real property, as well as the document of conveyance.

Front 250

Deed

Back 250

the document that serves as evidence of ownership of real property, as well as the document of conveyance.

Front 251

Deed

Back 251

Written document that, when executed and delivered, conveys title to or an interest in real estate

Front 252

deed in Lieu of foreclosure

Back 252

the defaulting borrower conveys title to the property to the lender. In return, the lender forgives the loan on the property.

Front 253

Deed in Lieu of Foreclosure

Back 253

Way for mortgagor to avoid foreclosure by returning deed to lender/mortgagee

Front 254

Deed in Trust

Back 254

An instrument that grants a trustee under a land trust full power to sell, mortgage, and subdivide a parcel of real estate. The beneficiary controls the trustee's use of these powers under the provisions of the trust agreement

Front 255

Deed of Trust

Back 255

Borrower conveys naked title to a trustee who holds it as security for the lender

Front 256

Deed Restriction

Back 256

Clause in deed limiting future use of property; may limit density of buildings, dictate types of structures or even prevent buildings from being used for a specific purpose

Front 257

Default

Back 257

The nonperformance of a duty, whether arising under a contract or otherwise; failure to meet an obligation when due

Front 258

defeasance clause

Back 258

A clause in most loans written in favor of the borrower. It requires the lender to reconvey all interest in the property after the loan has been paid off.

Front 259

Defeasance Clause

Back 259

A clause used in leases and mortgages that cancels a specified right upon the occurrence of a certain condition, such as cancellation of a mortgage upon repayment of the mortgage loan.

Front 260

Defeasible Fee

Back 260

Fee simple estate in which the holder may lose title if a certain event occurs or does not occur: “So long as ....., “ or “no alcohol sales,” etc.

Front 261

deferred maintenance

Back 261

When physical deterioration is repairable, but hasn’t yet been taken care of.

Front 262

deficiency judgment

Back 262

A judgment obtained when a foreclosure sale fails to completely pay off a debt.

Front 263

Deficiency Judgment

Back 263

Personal judgment levied against the borrower when a foreclosure sale does not produce sufficient funds to pay fully the mortgage debt

Front 264

Delivery

Back 264

The process of the grantor giving the deed to the grantee.

Front 265

Demand

Back 265

Amount of goods people are willing and able to buy

Front 266

Density Zoning

Back 266

Zoning ordinances that restrict the maximum average number of house per acre that may be built within a particular area, generally a subdivision

Front 267

Department of Housing and Urban Development (HUD)

Back 267

Governmental department that has established rules and regulations that further interpret the practices affected by the law. In addition, HUD distributes an equal housing opportunity poster.

Front 268

depreciation

Back 268

A loss of value in real property, regardless of the reason for the loss. Also an accounting process used for investment property taxation, referred to by the IRS as cost recovery.

Front 269

Depreciation

Back 269

(1) In appraisal, a loss of value in property due to any cause, including physical deterioration, functional obsolescence and external obsolescence. (2) In real estate investment, an expense deduction for tax purposes taken over the period of ownership of income property

Front 270

Descent

Back 270

The laws by which the court determines ownership of property of a person who has died intestate, but who has heirs.

Front 271

Descent

Back 271

Acquisition of an estate by inheritance in which an heir succeeds to the property by operation of law

Front 272

designated agency

Back 272

The principal (buyer or seller) who is hiring an agent specifies exactly which person(s) will act as agent or subagent and exercise fiduciary care in representing the principal’s best interest.

Front 273

Designated Agent

Back 273

A license authorized by a broker to act as the agent for a specific principal in a particular transaction

Front 274

Developer

Back 274

Person who attempt to put land to its most profitable use through the construction of improvements

Front 275

Development

Back 275

Construction of improvements on lnad, i.e., new homes, water lines

Front 276

Devise

Back 276

A gift of real property by will. The donor is the devisor and the recipient is the devisee

Front 277

Devise (Devisor/Devisee)

Back 277

A gift of real property given in a will.

Front 278

director, real estate division

Back 278

One of the entities in the real estate division. A full-time position responsible for submitting a budget for the division’s operation.

Front 279

Discount Point

Back 279

Unit of measurement used for various loan charges; one point equals one percent of the loan amount

Front 280

Discount Point

Back 280

A unit of measurement used for various loan charges; one point equals 1 percent of the amount of the loan

Front 281

discount points

Back 281

Money paid when a loan is initially obtained which is considered prepaid interest and permanently lowers the interest rate. Also know as a buy down.

Front 282

discount rate

Back 282

The rate charged by the Federal Reserve to member banks for money they borrow. It, along with reserve requirements, is one of the ways the Federal Reserve controls the economy.

Front 283

discounted loan or note

Back 283

Selling a loan to the secondary money market for less tan its face value. This increases the yield (profit) on the loan.

Front 284

document receipt

Back 284

A confirmation by the buyer and seller that they received a copy with all signatures.

Front 285

dominant tenement

Back 285

The name given to a property that encumbers a neighboring property with an easement.

Front 286

double commissions

Back 286

The seller pays a commission to the listing agent, as per their contract, and also a commission to the selling agent.

Front 287

double contracts

Back 287

the buyer and seller enter into a second sales contract in order to deceive the lender and enable the buyer to finance the purchase.

Front 288

Dower

Back 288

The legal right or interest, recognized in some states, that a wife acquires in the property her husband held or acquired during their marriage

Front 289

Dual Agency

Back 289

Representing both parties to a transaction. This is unethical unless both parties agree to it, and it is illegal in many states

Front 290

dual agent (limited agent)

Back 290

When the agent is representing both principals in a transaction with their informed consent. (also know as a limited agent.)

Front 291

Due On Sale Clause

Back 291

A provision in the mortgage that states that the entire balance of the note is immediately due and payable if the mortgagor transfers (sells) the property

Front 292

Duress

Back 292

Unlawful constraint or action exercised upon a person whereby the person is forced to perform an act against his or her will. A contract entered into under duress is voidable

Front 293

duress or undue influence

Back 293

the use offorce to obtain agreement. it can be physical or emotional.

Front 294

Earnest Money

Back 294

Money deposited by a buyer under the terms of a contract, to be forfeited if the buyers defaults but applied to the purchase price if the sale is closed

Front 295

earnest money deposit

Back 295

the deposit a buyer makes when submitting an offer to purchase real property. It shows he’s serious in the offer and will serve as liquidated damages if he defaults on the contract.

Front 296

easement

Back 296

A non-possessory interest which on person has in land owned by another, allowing limited use or enjoyment of the owner’s land. it may be referred to as a physical use or condition.

Front 297

Easement

Back 297

A right to use the land of another for a specific purpose, such as for a right of way or utilities; an incorporeal interest in land

Front 298

easement appurtenant

Back 298

An easement which attaches to the land and/or the deed, and passes from owner to owner with the deed.

Front 299

Easement by Condemnation

Back 299

An easement created by the government of government agency that has exercised the right under eminent domain

Front 300

easement by implication

Back 300

an unexpressed, but legally binding understanding regarding a right of way between the parties, created by their actions.

Front 301

easement by necessity

Back 301

Created by a court of law in situations where justice and need, not convenience, dictate the appropriateness of the easement; such as the case of land locked property.

Front 302

Easement by Necessity

Back 302

An easement allowed by law as necessary for the full enjoyment of a parcel of real estate; for example, a right of ingress and egress over a grantor's land

Front 303

easement by prescription

Back 303

An easement created by adverse use. The use must be adverse, hostile, open, notorious and continuous. This type of easement can be prevented by giving permission to the user, or by ordering the use to discontinue the use before the statutory period passes. (it requires 20 years in Utah.)

Front 304

Easement by Prescription

Back 304

Easement claimant has used another's land for a certain period of time (10 – 20 years) openly, continuously and without the owner's approva

Front 305

easement in gross

Back 305

an easement which is personal in nature and does not pass with the deed or the land. it runs with the persons who agreed to it for the term of their lives, or with the need for which it was created, such as a utility easement.

Front 306

Easement in Gross

Back 306

Individual interest in someone else's land; no dominant tenement. Commercial may be assigned, conveyed or inherited; examples: utility lines, sewer, water

Front 307

economic life

Back 307

The period of time during which improvements give a return on investment. It is generally considered to be shorter the physical life.

Front 308

Economic Life

Back 308

Number of years during which an improvement will add value to the land

Front 309

economic obsolescence

Back 309

A form of depreciation caused by forces outside the property boundaries. They may be political or social factors. It is considered to be incurable.

Front 310

Economics Characteristics of Real Estate (4)

Back 310

Scarcity, improvements, permanence of investment, area preference (location)

Front 311

effective age

Back 311

An age placed on property for appraisal purposes, based on the condition of the property. It may be more or less that the actual chronological age.

Front 312

egress

Back 312

Leaving a property by traveling across the servient tenement or property.

Front 313

Electromagnetic Field EMFs

Back 313

Generated by movement of electrical currents; prolonged exposure may cause cancer; major concern for property owners near high voltage line

Front 314

Electronic Contracting

Back 314

A process of integrating information in a real estate transaction between clients, lender, and title and cosing agents electronically

Front 315

Electronic Signatures in Global and National Commerce Act (E-Sign)

Back 315

An act that makes contracts (including signatures) and records legally enforceable regardless of the medium in which they are created

Front 316

Emblements

Back 316

Crops nurtured in the year of the transfer or sale of the property. They are considered personal property.

Front 317

Emblements

Back 317

Annual, harvestable crops such as corn, wheat; personal property

Front 318

eminent domain

Back 318

The right of the government to take title, at fair market value, to land owned by a private individual.

Front 319

Eminent Domain

Back 319

The right of a government or municipal quasi-public body to acquire property for public use through a court action called a condemnation, in which the court decides that the use is a public use and determines the compensation to be paid to the owner

Front 320

Employee

Back 320

Works for employer is responsible for withholding income taxes and FICA

Front 321

Employment Contract

Back 321

A document evidencing formal employment between employer and employee or between principal and agent. In the real estate business this generally takes the form of a listing agreement or management agreement

Front 322

Enabling Acts

Back 322

State legislation that confers zoning powers on municipal governments

Front 323

Encapsulation

Back 323

Sealing off of disintegrating asbestos or chipping and peeling lead based paint; may be preferable to removal; still leaves hazard behind

Front 324

encroachment

Back 324

the unauthorized intrusion of a building, tree, or other improvements onto a neighbor’s property.

Front 325

Encroachment

Back 325

A building or some portion of it – a wall or fence for instance – that extends beyond the land of the owner and illegally intrudes on some land of an adjoining owner or a street or alley

Front 326

encumbrance

Back 326

Anything which burdens the title to real property so as to restrict, limit, or otherwise affect an owner’s rights.

Front 327

Encumbrance

Back 327

Anything – such as a mortgage, tax or judgment lien, an easement, a restriction on the use of the land, or an outstanding dower right -that may diminish the value or use and enjoyment of a property

Front 328

Encumbrance Claim

Back 328

Charge or liability that attaches to real estate liens, restrictions, easements, encroachments

Front 329

enforceability

Back 329

the issue of whether a contract dispute could be taken into the court to be settled.

Front 330

environmental protection agency (EPA)

Back 330

the government entity which deals with the impact of commercial, industrial and residential development on the environment.

Front 331

equal credit opportunity act

Back 331

Federal act which prohibits discrimination in financing, based on race, age, sem, or martial status.

Front 332

Equal Credit Opportunity Act (ECOA)

Back 332

Federal law that prohibits discrimination in the extension of credit because of race, color, religion, national origin, sex, receipt of public assistance, age, marital status

Front 333

Equal Credit Opportunity Act (ECOA)

Back 333

Prohibits discrimination in lending based on race, color, religion, national origin, sex, receipt of public assistance, age and marital status

Front 334

Equalization

Back 334

The raising or lowering of assessed values for tax purposes in a particular county or taxing district to make them equal to assessments in other countries or districts

Front 335

Equalization Factor

Back 335

A factor (number) by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with statewide tax assessments. The ad valor em tax would be based on this adjusted value

Front 336

equitable period of redemption

Back 336

In foreclosure, the period of time during which the borrower can reinstate the loan before the foreclosure sales takes place. It is sometimes referred to as equity of redemption.

Front 337

Equitable Right of Redemption

Back 337

The right of a defaulted property owner to recover the property prior to its sale by paying the appropriate fees and charges

Front 338

equitable title

Back 338

The legal interest held in a property by the buyer between the time the contract is signed and conveying the actual deed.

Front 339

Equitable Title

Back 339

The interest held by a vendee under a contract for deed or an installment contract; the equitable right to obtain absolute ownership to property when legal title is held in another's name

Front 340

equity

Back 340

the market value of a property minus the debts secured by the property.

Front 341

Equity

Back 341

The interest an owner has in a property over and above any outstanding loans (Market Value – Loans = Equity)

Front 342

Equity Buildup

Back 342

That portion of the loan payment directed toward the principal rather than the interest, plus any gain in property value due to appreciation

Front 343

Errors and Omissions Insurance

Back 343

Liability insurance to cover broker for errors and negligence in general business; usually does not cover civil rights or antitrust violations

Front 344

escalation cause

Back 344

A clause written into a loan or lease that allows for payments to be increased at specified times by state amounts.

Front 345

escalation clause

Back 345

A clause written into a loan or lease that allows for payments to be increased at specified times by stated amounts.

Front 346

escheat

Back 346

This occurs when someone dies without a will, having no heirs.

Front 347

Escheat

Back 347

The reversion of property to the state or county, as provide by state law, in cases where a decedent dies intestate without heirs capable of inheriting , or when the property is abandoned

Front 348

escrow

Back 348

a depository where a neutral third party is used to hold money or documents.

Front 349

Escrow

Back 349

Closing of transaction through third party called escrow agent; who receives funds and documents to be delivered upon performance of certain instructions

Front 350

Escrow Account

Back 350

The trust account established by a broker under the provisions of the license law for the purpose of holding funds on behalf of the broker's principal or some other person until the consummation or termination of a transaction

Front 351

Escrow Contract

Back 351

An agreement between a buyer, seller and escrow holder setting forth rights and responsibilities for each. An escrow contract is entered into when Earnest money is deposited in a broker's escrow account.

Front 352

Escrow Instructions

Back 352

A document that sets forth the duties of the escrow agent, as well as the requirements and obligations of the parties, when a transaction is closed through an escrow

Front 353

Estate at Sufferance

Back 353

Tenant remains on the property, without the landlord's permission, after the lease has expired

Front 354

Estate at Will

Back 354

Term is indefinite; i.e., “I will rent to you until I sell the house,” will be terminated by death of either party or sale of property

Front 355

Estate for Years

Back 355

Leasehold interest for specific period of time; definite beginning, definite ending; not terminated by death of either party, nor sale of property; no notice required

Front 356

Estate from Period to Period

Back 356

Leasehold interest that automatically renews until either party gives notice to change the terms; month to month; not terminated by death of either party, nor sale of property

Front 357

Estate in Land

Back 357

The degree, quantity, nature, and extent of interest a person has in real property

Front 358

estate or tenancy for years

Back 358

a lease which contains a termination date. Its term can be for any agreed-upon period of time. (it can be more or less than one year.)

Front 359

Estate Taxes

Back 359

Federal taxes on decedent's real and personal property

Front 360

Estoppel

Back 360

Method of creating an agency relationship in which someone states incorrectly that another person is his or her agent and a third person relies on that representation

Front 361

estoppel certificate

Back 361

A document provided by a lender which reveals all the terms of a loan as requested by the borrower or ordered by the court.

Front 362

Estoppel Certificate

Back 362

A document in which a borrower certifies the amount owed on a mortgage loan and the rate of interest

Front 363

estovers

Back 363

The right of a tenant to use natural resources on leased land, such as timber, water, etc. When required as necessities.

Front 364

Ethics

Back 364

The system of moral principles and rules that becomes standards for professional conduct

Front 365

Eviction

Back 365

A legal process to oust a person from possession of real estate

Front 366

Evidence of Title

Back 366

Proof of ownership of property; commonly a certificate of title, an abstract of title with lawyer's opinion, title insurance, or a Torrens registration certificate

Front 367

Exception and Reservations Clause

Back 367

In a deed, it indicates rights in the real property which will not be conveyed to the grantee and is another name for the habendum clause.

Front 368

Exchange

Back 368

A transaction in which all or part of the consideration is the transfer of like-kind property (such as real estate for real estate)

Front 369

exclusive agency listing

Back 369

One broker is named as the exclusive agent of the seller, but the seller reserves the right to locate a buyer without paying a commission.

Front 370

Exclusive Right To Sell Listing

Back 370

A listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time, to sell the property on the owner's stated terms, and agrees to pay the broker a commission when the property is sold, whether by the broker, the owner, or another broker.

Front 371

exclusive right-to-sell

Back 371

one principal broker is designated to represent the seller and receive a commission when the buyer is found, regardless of who finds the buyer.

Front 372

Exclusive-Agency Listing Agreement

Back 372

One agent (broker) is hired; broker receives a commission only if he or she is the procuring cause; seller retains right to sell without obligation to pay commission

Front 373

Exclusive-Right-To-Sell Listing Agreement

Back 373

One agent (broker) is hired; broker receives a commission regardless of who finds the buyer for the property

Front 374

execute

Back 374

to put a contract into effect by signing it.

Front 375

executed contract

Back 375

a contract with all of th terms completed by all parties.

Front 376

Executed Contract

Back 376

A contract in which all parties have fulfilled their promise and thus performed the contract

Front 377

executive director, department of commerce

Back 377

The person who appoints the director of the Utah division of real estate.

Front 378

Executor or Executrix

Back 378

The title of a person named in a will to carry out the terms of the will after the death of the testator.

Front 379

executory contract

Back 379

a contract that is not fully performed, but which is not in default.

Front 380

Executory Contract

Back 380

A contract which something remains to be done by one or more of the parties

Front 381

Expiration of listing

Back 381

Specific termination of listing; in most states, failure to specify specific date is grounds for suspension or revocation of license

Front 382

express agency

Back 382

Agency created through words, written or oral, between the principal and the agent, such as a listing agreement.

Front 383

Express Agency

Back 383

An agency relationship based on a formal agreement between the parties

Front 384

Express Agreement

Back 384

An oral or written contract in which the parties state the contract's terms and express their intentions in words

Front 385

Express vs. Implied Contract

Back 385

Express is oral or written contract in which parties express intention in words. An implied contract is a result of the actions of the parties

Front 386

extended coverage title insurance

Back 386

Covers claims both on and off the record. It includes a site visit to give protection against unrecorded liens and encumbrances, such as mechanic’s liens, as well as defects in the land itself, such as unrecorded easements, encroachments, and information based on incorrect surveys,. It can be obtained by private individuals.

Front 387

External Depreciation

Back 387

Reduction in a property's value caused by outside factors (those that are off the property)

Front 388

Fair Housing Act

Back 388

The federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status, and national origin

Front 389

Fair Housing Violation Enforcement

Back 389

Unlimited punitive damages, actual damages, injunction, fines ranging from

Front 390

fair market value

Back 390

What a willing buyer is willing to pay, and a willing seller is willing to accept, with neither of them under duress and the property has been on the market for sufficient time to verity its value.

Front 391

familial status

Back 391

One of the protected classes under fair housing referring to families with children under 18.

Front 392

Familial Status

Back 392

In fair housing, at least one person over the age of 18 having legal custody of one person under 18, includes pregnant women and foster children

Front 393

Fannie Mae

Back 393

Quasi-government agency buys any kind of mortgage loans in secondary market from primary lenders; guarantees timely principal and interest to security holders

Front 394

Fannie Mae

Back 394

/

Front 395

Farm Credit

Back 395

A federal agency of the Department of Agricultural that offers programs to help families purchase or operate family farms

Front 396

Farm Service Agency (FSA)

Back 396

An agency of the federal government that provides credit assistance to farmers and other individuals who live in rural areas

Front 397

Farmer Mac

Back 397

A government sponsored enterprise that operates similarly to Fannie Mae and Freddie Mac but for agricultural loans

Front 398

Federal Deposit Insurance Corporation

Back 398

An independent federal agency that insures the deposits in commercial banks

Front 399

federal fair housing act of 1968

Back 399

Extended the federal fair housing act of 1866 by adding the prohibition of discrimination according to color, sex, religion, and natural or national origin. It specifically stated that no discrimination should take place relative to sale or rental of real estate, or real estate brokerage services.

Front 400

federal fair housing amendment of 1988

Back 400

Added two new protected classes to fair housing: handicapped and familial status.

Front 401

Federal Home Loan Mortgage Corporation

Back 401

Corporation buys primarily conventional mortgage loans in secondary market, does not guarantee principal and interest payments of these mortgages

Front 402

Federal Home Loan Mortgage Corporation

Back 402

/

Front 403

Federal Home Loan Mortgage Corporation (FHLMC) (FANNIE MAE)

Back 403

Federal Home Loan Mortgage Corporation; a privately owned secondary money market player. It is federally regulated.

Front 404

Federal National Mortgage Association

Back 404

/

Front 405

Federal National Mortgage Association (FNMA)

Back 405

Federal national mortgage association, a major secondary money market player. It is privately owned, but federally regulated.

Front 406

Federal Reserve Bank

Back 406

The bankers’ bank; it regulates the money supply by establishing discount rates (cost of money to lending institutions) and setting a reserve requirement (how much cash lenders must keep on hand).

Front 407

Federal Reserve System

Back 407

Country's central banking system, responsible for nations monetary policy by regulating supply of money and interest rates; requires member banks to keep a reserve

Front 408

Federal Reserve System

Back 408

The country's central banking system, which is responsible for the nation's monetary policy by regulating the supply of money and interest rates

Front 409

Fee for Service

Back 409

Arrangement where a consumer asks a licensee to perform specific real estate services for a set fee

Front 410

Fee Simple

Back 410

The highest interest in real estate recognized by the law; the holder is entitled to all rights to the property

Front 411

Fee Simple Absolute

Back 411

Maximum possible estate or right of ownership of real property, continuing forever

Front 412

Fee Simple Defeasible Estate, Defeasible Fee Estate

Back 412

A fee simple estate which has conditions attached, the violation of which could cause the grantee to lose title. If written in the deed with the words “so long as,” it automatically reverts back to the grantor or his heirs if the conditions are violated. It may also be referred to as “Fee Simple Qualified.”

Front 413

Fee Simple Determinable

Back 413

A fee simple estate qualified by a special limitation. Language used to describe limitation includes the words, “so long as” or “while” or “during.”

Front 414

Fee Simple, Fee Estate, Fee simple absolute

Back 414

The highest or most complete form of ownership that can be held under the law. The ownership rights go on forever.

Front 415

Feudal System

Back 415

A system of ownership usually associated with pre-colonial England, in which the king or other sovereign is the source of all rights. The right to possess real property was granted by the sovereign to an individual as a life estate only. Upon the death of the individual, title passed back to the sovereign, not to the decedent's heirs.

Front 416

FHA loan

Back 416

A government loan with a low down payment, insured by the borrower’s payment of the mortgage insurance premium (MIP)

Front 417

FHA Loan

Back 417

Loan insured by Federal Housing Administration; made by approved lender with FHA's regulation; borrowers pay mortgage insurance premium (MIP)

Front 418

fiduciary

Back 418

The word which describes the responsibility of an agent toward the principal, involving trust, loyalty, confidence, care and diligence.

Front 419

Fiduciary

Back 419

One in whom trust and confidence is placed; a reference to a broker employed under the terms of listing contract or buyer agency agreement

Front 420

Fiduciary Relationship

Back 420

Relationship of trust and confidence between principal and agent; agent owes duties of care, obedience, accounting, loyalty and disclosure

Front 421

Financial Institutions, Reform, Recovery, and Enforcement Act (FIRREA)

Back 421

This act restructured the savings and loan association regulatory system; enacted in response to the savings and loan crisis of the 1980s

Front 422

Fiscal Policy

Back 422

The government's policy in regard to taxation and spending programs. The balance between these two areas determines the amount of money the government will withdraw from or feed into the economy, which can counter economic peaks and slumps

Front 423

fixed cost

Back 423

a contract where the price is established up front and there is no allowance for overruns.

Front 424

Fixture

Back 424

That which is attached without losing its identity. It is always real property.

Front 425

Fixture

Back 425

Item that was once personal property and is now permanently affixed and is real property, such as a chandelier or ceiling fan

Front 426

flat lease

Back 426

the lessee makes periodic, equal rent payments

Front 427

foreclosure

Back 427

The legal process a lender uses to recover the investment from a defaulting borrower where the loan was secured by the property.

Front 428

Foreclosure

Back 428

A legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document. The foreclosure procedure bring the rights of all parties to a conclusion and passes the title in the mortgaged property to either the holder of the mortgage or a third party who may purchase the realty at the foreclosure sale, fee of all encumbrances affecting the property subsequent to the mortgage.

Front 429

forfeiture

Back 429

In a default situation when the lender may repossess the property, this is the effect to the borrower.

Front 430

Formal Will

Back 430

Most valid form of a will, usually prepared by an attorney. It is the least likely form of a will to be challenged.

Front 431

Fractional Section

Back 431

A parcel of land less than 160 acres, usually found at the edge of a rectangular survey

Front 432

fraud

Back 432

An act intended to deceive or misrepresent in order to gain some unfair or dishonest advantage over another and induce someone to give up something of value.

Front 433

Fraud

Back 433

Intentional misrepresentation of a material fact in order to harm or take advantage of another person

Front 434

Freddie Mac

Back 434

/

Front 435

Freddie Mac

Back 435

A government sponsored enterprise established to purchase primarily conventional mortgage loans in the secondary market

Front 436

Freehold Estate

Back 436

An interest in property in which some form of ownership is held.

Front 437

Freehold Estate

Back 437

An estate in land in which ownership is for an indeterminate length, in contrast to a leasehold estate.

Front 438

Front Footage

Back 438

The measurement of a parcel of land by the number of feet of street or road frontage

Front 439

Fully amortized loan

Back 439

a loan that requires payments of both principal and interest. When the last payment is made, the loan is retired.

Front 440

fully disclosed principal

Back 440

the “other party” knows there is a principal, knows who it is, and that there is an agent.

Front 441

functional obsolescence

Back 441

The item in question is working fine, but is not what people want in their homes anymore. Examples are a poor floor plan, four bedrooms and one bath, inadequate insulation, insufficient electrical outlets, etc.

Front 442

Functional Obsolescence

Back 442

Loss of value to an improvement to real estate because of functional problem, often caused by changing tastes or poor design

Front 443

Future Interest

Back 443

A person's present right to an interest in real property that will not result in possession or enjoyment until some time in the future, such as a reversion or right of re-entry

Front 444

Gap

Back 444

A defect in the chain of tile of a particular parcel of real estate; a missing document or conveyance that raises doubt as to the present ownership of the land

Front 445

general agent

Back 445

An agent hired by contract to use the agent’s expertise to fulfill the objectives of the principal.

Front 446

General Agent

Back 446

Agent hired to represent principal in specific range of matters: long-term broad authority

Front 447

General Lien

Back 447

The right of a creditor to have all of a debtor's property - both real and personal - sold to satisfy a debt

Front 448

General or Full Warranty Deed

Back 448

A deed that contains all five covenants and covers the period of time from the date of transfer back to the date of the patent.

Front 449

General Partner

Back 449

A partner who has full authority to make decisions, acts for the partnership, and has full liability of the business dealings of the partnership.

Front 450

General partnership

Back 450

A partnership composed only of general partners.

Front 451

General Real Estate Tax

Back 451

A tax that is made up of the taxes levied on the real estate by government agencies and municipalities

Front 452

General Warranty Deed

Back 452

Deed that offers the most protection in which grantor fully warrants good clear title to the premises

Front 453

General Warranty Deed

Back 453

A deed in which the grantor fully warrants good clear title to the premises. Used in most real estate deed transfers, a general warranty deed offers the greatest protection of any deed

Front 454

Gift Deed

Back 454

A transfer of ownership made for love and affection. Creditors of the donor could still use the property for payment of the grantor’s debts if it can be shown that the donor was insolvent and transferred the property to evade creditors.

Front 455

Ginnie Mae

Back 455

HUD division, corporation without stock; administers special-assistance programs and works in tandem with Fannie Mae by guaranteeing payments

Front 456

good consideration

Back 456

consideration given in the form of love, friendship, loyalty, etc.

Front 457

Good Faith Estimate (GFE)

Back 457

Settlement costs that borrower is likely to incur; must be given within three business days after loan application; should be pretty accurate

Front 458

Government Check

Back 458

The 24 mile square parcels composed of 16 townships in the rectangular (government) survey system of legal description

Front 459

Government natioal morgage association (GNMA) (GINNIE MAE)

Back 459

Government national mortgage association. A secondary money market player which is government owned and purchases loan pools of FHA and VA loans

Front 460

Government National Mortgage Association

Back 460

Ginnie Mae

Front 461

Government Powers (4)

Back 461

Police powers, eminent domain, taxation, escheat

Front 462

graduated lease

Back 462

A lease where the rent will increase periodically in amounts specified in the lease, as contained in the escalation clause.

Front 463

Graduated Payment Mortgage (GPM)

Back 463

Payments begin below the normal, fully amortized payment and are then increased for a set period of years. Some lead to negative amortization.

Front 464

Graduated Payment Mortgage (GPM)

Back 464

A loan in which the monthly principal and interest payments increase by a certain percentage each year for a certain number of years and then levels off for the remaining loan term

Front 465

Grant Deed

Back 465

A type of deed used in some states which contains limited warranties. The grantor usually also provides title insurance.

Front 466

Grantee

Back 466

One who receives property or property rights from a grantor.

Front 467

Grantee

Back 467

The person who receives a conveyance of real property from a grantor

Front 468

Granting Clause

Back 468

Words in deed on conveyance that state the grantor's intention to convey the property at the present time. This clause is generally worded as “convey and warrant”; “grant”; “grant, bargain, and sell”; or the like

Front 469

Grantor

Back 469

one who conveys property or property rights to a grantee.

Front 470

Grantor

Back 470

The person transferring title to or an interest in real property to a grantee

Front 471

Grantor, Grantee

Back 471

n a deed, the grantor is the person transferring title in real estate to the grantee

Front 472

Gross Income Multiplier

Back 472

A figure used as a multiplier of the gross annual income of a property to produce an estimate of the property's value

Front 473

gross lease

Back 473

The tenant pays a set amount of rent. From this rent, the lessor is required to pay some or all operation expenses.

Front 474

Gross Lease

Back 474

Tenant pays rents, landlord pays all expenses of property; most common form of residential lease

Front 475

Gross Lease

Back 475

A lease of land only, on which the tenant usually owns a building or is required to build as specified in the lease. Such leases are usually long term net leases; the tenant's rights and obligation continue until the lease expires or is terminated through default

Front 476

gross operating income (GOI)

Back 476

the total income received from an investment property after subtracting vacancies and lost rents.

Front 477

gross rent multiplier (GRM)

Back 477

A “quick and dirty” estimate of value based only on a relationship between the value of the property and the gross rents. It is referred to as the GRM.

Front 478

gross scheduled income (GSI)

Back 478

What an investor would receive if there were no vacancies or lost rents.

Front 479

ground lease

Back 479

the landlord leases the land to the tenant, and the tenant builds improvements on the leased land.

Front 480

Groundwater

Back 480

Water that exists under earth's surface in tiny spaces or crevices in geological formations; if contaminated, threatens source of clean drinking water

Front 481

Group boycotts

Back 481

Illegal antitrust activity. Two or more businesses conspire against another business or agree not to work with another company in order to reduce competition

Front 482

Growing Equity Mortgage

Back 482

A loan where payments increase each year, thereby allowing the loan to be paid off many years sooner and a substantial amount of interest dollars to be saved.

Front 483

Growing Equity Mortgage (GEM)

Back 483

A loan in which the monthly payment increase annually, with the increased amount being used to reduce directly the principal balance outstanding and thus shorten the overall term of the loan

Front 484

Habendum Clause

Back 484

“To have and to hold” clause in a deed defining the extent of ownership bing granted; i.e., a life estate or a defeasible fee

Front 485

Habendum Clause (Subject to clause)

Back 485

Know as the “to have and to hold clause,” and sometimes as a “subject to” clause, it defines and limits the estate which the grantee will receive when the property is transferred.

Front 486

habitability clause

Back 486

If not actually written in the lease, there is an unwritten or implied warrant of this in every lease, that says the property is livable.

Front 487

hazard or home owner's insurance

Back 487

An insurance policy which indemnifies real property against loss resulting from physical damage to the property such as fire, vandalism, etc.

Front 488

Heir

Back 488

One who might inherit or succeed to an interest in land under the state law of descent when the owner dies without leaving a valid will

Front 489

highest and best use

Back 489

The appraisal principle which states that value should be based on the utilization of the property which will bring the greatest return to the owner. That use must be legal and feasible.

Front 490

Highest and Best Use

Back 490

Possible use of a property that would produce the greatest net income and thereby develop the highest value; making an office building where a parking lot once stood

Front 491

Holder of a Life Estate

Back 491

The receiver of a life estate who has the property for the duration of the grantee’s own life.

Front 492

Holdover Tenancy

Back 492

A tenancy whereby a lessee retains possession of leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant's continued occupancy as defined by state law

Front 493

holdover tenant

Back 493

The lessee had an estate for years which has new terminated. The lessor accepted a rent check so now the tenant is on periodic tenancy basis.

Front 494

Holographic will

Back 494

A handwritten will, which must be dated, written entirely in the handwriting of the testator, and does not need witnesses in order to be valid. It can pass both real and personal property.

Front 495

Holographic Will

Back 495

A will that is written, date, and signed in the testator's handwriting

Front 496

Home Equity Loan

Back 496

A loan (sometimes called a line of credit) under which a property owner uses his or her residence as collateral and can then draw funds up to a prearranged amount against the property

Front 497

Homeowner's Insurance Policy

Back 497

A standardized package insurance policy that covers a residential real estate owner against financial loss from fire, theft, public liability and other common risks

Front 498

Homestead

Back 498

Land that is owned and occupied as the family home. In many states a portion of the area or value of this land is protected or exempt from judgments for debts

Front 499

HUD 1 settlement statement

Back 499

The required form to be used when closing a real estate transaction.

Front 500

hypothecation

Back 500

Using property as collateral or security for a debt without giving up possession of the property.

Front 501

Hypothecation

Back 501

To pledge property as security for loan obligation without giving up possession of it; opposite of practice in a pawn shop

Front 502

Implied Agency

Back 502

Based on the actions of the parties that imply that they have mutually consented to an agency relationship, an implied agency relationship is formed

Front 503

implied agency (ostensible agency)

Back 503

Agency which is created through the actions of the parties , rather than through an express agreement. Also called implied agency.

Front 504

Implied Agreement

Back 504

A contract under which the agreement of the parties is demonstrated by their acts and conduct

Front 505

Implied Warrant of Habitability

Back 505

A theory in landlord/tenant law in which the landlord renting residential property implies that the property is habitable and fit for its intended use

Front 506

impound(also escrow or reserve acct.)

Back 506

A trust account established to set aside funds for future needs relating to a parcel of real property. Those needs typically include such things as property tax and hazard insurance.

Front 507

Improvement

Back 507

Man-made attachment to the land, such as a building, streets, utilities

Front 508

Improvements

Back 508

A term that refers to any additions to the land made by man. It includes building, roads and utilities and landscaping.

Front 509

income (capitalization) approach

Back 509

An appraisal approach based on the cash flow the property produces. It addresses the question, “how much will a potential investor pay for the cash flow?”

Front 510

Income approach

Back 510

The process of estimated the value of an income producing property through capitalization of the annual net income expected to be produced by the property during its remaining useful life

Front 511

Income Property

Back 511

Property held for current income as well as a potential profit upon its sale

Front 512

Incorporeal Right

Back 512

A nonpossessory right in real estate; for example, an easement or a right of way

Front 513

Incorporeal Rights

Back 513

Intangible or non-possessory rights in the real property, such as easements, licenses, mining claims, etc.

Front 514

incurable depreciation

Back 514

Physical deterioration that cannot be repaired in a cost-effective manner.

Front 515

Indemnification

Back 515

In a listing, a clause that states that the seller and broker will not sue each other for any incorrect information supplied by one to the other

Front 516

Independent Contractor

Back 516

Person hired to perform a certain act, only end result is under control and direction of another. Most real estate licensees are treated as independent contractors

Front 517

index lease

Back 517

Rent payments are periodically adjusted based on an economic indicator, such as the consumer price index.

Front 518

Index Method

Back 518

The appraisal method of estimating building costs by multiplying the original cost of the property by a percentage factor to adjust for current construction costs

Front 519

Informed Consent

Back 519

34-27-81 (9) A consumer's agreement to allow something to happen which is based upon full disclosure of facts needed to choose appropriate brokerage services.

Front 520

ingress

Back 520

Entering by traveling across the servient tenement property.

Front 521

Inheritance Taxes

Back 521

State imposed taxes on a decedent's real and personal property

Front 522

injunction

Back 522

Legal action taken to enforce the restrictive covenants in the uniform declaration of restrictions or to prevent a neighbor from encroaching.

Front 523

Inquiry Notice

Back 523

Notice the law presumes a reasonable person would obtain by inquiring into a property

Front 524

Installment Contract

Back 524

Also know as land contract, contract for deed, selling under contract. Purchaser receives possession but not legal title until all payments have been made

Front 525

Installment Contract

Back 525

A contract for the sale of real estate whereby the purchase price is paid in periodic installments by the purchaser, who is in possession of the property even though title is retained by the seller until a future date, which may be not until final payment. Also, called a contract for deed or articles of agreement for warranty deed.

Front 526

Installment Sale

Back 526

A transaction in which the sales price is paid in two or more installments over two or more years. If the sale meets certain requirements, a taxpayer can postpone reporting such income until future years by paying tax each year only on the proceeds received that year

Front 527

Interest

Back 527

Charge made by lender for use of money; a charge to “rent” the money

Front 528

Interest Only Mortgage

Back 528

A mortgage that only requires the payment of interest for a stated period of time with the principal due at the end of the term

Front 529

interest rate

Back 529

Money paid during the term of a loan that is profit to the lender. It represents the return, or yield, on the lender’s investment.

Front 530

Interim Financing

Back 530

A short term loan usually made during the construction phase of a building project (in this case often referred to as a construction loan).

Front 531

intermediate theory

Back 531

A combination of title theory and lien theory that allows the lender to sell the property in case of default, but does not allow it to keep any equity.

Front 532

Intermediate Theory

Back 532

Adopted by a number of states, a theory based on the principles of title theory but requires the mortgagee foreclose to obtain legal title.

Front 533

Internet Listing Display Policy

Back 533

A policy from the National Association of REALTORS ® that allows all MLS members to have equal right to display MLS data, and respects the rights of property owners and their listing brokers to market a property as they wish.

Front 534

Interstate Land Sales Full Disclosure Act

Back 534

Federal law that regulates the sale of certain real estate in interstate commerce

Front 535

Intestate

Back 535

The condition of a person who dies and leaves no will.

Front 536

Intestate

Back 536

Person dies without a valid will; his or her property will pass to heirs as provided in the state law of descent

Front 537

inverse condemnation

Back 537

The legal process by which a private individual sues to have the property taken by eminent domain.

Front 538

Inverse Condemnation

Back 538

An action brought by a property owner seeking just compensation for land taken for public use when the taker of the property does not intend to bring eminent domain proceedings. Property is condemned because its use and value have been diminished due to an adjacent property's public use.

Front 539

investment property

Back 539

Property which is generating a cash flow, such as a strip mall or a single or multi-family rental property.

Front 540

Involuntary Alienation

Back 540

See alienation

Front 541

Involuntary Lien

Back 541

A lien placed on property without the consent of the property owner

Front 542

Joint and Several Liability

Back 542

Each of the individual owners is personally responsible for the total damages

Front 543

Joint Tenancy

Back 543

A form of concurrent ownership where all owners have equal rights of possession, equal interest, took title at the same time, there is one deed, and each owner has full rights of survivorship.

Front 544

Joint Tenancy

Back 544

Co-ownership of real estate; when one of the owners dies, that interest goes to the remaining owners (right of survivorship)

Front 545

Joint Venture

Back 545

A “temporary” partnership between individuals and/or companies to accomplish a particular project or business activity.

Front 546

Jones v. Mayer

Back 546

Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination

Front 547

judgment

Back 547

the decision given by a court after a case has been heard

Front 548

Judgment

Back 548

The formal decision of a court upon the respective rights and claims of the parties to an action or suit. After a judgment has been entered and recorded with the county recorder, it usually becomes a general lien on the property of the defendant.

Front 549

Judgment Lien

Back 549

After judgment entered and recorded with county recorder, becomes a general lien on defendant's real and personal property

Front 550

Judicial Precedent

Back 550

In law, the requirements established by prior court decision

Front 551

Junior Lien

Back 551

An obligation, such as a second mortgage, that is subordinate in rights or lien priority to an existing lien on the same realty

Front 552

junior liens

Back 552

any loans or encumbrances which come after the one which was recorded first aginst the property.

Front 553

Kickbacks

Back 553

Prohibited unearned fees when no service has been rendered; i.e., receiving fees for making referrals to lenders, attorneys, surveyors, appraisers, etc

Front 554

Laches

Back 554

An equitable doctrine used by courts to bar a legal claim or prevent the assertion of a right because of undue delay or failure to assert the claim or right.

Front 555

Land

Back 555

The earth's surface, extending downward to the center of the earth and upward infinitely into space, including things permanently attached by nature, such as trees and water.

Front 556

land contract

Back 556

a document wherein the lender (usually the seller) retains title to the property until the debt is paid. It is know in Utah as a uniform real estate contract.

Front 557

Land Contract

Back 557

See installment contract

Front 558

Landfill

Back 558

An enormous hole to store hazardous materials, lined to prevent leakage of waste materials; includes underground drainage pipes to monitor for leaks and leaching

Front 559

Latent Defect

Back 559

Hidden structural defect that would not be discovered by ordinary inspection

Front 560

Lateral Support

Back 560

The duty to give support to a neighbor’s property, such as building a retaining wall.

Front 561

Lead

Back 561

Metal in body can cause serious damage to brain, kidneys, nervous system; used extensively in paint; must be discussed when selling a house built before 1978

Front 562

lease

Back 562

A contract for a less-than-freehold estate or right in real property. Rent is paid for the right of possession in someone else’s property.

Front 563

Lease

Back 563

A written or oral contract between a landlord (the lessor) and a tenant (the lessee) that transfers the right to exclusive possession and use of the landlord's real property to the lessee for a specified period of time and for a stated consideration (rent). By state low leases for longer than a certain period of time (generally one year) must be in writing to be enforceable.

Front 564

Lease Option

Back 564

A lease under which the tenant has the right to purchase the property either during the lease term or at it end.

Front 565

Lease Purchase

Back 565

Purchase of real property after a period of a lease, usually long term; usually done for tax or financing purposes

Front 566

Lease Purchase

Back 566

The purchase of real property, the consummation of which is preceded by a lease, usually long term that is typically done for tax or financing purposes.

Front 567

lease with an option to purchase

Back 567

A lease contract which allows the lessee there right to purchase the property. Sometimes a portion of the rent will apply to the establishment of the current zoning category.

Front 568

Lease, Lessor, Lessee

Back 568

Contract (lease) between landlord (lessor) who gives up possession and tenant (lessee) who pays rent

Front 569

Leasehold Estate

Back 569

Tenant's right to occupy real estate during the term of a lease, generally considered to be a personal property interest

Front 570

Leasehold Estate

Back 570

Tenant's right to occupy real estate during term of lease, generally held to be a personal property interest

Front 571

Leasehold Estate

Back 571

A tenant's right to occupy real estate during the term of a lease, generally consider to be a personal property interest.

Front 572

Legacy

Back 572

A disposition of money or personal property by will

Front 573

Legal Description

Back 573

Description of a specific parcel of real estate complete enough for an independent surveyor to locate and identify it

Front 574

Legal Description

Back 574

A description of a specific parcel of real estate complete enough for an independent surveyor to locate and identify

Front 575

Legal Life Estates (3)

Back 575

Curtesy (husband's rights), dower (wife's interest, homestead (protect family home from certain creditors)

Front 576

legal non-conforming use

Back 576

The right of an individual to continue a use of land contrary to current zoning regulations because the use existed prior to the establishment of the current zoning category.

Front 577

legal purpose

Back 577

the essential element of a contract that protects the public

Front 578

Legally Competent Parties

Back 578

People who are recognized by law as being able to contract with others; those of legal age and sound mind

Front 579

less then freehold

Back 579

An estate or legal interest in real property that is not an ownership interest.

Front 580

letter form report

Back 580

An appraisal report that provides a short, written statement giving the bare essentials of the appraisal.

Front 581

Leverage

Back 581

Using as much of other people’s money and as little of your own as possible in order to buy property.

Front 582

Leverage

Back 582

The use of borrowed money to finance an investment

Front 583

Levy

Back 583

To assess; to seize or collect. To levy a tax is to asses a property and set the rate of taxation. To levy an execution is to officially seize the property of a person in order to satisfy an obligation.

Front 584

Liability Coverage

Back 584

Insurance protecting property owner in case of damage to a person or another's property due to owner's negligence

Front 585

License

Back 585

(1) A privilege or right granted to a person by a state to operate as a real estate broker or salesperson. (2) The revocable permission for a temporary use of land – a personal right that cannot be sold.

Front 586

license interest

Back 586

A limited, revocable interest in property. It grants a privilege, not a right, and ss often an oral agreement granting a short term use of real property. Examples would include an owner allowing someone to hunt, boat, or fish on his property; or attendance at movie theaters and sporting events.

Front 587

License Laws

Back 587

State laws enacted to protect the public by ensuring a standard of competence and professionalism in the real estate industry

Front 588

license renewal

Back 588

Two years after the month in which a licensee receives a real estate license this action is necessary to continue practicing real estate.

Front 589

lien

Back 589

an encumbrance for money against real property.

Front 590

Lien

Back 590

Monetary interest in real property; example are mortgage liens, mechanics liens

Front 591

Lien

Back 591

Right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by court sale

Front 592

lien theory

Back 592

a legal doctrine or theory of mortgage law, used in most states, which gives lenders an interest in the property and allows them to force the owner to sell the property to pay the debt in the event of default.

Front 593

Lien Theory

Back 593

Some states interpret a mortgage as being purely a lien on real property. The mortgagee thus has not right of possession but must foreclose the lien and sell the property if the mortgagor defaults.

Front 594

lien waiver

Back 594

When the owner of the property pays the general contractor for the work done, this form should be given by the mechanic who did the work.

Front 595

Life Cycle Costing

Back 595

Initial and operating costs of equipment over its expected life must be measured to compare total cost of one type of equipment with that of another

Front 596

Life Cycle Costing

Back 596

In property management, comparing one type of equipment with another based on both purchase cost and operating cost over its expected useful lifetime

Front 597

Life Estate

Back 597

A form of freehold estate wherein the holder acts as though he owns the property so long as he lives.

Front 598

Life Estate

Back 598

An interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons

Front 599

Life Estate Pur Autre Vie

Back 599

A life estate based on the life of a person other than the holder of the life estate.

Front 600

Life Tenant

Back 600

A person in possession of a life estate

Front 601

Limited Consensual Dual Agent

Back 601

test

Front 602

Limited Partner

Back 602

A partner who has no authority to make decisions or act for the partnership. He is financially liable only for the amount of his investment.

Front 603

Limited Partnership

Back 603

A partnership with at least one general partner and on limited partner. Beyond that, there can be as many general or limited partners as desired.

Front 604

liquidated damages

Back 604

In anticipation of a particular default, clauses are sometimes written into a contract to specify the default and its penalty.

Front 605

Liquidated Damages

Back 605

Amount predetermined by parties to contract as total compensation due injured party should the other party breach the contract

Front 606

Liquidity

Back 606

The ability to sell an asset and convert it into cash, at a price close to its true value, in a short period of time

Front 607

lis pendens

Back 607

It gives constructive notice that an action affecting a particular parcel of property has been filed in court. The property can be sold, leased or otherwise disposed of, but all transactions are subject to the outcome of the court action.

Front 608

lis pendens

Back 608

Recorded legal document giving constructive notice that the property is the subject of an action filed in a state or federal court

Front 609

listing

Back 609

An agency agreement between a seller and a principal broker. The owner authorizes the broker to place the property on the market and seek a ready, willing, and able buyer and agrees to pay consideration if the broker is successful.

Front 610

Listing Agreement

Back 610

A contract between an owner (as Principal) and a real estate broker (as agent) by which the broker is employed as agent to find a buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay a commission

Front 611

Listing Broker

Back 611

The broker in a multiple listing situation from whose office a listing agreement is initiated, as opposed to the cooperating broker, from whose office negotiations leading up to a sale are initiated. The listing broker and the cooperating broker may be the same person

Front 612

littoral rights

Back 612

Rights of an owner of property bordering a lake, river, ocean or body of water subject to tides.

Front 613

Littoral Rights

Back 613

(1) A land owner's claim to use water in large navigable lakes and ocean's adjacent to his or her property. (2) The ownership rights to land bordering these bodies of water up to the high water mark.

Front 614

Living Trust

Back 614

A trust that is created during one's lifetime

Front 615

Loan Origination Fee

Back 615

A fee charged to the borrower by the lender for making a mortgage loan. The fee is usually computed as a percentage of the loan amount.

Front 616

Loan to Value Ratio

Back 616

Relationship between amount of mortgage loan and value of the real estate being pledged as collateral

Front 617

loan to value ratio (LTVR)

Back 617

The amount of debt secured by the property compared to the worth of the property, expressed as a percentage.

Front 618

Local improvement District (LID)

Back 618

An assessment (i.e., tax) on a local improvement district for a public improvement project the district has approved

Front 619

Lot and Block (Recorded Plat)

Back 619

Method of describing property that identifies a parcel of land by reference to lot and block numbers within a subdivision, as specified on a recorded subdivision plat

Front 620

Lot, Block, and Plat

Back 620

A method of land descriptoin used for subdivisions, identifying the location of a particular parcel in the subdivision or tract.

Front 621

Management Agreement

Back 621

Document setting up an agency relationship between owner and property manager who is general agent establishing the rights and duties of each party

Front 622

Management Agreement

Back 622

A contract between the owner of income property and a management firm or individual property manager that outlines the scope of the manager's authority

Front 623

management contract

Back 623

An employment contract between a property manager and an owner of investment property.

Front 624

Management Plan

Back 624

A highly detailed plan that lays out the owner's objectives with the property, as well as what the property manager wants to accomplish and how, including all budgetary information

Front 625

Manufactured Housing

Back 625

Dwellings that are built off-site and trucked to a building lot where they are installed or assembled

Front 626

Market

Back 626

Place where goods are bought and sold, price is established

Front 627

market data (comparison) approach

Back 627

an appraisal approach that contrasts the subject property with other properties that have recently sold. Adjustments are made to account for variations between the subject property and the others.

Front 628

Market Data Approach

Back 628

(also known as the sales comparison approach) An estimate of value obtained by comparing property being appraised with recently sold comparable properties

Front 629

Market Value

Back 629

Most probable price the property will sell for in an arm's-length transaction under normal conditions on the open market

Front 630

Market Value

Back 630

Most probable price a property would bring in an arm's length transaction under normal market conditions on the open market; market price is what is actually paid

Front 631

marketable record title act

Back 631

The law that allows the simplification and stabilization of title searches by allowing old liens and encumbrances to be removed after 40 years.

Front 632

Marketable Title

Back 632

Good or clear title, reasonably free from the risk of litigation over possible defects

Front 633

Material Fact

Back 633

34-27-81 (12) A fact that is of significance to a reasonable party which affects the party's decision to enter into a real estate contract.

Front 634

mechanic's lein

Back 634

A lien placed by a person who has integrated labor or materials into a property and has not been paid.

Front 635

Mechanic's Lien

Back 635

Statutory lien in the property where contractors or materialmen have labor or materials in a given property

Front 636

mediate

Back 636

a non-binding process of meeting with a disinterest third party to try to resolve a dispute between the two principals in the transaction or contract.

Front 637

mediation

Back 637

A non-bidding process of meeting with a disinterested third party to try to resolve a dispute between the two principals in the transaction or contract.

Front 638

merger

Back 638

The joining of two contiguous properties so as to extinguish a lesser right. For instance, this process can terminate an easement on land locked property.

Front 639

Meridian

Back 639

A north-south line which intersects a baseline and crates point from which land can be measured under the Government or rectangular survey method.

Front 640

Metes and Bounds

Back 640

A method of land description that uses measurements and monuments and utilizes angles.

Front 641

Metes and Bounds

Back 641

Legal description that begins at a well marked point and follows the boundaries around the tract, back to the place of beginning

Front 642

Mile

Back 642

5,280 linear feet

Front 643

Mill

Back 643

One-tenth of one cent used in some states to compute real estate taxes; i.e., 52 mills =

Front 644

Mineral Rights

Back 644

Subsurface right of an owner of real property which extend downward to the center of the earth. These rights are real property.

Front 645

Mixed Unit Developments (MUD)

Back 645

Often self contained, combine variety of uses from commercial to retail to residential

Front 646

Month to Month Tenancy

Back 646

A periodic tenancy under which the tenant rents for one month at a time. In the absence of a rental agreement (oral or written) a tenancy is generally considered to be month to month

Front 647

Monument

Back 647

A fixed surveyor’s marker for a metes and bounds description. It can be natural or manmade and marks the corners of the property.

Front 648

Monuments

Back 648

Fixed natural or artificial object used to establish real estate boundaries for a metes and bounds description

Front 649

mortgage

Back 649

A document used to secure a loan. It is a judicial agreement, meaning if non-payment takes place, the holder of the promissory note can take it to court and the court will order the sheriff to foreclose.

Front 650

Mortgage

Back 650

A conditional transfer or pledge of real estate as security for the payment of a debt. Also, the document creating a mortgage lien.

Front 651

Mortgage Banker

Back 651

Mortgage loan companies that originate, service and sell loans to investors

Front 652

Mortgage Lien

Back 652

Lien on the property of a mortgagor (owner) that provides security for a loan

Front 653

Mortgage, Mortgagor, Mortgagee

Back 653

Document creating a pledge of real estate as security for the payment of the debt; borrower is the mortagor; lender is the mortgagee

Front 654

mortgagee

Back 654

the lender who receives a mortgage as security for a loan or debt.

Front 655

Mortgagee

Back 655

A lender in a mortgage loan transaction

Front 656

mortgagor

Back 656

a borrower who hypothecates property as security for a loan throught the use of a promissory note and a mortgage.

Front 657

Mortgagor

Back 657

A borrower in a mortgage loan transaction

Front 658

Multiperil Policies

Back 658

Insurance policies that offer protection from a range of potential perils, such as those of a fire, hazard, public liability and casualty

Front 659

Multiperil Policy

Back 659

Insurance package for apartment, commercial buildings; standard fire, hazard, public liability and casualty, require special coverage for earthquakes and floods

Front 660

Multiple Listing Clause

Back 660

A provision in an exclusive listing for the authority and obligations on the part of the listing broker to distribute the listing to other brokers in the multiple listing organization

Front 661

Multiple-Listing Service (MLS)

Back 661

Marketing organization in which brokers share information and commission with other brokers; sellers gain because of greater exposure to larger market

Front 662

mutual agreement

Back 662

The essential element of a contract achieved through the offer and acceptance process.

Front 663

nactive License

Back 663

34-27-35 (g) The commission shall prescribe a license renewal form, which shall accompany renewal fees which shall be filed on or before August 31 of the final year of each license period in order for the respective license to be renewed on a timely basis for the following license period. If any of the foregoing are filed during the period from September 1 through September 30 of the final year of a license period, the one hundred fifty dollar (

Front 664

narrative report

Back 664

The longest form of appraisal report which uses a variety of supporting documentation.

Front 665

National Association of Real Estate Brokers (NAREB)

Back 665

Dedicated to equal housing opportunity, members are REALISTS

Front 666

National Flood Insurance Act

Back 666

Requires flood insurance when financing with federally related loans on properties located in flood-prone areas

Front 667

Natural Person

Back 667

An individual. The opposite of a legal person.

Front 668

negative or passive intentional fraud

Back 668

When a person covertly hides facts, thus leading the other contracting party to believe certain things which are not true.

Front 669

Negative or reverse amortization

Back 669

A loan that requires payments of no principal and only part of the interest. The unpaid interest is added to the principal. This technique is used on some graduated payment mortgages.

Front 670

Negligent Misrepresentation

Back 670

Misrepresentation occurring when the broker should have know that the statement about a material fact was false

Front 671

Negotiable Instrument

Back 671

A written promise or order to pay a specific sum of money that may be transferred by endorsement or delivery. The transferee then has the original payee's right to payment.

Front 672

net lease

Back 672

Tenants pay the landlord rent; and , in addition, also pay their portion of the operating expenses (such as utilities.)

Front 673

Net Lease

Back 673

Lease requiring tenant to pay not only rent but also taxes, insurance, utilities and repairs

Front 674

net listing

Back 674

An illegal listing wherein the seller identifies an acceptable amount for the property and everything above that figure will be commission to the agent.

Front 675

Net Listing

Back 675

Broker entitled to any amount above the seller's stated net; often illegal; potential conflict of interest between broker's interest and seller's interest

Front 676

net operating income (NOI)

Back 676

the profit that remains after the operating expenses have been subtracted from the gross effective income.

Front 677

Net Operating Income (NOI)

Back 677

The income projected for an income producing property after deducting losses for vacancy and collection and operating expenses

Front 678

Nonagent

Back 678

An intermediary between a buyer and seller, or landlord and tenant, who assists one or both parties with a transaction without representing either. Also known as a facilitator, transaction broker, transaction coordinator and contract broker.

Front 679

Nonconforming Use

Back 679

Use of property that is permitted to continue after a zoning ordinance prohibiting it has been established for the area

Front 680

Nondisturbance Clause

Back 680

A mortgage clause that states the mortgagee agrees not to terminate the tenancies of the lessees in the event the mortgagee forecloses on the mortgagor-lessor's building.

Front 681

non-disturbance clause

Back 681

A clause in a mortgage which protects the right of the lessee if the property should be foreclosed by the lender upon the owner’s default.

Front 682

non-disturbance clause

Back 682

a clause in a mortgage which protects the rights of the lessee if the property should be foreclosed by the lender upon the owner’s default.

Front 683

Non-homogeneous

Back 683

A term that means no two parcels of land are exactly alike.

Front 684

non-investment property

Back 684

A property that has no cash flow; for example, you home or a vacant lot.

Front 685

non-recourse loan

Back 685

The terms of the loan stipulate that even if the lender receives less than the balance owed as a result of a foreclosure action, the debt is satisfied and the lender may not go after the borrower’s personal assets.

Front 686

non-resident license

Back 686

a real estate license from another state acquires this kind of a license to enable him to practice real estate in Utah.

Front 687

notice of default

Back 687

the action filed to initiate foreclosure under a trust deed and note

Front 688

notice of interest

Back 688

Holders of junior liens against a property would file this. If the senior lien holder foreclosed, they would be notified and could protect their interest.

Front 689

notice to quit

Back 689

The first step a lessor mush take against a tenant before filing an unlawful detainer with the courts.

Front 690

novation

Back 690

The substitution of a new party or a new obligation in a contract. This process requires the agreement of all original parties in the contract, but once it has been agreed to, the original obligate Is released from liability.

Front 691

Novation

Back 691

Substituting a new obligation for an old one or substituting new parties to an existing obligation

Front 692

Nuncupative will

Back 692

Oral will, written down by someone and witnessed by two non-beneficiaries. It can only convey personal property.

Front 693

Nuncupative Will

Back 693

An oral will declared by the testator in his or her final illness, made before witnesses and afterward reduced to writing

Front 694

Offer and Acceptance

Back 694

Two essential components of a valid contract; a “meeting of the minds”

Front 695

Office of Thrift Supervision (OTS)

Back 695

A government agency that governs the practices of fiduciary lenders. OTS was created by the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA)

Front 696

Open End Loan

Back 696

A mortgage loan that is expandable by increments up a maximum dollar amount, the full loan being secured by the same original mortgage

Front 697

open end mortgage

Back 697

a loan which can be increased up to an agreed upon maximum, similar to the way a credit card works. It is often used for construction loans and home equity loans.

Front 698

open listing

Back 698

A listing agreement that can be given to as many principal brokers, on the same property, as the seller desires. It is a nonexclusive listing.

Front 699

Open Listing

Back 699

Multiple agents; only the selling agent (broker) entitled to commission; seller retains right to sell independently without obligation to pay anyone a commiss

Front 700

operating budget

Back 700

A projection of the financial operation of an investment property.

Front 701

Option

Back 701

Agreement to keep open for a set period an offer to sell or purchase property; usually a unilateral contract; one party must perform if the other so decides

Front 702

option contract

Back 702

a contract wherein a seller agrees to sell property for a set amount at specified terms, if the buyer chooses to exercise that right to purchase during the contracted period of time. In return for the seller taking this property off the marker, the buyer pays valuable, non-refundable consideration.

Front 703

Option Listing

Back 703

Broker has the right to purchase the property; broker must be very honest to avoid charges of fraud

Front 704

Option Listing

Back 704

Listing with a provision that gives the listing broker the right, but not the obligation, to purchase the listed property within a certain time.

Front 705

optionee

Back 705

One who receives an option; a potential buyer who may or may not buy by the end of the term of the option.

Front 706

optionor

Back 706

one who gives an option; the potential seller

Front 707

Origination fee

Back 707

a fee (profit) charged by the lender to initiate a loan.

Front 708

ostensible agency

Back 708

Agency which is created through the actions of the parties , rather than through an express agreement. Also called implied agency.

Front 709

Ostensible Agency

Back 709

A form of implied agency relationship created by the actions of the parties involved rather than by written agreement or document

Front 710

Package Loan

Back 710

Real estate loan secured by both real and personal property; i.e., new home that includes window treatments and major appliances

Front 711

package mortgage

Back 711

a loan that useds both real and personal property as security

Front 712

par(interest rate)

Back 712

the interest rate charged on a loan when there are no discount points involved

Front 713

Parol Evidence

Back 713

Oral or verbal evidence

Front 714

parol evidence rule

Back 714

Prevents the admission into court of oral agreements reached prior or subsequent to the written contract and which contradict the terms in the written contract.

Front 715

Parol Evidence Rule

Back 715

A rule of evidence providing that a written agreement is the final expression of the agreement of the parties, not to be varied or contradicted by prior or contemporaneous oral or written negotiations

Front 716

partially amortized loan

Back 716

a loan requiring payments of both principal and interest, but when the final payment is made, a balloon payment is required to retire the loan.

Front 717

partially disclosed principal

Back 717

The “other party” knows who the agent is, knows there is a principal, but is not told who the principal is.

Front 718

Participation

Back 718

A mortgage loan wherein the lender has a partial equity interest in the property or receives a portion of the income from the property

Front 719

participation loan

Back 719

a loan where the lender becomes an investor or owner in the project for which the money is being loaned.

Front 720

Partition

Back 720

Court procedure dividing up cotenants' interest in real property when the parties do not all voluntarily agree to terminate the co-ownership

Front 721

Partition Suit

Back 721

A court process where property owned concurrently can be divided into distinct portions so each co-owner may hold his or her portion in severalty. The court may order the property sold.

Front 722

Partnership

Back 722

Under law, a group of individuals who carry on a continuing business for profit as co-owners; regarded as a single entit

Front 723

party wall

Back 723

A common wall between two properties, usually involving a zero lot line.

Front 724

Party Wall

Back 724

A wall that is located on or at a boundary line between two adjoining parcels of land and is used or is intended to be used by the owners of both properties

Front 725

Patent or Public Grant Deed

Back 725

The instrument issued when the property is first conveyed from public or government ownership to a private individual.

Front 726

Payment Cap

Back 726

The limit on the amount the monthly payment can be increased on an adjustable rate mortgage when the interest rate is adjusted

Front 727

Payoff Statement

Back 727

See Reduction Certificate

Front 728

Percentage Lease

Back 728

Common lease for retail property; often a base monthly rent plus a percentage of any gross sales over that amount

Front 729

perecentage lease

Back 729

A lease used in commercial leasing. The tenant pays a percent of the net or gross income derived from the use of the property, or the tenant may be paying a flat rate plus a stated percent of the gross or net income.

Front 730

Periodic Estate (Tenancy)

Back 730

See Estate from Period to Period

Front 731

periodic tenancy (month-to-month)

Back 731

a lease which automatically renews itself. The period for legal notice is established by statue in each state, or can be agreed upon as one of the terms of the lease (15 days in Utah.)

Front 732

Personal Property

Back 732

The opposite or real property, it is moveable and destructible. Synonyms are chattel and personalty.

Front 733

Personal Property

Back 733

Movable objects, not real property, sometimes called chattels, such as cars, cash, stock

Front 734

Personal Representative

Back 734

a term used in Utah for the Administrator or Executor of a will.

Front 735

Personalty

Back 735

A synonym for personal property. The opposite of “realty.”

Front 736

Physical Characteristics of Real Estate (3)

Back 736

Immobility, Indestrucibility, Uniqueness (nonhomogeneity)

Front 737

physical deterioration

Back 737

a type of depreciation that occurs when something wears out and will no longer perform the function or give the service that was originally intended.

Front 738

physical life

Back 738

The time span during which an improvement is still standing through it no longer has economic life.

Front 739

plain language policy

Back 739

Title insurance covering the borrower, which will cover mechanic’s liens.

Front 740

Planned Unit Developments (PUD)

Back 740

Planned combination of diverse land uses, such as housing, recreation and shipping, in one contained development or subdivision.

Front 741

Plat Map

Back 741

Map of a town, section or subdivision indicating the location and boundaries of individual properties

Front 742

pledge

Back 742

the borrower gives up possession of the property being used as collateral for the loan (the way a pawn shop works.)

Front 743

plottage

Back 743

Combining two or more parcels of land with a resulting increase in total value.

Front 744

Plottage

Back 744

The increase in value or utility resulting from the consolidation (assemblage) of two or more adjacent lots into one large lot

Front 745

Point of Beginning

Back 745

In the metes and Bounds method, this is the corner at which the boundary description starts.

Front 746

Point of Beginning

Back 746

The starting point in a metes and bounds legal description; these description must follow the boundaries back to the point of beginning

Front 747

police power

Back 747

The right of government, such as in zoning, to exercise control over private property without their consent and without compensation.

Front 748

positive intentioal fraud

Back 748

When a person deliberately and overtly deceives or misrepresents facts pertinent to a contract.

Front 749

power of attorney

Back 749

What an attorney-in-fact holds which authorizes actions in behalf of another person, including signature authority.

Front 750

Power of Attorney

Back 750

A written instrument authorizing a person, the attorney-in-fact, to act as agent for another person to the extent indicated in the instrument

Front 751

power of sale (bare, naked, legal title)

Back 751

The authority (conveyed from the trustor to the trustee at the time the trust deed and note are signed) to sell the property in the event of default.

Front 752

Prepaid Item

Back 752

On closing statement, items that have been paid by the seller, such as real estate taxes, for which he or she must be reimbursed by the buyer (credit seller, debit buyer)

Front 753

Prepayment Penalty

Back 753

A charge imposed on a borrower who pays off the loan principal early. This penalty compensates the lender for interest and other charges that would otherwise be lost

Front 754

prepayment penalty claue

Back 754

This clause in a loan penalizes the borrower for paying off the loan earlier then agreed.

Front 755

prepayment privilege

Back 755

this clause in a loan allows the borrower to pay the loan off early. The amount of the monthly payments can be increased with all of the extra payment applying to the principal; refinance without penalty; or make balloon payments from time to time.

Front 756

Preventative Maintenance

Back 756

Regularly scheduled maintenance to prevent costly breakdowns; i.e., paining and seasonal servicing of appliances and system.

Front 757

price

Back 757

The amount of money being asked for a product or property, or the amount it sells for.

Front 758

Price Fixing

Back 758

Brokers conspiring to set fixed compensation rates

Front 759

Primary Money or mortgage market

Back 759

Those who originate loans of any type, regardless of the priority of the loan, are in this financial market.

Front 760

Primary Mortgage Market

Back 760

Mortgage market in which loans are originated; includes commercial banks, savings banks, mutual banks; the market that meets borrowers face to face

Front 761

Prime Rate

Back 761

The interest rate that is charged a lender’s most favored clients and is established by the major banks or lenders of America.

Front 762

principal

Back 762

the agent works for this person. This person is also sometimes referred to as a client.

Front 763

Principal

Back 763

One who hires; in real estate, the broker (principal) hires salespeople; seller (principal) hires the broker/agent; or buyer (principal) hires broker/agent

Front 764

principal broker

Back 764

The broker who manages the offices and is responsible for supervising the activities of the licensed and unlicensed staff.

Front 765

principle of substitution

Back 765

The appraisal principle which states that no prudent buyer will pay more than he has to get what he wants. This is the basic principle of the market data or comparison approach to appraisal

Front 766

prior appropriation

Back 766

the legal doctrine used in Utah for distribution of water based on the “first come, first served” idea.

Front 767

Prior Appropriation

Back 767

A concept of water ownership in which the landowner's right to use available water is based on a government administered permit system

Front 768

Priority

Back 768

Order of position or time; priority of liens is by chronological order, first recorded having first claim except that taxes always have first place even if not recorded

Front 769

Private Mortgage Insurance

Back 769

PMI; insurance provided by private carrier that protects a lender against loss if a foreclosure and deficiency; usually insures top 10 – 20 percent of the loan

Front 770

Probate

Back 770

Legal process by which a court determines who will inherit a deceased person's property and what the assets of the estate are

Front 771

Procuring Cause

Back 771

In order to be paid, the broker starts an uninterrupted chain of events that results in a sale

Front 772

procuring cause doctrine

Back 772

a doctrine governing who gets the selling portion of the commission. It says the agent who set up an uninterrupted chain of events that led to the closing earned the commission.

Front 773

Progression, Regression

Back 773

Value of properties near a better property see their values rise; the opposite is regression; a rundown property will negatively affect neighboring properties

Front 774

Promissory Note

Back 774

Evidence that a loan was made; states terms of obligation, signed by its maker and is negotiable (transferable to a third party)

Front 775

promisssory note

Back 775

the document given as evidence of the loan. It contains all information relative to the money: payment, term, interest rate, etc.

Front 776

property management

Back 776

This activity occurs when a licensee manages investment property for the owner.

Front 777

Property Management

Back 777

Management of another's property for compensation

Front 778

property manager

Back 778

One who represents the interests of the owner of investment property. The property could be for residential or commercial purposes. This person must have a real estate license.

Front 779

Property Manager

Back 779

Property manager (agent) is hired by the owner (principal) to maintain owner's investment and ensure that the property produces income

Front 780

Property Reports

Back 780

The mandatory federal and state documents compiled by subdivides and developers to provide potential purchasers with facts about a property, prior to their purchase

Front 781

property tax

Back 781

The tax levied by government against real estate. These taxes are due in Utah on November 30 and cover the full calendar year. They are also referred to as real property tax.

Front 782

proprietary lease

Back 782

Sometimes called an “owner’s” lease. It is held by a person who owns shares in a stock cooperative. They own personal property which entitles them to this type of lease.

Front 783

Proprietary Lease

Back 783

A lease given by the corporation that owns a cooperative apartment building to the shareholder for the shareholder's right as a tenant to an individual apartment

Front 784

proration

Back 784

the process of computing the buyer’s and seller’s portion of an obligation owed by both, such as property tax.

Front 785

proration

Back 785

The process of computing the buyer’s and seller’s portion of an obligation owed by both, such as property tax.

Front 786

Proration

Back 786

Expenses, either prepaid or paid in arrears, that are divided or distributed between buyer and seller at closing

Front 787

Protected Classes

Back 787

Any group of people designated by HUD in consideration of federal and state law; currently includes ethnic minorities, women, religious groups, handicapped and others

Front 788

puffing

Back 788

Sales talk, or exaggerated statement that reflect an obvious overstatement by the agent and are not considered misrepresentation or fraud.

Front 789

Puffing

Back 789

Exaggerated comments about a property: “This is the best view of the valley.”

Front 790

Pur Autre Vie

Back 790

“For the life of another.” A life estate pur autre vie is a life estate that is measured by the life of a person other than the grantee

Front 791

Purchase Money Mortgage

Back 791

the seller is the lender and may be lending all or only part of the purchase price.

Front 792

Purchase Money Mortgage

Back 792

Form of seller financing; note and mortgage from buyer are given to seller (lender) as part of the purchase price of the real estate

Front 793

Pyramiding

Back 793

The process of acquiring additional property by refinancing properties already owned and investing the loan proceeds in additional properties

Front 794

Qualifying Broker

Back 794

test2

Front 795

quantity survey method

Back 795

the appraiser determines the cost of the materials; labor; management fees, and profit. These are used to determine the value of improvements when using the cost approach in appraisal.

Front 796

Quantity Survey Method

Back 796

The appraisal method of estimated building cost by calculating the cost of all of the physical components in the improvements, adding the cost to assemble them and then including the indirect costs associated with such construction

Front 797

Quiet Enjoyment

Back 797

One of the rights in the “bundle of rights.” The right of an owner or lessee to uninterrupted legal use of the property without interference or disturbances caused by defective title.

Front 798

Quiet Enjoyment Covenant

Back 798

Clause in deed guaranteeing that the grantee's title will be good against third parties who might bring court action

Front 799

Quiet Title

Back 799

A court action to remove a cloud on the title

Front 800

Quiet Title Action

Back 800

A court action to determine the actual ownership of real property. This type of proceeding would be conducted to transfer title to an adverse possessor.

Front 801

Quit Claim Deed

Back 801

A deed that conveys all interest in a property which the grantor may or may not have, and gives no warranties as to the condition of title. Its primary use is to remove clouds from the title.

Front 802

Quitclaim Deed

Back 802

Offers the least protection of any deed; conveys a real estate interest, if any; often used to correct misspelled names, etc.

Front 803

Radon

Back 803

Radioactive odorless, tasteless gas; with long term exposure may cause lung cancer

Front 804

Range

Back 804

A vertical column of townships, counted east and west form the meridian in the Government or Rectangular Survey Method.

Front 805

Ranges

Back 805

Strip of land six mile wide in rectangular survey system of land description, going north and south and numbered according to its distance from the principal meridian

Front 806

Rate Cap

Back 806

The limit on the amount the interest rate can be increased at each adjustment period in an adjustable rate loan. The cap may also set the maximum interest rate that can be charged during the life of the loan.

Front 807

rate of return

Back 807

Same as capitalization rate or cap rate.

Front 808

Ratification

Back 808

Method of creating an agency relationship in which the principal accepts the conduct of someone who acted without prior authorization as the principals agent

Front 809

Ready, Willing and Able Buyer

Back 809

One who is prepared to buy property on the seller's terms and is ready to take positive steps to consummate the transaction

Front 810

Real Estate

Back 810

Land; a portion of the earth's surface extending downward to the center of the earth and upward infinitely into space, including all things permanently attached to it, whether naturally or artificially

Front 811

Real Estate Investment Syndicate

Back 811

See Syndicate

Front 812

Real Estate Investment Trust (REIT)

Back 812

Its purpose is to avoid double taxation. It must have at least 100 members, and return at least 90% of the profits to the investors.

Front 813

Real Estate Investment Trust (REIT)

Back 813

Trust ownership of real estate by a group of individuals who purchase certificates of ownership in the trust, which in turn invests the money in real property and distributes the profits back to the investors free of corporate income tax

Front 814

Real Estate License Law

Back 814

State law enacted to protect the public from fraud, dishonesty and incompetence in the purchase and sale of real estate

Front 815

Real Estate Mortgage Investment Conduit (REMIC)

Back 815

A tax entity that issues multiple classes of investor interests (securities) back by a pool of mortgages.

Front 816

real estate purchase contract

Back 816

A state approved from which must be filled out by all licenses which is used when writing an offer to buy real property. When accepted, it becomes the sales agreement.

Front 817

Real Estate Recovery Fund

Back 817

A fund established in some states from real estate license revenues to cover claims of aggrieved parties who have suffered monetary damage thought the actions of a real estate license.

Front 818

real estate recovery fund act

Back 818

The purpose of this act is to protect the public from dishonest licensees.

Front 819

Real estate Settlement Procedures Act (RESPA)

Back 819

Federal law requires certain disclosure to consumers about mortgage loan closings; prohibits kickbacks, certain referral fees, requires good faith estimate in 3 business day

Front 820

Real Estate Settlement Procedures Act (RESPA)

Back 820

Federal law that requires certain disclosures to consumers about mortgage loan settlement; prohibits paying or receiving kickbacks and certain kinds of referral fees

Front 821

real estate trust account

Back 821

A special bank account where money is deposited when it is being held for other people involved in a real estate transaction.

Front 822

Real Property

Back 822

Land and appurtenances, air space to infinity, and the subsurface to the center of the earth.

Front 823

Real Property

Back 823

Interests, benefits, and rights associated with real estate ownership

Front 824

Real Property

Back 824

Interests, benefits and rights inherent in real estate ownership

Front 825

Realtor (r)

Back 825

Member of National Association of REALTORS, adhere to Code of Ethics

Front 826

reappraisal lease

Back 826

A lease wherein the rent is determined by a periodic reevaluation of the property’s value.

Front 827

reciprocity

Back 827

When states agree to recognize each others; education requirements for real estate licensing.

Front 828

Reconciliation

Back 828

The final step in the appraisal process, in which the appraiser combines the estimates of value received from the sales comparison cost, and income approaches to arrive at a final estimate of market value the subject property.

Front 829

reconciliation (see Correlation)

Back 829

An appraiser should use as many of the approaches to appraising as possible. This technique synthesizes the results into a single estimate of value. It is sometimes called correlation.

Front 830

Reconveyance Deed

Back 830

A deed used by a trustee under a deed of trust to return title to the trustor

Front 831

Reconveyance of Deed

Back 831

The document a lender uses to return all interest in the property after the debt has been satisfied under a trust deed and note. This is in accordance with the defeasance clause.

Front 832

Recording

Back 832

A form of delivery of a deed, also known as constructive delivery or notice.

Front 833

Recording

Back 833

Act of entering documents affecting ownership or interests in real estate in the recorder's office established in each county

Front 834

Rectangular Survey

Back 834

A method of land description that uses base and meridian lines, townships and sections. It is also referred to as the government Survey Method.

Front 835

Rectangular Survey System

Back 835

System for surveying and describing land by reference to principal meridians and base lines; also called government survey system

Front 836

Redemption

Back 836

The right of a defaulted property owner to recover his or her property by curing the default

Front 837

Redemption Period

Back 837

Time frame in which property owners in some states have the right to redeem their real estate by paying the sales price, interest and costs

Front 838

redlining

Back 838

The discriminatory practice of refusing to make loans in certain neighborhoods.

Front 839

Redlining

Back 839

Illegal practice of refusing to make mortgage loans or issue insurance policies in specific areas for reasons other than economic qualifications of applicants

Front 840

Reduction Certificate (Payoff Statement)

Back 840

The document signed by a lender indicating the amount required to pay a loan balance in full and satisfy the debt; used in the settlement process to protect both the seller's and the buyer's interest.

Front 841

refinance

Back 841

Obtaining a new loan, often at a lower interest rate, out of which the old loan is paid off.

Front 842

Regression

Back 842

An appraisal principle that states that, between dissimilar properties, the value of the better quality property is affected adversely by the presence of the lower quality property

Front 843

Regulation Z

Back 843

Implements Truth in Lending Act requiring credit institutions to inform borrowers of true cost of obtaining a load (APR); certain advertising “triggers” disclosure in ads

Front 844

Release clause / partial release clause

Back 844

When a blanket loan has been given, this clause will allow part of the property to be removed as security for the loan when certain requirements have been met, sometimes called a partial release clause.

Front 845

Release Deed

Back 845

A document, also know as a deed of reconveyance, that transfers all rights given a trustee under a deed of trust loan back to the grantor after the loan has been fully repaid.

Front 846

release of lien

Back 846

If a mechanic had previously placed a claim against the property where the work was done, when payment is made, this form must be filled with in ten days.

Front 847

Remainder Interest

Back 847

The remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a prior estate, such as when an owner conveys a life estate to one party and the remainder to another.

Front 848

Remainderman

Back 848

The person who will receive the life estate when the current holder of the life estate dies. There can be more than one of these.

Front 849

Renewal Option

Back 849

A clause in a lease that grants the lessee the privilege of renewing the lease.

Front 850

Rent

Back 850

Fixed, periodic payment make by tenant to owner for possession and use, usually by prior agreement of the parties

Front 851

Replacement Cost

Back 851

Current cost to reconstruct a building to serve the same function but not an exact duplicate of the original

Front 852

Reproduction Cost

Back 852

Construction cost at current prices of an exact duplicate of the subject property; i.e., using slate shingles on the roof instead of equally effective fiberglass shingle

Front 853

Requirements for sales person license

Back 853

(a) A license for a broker or a salesperson shall be registered to a specific real estate office and shall be issued only to, and held only by, a person who meets all of the following requirements: (1) Is trustworthy and competent to transact the business of a broker or salesperson in a manner that safeguards the interest of the public. (2) Is a person whose application or license has not been rejected or revoked in any state within two years prior to date of application on any grounds other than failure to pass a written examination. Any applicant whose license has been revoked shall meet all the requirements imposed on an original applicant for a license and shall not be relicensed without the approval of the commissioners. (3) Is at least 19 years old. (4) Is a citizen of the United States or is an alien with permanent resident status. (5) Is a person who, if a nonresident, agrees to sign an affidavit stating the following and in the following form

Front 854

rescission

Back 854

As a remedy for fraud, or by agreement of the parties, all parties return to their original positions prior to the executing of the contract. It is also know as a “contract to end a contract.”

Front 855

Rescission

Back 855

The practice of one party canceling or terminated a contract, which has the effect of returning the parties to their original positions before the contract was made.

Front 856

Restrictive Covenants

Back 856

A clause in a deed that limits the way the real estate ownership may be used.

Front 857

Retroactive Liability

Back 857

Liability is not limited to the current owner, but includes people who have owned the site in the past.

Front 858

reverse annuity mortgage

Back 858

When the mortgagee makes regular monthly payments to the mortgagor. The payments create the loan. It is used for elderly people whose homes are paid off or nearly so. The debt is not repaid until they either sell the house or die.

Front 859

Reverse Annuity Mortgage (RAM)

Back 859

RAM; homeowner receives monthly payments based on accumulated equity rather than one lump sum; repaid at certain date or owner's death or sale of property

Front 860

Reversion/Remainder Interests

Back 860

Future ownership rights after life estate ends; remainder interest passes to a third party; reversionary interest reverts to the original owner or heirs

Front 861

Reversionary Right

Back 861

The remnant of an estate that the grantor holds after granting a life estate to another person.

Front 862

right of first refusal

Back 862

a right given to a prospective purchaser to be able to meet the price and terms at which the owner is willing to sell the property to another party. Unlike an option, the seller is under no obligation to withdraw his property from the market.

Front 863

Right of Survivorship

Back 863

When a joint tenant dies, his or her interest passes to the remaining owners of the property; becomes an issue only at death of one of the owners

Front 864

Right of Survivorship

Back 864

See Joint Tenancy

Front 865

Right-of-Way

Back 865

The right given by one landowner to another to pass over the land, construct a roadway or use as a pathway, without actually transferring ownership.

Front 866

riparian rights

Back 866

An approach to the distribution and use of water that states the owner of real property has a reasonable right to sue any water that is on, under, or adjacent to the property. The guideline for boundaries when water borders land.

Front 867

Riparian Rights

Back 867

Owner's rights in land that borders on or includes a stream, river or lake. Rights include access to and use of the water

Front 868

Risk management

Back 868

Perils of any risk evaluated in terms of options: avoid, control, transfer or retain (ACTOR); often involves buying insurance to transfer risk to third party

Front 869

rooftop lease

Back 869

This lease is used when the tenant only wants to rent the top of the building.

Front 870

rule of disclosure

Back 870

An agents responsibility to reveal all material facts to a principal, including mistakes and misrepresentations. Indeed it might be said concerning the fiduciary relationship, what the agent knows, the principal knows.

Front 871

rule of obedience

Back 871

an agent’s responsibility to follow all instructions of the principal.

Front 872

Rules and Regulation

Back 872

Licensing authority to provide for administering the law and set operating guidelines for licensees. Have the same force and effect as any law.

Front 873

safety clause

Back 873

a clause in a listing contract that protects the listing broker form the seller’s attempt to sell the property after the expiration of the listing to avoid paying a commission.

Front 874

sale/leaseback

Back 874

An owner sells a property, then leases it back from the new owner. This could be a long or short term lease.

Front 875

Sales – Leaseback

Back 875

Transaction in which owner sells improved property and as part of transaction, signs a long term lease to remain in possession of premises; permits owner to “pull out” equity

Front 876

sales agent

Back 876

A real estate licensee who does not have a broker’s license and must work under the supervision of the employing principal broker.

Front 877

Sales Comparison Approach

Back 877

The process of estimating the value of a property by examining and comparing actual sales of comparable properties.

Front 878

Salesperson

Back 878

Performs real estate activities under supervision of licensed real estate broker

Front 879

Satisfaction

Back 879

Also know as release; documents indicating that the mortgage has been paid off

Front 880

satisfaction of mortgage

Back 880

The document used by the lender to reconvey all of his interest in a property, as required by the defeasance clause under a mortgage.

Front 881

Satisfaction of Mortgage

Back 881

A document acknowledging the payment of a mortgage debt.

Front 882

Satisfaction Piece

Back 882

Document acknowledging that the debts have been repaid

Front 883

seasoned loan

Back 883

A loan with a payment history. This feature of a loan is preferred by the secondary money market.

Front 884

secondary money or mortgage market

Back 884

Individuals or financial institutions who purchase existing loans.

Front 885

Secondary Mortgage Market

Back 885

Market for purchase and sale of existing mortgages; designed to provide greater liquidity for mortgages; generally does not deal directly with borrowers

Front 886

Section

Back 886

An area of land one mile square in the government or Rectangular Survey Method. It contains 640 acres.

Front 887

Section

Back 887

A portion of township under the rectangular (government) survey system. A township is divided into 36 sections, numbered 1 through 36. A section is a square with mile long sides and an area of one square mile or 640 acres.

Front 888

Security Agreement

Back 888

See Uniform Commercial Code

Front 889

Security Deposit

Back 889

A payment by a tenant, held by the landlord during the lease term, and kept (wholly or partially) on default, or on destruction of the premises by the tenant.

Front 890

seller disclosures

Back 890

The property’s title and physical condition information required by the REPC to be given to the buyer by the seller.

Front 891

senior lien

Back 891

Refers to first mortgages or trust deeds or the debt first recorded against the real property.

Front 892

Separate Property

Back 892

Under community property law, property owned solely by either spouse before the marriage, acquired by gift, or inheritance after the marriage, or purchased with separate funds after the marriage.

Front 893

Serverance

Back 893

A process by which real property becomes personal property.

Front 894

service property

Back 894

Property such as government buildings or churches which are used for public purposes and are non-profit.

Front 895

servient tenement

Back 895

the name given to a property encumbered by an easement appurtenant such a landlocked situation.

Front 896

Servient Tenement

Back 896

Land on which an easement exists in favor of an adjacent property (called a dominant estate): also called a servient estate.

Front 897

Setback

Back 897

The amount of space local zoning regulations require between a lot line and a building line.

Front 898

settlement

Back 898

The date specified in the purchase contract when buyer and seller deliver any monies required, as cleared funds, to the settlement agent and sign the documents applicable to the transaction.

Front 899

Severalty

Back 899

A form of ownership where in an individual owns the property in sole ownership.

Front 900

Severalty

Back 900

Ownership of real estate by one person only; although a corporation (single entity) can own in severalty

Front 901

Severance

Back 901

Changing of real to personal property, such as cutting down a tree, removing stained glass window,

Front 902

Sharecropping

Back 902

In an agricultural lease, the agreement between the landowner and the tenant former to split the crop or the profit from its sale, actually sharing the crop.

Front 903

Shared Appreciation Mortgage (SAM)

Back 903

A mortgage loan in which the lender, in exchange for a loan with a favorable interest rate, participates in the profits (if any) the borrower receives when the property is eventually sold.

Front 904

sheriff's deed

Back 904

the document given to the person who bid and bought property at a sheriff’s sale. This document is not given until the statutory six-month period of redemption has passed.

Front 905

sheriff's sale

Back 905

the name of the event wherein a property is sold in foreclosure under a mortgage.

Front 906

sherman antitrust act

Back 906

A law designed to encourage competition ad free enterprise by outlawing price fixing.

Front 907

short form (checklist) report

Back 907

An appraisal report that uses a standardized form wherein the appraiser checks boxes and fills in blanks. It is often required by a lending institutions.

Front 908

Sick Building Syndrome (SBS)

Back 908

An illness caused by poor air quality, typically in office building settings. Symptoms include fatigue, nausea, headache and sensitivity to odors.

Front 909

simple interest

Back 909

the type of interest that is computed on the unpaid principal balance.

Front 910

Single Agent

Back 910

test

Front 911

Situs

Back 911

Personal preference for one location over another which affects the value of the property.

Front 912

Sole Proprietorship

Back 912

Single owner company

Front 913

Special Agent

Back 913

Agent hired by principal to perform a single act. In real estate, broker is special agent hired by seller to find ready, willing, able buyer

Front 914

special assessment

Back 914

A tax customarily imposed against only those parcels of property that will benefit from a proposed public improvement such as sidewalks, sewer, street lights, parks, etc.

Front 915

Special Assessment

Back 915

Tax or levy against only the properties that will benefit from a proposed public improvement like a sewer or paving a street

Front 916

special purpose property

Back 916

Property that doesn’t fit one of the standard zoning classifications (residential, commercial, agricultural, etc.) is put in this general category.

Front 917

Special Warranty Deed

Back 917

This type of deed contains only two covenants: the covenant of seizing and the covenant against encumbrances. Furthermore, it only warrants the period of time that the grantor actually owned the property.

Front 918

Special Warranty Deed

Back 918

A deed in which the grantor warrants, or guarantees, the title only against defects arising during the period of his or her tenure and ownership of the property and not against defects existing before that time, generally using the language, “by, through, or under the grantor but not otherwise.”

Front 919

Specific Lien

Back 919

Lien affecting or attaching only to a certain, specific parcel of land

Front 920

specific or special agent

Back 920

an agent hired by contract to carry out specifically stated activities

Front 921

specific performance

Back 921

A legal remedy requiring a party to perform as agreed in the contract.

Front 922

Specific Performance

Back 922

A legal action to compel a party to carry out the terms of a contract.

Front 923

spot zoning

Back 923

The process involved when the zoning and planning commission changes the zoning of a single lot to be different from others surrounding it.

Front 924

square foot method

Back 924

In this cost approach method, the appraiser multiplies the value per unit of area times the number of units of area.

Front 925

Square-Foot Method

Back 925

Appraisal method of estimating building cost; multiplying number of square feet in the improvement by cost per square foot of recently constructed similar properties

Front 926

standard coverage title insurance

Back 926

Title insurance which protects against losses arising from both recorded title claims, omissions and errors in public records, and from inadequate tile search procedures. It does not protect form undisclosed and unrecorded claims against the title such as unrecorded mechanic’s liens.

Front 927

Standard Homeowners Insurance

Back 927

Insurance package that covers residential property owner against financial loss from fire, theft, public liability, etc.

Front 928

state engineer

Back 928

In Utah, the entity to which one applies for water rights. It encompasses the division of water rights.

Front 929

statute of frauds

Back 929

The requirement that certain contract must be in writing in order to be enforceable in court.

Front 930

Statute of Frauds

Back 930

State law requires certain instruments, such as deeds, real estate sales contracts and certain leases, to be in writing to be legally enforceable

Front 931

Statute of Limitations

Back 931

That law pertaining to the period of time withing which certain actions must be brought to court.

Front 932

statutory dedication

Back 932

When the developer is allowed by the city, county, or state to convey the streets, sidewalks, gutters, etc. for maintenance by the government.

Front 933

Statutory Lien

Back 933

A lien imposed on property by statute – a tax lien, for example – in contrast to an equitable lien, which arises out of common law.

Front 934

statutory period of redemption

Back 934

the period of time, following a foreclosure sale, wherein the mortgagor has the right of paying off all debts against the property, thus regaining ownership.

Front 935

Statutory Right of Redemption

Back 935

The right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and charges.

Front 936

steering

Back 936

The act of directing buyers to or away from certain geographical areas from the purpose of discriminating.

Front 937

Steering

Back 937

Illegal practice of channeling home seekers to particular neighborhoods based on race, religion, national origin; an illegal limitation of a purchaser's options

Front 938

Stigmatized Property

Back 938

Property branded as undesirable because of an event that happened there, such as murder, suicide, drug dealing

Front 939

stock cooperative

Back 939

Person buys a stock interest in a building. This entitles them to a lease in one of the units, called a proprietary or owner’s lease. Note, stock is personal property.

Front 940

Straight Line Method

Back 940

A method of calculating depreciation for tax purposes computed by dividing the adjusted basis or a property by the estimated number of years of remaining useful life.

Front 941

Straight Loan

Back 941

Loan in which only interest is paid during term of loan with entire principal amount due with the final interest payment

Front 942

straight note

Back 942

A loan that requires payments of interest only , sometimes called a term loan. Usually the entire principal is paid off in one balloon payment at the end of the loan.

Front 943

Strict Liability

Back 943

The owner is responsible to the injured party without excuse.

Front 944

subagent

Back 944

Anyone who is assisting the agent(principal broker) in the agent’s responsibilities. For instance, a sales agent or associate broker in the office, or principal broker with a co-broker agreement.

Front 945

Subagent

Back 945

Agent working for an agent; in real estate, the salesperson is the broker's agent and the subagent to the seller (or buyer) Note – Not permitted in some states

Front 946

Sub-Agent

Back 946

34-27-81 (16) A licensee who is empowered to act for another broker in performing real estate brokerage tasks for a principal, and who owes the same duties to the principal as the agent of the principal.

Front 947

Subdivider

Back 947

One who buys undeveloped land, divides it into smaller, usable lots and sells the lots to potential users

Front 948

subdivision

Back 948

Land divided into lots which may or may not include improvements such as water, utilities, curbs, gutters, and streets; but does not include buildings.

Front 949

Subdivision

Back 949

Spilitting a single property into smaller parcels

Front 950

Subdivision and Development Ordinances

Back 950

Municipal ordinances that establish requirements for subdivisions and development.

Front 951

Subdivision Plat

Back 951

See plat map.

Front 952

sublease

Back 952

A lease given by the original lessee. The lessee remains fully liable to the lessor. The lessee pays rent to the lessor or landlord, and collects rent form the Sublettee.

Front 953

Sublease

Back 953

See subletting

Front 954

Subletting

Back 954

A written agreement between holders of liens on a property that changes the priority of mortgage, judgment, and other liens under certain circumstances.

Front 955

Subordination

Back 955

Written agreement between lien holders that changes the priority of mortgage, judgment and other liens under certain circumstances

Front 956

Subordination

Back 956

A written agreement between holders of liens on a property that changes the priority of mortgage, judgment, and other liens under certain circumstances.

Front 957

subordination clause

Back 957

the clause in a loan that can alter the priority of a loan.

Front 958

subrogation

Back 958

The substitution of liability or rights, as in a title insurance policy.

Front 959

Subrogation

Back 959

Substitution of one creditor for another; used by title insurers to acquire from the injured party rights to sue in order to recover any claims they have paid

Front 960

Substitution

Back 960

An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property, assuming that no costly delay is encountered in making the substitution.

Front 961

Subsurface Rights

Back 961

Ownership right in a parcel of real estate to the the water, minerals, gas, oil and so forth that lie beneath the surface of the property.

Front 962

Suit for Possession

Back 962

A court suit initiated by a landlord to evict a tenant from leased premises after the tenant has breached one of the terms of the lease or has held possession of the property after the lease's expiration

Front 963

Suit to Quiet Title

Back 963

Court action intended to establish or settle the title to a particular property, especially when there is a cloud on the title

Front 964

supply and demand

Back 964

the principle of economics, as well as appraisal, which states that when there is an overabundance of a particular product, the price will go down; conversely, when there is a limited amount of that product, the price will go up.

Front 965

Supply and Demand

Back 965

Interrelationship of availability of properties and desire for those properties; real estate is affected by marketplace just like most commodities

Front 966

Surety Bond

Back 966

Cover an owner against financial losses resulting from employee's criminal acts or negligence while performing assigned duties

Front 967

Surface Rights

Back 967

Ownership rights in a parcel of real estate that are limited to the surface of the property and do not include the air above it (air rights) or the minerals below the surface (subsurface rights).

Front 968

Survey

Back 968

The process by which boundaries are measured and land areas are determined; the on-site measurement of lot lines, dimensions, and position of a house on a lot, including the determination of any existing encroachments or easements.

Front 969

survivorship

Back 969

The surviving owner(s) automatically receives ownership of the deceased person’s share. It takes precedence over a will.

Front 970

Syndicate

Back 970

A combination of people or firms formed to accomplish a business venture of mutual interest by pooling resources. In a real estate investment syndicate, the parties own and/or develop property, with the main profits generally arising from the sale of the property.

Front 971

tacking

Back 971

In adverse possession, this process allows consecutive periods of adverse possession by multiple adverse possessors to be added together to make up the required number of years.

Front 972

Tacking

Back 972

Adding or combining successive periods of continuous occupation of real property by adverse possessors. this concept enables someone who has not been in possession for the entire statutory period to establish a claim of adverse possession.

Front 973

take-out loan

Back 973

Once construction is completed and an appraisal obtained, this is a term referring to the permanent, long-term financing for the property.

Front 974

Taking

Back 974

From the “taking” clause of the 5th Amendment to the U.S. Constitution, “nor shall public property be taken for public use, without just compensation”

Front 975

tax credit

Back 975

Items which the IRS allows you to subtract from the dollar amount of taxes due. There are very few of these allowed.

Front 976

Tax Credit

Back 976

An amount by which tax owed is reduced directly.

Front 977

Tax Deed

Back 977

An instrument, similar to a certificate of sale, given to a purchaser at a tax sale. See also Certificate of Sale.

Front 978

tax deferred exchange

Back 978

An exchange of like for like properties. Tax on any capital gains is paid at a later date. Boot or debt reduction is taxable.

Front 979

Tax Lien

Back 979

A charge against property created by operation of law. Tax liens and assessments take priority over all other liens.

Front 980

Tax Sale

Back 980

A court ordered sale of real property to raise money to cover delinquent taxes.

Front 981

Taxation

Back 981

The process by which a government of municipal quasi-public body raises monies to fund its operation.

Front 982

tenancy at sufferance or estate at sufferance

Back 982

The lease has expired and the lessee is now possessing the property illegally, having been given proper notice to vacate. It is similar to trespassing except that the lessee, at one time, held a legal ease.

Front 983

tenancy at will or estate at will

Back 983

A lease which requires little or no notice of termination. It is used in special circumstances wherein both the lessor and lessee agree that the lease can be terminated by either party. It is of uncertain duration.

Front 984

tenancy by the entirety

Back 984

A form of ownership that can y be held by husband and wife, similar to joint tenancy, except that one party cannot sell or encumber the property without the approval of the spouse.

Front 985

Tenancy by the Entirety

Back 985

The joint ownership, recognized in some states, of property acquired by husband and wife during marriage. Upon the death of one spouse the survivor becomes the owner of the property.

Front 986

tenancy in common

Back 986

A form of ownership where owners have full rights of possession, but each owner can have a different percent of ownership. Upon the death of one, that interest goes to the heirs.

Front 987

Tenancy in Common

Back 987

Form of co-ownership in which each owner holds an undivided interest as if he or where were sole owners; individual owners have right to partition, right of inheritance

Front 988

Tenant

Back 988

One who holds or possesses lands or tenements by any kind of right or title.

Front 989

Tenant Improvement

Back 989

Alterations to building to meet commercial or industrial tenant's particular space needs; must clarify trade fixtures (tenant's personal property) vs. landlord ownership

Front 990

Tenant's Insurance

Back 990

Insurance coverage that protects the personal belongings of tenants.

Front 991

tender

Back 991

Another term of the process of making or presenting an offer.

Front 992

Term

Back 992

Definition

Front 993

Testate

Back 993

Having made and left a valid will.

Front 994

Testator

Back 994

the title of a person who makes a will

Front 995

Testator

Back 995

A person who has made a valid will. A woman often is referred to as a testatrix, although testator can be used for either gender.

Front 996

Third Party Delivery

Back 996

Delivery of the deed is accomplished by a disinterested party who has written, acknowledged instructions from the grantor. it is also called a deed in escrow.

Front 997

tier

Back 997

The horizontal row of townships, counted north and south from the baseline in the Governmental or Rectangular Survey method.

Front 998

Tier (township strip)

Back 998

A strip of land six miles wide, extending est and west and numbered north and south according to its distance from the base line in the rectangular (government) survey system of legal description.

Front 999

time is of the essence

Back 999

The clause in a contract that means all dates are firm and nonperformance by the date specified may create a voidable contract.

Front 1000

Time is of the Essence

Back 1000

Phrase in contract that requires the performance of a certain act within a stated period of time

Front 1001

Time Shares

Back 1001

Buy or lease the use of the property for a certain time frame – often used in resort areas

Front 1002

Time Sharing

Back 1002

Form of ownership that allows use of the property for a fixed or variable time frame, often used in resorts

Front 1003

timeshare and camp resort act

Back 1003

The act that governs developers who offer property for use with mobile types of housing or where you will use the property for a limited amount of time periodically.

Front 1004

Title

Back 1004

An abstract term denoting ownership; not a document.

Front 1005

Title

Back 1005

(1) The right to ownership or the ownership of land. (2) The evidence of ownership of land.

Front 1006

Title Insurance

Back 1006

Policy insuring the owner or mortgagee against loss by reason of defects in the title of a parcel of real estate

Front 1007

title inurance

Back 1007

Since an attorney’s opinion does not offer the buyer financial protection if the title proves unsound, this can be purchased, giving varying degrees of financial protection relative to the condition of title of real property.

Front 1008

Title Search

Back 1008

The examination of public records relating to real estate to determine the current state of the ownership.

Front 1009

title theory

Back 1009

A legal doctrine or theory of mortgage law used in a few states that allows the lender to take property as collateral for the debt by holding ownership of the property until the debt is paid.

Front 1010

Title Theory

Back 1010

Some states interpret a mortgage to mean the lender is the owner of mortgaged land. Upon full payment of the mortgage debt, the borrower becomes the landowner.

Front 1011

Title VIII of the Civil Rights Act of 1968

Back 1011

Prohibits discrimination in the sale or rental of housing based on race, color, religion, national origin, sex, familial status, and handicap

Front 1012

to and throught doctrine

Back 1012

An approach which says the agent who first showed the property to the buyer earns the selling portion of the commission.

Front 1013

Torrens System

Back 1013

A method of evidencing title by registration with the proper public authority, generally called the registrar, named for its founder, Sir Robert Torrens.

Front 1014

Town House

Back 1014

A type of residential dwelling with tow floors that is connected to one or more dwellings by a common wall(s). Title to the unit and lot vest in the owner who shares a fractional interest with other owners for the common areas.

Front 1015

Township

Back 1015

The largest land area used in the rectangular or government survey system. It is six miles square.

Front 1016

Township

Back 1016

The principal unit of the the rectangular (government) survey system. a township is a square with six mile sides and an area of 36 square miles.

Front 1017

Township Lines

Back 1017

All the lines in a rectangular survey system that run east and west, parallel to the base line six miles apart.

Front 1018

Township Strips

Back 1018

See Tier

Front 1019

Township Tiers

Back 1019

Township lines that form strips of land and are designated by consecutive numbers north or south of the base line.

Front 1020

Trade Fixture

Back 1020

That which is considered legally attached to a business. It is always personal property.

Front 1021

Trade Fixture

Back 1021

Personal property: Business items permanently attached by tenant. May be removed up to last day of lease. If left, landlord acquires by process of accession

Front 1022

Transaction Broker

Back 1022

Intermediary between buyer and seller who assists bother parties, though not an agent of either. AKA nonagent, facilitator, coordinator or contract broker

Front 1023

Transfer Tax

Back 1023

Tax on the transfer of real property; may require that stamps be attached to deed

Front 1024

Trigger Terms

Back 1024

Specific credit terms, such as down payment, monthly payment and amount of finance charge or term of loan.

Front 1025

Trust

Back 1025

Fiduciary arrangement whereby the owner (trustor) conveys property to a third party, (trustee), to be held and administered on behalf of another person (beneficiary)

Front 1026

Trust Deed

Back 1026

An instrument used to create a mortgage lien by which the borrower conveys title to a trustee, who holds it as security for the benefits of the note holder (the lender); also called a deed of trust.

Front 1027

trust deed (or deed of trust)

Back 1027

The document that provides for a non-judicial foreclosure process. It is used to secure a promissory note, by which a borrower hypothecates property as collateral for a debt or loan.

Front 1028

Trust Deed Lien

Back 1028

A lien on the property of a trustor that secures a deed of trust loan.

Front 1029

trustee

Back 1029

Since the courts are not being used in the case of a trust deed and note, this person acts as an escrow agent to insure that the terms of the loan are carried out, and to initiate foreclosure if they are not.

Front 1030

Trustee

Back 1030

One to whom something is entrusted, and holds legal title to property and administers the property for the benefit of a beneficiary. Or a member of a board entrusted with the administration of an institution or organization, such as a cooperative.

Front 1031

trustee's deed

Back 1031

The document that is given to the individual who successfully bids at a foreclosure sale and purchases the foreclosed property. It conveys fee simple title immediately after the sale.

Front 1032

Trustee's Deed

Back 1032

A deed executed by a trustee conveying land held in a trust.

Front 1033

trustee's sale

Back 1033

the event where property is sold in foreclosure under a trust deed and note.

Front 1034

trustor

Back 1034

the legal term given to one who hypothecates property as collateral for a loan, using a promissory note and trust deed.

Front 1035

Trustor

Back 1035

A borrower in a deed of trust loan transaction; one who places property in a trust. Also called a grantor or settler.

Front 1036

truth in lending (regulation z, federal consumer credit protection act)

Back 1036

An act created in congress to protect consumers from being received about the costs of borrowing money. It requires full disclosure of the cost of borrowing money and regulates advertising of credit.

Front 1037

Truth in Lending Act

Back 1037

Consumer protection act intended to force lenders to be truthful in their advertising; implemented by Regulation Z

Front 1038

Tying Arrangemen

Back 1038

Illegal antitrust activity. Agreement to sell one product if the buyer purchases another product as well

Front 1039

Unbundling Service

Back 1039

Offering real estate services in a piecemeal fashion.

Front 1040

Underground Storage Tanks UST

Back 1040

Often used to store petroleum, if leaking can contaminate groundwater, only 10% of tank meeds to be underground to require monitoring

Front 1041

undisclosed principal

Back 1041

The “other party” thinks that the agent is the principal and sees no evidence of an agency relationship. It is usually illegal.

Front 1042

Undivided Interest

Back 1042

See Tenancy in Common

Front 1043

undue influence

Back 1043

Taking advantage of another person because you hold a unique position of trust, such as a doctor/patient, attorney/client, and real estate agent/client relationship.

Front 1044

Unenforceable Contract

Back 1044

Contract that has all the elements of a valid contract, yet neither party can sue the other for performance; an unsigned contract is usually unenforceable

Front 1045

uniform comercial code (UCC)

Back 1045

The body of law that regulates the transfer, or sale, of person al property, such as when one is selling a business (UCC).

Front 1046

Uniform Commercial Code

Back 1046

Concerned with person property transaction, not real estate, governs the documents when personal property is used as security for a loan

Front 1047

uniform declaration of restrictions

Back 1047

the document that is used when a sub divider or developer records a group of restrictive covenants on all of the lots in a subdivision.

Front 1048

Uniform Electronic Transaction Act (UETA)

Back 1048

Sets forth rules for entering into an enforceable contract using electronic means.

Front 1049

uniform residential landlord and tenant act unilateral contract

Back 1049

Federal legislation aimed at creating proper legal relationships between landlords or owners and tenants.

Front 1050

Uniform Settlement Statement (HUD-1)

Back 1050

Form required by RESPA includes all charges that will be collected at closing, whether required by the lender or a third party; must be available day before closing

Front 1051

unilateral contract

Back 1051

A contract wherein a promise is exchanged for a performance. Only one of the parties is initially bound, as when a reward is offered, for example, finding a lost animal.

Front 1052

Unilateral Contract

Back 1052

A one-sided contract wherein one party makes a promise so as to induce a second party to do something. The second party is not legally bound to perform; however., if the second party does comply, the first party is obligated to keep the promise.

Front 1053

unit-in-place method

Back 1053

An appraisal method for determining the cost of improvements which takes a general approach. It is sometimes referred to as a sub-contractor approach and considers the cost of components, such as the concrete work, the framing, etc. or such times as extra light fixtures, kitchen or bathroom fixtures, etc.

Front 1054

Unit-In-Place Method

Back 1054

The appraisal method of estimated building costs by calculating the costs of all of the physical components in the structure, with the cost of each item including its proper installation, connection, etc; also called the segregated cost method.

Front 1055

Unity of Ownership

Back 1055

The four unities that are traditionally needed to create a joint tenancy – unity of title, time, interest and possession.

Front 1056

universal agent

Back 1056

an agent hired to do all things for and in behalf of the principal.

Front 1057

Universal Agent

Back 1057

A person empowered to do anything the principal could do personally.

Front 1058

unlawful detainer

Back 1058

The legal action a landlord brings against the tenant to evict when there is legal cause.

Front 1059

urban renewal

Back 1059

the procedure of condemning private property as a blighted area and having it torn down and rebuilt.

Front 1060

Urea Formaldehyde Form Insulation (UFFI)

Back 1060

Gases that leak out of UPPI becomes trapped in building, may cause respiratory problems

Front 1061

usury

Back 1061

interest rates above the legal rate, or statutory limit

Front 1062

Usury

Back 1062

Charging interest in excess of the maximum rate; often residential first mortgage loans are exempt from such laws

Front 1063

Usury

Back 1063

Charging interest at a higher rate than the maximum rate established by state law.

Front 1064

utah exemption act (homestead)

Back 1064

the law that provides protection for a portion of equity when a homeowner experiences foreclosure or bankruptcy.

Front 1065

utah uniform land sales practices act

Back 1065

the body of law that governs subdivisions which fall under the regulation of the State of Utah.

Front 1066

VA loan

Back 1066

A government loan that is guaranteed and does not require a down payment.

Front 1067

VA Loan

Back 1067

Mortgage to qualified veteran by authorized lender; guaranteed by Department of Veteran Affairs; up to 100% LTV based on certificate of reasonable value (CRV)

Front 1068

valid contract

Back 1068

a contract that contains all the essential elements of a contract and therefore is binding on all parties.

Front 1069

Valid Contract

Back 1069

A contract that complies with all the essentials of a contract and is binding and enforceable on all parties to it.

Front 1070

valuable consideration

Back 1070

Consideration in the form of money, services, promises, or real or personal property.

Front 1071

value

Back 1071

The power of a product, service, or property to command other goods or money in exchange. It is the present worth of future benefits arising out of ownership.

Front 1072

Value

Back 1072

The power of a good or service to command other goods in exchange for the present worth of future rights to its income or amenities.

Front 1073

variance

Back 1073

the right of an individual to do something that violates current zoning regulations because the zoning and planning commission or board of adjustment granted that right.

Front 1074

Variance

Back 1074

Permission obtained from zoning authorities to build a structure or conduct a use that is expressly prohibited by current zoning laws; an exception from zoning ordinances

Front 1075

vendee

Back 1075

one who buys or offers to buy

Front 1076

Vendee

Back 1076

A buyer, usually under the terms of a land contract.

Front 1077

vendor

Back 1077

one who sells or offers to sell

Front 1078

Vendor

Back 1078

A sellor, usually under the terms of a land contract.

Front 1079

Vendor's Lien

Back 1079

A lien that belongs to a vendor for the unpaid purchase price of land, where the vendor has not taken any other lien or security beyond the personal obligation of the purchaser.

Front 1080

vertical lease

Back 1080

A lease for either air rights or subterranean rights (such as oil.)

Front 1081

Vested Interest

Back 1081

A present right, interest or title to property that gives the holder the right to convey it to another, even thought the right might not be enjoyed by one or both of the parties.

Front 1082

void contract

Back 1082

A contract that lacks one or more of the essential elements of a contract and therefore is not binding on any of the parties.

Front 1083

Void vs. Voidable

Back 1083

Void has no legal force because it is lacking an essential part of a contract; voidable is one in which either or both parties may reject or disaffirm (contingencies)

Front 1084

voidable contract

Back 1084

a contract wherein one of the parties can challenge one or more of the essential elements of the contract and therefore has the right to affirm or disaffirm the contract.

Front 1085

Voluntary Alienation

Back 1085

See alienation.

Front 1086

voluntary dedication

Back 1086

When a private individual gives land as a gift for public use, such as land for a park, church, hospital, etc.

Front 1087

Voluntary Lien

Back 1087

A lien placed on property with the knowledge and consent of the property owner.

Front 1088

walk-through inspection

Back 1088

An optional visit by the buyer to check and approve the condition of the property and any repairs that have been made.

Front 1089

waste

Back 1089

when the owner of the property commits destructive acts on the propety or fails to keep up with maintaenace requiremtents

Front 1090

Waste

Back 1090

An improper use or an abuse of a property by a possessor who holds less than fee ownership, such as a tenant, life tenant, mortgagor, or vendee. Such waste ordinarily impairs the value of the land or the interest of the person holding the title or the reversionary right.

Front 1091

water rights

Back 1091

The ability under the law to have the use of water. They are considered to be real property.