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197 Cards in this Set
- Front
- Back
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recovery fund
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state-regulated fund used to pay purchases of real estsate who have suffered a loss due to actions or inactions of licensee
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civil rights act of 1866
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act that prohibits discrimination against race and color incertain real estate transactions
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federal fair housing act
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act that prohibits discrimination against race, color, religion, national origin, gender, familial status and handicap in certain real estate transactioncs
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sherman antitrust act
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act of 1890 which ensures fairness in the marketplace
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real estate settlement procedures act (respa)
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act which requires full disclosure of all cost involved in obtaining financing and closing ona property
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blind ads
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ads placed by a sales agent that do not include the employing broker's name
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uniform residential landlord and tenant act of 1973
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created for regulating the relationship between landlord and tenant in residential leases
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lease
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contract between lessor and lessee that transfers the right to exclusive possession and use of a propoerty for a specified period of time in exchange for rent
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lessor
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landlord
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lessee
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tenant
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subletting
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transferring part of a lessee's interest to another for a portion of the term of th elease
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actual eviction
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the legal process that results in tenant being physically removed from leased premises
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constructive eviction
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actions of a landlord that distrub or impair a tenant's enjoyment of leasesd premises and causes him to leave
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assignment
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when right an dinterest in a property is transferred to another for the entire term
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distraint
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landlord's legal right to seize tenant's belongings for damages or rents in arrears under court order
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public accomodation
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privatedly owned entity that privides services or accomodations to the public
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reversionary rights
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right to take back possession of property if lease ends
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salesperson
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one who performs real estate activities while employed by or associated with a licensed real estate broker
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designated broker
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one who supervises all activities of sales agents and is liable for their actions
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employing broker
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firm name or entity not a person
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associate broker
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a real estate broker working for a designated broker
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referring broker
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real estate broker who receives referral fee
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agent
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broker or salesperson
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temporary broker
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when designated broker becomes ill or dies, broker that steps in to manage agents
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cooperating broker
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broker who assists another broker in a real estate transaction
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real property
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land and anything permanently attached to it
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fixture
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personal property changed to real property by permanently attaching it to the real estate
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personal property
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movable items not attached to real estate
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contiguous
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touching at any point
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trade fixture
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personal property used in a business or trade that is attached to real estate
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abutting
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butting against each other
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government check
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in a 24 squaire mile parcel, there are 16 townships
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plat map
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map that shows lot locations and size
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encumbrance
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any claim attached to real property that may lessen its value or impair its use
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lien
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claim against one property owner as security for debt
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mechanic's lien
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lien placed on your property for labor and/or material rendered in the improvement of a property
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easement appurtenant
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easement that is attached to the land and passes with the land
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dominant estate
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estate that benefits from easement
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servient estate
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estate that is giver of easement
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party wall
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common wall between properties
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license
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not an interest in land, but merly permission to use the land of another for osme limited purpose
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encroachment
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unauthorized intrusion of real property reducing its value
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egress
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ability to exit a property
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ingress
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ability to enter property
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steering
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when brokers direct buyers away or to some of their listings to change or keep the character of an area the same
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redlining
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illegal practice of lending intitutions denying loans based on ethnicity instead of financial reasons
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blockbusting
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practice whereby a broker hopes to profit through persuading owners to enter into a real estate transaction by telling them that a change may occur in the neighborhood in regards to race, sex, religion, color, handicap or familial status
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hypothecate
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to pledge proeprty as security for a loan without giving up posession
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collateral
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property that is pledged as security for a debt
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equity
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value over and above whatever is not debt
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promissory note
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unconditional promise made in writing to repay debt
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mortgage
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written instrument to secure repayment of a debt for real property
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mortgagor
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buyer in a mortgage
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mortgagee
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lender in a mortgage
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assignment
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when mortgage is sold or assigned to another lender
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trust deed
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legal document in which the title to the property is transferred by borrower to third party as secuirty for beneficiary or lender
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trustor
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borrower in deed of trust
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trustee
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impartial third party in deed of trust
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beneficiary
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lender in deed of trust
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power of sale
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permits trustee to sell property if borrower defaults whitout a court of law
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interest
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charge for using another's money
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usury
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when lender charges a rate of interest above that allowed by law
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orignation fee
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fee charged by lender for making loan
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discount point
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fee charged by lender to get lower interset rate for borrower
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assumption
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when buyer assues current loan under same terms and conditions of original borrower
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novation
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substituting new obligation for old one or for new parties to existing obligation
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estoppel certificate
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legal instrument verifying the exact loan amount, the current rate of interest, and date to which interest is paid
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loan to value ratio
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ratio of mortgate principal to the property appraised value or its sales price
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conforming loan
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standardized conventional loan that meets requirements of fannie mae and freddie mac
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non-conforming loan
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loan that fails to meet requirements
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fha escape clause
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borrower must be shown appraisal and if not, may withdraw from sale penalty free
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police power
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government's right to enact legislation for healthy, safety, and general welfare of public
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eminent domain
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right of the government to take privated property for "necessary public use" in exchange for compensation
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condemnation
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process by which government takes property by eminent domain
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inverse condemnation
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when owner requessts that his property be condemned because of damages caused by government actions
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severence damages
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partial taking of property through eminent domain
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consequential damages
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damage that occurs due to something off subject property but that causes a loss of value
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taxation
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right of the government to tax private property to pay for the costs of government and area improvements
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ad valorem
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according to value
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escheat
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the reversion of property to state or county
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assessment taxes
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specific levy for definite purpose such as adding curbs or sewers in a neighborhood
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prior appropriation
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landowner's right to use available water based on governmetn administered permit system
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active management areas (ama)
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areas where water supply is limited and where water management programs are most needed
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littoral rights
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rights associated with navigable waterways
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riparian rights
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rights associated with non-navigable waterways
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setback
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amount of space required between lot line and building line
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non-conforming use
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permitted use of real property that no longer conforms to current zoning laws
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variances
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permit deviations from existing zoning laws
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buffer zone
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strip of land separating one land use from another
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subdivided land
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land with 6 or more parcels under 36 acres each
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unsubdivided land
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land with 6 or more parcels of 36 acres, but less than 160 acres
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master planned community
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area of 2 or more platted subdivisions with same CC&Rs
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zoning
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regulation that governs structurs on a property and use of land withing a particular area
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principal (client)
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in a real estate transaction, person represented
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agent
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in real estate transaction, person representing
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subagent
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when original agent delegates authority to another agent
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general agent
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one authorized to act on behalf of another
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dual agency
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when agent represents both buyer and seller
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exprfessed agency
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agency whtehr written or oral that is clearly stated in words
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implied agency
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agency with someone who apperats to act on behalf of a principal with no formal listing agreement
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agency by ratification
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to later cknowledge or restate a previously implied relationship
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esstopel agency
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when principal creates agency because he fails to "esstop" someone from acting like his agent
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agency
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legal relationsihp when person acts on behalf of anotehr in busness
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attorney in fact
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competent and disinterested perosn who is authorized by another person to act in his place
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customer
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prospective buyer of real estate
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fiduciary
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relationship that implies a position of trust
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special agent
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authorized by principal to perform a particular act
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dual agent
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one authorized to act on behalf of buyer and seller with written consent
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listing contract
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written agreement authorizing a real estate broekr to find a buyer for a peroperty owner
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seller property disclosure statement (spds)
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statement to teh best of seller's knowledge identifying condition of property being soled
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misrepresentation
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false, unintentional statement by which one party gains advantage
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negligent representation
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false statement that broker should have knowd about a fact
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fraud
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intentional, false statement of material fact by which one party tries to gain advantage
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puffing
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exaggerated or superlative comment or opinion
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caveat emptor
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buyer beware
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caveat venditor
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seller beware
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superfund
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nickname for act which focuses on cleaning up waste and hazardous material on property and identifying responsible parties
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contract
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legally enforcable agreement for consideration between competent parties to perform or not perform an act
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laches
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doctrine to bar legal claim due to delay or failure to assert
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blue sky laws
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laws which regulate registration and sale of investment securities
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foferor
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giver of offer
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offeree
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receiver of offer
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offer
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expressed promise made by one party to act or perform in specified manner
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commingling
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mixing of brker's operating money with trust funds
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conversion
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when broker spends trust money
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rescission agreement
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mutual agreement signed by seller and buyer to cancel contract, stating disposition of earnest money
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breach of contract
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violation of any terms in a contract without legal excuse
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liquidated damages
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compensation amount predetermined and paid to injured party should there be a breach
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specific performance
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legal action to compel a party to carry out terms of contract
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option
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agreement kept open to buy or lease owner's property at fixed price within a stated period of time
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optionor
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seller
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optionee
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buyer
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title
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right to ownership
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estate (tenancy)
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extent of interst a person has in real estate
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ownership
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qmathod of taking title
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leasehold
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estate that lasts for a fixed period of time (rent or lease)
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freehold
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estate in real property that oculd last an indefinite duration
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dower
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interest of ownership that wife has in real esatate of her deceased husband
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specific performance
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legal action to compel a party to carry out terms of contract
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option
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agreement kept open to buy or lease owner's property at fixed price within a stated period of time
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optionor
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seller
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optionee
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buyer
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title
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right to ownership
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estate (tenancy)
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extent of interst a person has in real estate
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ownership
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method of taking title
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leasehold
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an estate that lasts for a fixed period of time (rent or lease)
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freehold
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estate in real proerty that could last an indefinite duration
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dower
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interest of ownership that a wife has in the real estate of her deceased husband
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curtesy
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interst of ownershi that a husband has in real estate of deceased wife
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homestead
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life estate in real estate occupied as family home
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pur autre vie
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life estate contingent on life of someone orther than the grantee
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intestate
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dies with no will
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`judicial partition
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when court divides property due to dispute regarding use or sale of property
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separate property
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real and personal property owned solely by either spouse before marriage
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community property
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property attained after marriage
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right of survivorship
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when interst of property is equally divided between surviving owners or remaining owner
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inter vivos trust
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living trust
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testamentary trust
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trust that becomes effective after person dies
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closing
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when seller delivers title to buyer in exchanged for purchase price
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escrow
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arrangement in which money and or documents are then transferred by escrow agent, according to purchase and sale agreement
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affadavit of legal value
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recorded document indicating sale price of property and signed by buyer and seller for tax purposes
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prorating
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dividing all costs propertionally between buyer and seller
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chane of title
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ownership history of a property from creation
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title evidence
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proof in form of documents that seller conveys legal title
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astract of title
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history of all recorded instruments that has affected title to property
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acknowledged deed
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formal declaration made before a notarypublic or duly authoriszed aofficer, by the person who has signed the document itself
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testate
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when person dies with a will
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intestate
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when a person dies without a will
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probate
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when court determiens validity of willor order of descent if there is no weill
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devise
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transfer of real property by will
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devisee
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person who receives property by will
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descent or intestate succession
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real estate distributed by descent statues after deceased owner died intestate
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interpleader action
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when title company turns earnest money over to court due to dispute between buyer and seller
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execurtor
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person who is named inwill to carry out deceased person's wishes
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adverse possession
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acutal, open, notorious, hostile and continuous possession of another's land
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deed
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written instrument transferringownership of real property from one person to another
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grantor
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seller
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grantee
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buyer
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consideration
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valuable or good
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grant
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act of converying ownershp
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acknowledgement
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formal declaration made before an authorized officer to confirm a person has signed a document not under duress
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constructive notice
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knowledge that is implied by law or legal notice
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actual notice
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express information or fact attained in transaction
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appraisal
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estamte or opinion of value of piece of property as of certain date
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appraiser
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one who estimates value of real or personal property
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reconciliation
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when appraiser arrives at final estimate of value after examining each appraisal approach
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seller's market
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real estate market where the demand for homes is greater than the supply
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buyer's market
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real estate market where supply of homes is in excess compared to demand
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subject property
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property being appraised
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comparable property
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recently sold property being used as means of comparison
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reproduction cost
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construct cst at current prices of exact duplicate of subject property
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replacement cost
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construction cost at current prices of proeprty that serves the same purpose or fuciont as original
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physcial deterioration
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decay, disintegration or wear and tear
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functional obsolescense
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loss of value off subject property
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capitalize
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to convert future income to present value
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plottage
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combining parces for greeater value
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assmeblage
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combining two or more adjacent lots to increase value
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