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141 Cards in this Set

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Abstract

A brief summary; an abridgment

Accretion

Increase of land on shore or bank of a river by the gradual deposit of sand or soil by natural action of water

Avulsion

The sudden removal of soil from an owner's property and its deposit on the property of another, as by a sudden change in the course of a river or other watercourse

Capital Gains

Gains on the sale of a property, under the income tax law there are tax advantages in long term capital gains, i.e. gains on the sale of certain property held longer than a prescribed period of time

Capitalization

In appraising, to determine the value of property by considering net income and the percentage of reasonable return on the investment

Capitalization rate

Cap rate.


The rate of interest which is considered a reasonable return on the investment, and used in the process of determining value based upon net income

Commercial Acre

A term applied to the remainder of an acre of subdivided land after the area devoted to streets, sidewalks, curbs, etc. has been deducted from the acre

Cost approach

One of three methods in the appraisal process; an analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land

Cost basis

A property value determined at the time of acquisition. The amount is dependent upon the method of acquisition, and subsequently serves as a base figure in determining profit or loss for income tax purposes.

CRE


(Counselor of Real Estate)

Member of American Society of Real Estate Counselors

Dual Agency

An agency relationship in which one agent acts concurrently for both of the principals in a transaction

Eminent Domain

The power of the government to take property for a public purpose upon payment of just compensation

Encroachment

The extension of an improvement or branch of a tree or other vegetation onto the property of another person

Encumbrance

A lien or charge or burden on land

Escheat

Reverting of property to the state of California when an owner dies without a will and without heirs

Estate at will

Occupation of lands and tenements by a tenant for an indefinite period of time, terminable by either party at any time on proper notice

Estate for Life

An estate that continues for the duration of a persons natural life

Estate for Years

An estate that continues for a specified period of time, usually created by a lease

Estate from Period to Period

An interest in land where there is no definite termination date but the rental period is fixed at a certain sum per week, month, year.Also called Periodic tenancy

Estoppel

A doctrine which bars a person from asserting rights inconsistent with a previous position or representation

Exclusive Agency Listing

A written instrument giving one agent the right to sell property for a specified period of time but reserving the right of the owner to sell the property without payment of a commission

Exclusive Right to Sell Listing

A written agreement between owner and agent giving the agent the right to collect a commission if the property is sold by anyone, including the owner, during the term of the agreement

Fair Market Value

The highest price estimated in terms of money which a parcel of property will bring on the open market where neither buyer nor seller is under any compulsion to act.

Fee Estate

An estate of inheritance in real property, often referred to as a fee simple

Fee Simple Absolute

The highest type of estate or interest a person may have in property. Owner may dispose of it by sale or trade or will as he/she chooses

Fee Simple Defeasable

A fee estate that is subject to a qualification, condition or limitation

Fiduciary Duty

That duty owned by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress, or pressure

Fixture

a thing that was originally personal property but that has become attached to and is considered as part of the real property

Fraud

The intentional and successful employment of any cunning, ,deception, collusion, or artifice, used to circumvent, cheat or deceive another person, whereby that person acts upon it to the loss of property and to legal injury.

Freehold Estate

An estate of inheritance or for life

Functional Obsolescence

Loss of value of a structure due to adverse factors from within it, which affect its utility such as old age, poor design, or faulty equipment

Economic Obsolescence

A loss in value due to factors not part of the subject property but adversely affecting the value of the subject property

Garnishment

A statutory proceeding whereby property, money, or credits of a debtor in possession of another are seized and applied to payment of the debt

Government Survey

A method of specifying the location of parcels of land using prime meridians, base lines, standard parallels,guide meridians, townships, and sections

Graduated Lease

A lease which provides for a varying rental rate, often based upon future determination, such as periodical appraisals, used mostly in long term leases

Grant Deed

A form of Deed used in the transfer of real property, distinguished from a quitclaim deed

Grantee

The person to whom a grant is made

Grantor

The person who makes a grant

Gross Income

Total income from property before any expenses are deducted

Gross multiplier

A number which times the gross income of property produces an estimate of value of the property. ex: Gross income from an unfurnished apt. building is 200,000 per year.


If an appraiser uses a gross multiplier of 7% then it is said that based on the gross multiplier the value of the building is 1,400,000.

Gross Rental

Form of lease or rental arrangement in which the lessor/landlord pays out all expenses

Incompetent

Unable to manage or incapable of managing one's own affairs, based on such factors as minority, old age, illness, insanity, etc.

Injunction

An order of a court of equity prohibiting some act, or compelling an act to be done

Intestate

Without a will, a person who died without leaving a will

Involuntary Lien

A lien not voluntarily created by debtor, such as a judgement lien. Made by a court action

Joint Tenancty

Title held by two or more persons who have equal shares with right of survivorship, ie, when one joint tenant dies, their interests vest in the surviving joint tenant or tenants.

Judgement

Final determination by a court having jurisdiction over the parties and subject matter of the action, of a matter presented to it for decision

Land Contract

A contract often used when property is sold on a small down payment where the seller does not choose to convey legal title until all or a certain portion of the prchase price has been paid by the buyer, also referred to as a Land Sales Contract

Lease

A contract for the possession of land for a designated period of time in consideration of payment of rent

Leasehold Estate

A tenant's right to occupy real estate during the term of the lease. This is personal property interest

Legal Description

A description satisfactory in law, by which property can be definitely located on the ground by reference to a recorded map or government survey

Lessee

The tenant under a lease

Lessor

The landlord under a lease

License

A personal priviledge to enter upon or do some act on the land of another, also, authorization to engage in a business, an activity, or profession

Lien

A charge upon a property for the payment of a debt or performance of an obligation, an encumbrance, Ex: Tax liens, special assessments, judgments, as well as mortgages, mechanic and material mens liens.

Life Estate

An estate in real property measured by the life of a natural person

Limitations, Statute of

Commonly used identifying term for various statutes, which require that a legal action be commenced within a prescribed time after the accrual of the right to seek legal relief.

Liquidated Damages

Damages in an ascertained amount that may be recovered in a lawsuit

Liquidated Damages Clause

A clause in a contract by which both parties agree to fix the damages in advance for a breach of contract

Lis Pendens

A recorded notice of the filing of an action affecting real property.

Listing

Employment contract between a real estate broker and a principal authorizing the broker to perform services in connection with the sale, purchase, exchange or leasing of real property. Various types ex: Open, Exclusive agency, open, etc.

Market Data Approach

One of three methods in the appraisal process. A means of comparing similar type properties, which have recently sold, to the subject property. Commonly used in comparing residential properties.

Market Value

Highest price estimated in terms of money which a property will bring if exposed for sale in the open market, allowing a reasonable time to find a purchaser with knowledge of the property's use and capabilities for use

Mechanics Lien

A statutory lien in favor of laborers and material men who have contributed to a work of improvement

Metes and Bounds

Measurements and boundaries, a term used in describing the boundary lines of land, setting forth all the boundary lines together with their terminal points and angles

Mile

5,280 ft

NAR

National Association of Realtors

Multiple Listing

A listing, usually an exclusive right to sell that is listed on a MLS - multiple listing service. with the provision that all members will have an opportunity to find an interested client, and the commission will be shared by the listing broker and selling broker.

Narrative appraisal

Most complete appraisal with a summary of factual materials, techniques and appraisal methods used by appraiser in setting forth his or her value conclusion

Net profit

What is left after all bills and taxes are paid

Net worth

Difference between assets and liabilities

Notary public

A public officer or other person authorized to authenticate contracts, acknowledge deeds, take affidavits, etc.

Note

Signed document, written instrument acknowledging a debt and promising payment

Open end mortgage

A mortgage which secures additional advances which the lender may make to the mortgagor, permits the mortgagor to borrow additional money without rewriting the mortgage

Open Listing

A listing that may be given to many brokers, a non exclusive listing provides that the broker is to receive a commission if he or she is the first one to obtain a buyer ready and willing to purchase the property on the sellers terms

Option Listing

Type of listing that gives the broker an option to buy the property for a specified price.

Periodic Tenancy

Tenancy for specified periods, such as month to month, which can be terminated any time by either party on proper notice (60days)

Personal property

movable property, furniture, car, clothing, etc.

Police Power

The power to enact laws and regulations deemed necessary for the common welfare

Power of Attorney

A written authorization to an agent to perform specified acts on behalf of his/her principal. May be general or limited power. Also may be durable power or springing power.

Prescription

The obtaining of title to or a right in property by adverse possession by occupying it openly, notoriously, and hostilely for a five year period. By paying the property taxes the fee title can be claimed

Principal Note

The promissory note which is secured by the mortgage or trust deed

Promissory Note

A written obligation containing a promise to pay a definite amount of money at or prior to a specified time

Property

anything that which there may be ownership

Prop 13

1978 California initiative limiting amount of property taxes that may be assessed to one percent of market value. (1%)

Quiet title

A court action to establish title to real property, similar in effect to an action to remove a cloud title

Quitclaim Deed

A deed which CONVEYS whatever present right, title or interest the party executing the deed may have

Ratification

The adoption of or approval of an act performed on behalf of a person without previous authorization

Real Estate

Real property, land and things affixed to land or appurtenant to land

RESPA


Real Estate Settlement Procedures Act

Federal law requiring disclosure of closing costs given to borrowers by forms of forms, pamphlets, etc. in which they can shop the industry for competitive closing fees, etc.

Real Property

Land and things attached to land or appurtentant to land, distinguished from personal property or chattels

Redlining

Illegal in California. Denying of real estate loans on properties in older, changing urban areas, usually with large minority populations, because of alleged higher lending risks without due consideration being given by the lending institution to the creditworthiness of the individual loan applicant

Remainder of Estate

A right to future possession after the expiration of a life estate

Reversion

The residue of an estate remaining with a grantor after the expiration or termination of a lesser estate, such as an estate for years

Right of Redemption

The statutory right to buy back one's property after a judicial sale during a prescribed period of time, usually one year

Right of Survivorship

In joint tenancy, when one joint tenant dies, title automatically vests in remaining tenant without probate

Riparian Rights

The right of a landowner to water located on, under or adjacent to her land.

Sandwich lease

A lease that lies between the primary lease and the operating lease, in between lease

Section

640 acres

Servient Tenement

An Estate burdened by an easement

Servient Tenant

Owner of the land burdened by an easement

Dominant Tenement

Land that is benefited by an appurtenant easement

Dominent Tenant

Person who owns the land that is benefited by the appurtenant easement

Severlty Ownership

Property that is owned by one

Sheriff's Deed

Deed given pursuant to an execution sale of real property to satisfy a judgment

Social Economic Obsolescence

Reduction in value of property due to factors outside of the property

Special Assessments

Charges against real property imposed by a public authority to pay for the cost of local improvements, such as street lights, sidewalks, curbs, etc. seperated from taxes levied for the general support of government (police and fire protection)

Special Warranty Deed

Deed in which grantor warrants or guarantees the title only against defects arising during grantor's ownership of the property and not against defects existing before the time of grantor's ownership

Statute of Fraud

State law stating certain contracts be in writing to be enforceable, ex: Contract for sale of land, contract to pay a real estate broker a commission

Succession

The taking of property by inheritance

Survey

A map or plat containing a statement of courses, distances, and quantity of land, and showing lines of possession

Tenancy in Common

Ownership by two or more persons in undivided interests (not necessarily equal interests) without right of survivorship

Testate

Having made a will,
"a person died testate"

Testator

A man who makes a will

Topography

A nature of the surface of land, may be rolling, level, mountainous, etc.

Title insurance

Protects owners of others insured, such as a lender against loss or impairment of title.

Title Report

Discloses condition of title, a title insurance policy, usually called a preliminary title report

Tort

A wrongful act, violation of a person's legal right, a civil wrong not arising out of contract

Township

36 sections


Part of a subdivision

Trade Fixtures

Articles of personal property, annexed to real property by a tenant, that are necessary to carrying on of a trade. Are removable by the owner upon termination of the tenancy

Trustee

The person to whom property is conveyed in trust

Trustor

The person who conveys property in trust

Truth in Lending

Regulation Z (Reg Z) A form to insure prospective borrowers and purchasers on credit receive credit cost information before entering into a transaction

Unenforceable

A claim or demand or agreement that cannot be sustained in court

Uniform Commercial Code

A unified and comprehensive method for the regulation of security transactions in personal property, superseding the existing statutes on chattel mortgages, conditional sales, trust receipts, assignment of accounts receivable and others in the field

Unilateral Contract

A contract where one party makes a promise in exchange for an action on the part of the other contracting party.

Unlawful Detainer

An action to recover possession of real property

Unruh Act

California act which among other things precludes discriminatory practices based on race, color, religion, national origin, or ancestry

VA (Department of Veteran Affairs)

Federal agency that gives GI loans. Independent agency of the federal government.

Valid

Sufficient in law

Value

The amount a property will command from a reasonable buyer in the open market

Variable Interest Rate

An interest rate in real estate loans that by the terms of the note varies up or down over the term of the loan, depending on money market conditions

Vendee

The buyer under a contract of sale

Vendor

The seller under a contract of sale

Void

Having no legal effect, null

Voidable

An instrument that appears to be valid, but is in fact lacking some essential requirement

Voluntary Lien

A lien that is voluntarily created by debtor, such as a mortgage or deed of trust

Warranty Deed

Deed containing express warranties of title and quiet possession, not common in California

Writ

A process of the court under which property may be seized or sold by the sheriff. "A writ of execution"

Zone

Area in a community set off by a zoning authority for specified uses, such as single family residences

Zoning

Governmental regulations by a city or county relating to the use of real property, imposes limitations regarding use