Cleaned Glossary Su-Z Flashcards
Subagent
An agent of an agent; a person given authority by an agent to assist in carrying out orders of that agent’s principal.
Subdivided Land
Land that has been divided into two or more parcels for the purpose of development, such as a residential subdivision.
Subject Property
Property for which a value estimate is sought.
Sublease
An agreement in which a tenant transfers less than their entire leasehold estate to another person (the sublessee), such as the right to possess the entire premises for only a portion of the remainder of the lease term. Also called Sandwich Lease.
Subordination Agreement
A written agreement between lienholders on a property that changes the priority of mortgages, judgments, and other liens.
Subordination Clause
A contract clause that gives a mortgage recorded at a later date the right to take priority over an earlier recorded mortgage or existing lease.
Subprime Loans
Loans that have more risks than allowed in the conforming market. Also called B-C Loans or B-C Credit.
Substantial Performance
When a promisor doesn’t perform all of the promisor’s contractual obligations but does enough so that the promisee is required to fulfill the promisee’s part of the deal.
Substitution
A principle that says an informed buyer will not pay more for a property, or a feature in a property, than a comparable alternative.
Subsurface Rights
Rights a landowner has to the land below the surface to the center of the earth, even if these rights are not specifically documented.
Suit
A court action to enforce a legal claim or right.
Suit to Quiet Title
A lawsuit to determine who has title to a piece of property, or to remove a cloud from the title. Also called Quiet Title Action.
Superfund Amendments and Reauthorization Act (SARA)
An act that amended CERCLA, designated more money to the Superfund trust, and established new environmental laws and regulations.
Supply and Demand
An economic principle that says that for all products, goods, and services when supply exceeds demand, prices will fall, and when demand exceeds supply, prices will rise.
Surplus Land
The portion over and above what is necessary for the highest and best use of the subject property and does not have a stand-alone highest and best use.
Survey
The formal process of locating and measuring the boundaries of a property and identifying the improvements, encroachments, and easements that are associated with that parcel.
SWOT Analysis
A business planning technique that identifies and examines strengths, weaknesses, opportunities, and threats.
Syndicate
An association of people or entities formed to operate an investment business. A syndicate is not a recognized legal entity; it can be organized as a corporation, partnership, or trust. Also called Syndication.
Tacking
Successive periods of use or possession by more than one person that are added together to equal the number of years required under state law for easement by prescription or adverse possession.
Takeout Loan
A loan that provides permanent financing after construction is complete.
Taking
The government’s unconstitutional condemnation of private property for public use without just compensation.
Task Force
A temporary workgroup formed to accomplish a specific objective or project.
Tax Base
The total tax–assessed value of all real property in a particular jurisdiction.
Tax Depreciation
The expensing of the cost of business or investment property over a set number of years, determined by the IRS to be an asset’s useful life (27 1/2 years for residential property and 39 years for commercial nonresidential property).
Tax Rate
The rate, normally stated in units of $100, multiplied by the assessed value of property to determine the amount of the property tax due.
Tax Ratio
A percentage applied to a property’s market value to determine its assessed value for the purpose of taxation.
Tax Shelter
Property or other investments that give owners certain income tax advantages, such as deductions for property taxes, mortgage interest, and depreciation.
Taxation
The right of government to require contribution from citizens to pay for government services.
Technically Exhaustive Inspection
An inspection that involves extensive measurements and testing, such as measuring and testing loads in the electrical system, pressurizing the water and drainage systems, and measuring flow rate, which is beyond the scope of a normal home inspection.
Tenancy at Sufferance
Possession of property by a tenant who once had a valid lease but stays on after the lease expires without the landlord’s permission. Also called Estate at
Tenancy at Will
When a tenant is in possession with the owner’s permission, but with no definite lease term and no payment (or irregular rent payments); e.g., a landlord lets a holdover tenant remain on the premises without paying rent until the landlord finds a new tenant. Also called Estate at Will.
Tenancy by the Entirety
A form of property co-ownership by a married couple or partners in a legal civil union in which each spouse or partner has an equal and undivided share of the entire property. Not recognized in every state.
Tenancy from Period to Period
A leasehold that is automatically renewed for the same term as in the original lease; notice needed to terminate. Also called Periodic Tenancy or Estate from Year to Year.
Tenancy in Common
A form of co-ownership in which two or more persons each have an undivided interest in the entire property (unity of possession), but no right of survivorship.
Tenancy in Severalty
Ownership by a single person or legal entity, as opposed to co- ownership. Also called Sole Ownership or Separate Property Ownership.
Tenant
Someone in lawful possession of real property, especially, someone who has leased property from the owner.
Tenant, Holdover
A lessee who remains in possession of property after the lease has expired without permission; a tenant who refuses to surrender possession of property at the tenancy’s end.
Tendering Performance
An unconditional offer by one party to perform that party’s part of a contract. Also called Tender.
Term Mortgage
A method of financing in which only interest is paid during the term of the loan. Also called Straight Loan
Testate
Refers to someone who has died and left a will.
Tester
A person working with a fair housing organization who pretends to be interested in buying or renting property for the purpose of assessing specific treatment based on protected class. Also called Checker.
Tie-In Agreement
An antitrust violation in which one transaction or agreement is contingent on a second transaction or agreement. Also called Tying Agreement.
Time is of the Essence
A clause in a contract that makes failure to meet a stated deadline a material breach of the contract.
Timeshare
A form of property ownership in which several buyers purchase an interest in the same estate, with each party having the right to use the property and facilities for a designated period.
Title
The actual, lawful ownership interest in a property; title is not a document but a concept.
Title Company
An entity that examines and insures title claims for real estate purposes through a thorough examination of property records.
Title Insurance
An insurance policy that protects the policyholder against loss or damages due to defects in the title and provides the best evidence of marketable title.
Title Report
A report issued by a title company disclosing the condition of the title to a specific piece of property.
Title Search
A thorough inspection of the public record to determine all rights and encumbrances affecting title to a piece of property.
Title Theory
A property loan financing arrangement in which the borrower does not keep the title to the property during the loan term. The seller gives the buyer a deed to the property, but when the borrower signs the mortgage for the loan, the borrower gives the title back to the mortgage holder (lender).
Title, Equitable
An interest in property created upon the execution of a valid sales contract, whereby actual title will be transferred by deed at a future date (typically closing).
Title, Legal
The interest in property held by the rightful owner.
Topography
A description of surface features of land.
Tortious Interference
The causing of harm by disrupting something that belongs to someone else, for example, interfering with a contractual relationship so that one party fails to execute their promise.
Total Debt-to-Income Ratio
Debt-to-Income Ratio The relationship of a borrower’s total monthly debt to gross monthly income, expressed as a percentage (Total Debt / Income = Ratio %). Debt obligations include housing and long-term debts with more than 10 payments remaining. Also called Total Debt Service Ratio, Back-End Ratio.
Townhome
Property developed for co-ownership where each co-owner has a separate fee simple interest in an individual unit, including its roof and basement, as well as the land directly beneath the unit, and an undivided interest in the common areas of the property. Also called
Township
A square division of land, six miles by six miles, in the rectangular survey system.
Township Line
East-west lines that run parallel to baselines in the rectangular survey system.
Township Tier
The six-mile distance between township lines in the rectangular survey system.
Trade Fixture
An item of personal property that is annexed to leased property, is necessary to a trade or business, and may be removed by the tenant before expiration of the lease.
Traditional Agency
An agency relationship where the seller is the only client, and the buyer has no representation.
Transactional Brokerage
A brokerage relationship in which a licensee provides only administrative services to buyers and sellers to assist in a transaction, remaining neutral and having no fiduciary responsibility toward either party. Also called Facilitational Brokerage, Transaction Broker, or Non-Agency.
Transfer Tax
A tax levied when real property changes ownership from one person to another; may be levied by the state, the county, the municipality, or some combination of entities. Usually paid by the seller. Also called Excise Tax.
Transferability
The ability to freely buy, sell, encumber, or dispose of property in any way the owner sees fit.
TRID Rule
TILA-RESPA Integrated Disclosure rule, issued by the Consumer Financial
Protection
Bureau to create standardized, consumer-friendly disclosure documents, including the Loan Estimate and the Closing Disclosure.
Trigger Term
A word or phrase that describes a loan, including the down payment, terms, and monthly payment. If an ad uses a trigger phrase, disclosures are needed to tell everything about the loan. Also called Trigger Phrase.
Triple Net Lease
A lease in which the tenant pays all the expenses associated with the owning the property, in addition to paying the rent. Also called Net-Net-Net.
True Tax
The amount of property tax that would be assessed against a specific property before any exemptions held by the present owner are subtracted.
Trusses
A framework of rafters, posts, and beams that forms the support for a roof.
Trust
A legal arrangement in which title to property (or funds) is vested in one or more trustees who manage the property (or invest the funds) on behalf of the trust’s beneficiaries, in accordance with instructions set forth in the document establishing the trust.
Trust Account
A separate account maintained by a broker for the deposit of a client’s money.
Trust Funds
Funds held on behalf of another, such as an earnest money check held for a buyer who is making an offer to purchase real estate.
Trustee
A person appointed to manage a trust on behalf of the beneficiaries; in a trust deed, an independent third party that holds the trust instrument.
Trustee’s Deed
A deed, executed by a trustee, transferring title from the trust to the successful bidder at a trustee’s sale.
Trustee’s Sale
A nonjudicial foreclosure sale under a deed of trust.
Trustor
The property owner who grants a trust to a third party for the benefit of someone else.
Truth in Lending Act (TILA)
A federal act designed to promote the informed use of consumer credit through proper disclosure and allow for the rescission of certain transactions secured by a borrower’s principal dwelling. It is administered by the Consumer Financial Protection Bureau.
Unauthorized Practice of Law
A person not licensed as an attorney performing acts that may only be performed by an attorney.
Underground Storage Tank (UST)
A receptacle, at least 10% of which is underground, used to store a variety of substances such as heating oil, gasoline, chemicals, and hazardous waste; an environmental hazard due to corrosion, spills, leaks, and overfills; regulated by the EPA.
Underwater
A home purchase loan that has a higher balance than the market value of the property. Being underwater may limit the homeowner’s options for refinancing and will prevent the homeowner from selling the property without having the assets to pay the difference needed to pay off the loan.
Underwriter
Individual who evaluates a loan application to determine its risk level for a lender or investor; final decision maker on a loan application.
Underwriting
A lender’s process of evaluating and deciding whether to make a new loan and on what terms.
Undisclosed Dual Agency
A situation where one licensee represents both buyer and seller in a single transaction without the informed consent of both parties; very often may be practiced unintentionally, possibly by implying to one party that he is represented when, in fact, there is no agency agreement. This is illegal in all 50 states.
Undivided Interest
A co-tenant’s interest, giving him the right to possession of the whole property, rather than a particular section of it.
Undue Influence
When a person in a fiduciary capacity or in a position of authority misuses the trust or power in order to unfairly induce a party to enter into a contract.
Unearned Increment
An increase in the value of real property through no efforts of the property owner, e.g., rezoning or a population shift in the area.
Unencumbered Property
Property that is free and clear of any liens.
Unenforceable Contract
A contract that a court would refuse to enforce ; often an oral contract or a vaguely worded contract.
Unfair Business Practice
An activity that causes or is likely to cause substantial consumer injury that a consumer could not reasonably avoid; it is not outweighed by a benefit to consumers.
Uniform Commercial Code (UCC)
A general set of laws adopted by most states with the purpose of providing uniformity and fairness in commercial transactions, including the sale and financing of personal property.
Uniform Residential Appraisal Report (URAR)
The valuation reporting document developed and approved by Fannie Mae and Freddie Mac that is most commonly used by lenders and appraisers.
Uniform Residential Loan Application (URLA)
A standardized form from Fannie Mae or Freddie Mac that lenders require potential borrowers to complete in order to gather pertinent information about the borrower and the property.
Uniform Standards of Professional Appraisal Practice (USPAP)
Professional appraisal standards developed by The Appraisal Foundation, and now recognized throughout the United
Unilateral Contract
A contract in which only one party makes a binding promise to another party.
Place Method
A cost approach appraisal method for determining the cost of a building that estimates the cost of reproducing a building by looking at the unit cost of each of the component parts of the structure and adding all of these unit costs together.
Unity of Interest
A unity of ownership in which each co-owner has an equal interest (equal share of ownership) in a property.
Unity of Person
A unity of ownership in which co-owners are considered to be a single legal entity; applies only to married couples or partners in a legal civil union and is necessary for tenancy by the entirety.
Unity of Possession
A unity of ownership in which each co-owner is equally entitled to possession of the entire property because the ownership interests are undivided.
Unity of Time
A unity of ownership in which each co-owner acquires title simultaneously.
Unity of Title
A unity of ownership in which each co-owner acquires confirmed ownership interest through the same instrument (deed, will, or court order).
Universal Agent
An agent authorized to do everything that can be lawfully delegated to a representative; an agent with unlimited authority.
Unjust Enrichment
A benefit without valid basis or justification at the expense of another.
Unlawful Detainer Action
A legal action to regain possession of real property, especially a suit by a lessor to evict a defaulting tenant.
Unlicensed Assistant
A member of a real estate team that can help with administrative and clerical tasks but not anything that should only be handled by a licensed broker.
Unreasonable Restraint of Trade
Business practices by which multiple entities or persons mutually restrict access to or otherwise limit competition in a specific trade or industry.
Unsecured Loan
A loan made on the signature and credit of the borrower, not secured by collateral.
Urban Design
Design addressing both the appearance and the function of buildings, streets, sidewalks, open spaces, and other features.
Urban Planning
The process of creating a blueprint to guide the future development of a community.
Urban Renewal
The acquisition of certain areas by government action for the purpose of redevelopment.
Urea Formaldehyde
A potentially toxic chemical used in manufacturing building materials such as particleboard, plywood paneling, carpeting, and insulation.
Urea Formaldehyde Foam Insulation (UFFI)
A type of insulation that can be blown in or injected behind walls and other areas that are hard to access.
Usable Square Feet
The space actually available and usable for a tenant’s personnel, furniture, and equipment. The actual floor space inside the exterior walls of leased premises. “Also called Net
Square” Feet
USDA Rural Development
Loan program from the U.S. Department of Agriculture through which the government guarantees loans or makes direct loans for the purchase of an existing home, construction or a new home, renovations or repairs, relocation of a home, or the purchase a site for the loan.
Use Variance
Allows landowners to use their land in a way that is not permitted under current zoning laws, such as commercial use in a residential zone.
Usury
Charging a higher interest rate than the law allows.
Utility
The ability of a good or service to satisfy human wants, needs, or desires.
VA-Guaranteed Loan
A home financing option available to eligible veterans through which the Department of Veterans Affairs guarantees loans made by approved lenders, protecting lenders from loss due to borrower default.
Valid Contract
A contract that meets all of the legal requirements for contract formation.
Valuable Consideration
Consideration that has monetary value; money or anything of value that can be converted to money.
Value
The present worth of the future benefits of property ownership; the monetary relationship between properties and those who buy those properties.
Value in Use
The value of a property as it is presently being used, without considering the highest and best use or present market value (e.g., the value that the property actually contributes to the owner’s business). Also: The subjective or emotional value placed on property by one particular person.
Vapor Retarder
A material that is used to reduce the flow of water vapor.
Variable Expenses
Operating expenses necessary to the property, but dependent on the property’s occupancy level.
Variable Interest Rate Mortgage (VRM)
A type of loan in which the interest rate charged by the lender varies according to some index not controlled by the lender.
Variance
A permit obtained from the local zoning authority allowing the holder to use property or build a structure in a way that deviates from strict compliance with a zoning ordinance.
Vendee
The buyer in a land contract.
Vendee’s Lien
A lien held by the purchaser for the purchase price paid if the seller defaults on the delivery of the deed.
Vendor
The seller in a land contract.
Ventilation
A system that draws fresh air into a structure and removes moist, stale air.
Verification of Deposit (VOD)
A form sent by a bank directly to a lender verifying the borrower’s accounts.
Vicarious Liability
The legal concept that a principal can be held responsible for the wrongful act of their agent if such acts occur within the scope of the agency relationship.
View Easement
A negative easement that prevents a servient tenant from adding anything to their property that would affect the quality of the dominant tenant’s view. Also called Easement for Light and Air.
VIM
A formula used to derive the appropriate multiplier from the transaction data: V (Sales Price)/I (Gross Income) = M (Multiplier).
Visual Preference Survey
A type of survey in which respondents are asked to evaluate various design options as depicted in drawings, photographs, or other visual representations.
Void Contract
A contract that isn’t enforceable because it lacks one or more of the requirements for contract formation or is otherwise defective.
Voidable Contract
A contract that one of the parties can end without liability because of a lack of legal capacity or other factors such as fraud or duress.
Voltage
A measure of electric potential; the energy that could be released if the electric current is allowed to flow.
Voluntary Alienation
When title to property is transferred voluntarily through a sale, gift, dedication, or grant.
Voluntary Lien
A lien placed against property with the consent of the owner, e.g., a mortgage or deed of trust.
Want
The part of the auctioneer’s chant that asks for an amount of the next bid.
Warehousing
The process of gathering loans together for sale to investors in the secondary market.
Warranty Deed
A deed in which the grantor fully warrants good and clear title to the property and agrees to defend the premises against the lawful claims of third parties.
Warranty Forever
A guarantee in a deed that the grantor promises to compensate the buyer if title is not good.
Waste
The actions of a life tenant who uses the property in a way that damages it or reduces its market value.
Water Rights
The rights of a landowner to water adjoining or passing through property.
Water Table
The distance from ground level to natural groundwater.
Wear and Tear
The lessening in value of an asset due to ordinary and normal use.
Wetlands
An ecosystem where the land is permeated with water, which either lies on or near the surface of the land; an environment where specialized plants, aquatic species, and wildlife live.
Will
A legal declaration in which a person disposes of property to take effect upon their death.
Wraparound Mortgage
A financing arrangement in which an existing loan on a property is retained while the lender gives the borrower another, larger loan.
Writ of Execution
A court order to an officer to carry out judicial decree.
Yield
The interest earned by an investor on the investment.
Yield Spread Premium (YSP)
A tool that mortgage brokers can use to lower the upfront closing costs for a borrower.
Zoning
Government regulation of the uses of property within specified areas.
Zoning Ordinances
Local laws that divide a city or county into different areas or zones and determine how land can be used and the specific requirements for compliance.
