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.
