Comp Review Flashcards
Appurtenant easement
Conveys the right to use adjoining property. Owner of parcel that benefits from this is the dominant tenement .
Avulsion
The removal or addition of land by the action of water
Dominant estate
The parcel of property which benefits from an easement
Easement in gross
Attaches a particular right to an individual and not to a piece of property.
Fee Simple
Most complete bundle of rights one can hold in land. No limitations or restrictions on one’s estate.
Physical characteristics of land
Find out all
Prescriptive easement
Created when someone uses land of adjoining property with no recorded easement. After statutory amount of time easement can be granted to trespasser.
Tenancy by Entireties
A form of married ownership with the right of survivorship with neither spouse having disposable interest during the lifetime of the other. (Does not exist in alabama)
In this type of estate both parties must consent to sell, both are liable for debt secured by such property.
May be ended by divorce or death of one party
Estate for years
Any lease with a specific starting time and ending time. If a property under estate for years is sold it binds the new owner
Severalty ownership
Sole ownership - owned by only one person
Tenancy in common
Shared ownership in a single property among two or more persons without any right of survivorship nor without the necessity of any equal interest.
Joint Tenancy
Form of co-ownership that features the right of survivorship. Also features four units of title: time, title. Interest, and possession
Deficiency judgement
A judgement against a borrower if the foreclosure sale does not bring enough to pay the balance owed.
Statutory Lien
A mechanics lien would fall in this category
Judgement lien
Type of lien in which both real and personal property can be sold to pay the debt
Covenant of Seisin
Covenant in a deed which states that the grantor is the owner and has the right to convey the title.
Title Insurance
Provides the buyer with best assurance of a clear, marketable title
Deed
Primary purpose is to transfer title rights
Special warranty deed
Grantor’s covenant applies only to a definite limited time. Usually covers defects occurring during the grantor’s ownership
Alabama Real Estate Commission
Appointees must have been legal residents for 5 years.
Commissioner must serve term of 5 years and cannot serve more that 2 consecutive terms in office.
Has 9 members
Real estate
The earth’s surface extending downward to the center of the earth and upward into space including all thing permanently attached.
Blockbusting
The illegal practice of inducing homeowners to sell their property by making representations about the prospective entry of persons of certain race/national origin into the neighborhood.
Statute of Frauds
The law that requires real estate contracts to be in writing to be enforceable.
Procuring clause
The effort that brings about the desired result in a real estate sale.
Lis Pendens
A recorded legal document that give constructive notice that an action affecting a certain property has been filed in court
Listing Agreement
The document that defines the relationship between the real estate firm and and the seller
Riparian rights
The rights of a landowner to use waters of an adjacent river or stream
Littoral rights
The rights of a landowner to use adjacent lake or ocean. (No flowing waters)
Cloud on title
A claim or interest revealed in a title search
Survey
Measures boundaries and land areas
Rectangular survey system
The system established in 1785 by the US government which describes land with principal meridians and base lines
Open listing
The broker only earns commission if he provides a ready, willing and able buyer before anyone else does.
Easement in gross
Easement given to a person or business that is not created for the benefit of the land owned by the owner of the easement, but attaches personally to the easement owner.
Estate from period to period
A lease that goes from month to month etc
Estate at will
A type of lease which is for an indefinite amount of time and may be cancelled by the landlord or tenant at any time
Estate at sufferance
A situation in which the tenant’s lease has expired and the tenant is no longer paying rent, but is living on the property
Due-on-sale clause
A mortgage clause which states that, should the borrower sell the property the entire balance of the mortgage would be due immediately.
Foreclosure
The legal procedure in which a property that is pledged as security is sold to satisfy the debt.
PCB’s (Polychlorinated biphenyls)
Environmental hazard found mostly in electrical equipment
Acceleration clause
Allows the lender to move up the date of when the entire sum is due. Can be enforced to make the entire sum of the debt due immediately if the mortgager defaults on the loan
The remainder estate
The remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a prior estate, as when an owner conveys a life estate to one party and the remainder to another.
Quitclaim deed
A deed that contains no warranties, but in which the grantor does give up his own rights or claims.
Cost Approach
A type of value estimate in which the estimated land value plus the reproduction costs of any improvements, after depreciation costs have been subtracted.
Income approach
Appraisal method which estimates the value of the present worth of the future rights to the income the property generates by converting the net income of the property into a value
Constructive eviction
Occurs when a landlord breaches a lease by allowing the property to fall into severe disrepair, which causes the tenant to leave the property because it is uninhabitable.
Index lease
Type of lease that allows rent to be increased or decreased based on changes in the government cost of living index
Graduated lease
Allows for step up of rent payments. Used to attract tenants to hard to lease properties.
Leased fee interest
In a lease, the lessor’s interest.
Writ of execution
Authorizes the sale of a property of a defendant as required by the judgement decree of the court.
Writ of attachment
An action taken by a creditor in which the court simply retains custody of the property while a lawsuit is being decided.
Vender
Buyer or purchaser under a land contract
Wraparound Mortgage
A type of mortgage in which the existing mortgage amount, plus any additional purchase funds is loaned to a buyer by the seller.
Testator
Person who makes a will.
Intestate
Indicates that the person who died did not have a will
Zoning ordinance
An exercise of police power by a municipality to regulate and control the character and user of a property
Seisin
The possession of land by one who claims to own land and had the right to convey it.
Covenant of quiet enjoyment
The grantor guarantees that the grantee’s title is good against anyone who challenges the grantee’s ownership
Covenant of further assurance
The grantor promises to procure any documents necessary to make good the grantee’s title
Covenant against encumberances
The grantor warrants that the property is free from any liens and encumbrances
Covenant of warranty forever
A grantor promises that if at any time in the future the title fails, he will be liable.
Datum
The point, line or surface from which elevations are measured.
Metes and bounds
Type of description that uses the boundaries and measurements of the land in question.
Fully amortized loan
Type of loan in which the entire debt is paid off at the end of the term
Straight loan
Calls for payments of interest only with the principal to be paid in full at the end of the loan
Principal meridian
The primary survey line running north and south in the rectangular survey system
Principle of substation
Ex: apartments in an area are selling for $100,000 and a buyer offers 100,000 for an apt.
Principle of regression
Ex: family buys largest most expensive home in a subdivision and when they sell 5 years later, their home value has increased proportionately less than other homes in their neighborhood
Gross rent multiplier
Calculated by property value divided by monthly rent
Partition Suit
Occurs when one co-owner of a property wants to sell and the other co-owners are unwilling to either sell the property or buy the other’s interest.
Platform frame construction
First floor joists are completely covered with sub-flooring to form a platform upon which exterior walls and interior partitions are erected
National environmental policy act of 1969
Requires that an environmental impact statement be filed with the appropriate state or local agency before implementing any new construction or development.
Ostensible agency
Same as implied agency, the relationship is created by the actions of the parties rather than written contract.
Land contract
Aka installment sale wherein the person acquiring the property usually occupies it and makes payments to the owner but doesn’t take title until the final payment is made.
Reversion
The estate remaining in the grantor who has conveyed a lesser estate to from the original. Ex: Rich grants Merle a life estate in a property, when Merle dies the property goes back to Rich
Govt requires that purchasers of homes prior to ____ be given a notice that outlines the dangers of _____
1978, lead paint
Naked title
Title without the usual rights of ownership. Ex: in the case of a trust deed
Deed of trust
Instrument that pledges real property as security
Equitable
Generally refers to inherent fairness of an action
Budget mortgage
Has payments including principal, interest, taxes, and insurance. Each monthly payment covers all costs of the loan
Partial release clause
A real ease of a portion of property from a mortgage-Provides that as payments are made on an accelerated or greater ann an pro data rate, specific lots in the subdivision will be partially released from the mortgage
Regulation Z
Part of the Truth in Lending Act. Stipulates that once one financing aspect is advertised that all other aspects must also be disclosed. cost of credit must be disclosed ie monthly payment, interest, other fees including how
Institute for Real Estate Managers
Created as as subsidiary group of the national association of realtors in 1933. Offers educational and professional programs in property mgmt.
Expanded coverage to profit discrimination based on religion or familial status.
Est. administrative enfore event mechanisms
Expanded justice dept jurisdiction to bring suit of behalf of victims in federal district courts
1988 Fair housing amendments
Loan to Value Ratio
lending risk assessment used by lenders. higher LTV generally means higher risk to lender and therefore higher interest rates.
To calc: LTV= mortgage amount\ appraised value of property
Sale leaseback
The owner occupant sells his property and remains as tenant
Functional obsolescence
Depreciation that results from inadequate improvements, lack of aesthetic appeal, or improper design.
Principal meridian
The primary survey line running north and south in the rectangular survey system
Effective age
The age of a property based on its condition
Gross rent multiplier
To calc: property value/monthly rent
Nonconforming use
An improvement that is inconsistent with current zoning regulations
Variance
Allows an individual landowner to vary from zoning requirements
Conversion
The unauthorized withdrawal of any portion of an rankest money deposit before the sale is consummated or otherwise terminated, regardless of intended use.
Special agency
Created for the performance of specific acts only. Ex listing on a residential property
Sales comparison approach is based on the premise that people buy a real property
After comparing it to others with similar features
Promissory note
Lenders evidence of a debt
Installment land contract
Seller retains title, but owner takes possession while he makes the payments. When all pmts are made then the buyer receives title. Buyer has equitable but not legal title
Usury
Charging a higher rate of int that is permissible by law
RESPA
Real estate settlement procedures act. Aims to provide customers with disclosures of settlement costs and to reduce the cost of closing by eliminating kickbacks and referral fees
Novation
The substitution of a new contract or party for an old one
Rectangular survey system
Unit of land approx 24 miles square bounded by baselines running east and west and meridians running north and south. Divided into areas six miles square called townships
Township
Six miles square part of a 24 sq mi land survey.
Section
36 per township, one square mile each
Acre
43560 sq ft
Mile
5280 ft
ECOA
Equal credit opportunity act. Lenders cannot discriminate based on race, religion, color, national origin, sex, marital status, or age.
Economic obsolescence
Loss of value in a prop due to external forces or events
Easement in gross
Easement given to a person or business
Redlining
Lender discriminating in its lending practices because of neighborhood
Steering
The illegal practice of directing minority members to or away from certain neighborhoods
Statute of Frauds
A law requiring all real estate transactions to be in writing to be enforceable in court
Adjustable rate mortgage
Type of mortgage in which the interest paid on the outstanding balance varies according to a specific benchmark.
Zoning
Regulations that control specified use of land.
Residential Commercial Industrial Agricultural Rural Combination Historic Esthetic- usually in upscale communities
CEU requirements
1 course risk mgmt + 1 other. (Can be license law, fair housing, equal opportunity, RECAD
Police power
The right of govt to enact laws and enforce them for the order, safety, health, morals and general welfare of the public
Caveat emptor
Buyer beware
Mills
Tax rate; 1 mill= one thousandth of a dollar or 1 mill= $1 for every $1000 of assessed value
Spot zoning
Reclassifying on piece of property in a manner inconsistent with surrounding properties.
Conversion
Unauthorized withdrawal of monies belonging to others
Adverse possession
Acquisition of land through prolonged and unauthorized occupation. Possession of property must be visible, continuous, hostile, exclusive and notorious (in aka 20 years)
Emblements
Annual plantings that req cultivation
