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Real Estate Terms > Deck 1 > Flashcards

Deck 1 Flashcards

1
Q

Appurtenance

A

Rights, privileges, and improvements that belong to and transfer with real property but are not a part of the real property (Water rights, mineral rights, etc.)

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2
Q

Baseline

A

A survey line (imaginary) running east to west, and used as a reference when mapping

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3
Q

Bill of Sale

A

A written agreement used to transfer ownership in personal property

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4
Q

Bundle of rights

A

An ownership concept describing all the legal rights that attach to the ownership of real property

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5
Q

Chattel Real

A

An item (not physical) of personal property which is connected to real estate, for example, a lease.

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6
Q

Condition Precedent

A

A condition which requires something to occur before a transaction becomes absolute and enforceable: for example, a sale that is contingent on the buyer obtaining financing.

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7
Q

Condition Subsequent

A

A condition which, if it occurs at some point in the future, can cause a property to revert to the grantor: for example, a requirement in a grant deed that a buyer must never use the property for anything other than a private residence.

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8
Q

Doctrine of Correlative User

A

Owners may use only a reasonable amount of the total water supply for beneficial use

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9
Q

Emblements

A

Crops produced for sale by a tenant occupying the property.

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10
Q

Estate in Fee

A

Fee, Fee simple, or fee simple absolute is a freehold estate owned by inheritance.

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11
Q

Possessory Interest

A

A person’s right to occupy the property and not let other people on it.

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12
Q

Section

A

A land area of 1 square mile or 640 acres.

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13
Q

Township

A

6 by 6 sq mile area containing 36 sections, each one sq mi.

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14
Q

Lis Pendens

A

A pending legal issue on a property that prevents transfer of ownership.

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15
Q

Ratified

A

Approved

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16
Q

Statue of Frauds

A

A law that requires that contracts be in writing and contain certain elements to be enforceable.

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17
Q

Unilateral Rescission

A

Legal action taken by a party when the other party has breached the contract.

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18
Q

Liquid Damages

A

A specified amount of money set in advance as a penalty for breach of contract.

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19
Q

Puffing

A

Exaggerated comments.

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20
Q

Commingling

A

Depositing client’s funds into broker’s personal account.

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21
Q

Conversion

A

The taking of property belonging to another.

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22
Q

Undivided Interest

A

Co-owners with the right to possess and use the whole property.

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23
Q

Vested

A

Owned.

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24
Q

Homestead

A

Homeowner’s principal residence.

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25
Q

Accretion

A

Build up of soil by natural causes on a property bordering water.

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26
Q

Less Than Freehold Estate

A

A leasehold estate that exists for a definite period of time.

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27
Q

Life Estate

A

An estate that is limited by life of it’s owner.

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28
Q

Range

A

A strip of land located every 6 miles east of the meridian.

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29
Q

Real Property

A

Land and anything fixed to it.

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30
Q

Riparian Rights

A

Rights to use natural water that flows past the property. (river)

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31
Q

Bill of Sale

A

Transferring personal property.

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32
Q

Power of Attorney

A

A written document giving a person legal authority to act on behalf of someone else.

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33
Q

Attorney in fact

A

An unbiased person who is authorized by another person to act in their place in legal matters.

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34
Q

Recission

A

Ending a contract.

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35
Q

Forbearance

A

A lender refraining from taking action against a debt that is owed.

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36
Q

Unilateral Recission

A

Legal action taken by one party for breach of contract.

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37
Q

Grant Deed

A

A deed in which the grantor explains that they have not had any legal issues on the property.

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38
Q

Sucession

A

The legal transfer of real property under the law of descent and distribution.

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39
Q

Alienate

A

Transfer of ownership or to sell.

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40
Q

Adverse Possession

A

Acquiring the title to a property by continued possession and payment of taxes.

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41
Q

Redlining

A

Denying financing due to property’s location.

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42
Q

Blockbusting

A

Causing people to buy or sell by telling them the value of the home will decline because of the people in the neighborhood.

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43
Q

Reversionary Rights

A

The landlord grants the right to live there but still keeps the right to retake possession of the property after the lease has ended.

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44
Q

Estate at Sufferance

A

Wrongful possession of real estate.

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45
Q

Demise

A

A conveyance of real property for a certain length of time, such as a lease.

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46
Q

Steering

A

Illegal practice of only showing clients homes in one area.

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47
Q

Book Value

A

Initial cost of property + capital improvements -total accrued depreciation.

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48
Q

Net Income

A

The remaining income after operating expenses were subtracted from gross income of a property. AKA net operating income.

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49
Q

Assemblage

A

Putting several smaller properties together under one ownership to increase value.

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50
Q

Ad Valorem

A

To value assessed property.

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51
Q

DUST

A

elements that create value: Demand, Utility, scarcity, transferability.

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52
Q

Gross Rent Multiplier (GRM)

A

When multiplied by monthly rental income = property’s market value.

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53
Q

Gross Income Multiplier (GIM)

A

When multiplied by the annual gross income from all sources, not just annual rent = property’s market value.

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54
Q

Condemnation

A

AKA eminent domain, right of the gov to take private property for public use, paying fair market value.

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55
Q

Variance

A

Exception granted to zoning regulations.

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56
Q

Effective Gross Income

A

Anticipated income from estimating gross income from a rental property not including vacancy and debt.

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57
Q

Novation

A

Agreeing to change an obligation for a new one over the existing one.

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58
Q

Agent

A

A person who interacts with others for their client to protect them legally in the process of buying a house.

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59
Q

Valuable Consideration

A

Each party in a contract must give up something to make the agreement binding.

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60
Q

Agency

A

A relationship in which the principal party authorizes an agent to act as their representative.

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61
Q

Arm’s Length Transaction

A

A transaction where everyone involved represents themselves.

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62
Q

Estoppel

A

A legal thing which prevents people from denying facts and contradicting themselves.

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63
Q

Fiduciary

A

A relationship of trust with someone.

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64
Q

Abrogation

A

A revocation or annulling of a contract by mutual consent of the parties involved in the contract.

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65
Q

Undivided Interest

A

The interest a co-owner has in property which carries with it the right to possess and use the whole property along with other co-owners.

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66
Q

Express Contract

A

The parties involved talk about or write out their terms and intensions.

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67
Q

Implied Contract

A

An agreement shown by acts rather than words.

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68
Q

Bilateral Contract

A

Each party promises to perform some act in exchange for a promise.

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69
Q

Unilateral Contract

A

An agreement where one party pays for the performance of an act by the other party.

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70
Q

Executory Contract

A

An obligation to perform.

71
Q

Partition Action

A

Court action to divide a property held by co-owners.

72
Q

Severalty

A

Ownership of real property by one person.

73
Q

Reliction

A

Land that was covered by water is exposed.

74
Q

Ratification

A

A previously authorized act performed on behalf of a person, which makes the act valid and legally binding.

75
Q

Subagent

A

An agent of an agent for a principal.

76
Q

Patent Deed

A

A deed given to an individual for evidence of transfer of a title. Gov to personal property.

77
Q

Adverse Possession

A

Acquiring a title to a property by continued possession and payment of taxes.

78
Q

Probate Sale

A

Court approved sale of property of a deceased person.

79
Q

Net Lease

A

Tenant pays costs such as taxes, insurance and repairs as well as rent.

80
Q

Graduated Lease

A

AKA stair step lease. Periodic increases in rent.

81
Q

Percentage Lease

A

Landlord receives a % of gross sales of a commercial property as part or all of the rental payment.

82
Q

Writ of Possession

A

A court order for police to remove the tenant and his belongings within 5 days.

83
Q

Estate for Years

A

A leasehold estate with a definite end date that must be renegotiated to stay. usually for commercial properties.

84
Q

Axial Growth

A

City growth that occurs outward.

85
Q

Estate at Will

A

Possession of an estate belonging to another for an indefinite period of time. Can be terminated by the lessor or lessee. Must be given or give 30 day notice.

86
Q

CC&Rs

A

Restrictions placed on real property that limit the activities of owners.

87
Q

Blind Advertising

A

Advertising that fails to disclose that the party is a licensed agent.

88
Q

Cost Approach

A

Appraisal that estimates replacement costs and improvements, deducts estimated depreciation and adds market value of the land.

89
Q

Income Approach

A

Appraising property based on property’s anticipated future income.

90
Q

Reconciliation

A

AKA correlation. Weighing the re4sults of all 3 appraisal methods to arrive at a final estimate for market value of a property.

91
Q

Comps

A

Comparable properties.

92
Q

Functional Utility

A

Usefulness and desirability.

93
Q

Impound Account

A

A trust account for future funds and recurring costs relating to a property.

94
Q

Quitclaim Deed

A

Transfers seller’s interest to buyer.

95
Q

Warranty Deed

A

To transfer title to property.

96
Q

Beneficiary Statement

A

Statement of unpaid balance of loan.

97
Q

Sheriff’s Deed

A

A deed given to the buyer when property is sold through the court.

98
Q

Public Grant

A

Transfer of title by the gov to private individual.

99
Q

Constructive Notice

A

Public notice given to the county by recording a document.

100
Q

Marketable Title

A

Clear sellable title.

101
Q

Good and Indefeasible Title

A

Title that cannot be made void by a superior claim.

102
Q

Escrow

A

Closing money and documents for the selling of a home.

103
Q

Escrow Holder

A

Neutral agent for both buyer and seller.

104
Q

Preliminary Title Report

A

Title Insurance offer.

105
Q

Title Commitment

A

A contract to issue title insurance.

106
Q

Guarantee of Title

A

Assurance of a clear title.

107
Q

Holographic Will

A

A will written by the person themselves.

108
Q

Executor/ Executrix

A

Person named in the will to handle the affairs of deceased person.

109
Q

Testator/ Testatrix

A

A person who has made a will.

110
Q

Intestate

A

Dying without leaving a will.

111
Q

Devise

A

A gift of real property by will.

112
Q

Legacy

A

A gift of personal property by will.

113
Q

Codicil

A

A change in the will before the maker’s death.

114
Q

Vesting

A

The way the title will be taken.

115
Q

ALTA Policy

A

American Land Title Association policy of extending title insurance.

116
Q

Abstract of Title

A

A full summary of everything that has affected the title thus far on a specific parcel of real estate.

117
Q

Closing Disclosure

A

Settlement statement that must be used for any conventional residential mortgage loans.

118
Q

Security Instrument

A

Evidence of obligations to pay money such as a mortgage.

119
Q

Equity

A

The difference between the amount still owed and the market value.

120
Q

Hypothecation

A

To give real property as security for a debt without giving up possession.

121
Q

Leverage

A

The use of borrowed money to purchase property.

122
Q

Promissory Note

A

A written promise to pay a debt.

123
Q

Index

A

A number used as the basis for adjusting interest rates of ARMs (adjustable rate mortgage)

124
Q

Equity of Redemption

A

AKA right of redemption, the right of the owner who owes the debt to reclaim the property before the foreclosure.

125
Q

Straight Note

A

A promissory note where interest payments are made periodically with the principal payment due at the end, or no payments until the end.

126
Q

Partially Amortizing Note

A

Partial payments on a loan with a large payment at the end.

127
Q

Fully Amortizing Note

A

Equal monthly payments on a loan that is paid off by the end.

128
Q

Adjustable Rate Mortgage (ARM)

A

A loan where the interest changes over time based on the housing market.

129
Q

Deed of Trust

A

Security for a debt owed where the title to a property is given to a third party.

130
Q

Trustor

A

The borrower in a deed of trust.

131
Q

Beneficiary

A

The lender in a deed of trust.

132
Q

Power of Sale

A

The part of a contract where the person named has the power to sell the property if the debt is not paid.

133
Q

Assignment of Rents

A

An agreement between the property owner and holder of trust deed or mortgage where the holder receives rights to collect rent from tenants of the property.

134
Q

Equitable Title

A

Interest held by person giving away the property.

135
Q

Reconveyance Deed

A

When the title to a property from a trustee goes back to the trustor (borrower) upon full payment of the debt.

136
Q

Foreclosure

A

When property is sold to satisfy debt because someone couldn’t pay their mortgage.

137
Q

Trustee’s Deed

A

Deed given to purchaser at trustee’s sale.

138
Q

Deficiency Judgement

A

Judgement against borrower when the security for loan isnt enough.

139
Q

Mortgager

A

The borrower for a mortgage.

140
Q

Judicial Foreclosure

A

Foreclosure by court.

141
Q

Mortgagee

A

The lender of a mortgage.

142
Q

Graduated Payment Adjustable Mortgage

A

Loan with low initial monthly payments which gradually increase over specified timeframe.

143
Q

Junior or 2nd Lien Loan

A

Any mortgage or deed of trust after the first one, whose priority is less than 1st lien.

144
Q

Third Party Originator (TPO)

A

Person who takes mortgage applications but doesnt fund loans.

145
Q

Purchase Money Loan

A

A trust deed created at time of sale.

146
Q

Hard Money Loan

A

Paid in cash.

147
Q

Annual Percentage Rate (APR)

A

Total money charged to total amount financed.

148
Q

Usury

A

Charging more interest than allowed by law.

149
Q

Margin

A

a % rate added to determine the full interest rate of an ARM.

150
Q

Open End Loan

A

A loan where the borrower is given a pre approved limit to how much can be borrowed.

151
Q

Reverse Annuity Loan

A

Allows elderly Homeowners to borrow against equity in their homes by receiving monthly payments to help meet their living costs.

152
Q

Rollover Mortgage

A

A loan that allows rewriting of a new loan at termination of the prior loan.

153
Q

Homeowner Equity Loan

A

Cash loan made against the equity in a borrowers home.

154
Q

Blanket Loan

A

Loan that is secured by several properties.

155
Q

Closed End Loan

A

Borrower receives all loan proceeds in one lump some at time of closing. (auto and home loans)

156
Q

Subject to Clause

A

A buyer takes over existing loan payments but is not liable for the loan.

157
Q

Assumption Clause

A

Buyer takes over existing loan and agrees to be liable for it.

158
Q

Contract for Deed

A

Seller gives up possession of the property but hold the title until total purchase price is paid off.

159
Q

Swing Loan

A

Short term loan

160
Q

Balloon Payment

A

Final payment that is larger than the previous payments.

161
Q

Acceleration Clause

A

A part of the contract describing certain events in which the entire loan would be due.

162
Q

Alienation Clause

A

What allows the lender to call the entire loan due ipon sale of the property.

163
Q

Subordination Clause

A

When the holder of a trust deed allows a subsequent loan to take priority.

164
Q

Prepayment Clause

A

Part in a trust deed where it allows the lender to receive a % for paying off the loan early.

165
Q

Release Clause

A

In blanket loans when it allows the borrower to obtain a partial release of specific parcels of land from the loan.

166
Q

Truth In Lending Act (Regulation Z)

A

Requires borrowers to be informed about the cost of borrowing money.

167
Q

Equal Credit Opportunity Act

A

Credit is available to everyone with fairness.

168
Q

Or More Clause

A

Paying a loan off early without penalty.

169
Q

Principal

A

Original amount borrowed.

170
Q

PITI

A

Principal, Interest, Tax, Insurance.

171
Q

Deregulation

A

Financial institutions are allowed to compete freely for profits in the marketplace.

172
Q

Financing Statement

A

A written notice by creditor who has extended credit for purchase of real property.

173
Q

Intermediation

A

Transferring capital from investors to borrowers.

174
Q

Real Estate Investment Trust (REIT)

A

Investors pooling money to buy real estate.

Real Estate Terms (2 decks)

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