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MA Real Estate License Definitions > Definitions > Flashcards

Definitions Flashcards

1
Q

Abandonment

A

Lessee leaves without consent of lessor before lease expires; does not break lease or relieve lessee of obligations

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2
Q

Abatement

A

Reduction of property taxes

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3
Q

Abstract of title

A

A condensed history of legal title, summarizing all instruments in chain of ownership

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4
Q

Abutting

A

Land with a common boundary (adjacent/adjoining)

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5
Q

Acceleration clause

A

A clause in note; upon default, balance of debt becomes due immediately instead of maturity date; prelude to foreclosure

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6
Q

Acceptance

A

Indication by signature of offeree that s/he is willing to be bound by terms of offer from offeror

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7
Q

Accretion

A

The gradual addition of land by action of water or wind

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8
Q

Accrued depreciation

A

Cumulative loss in value; difference between cost of replacing property new and present value

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9
Q

Acknowledgment

A

A notary public declares signing to be free and voluntary

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10
Q

Acre

A

43,560 square feet

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11
Q

Actual notice

A

actual, specific, and direct knowledge given to someone as opposed to constructive/public notice (information made available for public viewing such as in registry of deeds)

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12
Q

ADA

A

Americans with Disabilities Act of 1990 (federal law)

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13
Q

Adjustments

A

taxes, rents, fuel, etc. apportioned or prorated between buyer and seller at closing

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14
Q

Administrator

A

Appointed by court to settle estate of person leaving no will

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15
Q

Ad valorem

A

According to value, tax assessment based on actual value

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16
Q

Adverse posession

A

occupant’s right to acquire legal title to private property they hold land openly, notoriously, adversely and without permission for 20 years; also known as squatters rights

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17
Q

Aeolian soil

A

Sand dunes formed by the action of wind

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18
Q

Affidavit

A

A sworn statement written oath such as acknowledgment (affirmation is an oath)

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19
Q

Agency

A

a contract by which one party undertakes to represent another in certain business situations

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20
Q

Agent

A

a person (natural), corporation, society, association or partnership (legal persons) acting by authority of a principal in a realty transaction for compensation

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21
Q

Agreement of sale

A

also known as a purchase and sale agreement (p&s)

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22
Q

Air rights

A

ownership and use of air space over a specific parcel of realty which can be leased or sold to others

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23
Q

Alienation

A

voluntary transfer of realty

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24
Q

Alienation clause

A

clause in mortgage giving lender right to accept or reject new owner of take-over mortgage (also known as due-on-sale and assumption clause)

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25
Q

ALJ

A

Administrative Law Judge (a judge presiding over hearings for government agencies)

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26
Q

Alluvion (alluvium)

A

sand or mud carried by water and deposited on other land

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27
Q

Amenities

A

features of property making it desirable and thus adding value, such as scenic views, convenient shopping, etc.

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28
Q

Amortization

A

paying indebtedness by equal and periodic payments; each payment is equal but ratio of principal and interest changes

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29
Q

Annexation

A

property changes from personal to real

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30
Q

Anticipation

A

a forecast of expected benefits during ownership and resale

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31
Q

Apparent

A

it looks as if it exists (as in authority)

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32
Q

Appraisal

A

an estimate of value

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33
Q

Appreciation

A

increase in value resulting from market forces

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34
Q

Approaches to value

A

three methods used by appraiser to form an estimate of value: sales comparison (market data), income, and cost

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35
Q

Appurtenance

A

an intangible right belonging to and passing with a property such as having a right of way through adjoining property

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36
Q

Arm’s length transaction

A

sale without duress on either party; an open and willing sale

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37
Q

Assemblage

A

combining two or more lots under single ownership

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38
Q

Assessed valuation

A

value given to realty for property taxation purposes

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39
Q

Assets

A

all real and personal property one owns

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40
Q

Associate broker

A

a broker who chooses to work as a salesperson for another broker (the employing broker)

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41
Q

Assumption of Mortgage

A

taking of title to property by grantee who assumes existing loan; mortgagee can pursue grantor or new grantee or both

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42
Q

Attachment

A

court order issues during a lawsuit prohibiting sale of realty

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43
Q

Attest

A

affirm under oath something is true (Attestation)

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44
Q

Attorney-at-law

A

a lawyer employed by a party to manage a cause

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45
Q

Attorney-in-fact

A

anyone who is authorized in writing to perform certain acts for another; valid only during lifetime of party giving this power

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46
Q

Auction

A

public sale of property to highest bidder

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47
Q

Avulsion

A

the sudden loss of land by action of water

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48
Q

Balloon mortgage

A

principal loan amount paid off in lump sum at end of term

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49
Q

Benchmark

A

mark on stone or cement (monument) permanently fixed to ground; used as measuring point by surveyors

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50
Q

Bequeath

A

to give personal property by will; bequest

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51
Q

Betterments

A

improvements done by town/city and paid for by owner

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52
Q

Bilateral contract

A

mutual and simultaneous exchange of consideration

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53
Q

Bill of sale

A

a written instrument which is the evidence of transfer of one person’s right in personal property to another

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54
Q

Binder

A

deposit given by buyer to secure property until closing; in insurance, it is memorandum of temporary coverage at closing

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55
Q

Blanket mortgage

A

a single mortgage instrument securing more than one parcel of property as security for the loan

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56
Q

Blockbusting

A

induces panic selling in a neighborhood based on a member of a protected class entering neighborhood

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57
Q

Bona fide

A

in good faith and without fraud

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58
Q

Bond

A

guarantee by third party that it will make good any loss, up to certain amount, incurred by a party dealing with a broker not acting in good faith; bonding company is Surety and obligor and State is obligee. Broker bond is made payable to state

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59
Q

Breach

A

default or violation of terms of contract

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60
Q

Broker of Record

A

the broker is responsible for what happens in the agency

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61
Q

Building Code

A

regulations setting forth minimum structural requirements

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62
Q

Building line

A

no building can be erected between building line and lot lines

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63
Q

Bundle of Rights

A

all rights that go with ownership of realty

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64
Q

Capital Expenditures

A

long term improvements to the property

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65
Q

Capitalization

A

computing current value from expected future income

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66
Q

Capitalization rate

A

profit stated as a percentage on a yearly basis

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67
Q

Carrying charges

A

expenses necessary for holding property such as vacant land pending development or zoning changes

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68
Q

Cash flow

A

profit after principal and interest are deducted from net operating income (NOI)

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69
Q

Cash on cash

A

the return on equity (divide cash flow by equity)

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70
Q

Caveat emptor

A

let the buyer beware - no longer applicable

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71
Q

Certificate of Reasonable Value

A

instrument issued by VA stating property value (CRV)

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72
Q

Certificate of title

A

opinion of attorney/title company certifying condition of title

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73
Q

Chain of Title

A

history of conveyances and encumbrances affecting a title

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74
Q

Change

A

real estate values always move up or down in a predictable cycle (growth, stability, decline, and renewal)

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75
Q

Clear Title

A

title free of encumbrances

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76
Q

Client

A

principal who hires an agent; CUSTOMER is the other party

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77
Q

Closing Costs

A

costs of seller and buyer at conveyance of realty

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78
Q

Closing Statement

A

accounting of funds at closing - settlement statement

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79
Q

Cloud on Title

A

claim or encumbrance impairing title and marketability

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80
Q

CMA

A

Competitive (comparable, comparative) market analysis, market value determined by a real estate agent

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81
Q

Collateral

A

a security, such as a mortgage, given to protect debt

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82
Q

Collusion

A

agreement between parties to defraud another

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83
Q

Color of title

A

deed appears to provide good title, but actually does not

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84
Q

Commingling

A

the mixing of funds held for the benefit of others with the broker’s personal or business funds

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85
Q

Commission

A

money or other valuable consideration given to broker by principal for services rendered; amount is by agreement

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86
Q

Competition

A

excess profits attract competition on supply side

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87
Q

Condemnation

A

the taking of private property by law of eminent domain

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88
Q

Condominium

A

multi-unit structure made up of individually owner units with separate deeds and shared ownership of common areas

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89
Q

Conformity

A

maximum value is created with homogenous property

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90
Q

Consideration

A

something exchanged between parties of a contract

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91
Q

Construction Loan

A

progressive payments to builder during stipulated stages in erection of building

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92
Q

Contract

A

a written agreement between two parties to do something

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93
Q

Contribution

A

added investment in a site is measured by adding value

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94
Q

Convey

A

to transfer and grant; to convey as a transfer of legal title in land by an instrument in writing such as deed

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95
Q

Cooperative

A

one corporation owns all real estate with stockholders occupying units through leases

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96
Q

Corporation

A

a legal person created by state law owned by one or more people; realty corporation must be licensed and bonded

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97
Q

Cost of reproduction

A

cost of exact duplication of property using similar materials

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98
Q

Counter Offer

A

voids firs offer and creates new offer

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99
Q

Covenant

A

a promise or guarantee usually found in a deed

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100
Q

Covert

A

hidden or concealed defect in the title

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101
Q

Cubage or Cubic Content

A

length x width x height of interior

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102
Q

Cul de sac

A

a road with one outlet, usually ending in a circle

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103
Q

Damages

A

estimated monetary damages for breach of contract

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104
Q

Debenture

A

an unsecured note as opposed to mortgage note

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105
Q

Decedent

A

deceased person

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106
Q

Dedication

A

to convey private property over to public use

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107
Q

Deed

A

instrument in writing, duly executed and delivered for the purpose of conveying title (ownership) to real property

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108
Q

Deed of Trust

A

in some states used instead of a mortgage (trust deed)

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109
Q

Deed Restriction

A

provision in deed controlling use of land

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110
Q

Default

A

non-performance of a duty under an instrument

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111
Q

Defeasance Clause

A

clause in mortgage which defeats mortagee interest if loan is repaid according to Note

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112
Q

Defendant

A

party sued. plaintiff: party initiating action

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113
Q

Deferred Payments

A

money payments to be made at future date

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114
Q

Deficiency Judgment

A

court award to lender if sale at auction does not equal debt

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115
Q

Delinquency

A

a loan in default or overdue

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116
Q

Delivery

A

irrevocable transfer such as with deed

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117
Q

Demand loan

A

lender may demand payment of the loan at any time

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118
Q

Demise

A

to lease

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119
Q

Density

A

number of dwellings and commercial units per acre

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120
Q

Depreciation

A

decrease in value for various reasons

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121
Q

Devise

A

a gift of realty by will; deceased is devisor

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122
Q

Direct Reduction Mortgage

A

debt repaid by amortization

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123
Q

Domicile

A

place where one has permanent residence

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124
Q

Duplex

A

a home with two living units, a physical description that does not define ownership of the building

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125
Q

Duress

A

unlawfully forcing someone to do something against their will

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126
Q

Dust

A

acronym for elements of value (effective demand, utility, scarcity, and transferability)

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127
Q

Earnest Money

A

deposit or binder given with signing of P&S

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128
Q

Easement

A

a right which one person has in lands of another (easement in gross is a personal contract right to use another’s land)

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129
Q

ECOA

A

Equal Credit Opportunity Act, federal law prohibiting discrimination in credit/lending

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130
Q

EEOC

A

Equal Employment Opportunity Commission, federal body that makes policy/approves employment discrimination suits

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131
Q

Effective Demand

A

the ability to act on the desire to buy

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132
Q

Elements of Value

A

that which is necessary to achieve value

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133
Q

Emblements

A

crops; deemed personal and belonging to tenant or reserved by seller as removable prior to or after sale of land

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134
Q

Eminent Domain

A

right to take private property for public use for fair value

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135
Q

Encroachment

A

physical stationary trespass of a property on that of another

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136
Q

Encumbrance

A

anything which burdens (limits) the fee title to property

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137
Q

Equity

A

value or interest an owner of realty has above any debt on property; difference between value and mortgage debt

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138
Q

Equity Participation

A

a further return on investment for lender in addition to interest; part ownership with lender

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139
Q

Erosion

A

the gradual loss of land by action of water or wind

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140
Q

Escheat

A

power of state to take abandoned property or if no will/heirs

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141
Q

Escrow

A

the holding of something of value by a person (escrowee or escrow agent) for the benefit of other parties

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142
Q

Et al

A

a term meaning “and others” (Et Ux. means “and white” Et Con. means “and husband)

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143
Q

Eviction

A

the depriving of a person’s possession of realty (also forcible entry and ejectment)

144
Q

Exclusive Agency

A

principal agrees to work with one agency for a stated period of time (no commission earned if client does own deal)

145
Q

Exclusive Right to

A

to sell or represent, agency earns commission even if client does own deal

146
Q

Executor

A

person named in will to execute or probate the will

147
Q

Express

A

directly stated to exists (as in authority)

148
Q

External Obsolescence

A

loss in value due to outside forces, aka economic obsolescence

149
Q

Federal home loan mortgage corp (FHLMC)

A

also known as “Freddie Mac” it is the secondary market loan buyer

150
Q

Federal Housing Administration (FHA)

A

part of HUD; insured mortgage loans originated by lenders with the home buyer paying loan insurance premium

151
Q

Federal National Mortgage Association (FNMA)

A

known as “Fannie Mae” it is a secondary market loan buyer

152
Q

Federal Reserve Board

A

establishes and regulates monetary policy

153
Q

Fee Simple

A

also known as fee and fee simple absolute, largest possible estate or interest person can have in a parcel of realty; least limited estate, defining characteristic is inheritability

154
Q

Fee Simple Defeasible

A

granting of title (fee simple subject to a condition subsequent) or duration of title (fee simple determinable) is dependent on a specific condition named in the title

155
Q

FHEO

A

Office of Fair Housing and Equal Opportunity (part of HUD)

156
Q

Fiduciary

A

a position of trust (e.g. broker to principal)

157
Q

Fiduciary Duties

A

duties (obedience, undivided loyalty, full disclosure, confidentiality, full account, reasonable care) owed by agents to clients

158
Q

Finder’s Fee

A

fee for locating a property, client or customer - commission

159
Q

Fixture

A

article that was once personalty but is now realty because it is permanently attached

160
Q

Foreclosure

A

collateral is sold to pay debt because of default

161
Q

Forfeiture

A

loss of deposit for failure to perform terms of contract

162
Q

Fraud

A

intentional deception in which injured party has loss

163
Q

Freehold

A

an ownership interest in realty of not less than a life estate

164
Q

Friable

A

crumbling/brittle such as asbestos

165
Q

Front foot

A

number of feet or frontage abutting a street

166
Q

Functional Obsolescence

A

loss in value due to utility problems

167
Q

General lien

A

a lien against more than one piece of property of debtor

168
Q

Government National Mortgage Association (GNMA)

A

known as “Ginnie Mae” a government secondary market government buyer focused on low-cost housing

169
Q

Graduated loan

A

lower payments leading to negative amortization (unpaid interest is added on to the principal owed)

170
Q

Grantee

A

one receiving title to real estate from grantor

171
Q

Grantor

A

one who transfers title of real estate to the grantee

172
Q

Gross Lease

A

owner receives rent and pays out expenses. NET LEASE: owner receives rent and tenant also pays out expenses

173
Q

Gross Living Area

A

square foot of living space, measured from outside the building, above ground, enclosed, heated, habitable space

174
Q

Habendum Clause

A

“to have and to hold” clause in deed for life estate

175
Q

Hereditaments

A

inheritable property, real and personal

176
Q

Highest and Best Use

A

use of a property that produces greatest net income

177
Q

Homestead Laws

A

protects home from forced sale to satisfy unsecured debts

178
Q

HUD

A

Department of Housing and Urban Development

179
Q

Hypothecate

A

to give something as security without giving up possession such as to mortgage a property

180
Q

Implied

A

people act as if it exists (As in authority)

181
Q

Impounds

A

reserves such as tax and insurance payments made to and held by mortgagee

182
Q

Infrastructure

A

network of public facilities of an area

183
Q

Ingress/Egress

A

entering and leaving

184
Q

Injunction

A

court order to stop a party to a contract from doing something

185
Q

Irrevocable

A

unchangeable

186
Q

Installment sales contract

A

conditional sales contract, land contract, or contract for deed/land, buyer acquires “equitable title” until final payment; after delivery of deed, buyer has “legal title”

187
Q

Instrument

A

a formal written document

188
Q

Insurable value

A

the value of property for insurance purposes (cost)

189
Q

Interim financing

A

development loan such as construction money

190
Q

Intestate

A

no will or a defective will by the deceased

191
Q

Investment

A

total value of property: down payment and loan

192
Q

Investment value

A

the value of property to a particular investor

193
Q

Joint Tenancy

A

two or more owners with rights of survivorship; not inheritable, must be specifically chosen

194
Q

Judgment

A

the final determination of a court of a matter presented to it

195
Q

Junior Mortage

A

any mortgage after a previous mortgage

196
Q

Laches

A

unreasonable delay in asserting one’s rights

197
Q

Lease

A

rental contract for possession of realty for specified period

198
Q

Leaseback

A

the purchase of property and the leasing of it back to seller

199
Q

Leasehold

A

the interest which a lessee has in realty

200
Q

Legal Description

A

method of describing property ascertained by survey

201
Q

Leverage

A

maximum use of borrowed money and minimum use of cash in the purchase of realty (loan to value ratio)

202
Q

License to Sell

A

court order to sell property out of probate

203
Q

Lien

A

a money claim against property for payment of some debt

204
Q

Life Estate

A

estate or interest held during a certain person’s life; non-inheritable; lost of freehold estates

205
Q

Limited Liability Company

A

a legal person created by state law owned by one or more members; same licensing rules apply as with corporation

206
Q

Liquidation value

A

value of property in a forced sale such as foreclosure

207
Q

Liquidity

A

a person’s cash assets

208
Q

Lis pendens

A

a recorded notice by plaintiff of pending litigation affecting title to property; not a lien, but a “cloud on title”; ceases when action is dismissed or wen judgment is final and recorded

209
Q

Listing

A

an agreement between principal and agent to provide services

210
Q

Litigation

A

a contest in court of law between two parties

211
Q

Littoral

A

use and ownership of shoreline of large body of water

212
Q

Lot line

A

legal line separating a lot from another lot

213
Q

Market Price

A

the price property actually sells for

214
Q

Market Value

A

price for which realty can be sold on open market if there is a willing seller and buyer and a reasonable time to make sale negotiated at arms length

215
Q

Marketable title

A

a title which buyer would accept and a lender would accept as collateral

216
Q

Master Deed

A

basic title document in creation of condominium; it defines individual fee units and common interests

217
Q

MCAD

A

Massachusetts Commission Against Discrimination (state commission hearing discrimination cases)

218
Q

Mechanic’s Lien

A

statutory lien for labor/material for improvement of realty

219
Q

Meeting of minds

A

an offer and acceptance; mutual assent, an agreement/contract

220
Q

Metes and Bounds

A

boundaries of land described in directions and distances

221
Q

Moratorium

A

action by government temporarily halting construction

222
Q

Mortgage

A

a legal instrument conveying conditional title to lender in order to secure the repayment of the debt described in note

223
Q

Mortgage broker

A

a party who, for a fee, brings together lender and borrower

224
Q

Mortgage commitment

A

a written notice from lender promising a future loan under certain conditions and terms

225
Q

Mortageee

A

the lender

226
Q

Mortagee-in-posession

A

lender takes possession of property from defaulted party and collects income from lessees pending foreclosure

227
Q

Mortgagor

A

the borrower

228
Q

Municipal lien certificate

A

document confirming status of taxes, water, sewerage, betterments etc; a required document at closing of title

229
Q

National Association of Realtors (NAR)

A

a national private trade association with state and local chapters whose members are called realtors

230
Q

Necessaries

A

essentials of existence: food, clothing, shelter

231
Q

Net listing

A

a fixed, specified price below which owner will not sell and at which broker receives no commission’ broker receives everything over fixed price; illegal

232
Q

Net Operating Income (NOI)

A

effective gross income minus operating expenses

233
Q

Net Worth

A

value left after liabilities are deducted from assets

234
Q

Nominal Consideration

A

something of value bearing no relation to real value

235
Q

Nonconforming Use

A

grandfathered use in existence prior to current zoning

236
Q

Note

A

promissory instrument given by borrower to lender as evidence of debt; IOU

237
Q

Novation

A

substitution of old obligation with a new one

238
Q

Obsolescence

A

loss of value from any source other than wear and tear

239
Q

Offer

A

statement of intent by offeror; ACCEPTANCE: statement of intent to accept offer by offeree

240
Q

Open-end-mortage

A

a line of credit

241
Q

Open Listing

A

any hired broker can sell property for a commission but if owner sells, no commission payable

242
Q

Open Mortgage

A

a mortgage that has matured or is overdue and subject to foreclosure

243
Q

Option

A

a contract between owner and potential buyer or lessee to buy or lease in future at specified terms

244
Q

Ordinance

A

law by local government body

245
Q

Overabundance

A

too much supply given the demand

246
Q

Overt

A

openly known

247
Q

Ownership

A

title; an estate in realty to the exclusion of others

248
Q

Package Mortgage

A

a loan secured by both real and personal property

249
Q

Parol

A

oral, as distinguished from written

250
Q

Partition

A

a legal action to divide realty co-owned

251
Q

Party Wall

A

wall or fence on common boundary for benefit of both parties’ both parties are responsible for maintenance

252
Q

Percentage Lease

A

a lease in which rental is based on a percentage of gross sales

253
Q

Percolation Test

A

a soil test designed to measure rate of water absorption and drainage such as for septic systems

254
Q

Personal Property

A

moveable items not fixed to a particular location; personalty, chattel

255
Q

Personal Representative

A

in MA, the term used to replace executor/administrator

256
Q

Physical Depreciation

A

loss in value resulting from wear and tear, deterioration

257
Q

Planned Unit Development

A

high density of dwellings with maximum open spaces

258
Q

Plottage Value

A

increase in the value of land by assemblage of smaller lots into one ownership; known as plottage increment

259
Q

Points

A

one-time charge by lender to increase yield on investment; paid at passing; one point equals 1% of loan amount

260
Q

Plat

A

a plan or map of a parcel, such as one showing the various lots of a proposed subdivision (arrows point north)

261
Q

Plat Book

A

public record of recorded plans or maps

262
Q

Plot Plan

A

a diagram showing the existing or proposed use of parcel of land. This will show improvements on land

263
Q

Point of Beginning (POB)

A

starting and ending point in metes and bounds description

264
Q

Police Power

A

building codes and zoning ordinances

265
Q

Power of Attorney

A

written instrument authorizing another to act in his/her place; person given power is attorney-in-fact

266
Q

Prepayment Penalty

A

penalty for full pay-off of loan before maturity date

267
Q

Prescription

A

a method of obtaining an easement by adverse use for a period of years (20), hostile to owner’s wishes

268
Q

Prima Facie

A

on first view; on the face of it; an obvious fact

269
Q

Primary Mortgage Market

A

market where loans are made directly to borrowers

270
Q

Prime Rate

A

lowest interest rate charged by commercial bans to most credit-worthy customers; the DISCOUNT RATE is a rate charged to these banks by Federal Reserve

271
Q

Private Restriction

A

restriction placed on realty in deed by grantor

272
Q

Probate

A

processing assets after death

273
Q

Procuring Cause

A

the one who brought about the sale of the property

274
Q

Promulgate

A

to publish or make known such as license law

275
Q

Prorate

A

term used to describe proportional adjustment of monies between seller/buyer at closing such as taxes, fuel, rents

276
Q

Prospectus

A

an advertisement and invitation to buy securities (reviewed by the Securities and Exchange Commissions (SEC))

277
Q

Public Restriction

A

government law or regulation restricting the use of realty

278
Q

Purchase and Sale Agreement

A

binding written agreement whereby buyer promises to buy and seller promises to sell; agreement of purchase, P&S

279
Q

Purchase Money Mortgage (PMM)

A

as part of purchase price, buyer gives no and mortgage to seller

280
Q

Quiet enjoyment

A

right of owner or tenant to possession without interference

281
Q

Quieting Title

A

court action to establish true owner and title

282
Q

Quitclaim Deed

A

instrument releasing interest of grantor without liability

283
Q

Real Property

A

land and everything that is directly or indirectly permanently attached or affixed to the land; real estate, realty

284
Q

Reality of Consent

A

agreement to a contract must be free from misrepresentation, fraud, undue influence, and duress

285
Q

Reciprocity

A

mutual exchange of privileges

286
Q

Reconciliation

A

final step in appraising

287
Q

Redlining

A

presenting different terms or conditions to prospective borrower based on people residing where collateral is located

288
Q

Reliction

A

gradual withdrawal of water exposing land

289
Q

Rescission of contract

A

annulling or abrogation of contract by mutual consent

290
Q

RESPA

A

Real Estate Settlement Procedures Act. A law requiring full disclosure of closing costs to buyer and seller

291
Q

Revocation

A

a recall or cancellation

292
Q

Right of way

A

right of one person to pass over estate of another; easement rights belonging to or relating to banks of a waterway

293
Q

Riparian

A

rights belonging to or relating to banks of a waterway

294
Q

Sales Comparison Approach

A

approach to value by which valuation of a property is based on comparison with previously sold properties with similar characteristics; also known as market data

295
Q

Satisfaction Piece

A

also known as discharge, recorded instrument which satisfies debt of mortgagor; it releases, discharges and pays in full

296
Q

Scarcity

A

insufficient supply to meet demand

297
Q

Secondary Financing

A

junior mortgages, not to be confused with secondary mortgage market

298
Q

Secondary Mortgage Market

A

marketplace for the sale and purchase of existing mortgages which originated in primary market

299
Q

Security Deposit

A

money of tenant deposited with landlord to offset damages beyond reasonable wear ant tear done by tenant

300
Q

Seisin

A

possession of realty with ability to convey, in warranty deeds

301
Q

Separate Property

A

property owned by married person in own right

302
Q

Setback

A

distance from curb/street to where building may be erected

303
Q

Severalty

A

sole ownership; owned by one person only

304
Q

Severance

A

property changes from real to personal

305
Q

Shared Equity Loan

A

in addition to making a loan, lender pays a portion of the down payment and gets a split of the equity on resale

306
Q

Sheriff’s Deed

A

conveys title to property sold to satisfy a judgment

307
Q

Sinking Fund

A

money set aside to pay for replacement of improvements

308
Q

Special Agent

A

broker working directly for the client

309
Q

Specific lien

A

a lien on a particular piece of property

310
Q

Specific Performance

A

court decision ordering one party to comply with terms of contract

311
Q

Square foot

A

the front foot measurement multiplied by the depth

312
Q

Statute

A

act of legislature

313
Q

Statute of Frauds

A

law requiring all realty purchase agreements to be in writing in order to be enforceable in a court of law

314
Q

Steering

A

choosing property to show prospective buyers/renters based on protected classes

315
Q

Stigmatized Property

A

psychologically impacted property due to death-related event, murder, suicide, haunted house

316
Q

Subagent

A

agent working indirectly for client (salesperson/co-broker)

317
Q

Subdivision

A

act of land legally divided into two or more separate lots

318
Q

Subordination

A

willingness of lien holder such as a junior mortgage, to accept a position behind another later lien holder

319
Q

Subprime

A

riskier loan due to borrower’s poor credit

320
Q

Substitution

A

when two or more like properties are for sale, the one with the lowest price attracts the greatest demand

321
Q

Surety

A

one who guarantees performance of another

322
Q

Survey

A

act of establishing legal description of property

323
Q

Swing loan

A

short term loan so buyer can purchase new property based on equity in property buyer is selling; aka bridge loan

324
Q

Syndication

A

joining of mutually interested parties to accomplish a joint venture by pooling their money

325
Q

Taking

A

a tax lien recorded when property taxes are delinquent

326
Q

Tax Rate

A

rate multiplied by assessment to produce annual taxes

327
Q

Tax Sale

A

sale of property by public auction for overdue property taxes

328
Q

Tax Title

A

title or ownership acquired at tax sale

329
Q

Tenancy At Sufferance

A

tenant remains in possession after lease expires and without owner’s permission

330
Q

Tenancy At Will

A

rental subject to termination at will of either landlord or tenant

331
Q

Tenancy By The Entirety

A

form of joint tenancy reserved for married couples - a choice

332
Q

Tenancy in Common

A

holding of title by two or more people, the lease restrictive, most flexible form of co-ownership, automatic

333
Q

Testator

A

one who makes will of last testament

334
Q

Time is of Essence

A

exact and punctual performance of contract

335
Q

Time Share

A

vacation property made more affordable by limiting possessory rights

336
Q

Title Insurance

A

insurance against loss resulting from default in title

337
Q

Title Reference

A

book/page number, method of cataloging at registry of deeds

338
Q

Title Search

A

examination of registry records to determine chain of title

339
Q

Topography

A

nature or contour of land surface

340
Q

Torrens System

A

procedure of registering titles in land court

341
Q

Trade Fixtures

A

personal property used in business and affixed to realty; necessary for trade and are removed by tenant

342
Q

Transferability

A

a seller has to be able to transfer title

343
Q

UCC

A

Uniform Commercial Code - laws governing commercial transactions and establishing claims for collateral

344
Q

Unearned Increment

A

increase in value, not anticipated by owner, due primarily to outside forces. Example: population growth and inflation

345
Q

Unilateral contract

A

one party promises to act upon the completed act of the other

346
Q

Unimproved Property

A

land without buildings or other improvements, raw land

347
Q

URAR

A

Uniform Residential Appraisal Report. method of reporting a residential appraisal; required by Fannie Mae

348
Q

USPAP

A

Uniform Standards of Professional Appraisal Practice - a code of conduct in performing appraisals

349
Q

Utility

A

the ability to satisfy desires and expectations

350
Q

Usury

A

charging higher rate of interest than law allows

351
Q

Variable Interest

A

loan originates at one rate but fluctuates according to an agreed index; known as adjustable rate mortgage

352
Q

Variance

A

permission from local government to develop land in a manner contrary to existing zoning laws due to hardship

353
Q

Warranty Deed

A

grantor has liability for third-party claims

354
Q

Weighted Averaging

A

math technique where one or more numbers has greater impact than others on final numbers

355
Q

Wraparound Mortgage

A

a mortgage that includes a first and second mortgage instead of having two different ones

356
Q

Zoning

A

local government regulations relating to the use of land

MA Real Estate License Definitions (1 decks)

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