Definitions Flashcards
Probate
An action of the court to determine the validity and legality of a last will and testament
Escheat
When a person dies with no will and no heirs for his/her estate, and after 15 years the estate reverts back to the State of Hawaii
Devise
A gift of realty by will
Devisee
One who receives gift of real estate by will
Reciprocal Beneficiaries
People who can’t legally marry each other, but are given certain rights as to those who can’t
Forclosure
Procedure where property is sold to satisfy a debt in the event of default in payments or terms
Covenant
A promise in writing
Encumbrance
A claim, lien, charge, or liability legally affecting real property
Assignor
A grantor in a leasehold
Certificate of Title
An opinion of a title from an examiner’s examination who works for a title company
Title examination
A search to determine the quality of a title to real property by searching through public record
Escrow
Process by which money and/or documents are are held by a disinterested 3rd party until completion and satisfaction of a sales contract or escrow instructions have been achieved.
Fee Simple
An estate in real property, by which the owner has absolute ownership of it. That he may dispose of, trade, or will as he chooses.
Leased Fee
The interest and rights of the lessor in a leased real estate
Leasehold
Interest and rights of a tenant in a leased real estate
Mortgage Clause
An insurance policy that protects the interest of the lender even though the buyer is at fault
Promissory note
A written promise to pay a debt as set forth in the writing
FIRPTA (Foreign Investment in Real Property Tax)
Requires that when a seller or entity who is foreign, the buyer must withhold a specific percentage on the amount of the sale price to cover any seller federal tax liability until the buyer comes through with a certificate of exemption or waiver from this law within 14 days of acceptance date. If the buyer doesn’t come through with any of this paper work, escrow is then authorized to withhold and send to IRS
HARPTA (Hawaii Real Property Tax Act)
The law requires that every buyer of Real Hawaii Property to withhold a certain percentage of the sale price from any non-resident seller’s proceeds. This represents the capital gains tax due on the sale of the property. This needs to be sent to the Hawaii Department of Taxation within 20 days.
Usury
Charging more than the maximum rate allowed by law which is 12%
Purchase Money Mortgage
The mortgage given by the buyer to the seller or third party, to secure a portion of the purchase price.
Tenement
All rights that ass with a land after the land is conveyed
Life tenant
The person receiving a life estate
Affidavit
A written statement confirmed by an oath, and could be used as evidence in court
