Glossary J - Z Flashcards
1
Q
Joint Tenancy
A
Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship, i.e., the right to share equally with other surviving joint tenants in the interest of a deceased joint tenant.
2
Q
Judgment Lien
A
A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have the property sold for payment of the amount of the judgment.
3
Q
Junior Mortgage
A
A mortgage recorded subsequently to another mortgage on the same property or made subordinate by agreement to a later recorded mortgage.
4
Q
Land
A
The materials of the earth, whatever may be the ingredients of which it is composed, whether soil,
rock, or other substance, and includes free or unoccupied space for an indefinite distance upwards as well as downwards.
5
Q
Land Trust
A
A legal agreement where a trustee is appointed to maintain ownership of a piece of real property for the benefit of another party.
6
Q
Law
A
The system of rules that a particular country or community recognize as regulating the actions of
its members and may be enforced by the imposition of penalties.
7
Q
Lead
A
A material used in pipes and paint of many older homes. We now know that lead is hazardous to
health. The local environmental protection agency should be consulted for guidelines on handling,
removal and applicable laws
8
Q
Lease
A
A contract between an owner and tenant, setting forth conditions upon which the tenant may occupy and use the property and the term of the occupancy.
9
Q
Leasehold Estate
A
A tenant’s right to occupy real estate during the term of the lease. This is a personal property interest
10
Q
Legal Description
A
A land description recognized by law; a description by which property can be definitely located by reference to government surveys or approved recorded maps.
11
Q
Lessee
A
One who contracts to rent, occupy, and use property under a lease agreement; a tenant.
12
Q
Lessor
A
An owner who enters into a lease agreement with a tenant; a landlord.
13
Q
Letter of Intent (LOI)
A
Generally an agreement to agree. It outlines the terms between parties who have not formalized an agreement into a contract. LOIs are generally not binding and unenforceable.
14
Q
Leverage
A
The use of borrowed capital (mortgage) to increase the potential return of an investment.
15
Q
Lien
A
A form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation.
16
Q
Life Estate
A
An estate or interest in real property, which is held for the duration of the life of some certain person. It may be limited by the life of the person holding it or by the life of some other person.
17
Q
Life Tenant
A
The owner of a life estate.
18
Q
Limited Liability Company (LLC)
A
A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation
19
Q
Liquidated Damages
A
A sum agreed upon by the parties to be full damages if a certain event occurs.
20
Q
Listing
A
An employment contract between principal and agent authorizing the agent to perform services for the principal involving the latter’s property; listing contracts are entered into for the purpose of securing
persons to buy, lease, or rent property. Employment of an agent by a prospective purchaser or lessee to
locate property for purchase or lease may be considered a listing.
21
Q
Littoral Rights
A
The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on.
22
Q
Living Trust
A
An agreement where the trustee holds the legal possession of an asset (e.g. real estate) that belongs to another person, the beneficiary, and it is created while the person is alive.
23
Q
Loan to Value Ratio (LTV)
A
The percentage of a property’s value that a lender can or may loan to a borrower
24
Q
Lot and Blocks
A
A legal description of land used for plotted properties, stating the number, lot, and block in a particular sub-division.
25
Lot Area
The area (in square feet) of a zoning lot.
26
Lot Coverage
That portion of a zoning lot which, when viewed from above, is covered by a building.
27
Loyalty
An agent’s duty to place the client’s interest above those of all others, including the agent’s own self-interest.
28
Management Agreement
A contract between the owner of a property and someone who agrees to manage it.
29
Management Proposal
A document that sets forth the duties of the manager when employed by the owner.
30
Market Allocation
An agreement between members of a trade to refrain from competition in specific market areas.
31
Market Value
The highest price in terms of money which a property will bring in a competitive and open market and under all conditions required for a fair sale, i.e., the buyer and seller acting prudently, knowledgeably and neither affected by undue pressures.
32
Marketable Title
Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept.
33
Master Plan
A long-term planning document. It establishes the framework and key elements of a site reflecting a clear vision created and adopted in an open process. It synthesizes civic goals and the public’s aspirations for a project, gives them form and organization, and defines a realistic plan for implementation, including subsequent approvals by public agencies.
34
Mechanic’s Lien
A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property.
35
Metes and Bounds
A term used in describing the boundary lines of land, setting forth all the boundary lines together with their terminal points and angles. Metes (length or measurements) and Bounds (boundaries) description is often used when a great deal of accuracy is required.
36
Mineral Rights
A landowner’s right to receive a portion of the profits of any minerals that are extracted from the land.
37
Mobile Home
A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system
38
Modular
A system for the construction of dwellings and other improvements to real property through the
on-site assembly of component parts (modules) that have been mass produced away from the building
site.
39
Mortgage
An instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation.
40
Mortgage Banker
A person whose principal business is the originating, financing, closing, selling and servicing of loans secured by real property for institutional lenders on a contractual basis.
41
Mortgage Broker
A broker who arranges a mortgage loan between a lender and a borrower for a fee.
42
Mortgage Insurance Premium (MIP)
The amount paid by a mortgagor for mortgage insurance on an FHA-insured loan.
43
Mortgagee
One to whom a mortgagor gives a mortgage to secure a loan or performance of an obligation; a lender or creditor.
44
Mortgagor
One who gives a mortgage on his or her property to secure a loan or assure performance of an obligation; a borrower.
45
Multiple Listing Service
An association of real estate agents providing for a pooling of listings and the sharing of commissions on a specified basis.
46
Net Lease
A lease requiring a lessee to pay charges against the property such as taxes, insurance and maintenance costs in addition to rental payments.
47
Net Listing
A listing which provides that the agent may retain as compensation for agent’s services all sums received over and above a net price to the owner.
48
Novation
The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties.
49
Obedience
his fiduciary relationship obligates the agent to act in good faith at all times, obeying the client’s instructions in accordance with the contract.
50
Offer and Acceptance
Elements required for the formation of a legally binding contract. The expression of an offer to contract on certain terms by one person (the “offeror”) to another person (the “offeree”), and an indication by the offeree of its acceptance of those terms.
51
Open Listing
An authorization given by a property owner to a real estate agent wherein said agent is given the nonexclusive right to secure a purchaser; open listings may be given to any number of agents without liability to compensate any except the one who first secures a buyer ready, willing, and able to meet the terms of the listing, or secures the acceptance by the seller of a satisfactory offer.
52
Operating Budget
An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively
53
Operating Budget
An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively
54
Opinion of Title
An attorney’s written evaluation of the condition of the title to a parcel of land after examination of the abstract of title.
55
Ostensible Agency
A person who has been given the appearance of being an employee or acting (an agent) for another (principal), which would make anyone dealing with the ostensible agent reasonably believe he/she was an employee or agent.
56
Package Mortgage
A method of financing in which the loan that finances the purchase of a home also finances the purchase of personal items such as a washer and dryer, refrigerators, stove, and other specified appliances.
57
Partition
A division of real or personal property or the proceeds therefrom among co-owners.
58
Partnership
An arrangement in which two or more individuals share the profits and liabilities of a business venture
59
Percentage Lease
Lease on the property, the rental for which is determined by the amount of business done by the lessee; usually a percentage of gross receipts from the business with provisions for a minimum rent.
60
Periodic Estate
An interest in land where there is no definite termination date but the rental period is
fixed at a certain sum per week, month, or year. Also called an estate from period to period.
61
Personal Property
Any property which is not real property.
62
Police Power – The right of the State to enact laws and enforce them for the order, safety, health, morals
and general welfare of the public.
The right of the State to enact laws and enforce them for the order, safety, health, morals
and general welfare of the public.
63
Pre-Approval
A step above pre-qualification, an evaluation of a potential borrower by a lender that determines whether the borrower qualifies for a loan from the lender, or the maximum amount that the
lender would be willing to lend.
64
Pre-Qualification
A process whereby a loan officer takes information from a borrower and makes a
tentative assessment of how much the lending institution is willing to lend them
65
Prepayment Penalty
The charge payable to a lender by a borrower under the terms of the loan agreement if the borrower pays off the outstanding principal balance of the loan prior to its maturity
66
Preventive Maintenance
Keeping property and equipment in a good state of repair so as to minimize the need for more costly repair work or replacement.
67
Price
The amount a purchaser agrees to pay and a seller agrees to accept in an arm’s length transaction
68
Price Fixing
Conspiring to establish fixed fees or prices for services or products.
69
Primary Mortgage Market
The marketplace whereby loans are originated.
70
Principal
The employer of an agent, such as a buyer or seller.
71
Principle of Anticipation
Affirms that value is created by anticipated benefits to be derived in the future.
72
Principle of Change
Holds that it is the future, not the past, which is of prime importance in estimating value. Change is largely the result of cause and effect.
73
Principle of Conformity
Holds that the maximum of value is realized when a reasonable degree of, homogeneity of improvements is present. Use conformity is desirable, creating and maintaining higher values.
74
Principle of Contribution
A component part of a property is valued in proportion to its contribution to the value of the whole. Holds that maximum values are achieved when the improvements on a site produce the highest (net) return, commensurate with the investment.
75
Principle of Progression
The worth of a lesser valued residence tends to be enhanced by association with higher valued residences in the same area.
76
Principle of Substitution
Affirms that the maximum value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property, assuming no costly delay is encountered in making the substitution.
77
Priority of Lien
The order in which liens are given legal precedence or preference.
78
Private Mortgage Insurance (PMI)
Mortgage guaranty insurance available to conventional lenders on the first, high risk portion of a loan.
79
Probate
The official proving of a will. The legal process wherein the estate of a decedent is administered.
80
Promissory Note
Following a loan commitment from the lender, the borrower signs a note, promising to repay the loan under stipulated terms. The promissory note establishes personal liability for its payment. The evidence of the debt.
81
Promissory Note
Following a loan commitment from the lender, the borrower signs a note, promising to repay the loan under stipulated terms. The promissory note establishes personal liability for its
payment. The evidence of the debt.
82
Property Management
A branch of the real estate business involving the marketing, operation, maintenance and day-to-day financing of rental properties.
83
Property Management Report
An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period.
84
Property Manager
A person who manages properties for an owner as the owner’s agent.
85
Property Manager
A person who manages properties for an owner as the owner’s agent.
86
Quitclaim Deed
A deed to relinquish any interest in property which the grantor may have, without any warranty of title or interest.
87
Radon – A colorless, odorless gas that is emitted from soils, rocks and water as a result of radioactive
decay in certain areas of the country
A colorless, odorless gas that is emitted from soils, rocks and water as a result of radioactive decay in certain areas of the country
88
Real Estate
Land plus anything permanently attached to land.
89
Real Estate Broker
A person or an organization acting as the agent for others in negotiating the purchase and sale of real property for a fee.
90
Real Estate Salesperson
An individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker
91
Real Estate Settlement Procedures Act (RESPA)
A federal law requiring the disclosure to borrowers
of settlement (closing) procedures and costs by means of a pamphlet and forms prescribed by the United
States Department of Housing and Urban
Development.
92
Real Estate Syndicate
An organization of investors usually in the form of a limited partnership who have joined together for the purpose of pooling capital for the acquisition of real property interests.
93
Real Property
Land, things affixed to land, appurtenances, plus the bundle of rights.
94
Reasonable Care
The degree of caution and concern for the safety of himself/herself and others an ordinarily prudent and rational person would use in the circumstances. This is a subjective test of determining if a person is negligent, meaning he/she did not exercise reasonable care.
95
Reconciliation
The final stage in the appraisal process where the appraiser reviews the data and estimates the subject property’s value.
96
Recording
The process of placing a document on file with a designated public official for public notice. This public official is usually a county officer known as the County Recorder who designates the fact that a document has been presented for recording by placing a recording stamp upon it indicating the time of day and the date when it was officially place on file. Documents filed with the Recorder are considered to
be placed on open notice to the general public of that county.
97
Redemption
Buying back one’s property after a judicial sale.
98
Redlining
An illegal lending policy of denying real estate loans on properties in older, changing urban areas, usually with large minority populations, because of alleged higher lending risks without due consideration being given by the lending institution to the credit worthiness of the individual loan applicant.
99
Remainder
An estate which takes effect after the termination of the prior estate, such as a life estate. A future possessory interest in real estate.
100
Remainderman
A person who inherits or is entitled to inherit property upon the termination of the estate of the former owner
101
Rescission
The cancellation of a contract and restoration of the parties to the same position they held before the contract was entered into.
102
Reversionary Interest
The interest which a person has in lands or other property, upon the termination of the preceding estate. A future interest.
103
Right of Survivorship
The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant; the distinguishing feature of a joint tenancy.
104
Riparian Rights
The right of a landowner whose land borders on a stream or watercourse to use and enjoy the water which is adjacent to or flows over the owner’s land provided such use does not injure other riparian owners.
105
Sales Comparison Approach
A valuation method which compares a subject property’s characteristics with those of comparable properties which have recently sold in similar transactions.
106
Satisfaction of Mortgage (Release of Mortgage)
The discharge of a mortgage from the records upon
| payment of the debt.
107
Scarcity
A lack of supply.
108
Secondary Mortgage Market
The market where lenders sell their loans to the large secondary marketing agencies (FNMA, FHLMC, and GNMA) or to other investors.
109
Section
Section of land is established by government survey, contains 640 acres and is one mile square
110
Servient Tenement
A parcel of real property that is encumbered by an easement of a dominant estate.
111
Severalty Ownership
Real property that is owned by only one person. Sole ownership.
112
Sheriff’s Deed
A deed given by court order in connection with the sale of a property to satisfy a judgment.
113
Sherman Anti-Trust Act
Federal legislation including imposition of civil and punitive damages for antitrust activities.
114
Short Sale
A seller’s attempt to sell the real estate whereby the liens are greater than the value of the property.
115
Single Agent
An agent who works only for the buyer or the seller.
116
Special Agent
An agent with limited authority to act on behalf of the principal, such as created by a listing contract
117
Special Assessment
An assessment made against a property to pay for a public improvement by which the assessed property is supposed to be especially benefited.
118
Special Assessment Districts
A geographic area in which the market value of real estate is enhanced due to the influence of a public improvement and in which a tax is apportioned to recover the costs of the public improvement.
119
Special Warranty Deed
A deed in which the grantor warrants or guarantees the title only against defects arising during the grantor’s ownership of the property and not against defects existing before the time of the grantor’s ownership.
120
Specific Lien
A lien that attaches to one specific property only.
121
Specific Performance
An action to compel performance of an agreement, e.g., sale of land as an alternative to damages or rescission.
122
Section
Section of land is established by government survey, contains 640 acres and is one mile square
123
Statute of Limitations
A statute prescribing a period of limitations for the bringing of certain kinds of legal actions.
124
Statutory Lien
A charge or claim upon property that arises by virtue of specific statutes that address the relationship between the property owner and the party given the ability to place the lien.
125
Steering
The practice in which real estate brokers guide prospective home buyers towards or away from certain neighborhoods based on their race. Steering is highly illegal.
126
Straight Line Depreciation
A method of depreciation under which improvements are depreciated at a constant rate throughout the estimated useful life of the improvement
127
Straight Note
A note in which a borrower repays the principal in a lump sum at maturity while interest is paid in installments or at maturity.
128
Subagent
A person upon whom the powers of an agent have been conferred, not by the principal, but by an agent as authorized by the agent’s principal.
129
Subdivision Regulations
The control of the division of a tract of land into individual lots by requiring development according to specific standards and procedures adopted by local ordinances.
130
Sublease
A lease given by a lessee.
131
Subordinate
The make subject to, or junior or inferior to.
132
Subordination Agreement
An agreement by the holder of an encumbrance against real property to permit that claim to take an inferior position to other encumbrances against the property.
133
Supply
The amount of a certain good or service that is available in the market.
134
Survey
The process by which a parcel of land is measured and its area is ascertained; also the blueprint showing the measurements, boundaries and area.
135
Tax
Enforced charge extracted of personal, corporations and organizations by the government to be used to support government services and programs.
136
Tax Assessor
An elected or appointed official of a county, city, town or village whose function is to value real property for the purposes of taxation
137
Tax-Deferred Exchange
The trade or exchange of one real property for another without the need to pay income taxes on the gain at the time of trade.
138
Tax Lien
A lien imposed by law upon a property to secure the payment of taxes.
139
Tenancy by the Entireties
Under certain state laws, ownership of property acquired by a husband and wife during marriage, which property is jointly and equally owned. Upon death of one spouse it becomes the property of the survivor.
140
Tenancy in Common
Co-ownership of property by two or more persons who each hold an undivided interest, without right of survivorship; interest need not be equal.
141
Testamentary Trust
A trust which arises upon the death of the testator, and which is specified in his or her will.
142
Testate
Having made a valid will before one dies.
143
Testator
One who makes a will.
144
Testers
Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers.
145
Tie-in Arrangement
A contract where a transaction depends upon another.
146
Time is of the Essence
A condition of a contract expressing the essential nature of performance of the contract by a party in a specified period of time.
147
Time-Share
A form of subdivision of real property into rights to the recurrent, exclusive use or occupancy of a lot, parcel, unit, or segment of real property, on an annual or some other periodic basis, for a specified period of time.
148
Time Value of Money
The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.
149
Title Insurance
Insurance to protect a real property owner or lender up to a specified amount against certain types of loses, e.g., defective or unmarketable title.
150
Townships
In the survey of public lands of the United States, a territorial subdivision six miles long, six miles wide and containing 36 sections, each one mile square, located between two range lines and two township lines.
151
Trade Fixture
Articles of personal property annexed by a business tenant to real property which are necessary to the carrying on of a trade and are removable by the tenant.
152
Transferability
The ability to transfer ownership of property from one person to another.
153
Trust
A legal relationship under which title to property is transferred to a person known as a trustee.
154
Trustee
The third party under a deed of trust; A person who holds title to property for the benefit of another called a beneficiary.
155
Trustor
One who borrows money from a trust deed lender, then deeds the real property securing the loan to a trustee to be held as security until the trustor has performed the obligation to the lender under terms of a deed of trust; A person who conveys title to a trustee
156
Truth-in-Lending Act (TILA)
The name given to the federal statutes and regulations (Regulation Z) which are designed primarily to ensure that prospective borrowers and purchasers of credit receive credit cost information before entering into a transaction.
157
Underground Storage Tank
A tank and any underground piping connected to the tank that has at least 10 percent of its combined volume underground.
158
Underwriter
An individual at a lending institution who determines credit worthiness in order to qualify an applicant for a loan.
159
Underwriting
The criteria with which a lender determines the credit worthiness in order to qualify them for the loan
160
Uniform Commercial Code
Establishes a unified and comprehensive method for regulation of security transactions in personal property, superseding the existing statutes on chattel mortgages, conditional sales, trust receipts, assignment of accounts receivable and others in this field.
161
Unilateral Contract
A contract in which one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it; the contract is formed only if the other party does perform the requested ac
162
Universal Agent
The agent who has complete authority over any activity of the principal; for example, power of attorney.
163
Urea Formaldehyde Foam Insulation (UFFI)
A type of foamed in-place insulation that releases
formaldehyde gas. It was banned by the Consumer Public Safety Commission in 1982 from use in
residences and schools. Holding that the risks had not been proven, a Federal Court lifted the ban in
1983. The local consumer and/or environmental protection agency should be consulted for additional
information on this type of insulation.
164
Usury
On a loan, claiming a rate of interest greater than that permitted by law.
165
Utility
The ability to give satisfaction and/or excite desire for possession.
166
VA Guaranteed Loan
A loan made to qualified veterans for the purchase of real property wherein the Department of Veteran’s Affairs guarantees the lender payment of the mortgage.
167
Valid
Having force, or binding force; legally sufficient and authorized by law.
168
Value
Present worth of future benefits arising out of ownership to typical users/investors.
169
Value
Present worth of future benefits arising out of ownership to typical users/investors.
170
Variance
The authorization to improve or develop a particular property in a manner not authorized by zoning
171
Void
To have no force or effect; that which is unenforceable.
172
Voidable
That which is capable of being adjudged void, but is not void unless action is taken to make it so.
173
Voluntary Alienation
Transfer of title to an asset with the consent of the owner.
174
Voluntary Lien
Any lien placed on property with consent of, or as a result of, the voluntary act of the owner
175
Warranty Deed
A deed used to convey real property which contains warranties of title and quiet possession, and the grantor thus agrees to defend the premises against the lawful claims of third persons.
176
Wrap-around Mortgage
A form of secondary financing for the purchase of real property. The seller extends to the buyer a junior mortgage which wraps around the existing in addition to any superior mortgages already secured by the property.
177
Yard Setbacks
A required open area along the property lines of a zoning lot, which must be unobstructed from the lowest level to the sky. Yard setbacks ensure light and air between buildings.
178
Yield
The interest earned by an investor on an investment (or by a bank on money it has loaned). Also, called return.
179
Zoning
The separation or division of a city or town into districts, the regulation of buildings and structures in such districts in accordance with their construction and the nature and extent of their use, and the dedication of such districts to particular uses designated to serve the general welfare.
180
Zoning District
A mapped residential, commercial, or manufacturing district with similar use, bulk and density regulations
181
Zoning Maps
Maps that indicate the location and boundaries of zoning districts within a municipality.
182
Zoning Ordinance
A statement setting forth the type of use permitted under each zoning classification and specific requirements for compliance.
