Key Concepts Flashcards
Encroachment
Physical Intrusion of structure or improvement in the land of others,
Cost Approach
Best way to determine value if there’s no prior history ( New buildings only)
The Assessed Value
Assess value is for tax purposes
FHA Insurance
Only applies to residential properties
Inverse Condemnation
Taking action against the goverment for taking private property but failing to pay compensation.
Goverment Power
PETE; Police power, Eminent domain, Taxation, Escheat
The Bundle of Rights
The total collection of rights which may be claimed by private ownership;
nonconforming use.
Basically it means that businesses and buildings that were in compliance before the new code was established may continue to operate or exist under their present owners. However, if the Stone’s want to sell their business, it must be to an enterprise that meets the new requirement.
Warehousing
the process whereby banks and other lenders make mortgage loans to consumers for the purpose of quickly selling those loans on the secondary market.
Economic Obsolescence.
when factors unrelated to the property itself, and outside of the owner’s control, diminish its value.
Truth in Lending (Regulation Z)
is intended to do away with deceptive financing tactics, especially those involving hidden costs-
Freehold estates
The distinctive characteristic of freehold estates is that they endure for an interminable duration.
Acre
There are 43,560 square feet in an acre.
Restrictive covenants
are created by neighborhood developers or associations to ensure that the neighborhood maintains certain standards.
Open Listing
a property whose owner is using multiple real estate agents in a nonexclusive arrangement. In another meaning, open listing refers to a property being sold directly by the owner, with no agent involved at all.
Reconveyance deed
removes a lien and is evidence a trust deed has been paid in full when it is signed by the trustee
Trustee
an individual person or member of a board given control or powers of administration of property in trust with a legal obligation to administer it solely for the purposes specified.
Reverse mortgage
option for individuals 62 or older who want to transform equity in their property into cash through a mortgage.
Appurtenances
All rights and privileges belonging to the land (air, soil, water, etc.) are appurtenances.
Fixture
are articles of personal property that are attached (screwed in, etc.) and become real property.
Note
is a promise of real property, kept by the lender to secure the loan.
Severance
converting real property to personal property.
Which lien is required by law to be paid first?
Government entities make sure they are the first ones to get a crack at the money when repayment becomes possible.
Contingencies
are a part of the contract of sale that allows a buyer or seller to get out of the contract without penalty in the case of certain specified events.
Testimonium
part of a deed contains warranties, if applicable.
Habendum
Sometimes called the “to have and to hold clause,” the habendum describes the limits of the estate being granted.
Quitclaim deed
the grantor gives up his property rights without implying he has or ever had any rights.
Title
title indicates ownership, it is not a physical thing. The deed is the physical proof of a title.
Real Property
Things attached to the property and the property itself
Personal Property
Things that aren’t attached to the property and are movable. Example: Sofa, Dining table
Trade Fixture
Fixture attached to the buisnees. For example Hair Stylist Chair
Riparian Rights
rights an owner has when living bsiede a river or lake
Accretion
Increase of land naturally
Avulsion
The sudden lost of property do to water damage
Reliction
Gradually recession of water leaving land permanently uncovered
Severalty
one person owns the property
Fee Simple Defeasible
the ownership is dependent on specific conditions. If the conditions of ownership are violated, the property may be returned to the grantor or to a specified third party.
Marketable Title
free and clear of any defects or clouds that a reasonable buyer would find objectionable
Fee Simple Absolute
The greatest possible estate in land, wherein the owner has the right to use it, exclusively possess it, commit waste upon it, dispose of it by deed or will, and take its fruits.
Allodial System
Land is held under the allodial system in the United States.
Proration
describes the division of real estate expenses according to the proportion of ownership or rental.
Foreclosure
is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.
Acceleration Clause
the part of your mortgage agreement that defines the conditions under which the lender can demand repayment of the loan in full
Deed in lieu of foreclosure
is a document that transfers the title of a property from the property owner to their lender in exchange for being relieved of the mortgage debt.
Deficiency Judgment
is a money judgment for the difference between the foreclosure sale price and the total mortgage debt.
Prepayment Penalty Clause
fee that some lenders charge when you pay all or part of your mortgage loan term off early.
Mill Rate
is the amount of tax payable per dollar of the assessed value of a property.
Caca
PIpi con miados
Abutting
Abutting means an area of land or a building has a common boundary with another.
Acceleration clause
allows a lender to require a borrower to repay all of an outstanding loan if payments are not being made
Ad valorem
“according to value.”
Alienation
Alienation is the act of transferring title, ownership, an estate, or an interest in real estate from one party to another.
Alienation clause
states that the borrower must pay the mortgage in full before the borrower can transfer the property.
Amortization
Amortization is when payments divide into equal amounts for the duration of the loan.
Balloon loan
A balloon loan is a mortgage which does not fully amortize over the term.
Building code
Building codes are the rules and standards of properties for the protection of public safety and welfare.
Buyer’s home sale contingency
This contingency allows the buyer to cancel the contract if they are unable to sell their current home in a specified amount of time.
Caveat emptor
“Let the buyer or buyers beware”
Cloud on tittle
something is bad with the title
Abstract tittle
summary of tittle
Chain of tittle
History of ownership
