Keyword Outline Flashcards
Bundle of rights
Write an interest of having title, such as possession control, exclusion, sell, and of enjoyment. 
Real property
Goes with the property
Generally immovable
Personal property
Goes with the person
Movable
Chattel real
Personal property
Fixture
Was personal, and now real.
MARIA
Method, adaptability, relationship, intentions, agreement.
Trade fixture
Personal because it goes with a business.
Riparian rights
River – moving body of water.
Littoral rights
Lake- body of water standing still
Accretion
Addition of land
Avulsion
Tearing away land.
Reliction
Gradual recession of water leaving land, permanently, uncovered.
Appurtenance
Runs with the land
Freehold estate
No fixed duration of ownership
Fee simple estate
Highest possible ownership
Also known as fee simple absolute.
Fee simple, defeasible
Possesses the property as a fee, simple subject to a condition.
Life estate
Ownership of land, for the duration of the persons life.
Less than freehold estate
Limited period of time
Estate for years
Define period of time
For example 6 months or July 3 to September 8.
Periodic tenancy
Period to period . Such as month-to-month.
Estate at will
End at any time
Estate at sufferance
A landlord is suffering as tenant in possession past agreed upon time.
Lease
Possessions, but not ownership from lessor to lessee
Considered personal property
Percentage lease
Based on a percentage of gross receipts.
Net lease
Tenant pay taxes, insurance, and maintenance
Gross lease
Tenant pays fixed amount
Sandwich lease
primary party is lessee and a lessor
Tenant improvement
Allowance to customize, generally, for business purposes
Subleases
Grants possessions, but not responsibility
Assignment
Grants, possessions and responsibility
Surrender
Agreement to return the property to the owner landlord before the leases end.
Constructive eviction
Landlord fails to do something that he/she has a legal duty to provide
Deeds
Evidence of transfer
A grant deed
Transfers of real property from one person or entity to another person or entity. Each party transferring an interest in the property or grantor is required to sign it.
Quit claim deed
Deed releasing a persons, interest with Noelle warranties. typically is nonsense situation.
Warranty deed
Deed that guarantees a clear title to the buyer of real property.
Special warranty deed
Seller only warrants or guarantees the title against defects that may have risen during the period of ownership of the property.
General warranty deed
Seller warrants or guarantees the title against defects that may have a risen during the entire life of the property.
Title
Ownership
Chain of title
History of ownership with shows conveyance and encumbrance
Abstract of title
Summary
Cloud on title
Defect on title
Example, single woman, married
Quiet, title action
Lawsuit in order to establish a parties title
Alienation on title
Capacity of property or a property right to be sold or transferred
Title insurance
Ensure clear and markable titles
Standard policy of title insurance
Standard coverage includes;
Defect phone in public records
Forged documents
Incompetent grantors
Incorrect marital statements
In proper delivery of deeds
ALTA policy of title insurance
Protect real property owners, and mortgage lenders against losses from defects in title
Extended policy of title insurance
Includes everything in standard policy plus defects found in property inspection, which would include on recorded rights of parties in possessions examination survey on recorded liens , not known by policyholder. 
Severalty
Soul ownership
Concurrent estate
Ownership with others
Joint tenancy
TTIP right of survivorship
Tenancy in common
Unity of possession
Encumbrance
Limitation
Easement
Right to cross
Dominant tenement
Gaining the benefit of the easement
Servient tenement
Suffers the burden of the easement
Easement by prescription
Granted, after use the property in a hostile continuous and open manner for a prescribed number of years.
Appurtenance easement
Right to use adjoining property that transfers with the land
Easement in gross
No dominant tenement
Example, ugly powerlines
Government powers
PETE
Police police
Escheat
Taxation
Eminent domain
Police powers
States ability to regulate the for the betterment of the health, safety, morals, and general welfare of the community
Zoning
Police powers that divide and into areas for designated use
Variance
Exceptions to the role
Down zoning
Commercial to residential
Grandfather clause
Exempt from new rule
Non-conforming use
The type of zoning variance, where a parcel land may be given an exemption form. Current zero zoning ordinance due to improvements made by a prior owner, or before the current zoning audience made the desire use. Non-conform use under local law.
Building codes
Protect public health, safety, and general welfare
Escheat
Revisional property to the state when the owner dies without heirs
Interstate
No will
Testate
Has a will
Probate
Executor for estate of a decease person sells property in order to divide the property among the beneficiary
Holographic will
Written by hand
Taxation
Financial charge by a state to fund various public expenditures
Marginal tax rate
Percentage taken from your next dollar of taxable income
1031 tax deferred exchange
Deferred taxes
Identify 45 days acquire within 180 days of closing previous property
Boot
Fair market value of other property received in the exchange
Ad valorem
Latin, for according to value
Eminent domain
Government ability to take private property for public use
Condemnation
Process of compensating, a person which properties taken from by eminent domain
Inverse condemnation
Suing the government for just compensation when properties taken
Liens
Money owned
General liens
Liens against all personal property
Specific liens
Lean that is on a single property
Voluntary lien
Lean that exists because of action taken by a debtor
involuntarily lien
Lean that was in poles on the individual example, taxes, and judgment liens
Mechanic lien
Lean on behalf of those who have supplied labor on materials that improve the property
Judgment lien
Lien placed by court
Lis pendis
Lawsuit Penny involving either the title to the property or claim ownership interest in it
Injunctions
Court orders that compels a party to do or refrain for public acts 
Constructive notice
Signify that a person should have known as a reasonable person would have
Actual notice
Personally, given to somebody
Escrow
Neutral third-party
Debit
Money owned
Credit
Money received
Short rate
 a higher periodic rate for a shorter term that was originally contracted
Impound
Money, set aside by a lender to pay for occurring cost that take property over the loan, such as taxes and insurance
RESPA
Eliminating kickbacks and referral fees, which add unnecessary cost to settlement services
TILA
Inform us of consumer credit
Requires disclosures about its terms, and cost to standardize the manner in which cost associated with borrowing or calculated and disclose
Fair housing act
1968 act banning refusal to sell or rent a dwelling to any person because of race color, religion sex or national origin
Jones vs Meyer
1968 court case that barred all racial discrimination, private, as well as public in the cell or rental or property based on the 13th amendment
Sherman antitrust act
Band anti-competitive behavior such as price fixing
Americans with disability act
1990 act prohibiting discrimination against people with disabilities in employment, transportation, public accommodation, communications, and governmental activities
Material fact
The fact that if known might have caused it by our seller, a real estate to make a different decision
Steering
Buyers – you should live by those people
Blockbusting
Sellers – you better sell because you do not want to buy those people
Panic selling
Sellers – you better sell because you do not wanna live by those people
Red lining
Denying services, such as loan, either directly or through selective rising prices to residential of certain areas, based on race or ethnicity
Misrepresentation
The actions, or offense of giving a false, or misleading account of the nature of something
Actual fraud
Fraud committed with the actual intent of deceived and thereby injured another
Constructive fraud
Person gained an unfair advantage over another by unfair methods
Intent does not need to be shown
Commingling
Mixed of funds
Puffing
Gross exaggeration facts
Caveat emptor
Latin for buyer beware
Essential of a valid contract
Mutual consent, lawful object, consideration capable parties
Void contract
Lacks one of the four essential elements
Avoidable contract
Options to rescind
Bilateral contract
Promise for a promise, example would be an exclusive listing
Unilateral contract
Promise for an act example would be an open listing or an option contract
Executed contract
A contract that has been fully performed
Executory contract
A contract that has not been fully performed
The statues of fraud
States what contracts must be in writing
Statue of the limitation
States time frames for certain contracts
Novation
Latin for new as it relates to contract
Codicil
Amendment
Agency
ACOLD
Accountability
Care
Obedience
Loyalty
Disclosure
Fiduciary
A position of trust, good faith, and honesty
Actual authority
Expressly conferred by a principal to an agent to an act on principal behalf
Ostensible authority
Authority, granted by acceptance of actions on the principles behalf
Dual agent
Buyer and seller have the same broker
General agent
Authorize a perform any, and all acts associated with a job
A real real estate licensee acting in the capacity of a property manager
Special agent
Limited authority, granted to him for her through a principal
Relationship with the principal is not expected to be continuous
Listing contract, create a special agency
Estoppel
Prevents asserting something contrary to what is implied by a previous action or statement
Listing
Biletrtal employment contract
Exclusive, listing
One broker can be paid
No need to show procuring cause in order to to be compensated
Exclusive, agency listing
Owner sells agent gets nothing
You need to show you are in the procuring cards in order to be compensated
Exclusive authorization and right to sell listing
Broker gets paid, if properly, so regardless of occurring causes
Open listing
Seller can hire multiple brokers
Brokers that proves occurring cause may be compensated
Net listing
Money receive above, and beyond a designated amount
Protected period clause
Compensated after listening expires if you can prove you that you are the procuring cause
Contingency clause
Defined the condition or action that may be met in order to for a real estate contract to become binding.
Hold, harmless clause
Also known as a liability, waiver
Agreement whereby parties agree not to hold up other part, responsible for any loss damage or legal liability that may arise under the agreement.
Interim occupancy agreement
Staying after sale
Deposit
Placing something of value to show that you are serious about your offer offer
Value
What a willing buyer will pay on the open market
Essential element of value
STUD
Scarcity
Transferability
Utility
Demand
Principle of substitution
No prudent person would pay very a property when another one readily available that has the same use design and income for less.
Principle of contribution
How much does an item contribute to the net income of the property?
Principle of regression
The value of a more expensive home placed in the neighborhood of less expensive home will drop in value
Principle of progression
Progression states that the value of less expensive properties will increase when placing the area of more expensive properties
Principle of highest and best use
How much of a net return can you get by building on a property?
If they uses temporary, it could then be considered as interm use
Plottage
1+1 = 3
Appraisal
Estimate of value
Narrative appraisal
A comprehensive appraisal report is a complete appraisal
Market data (comprehensive)approach
Examination and comparison of an actual sales of comparable properties
Best used to find value of houses and vacate lots
Cost replacement approach
Find out how much it would cost to replace the building brand
Better for new buildings not old
Capitalization income approach
Convert income to value
A property that can prove to bring more in income when increased the value
 most appropriate for a shopping center
Gross multiplier
Price divided by rent
Cap rate
Higher cap rate represents higher risk
Acre
43, 560
Four little ladies going 35 in a 60
Depreciation
Lost value to any clause
Physical deterioration
Wear and tear
Functional obsolescence
Poor planning
Economic obsolescence
Outside causes
Mortage
A voluntary specific lien
Mortgage brokers
Intermediary between consumers and lenders
Mortgage brokers originally loan, while the mortgage lender funds loan
Mortgage banker
A direct mortgage lender
Interest
Rents on money
Leverage
Borrowed to increase the potential return of an investment
Amotorization
The paying off of debt
Negative amortization
Interest paid, but that increases
Balloon loan
Loan that does not fully amortize over its item
Appreciation
Increase in value overtime
Construction loan
Short term loan used to finance the building over property
Obligatory advances
Money, giving during a construction loan at agreed-upon stages
Participation loan
A loan that requires interest plus a portion of the property as proper payment
Interim loan
Short term financing
Take out loan
Long-term loans replacing interim financing, such as short-term construction loan
Usually mortgages through fix payments that are amortizing
Subject to
Seller liable buyer not liable
Assume
Relieve seller buyer is liable
Hypothecate
Pledging an asset as collateral for loan while retaining ownership
Subordinate clause
Current depths will take priority, over depth made in the future
Prepayment clause
Provisions that permit is borrowed to satisfy that before it is due
Prepayment penalty
Regulates what the borrow is allowed to pay off and when
Due on sale clause
Balance on the loan may be called to repay in full upon sale
Primary mortgage market
Where lenders make mortgage loans directly to borrowers
Secondary mortgage market
Resale marketplace
Insurance companies – as a lender
Prefers income producing properties and long-term large industrial projects
Frequency demand to be able to do a participation loan
Savings and loan association
If state or federally, chartered financial inter dairy that accepts Deposits from the public and investor fund primarily in residential mortgage loans
FHA
Small down payment required
Insure lenders does not make loans
Unconventional loan, because they are backed by the government
No prepayment penalty
Single-family homes, 1-4 units owner occupied
VA loan
Does not require a down payment however, the lender can require one
Owner occupied, house, condominium, or townhouse
GNMA
A governmental part of the secondary market that deals primarily and recycling, VA and FHA mortgages
FNMA
Deadly sponsored, private, corporation, which provides a secondary market for housing mortgage
