Missing Vocab Flashcards
Triple Net Lease
A lease commonly found in a building with a single, long-term tenant.
Habendum Clause
A clause in a deed or lease that defines the type of interest and rights to be enjoyed by the grantee or lessee. Also known as the “to have and to hold” clause.
Bond beam
Concrete set in soil.
Architectural Review Board
Oversees and upholds the quality and aesthetics of a neighborhood, town, or city.
Tax Assessor
Responsible for determining a municipality’s tax rate.
Common charges
Monthly payment by owner of a condominium.
Sponsor
The developer or owner organizing and offering for sale a condominium or cooperative development
RESPA (Real Estate Settlement Procedures Act) – Consumer protection statute passed in 1974.
Purpose: 1) Help consumers become better shoppers for settlement services
2) Eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services.
Requires: 1) Good Faith Estimate (GFE) of the closing costs for federally funded loans
2) HUD Booklet
3) HUD-1 Form
If one has a possessory interest in property, that individual cannot own…?
Easement
Affirmative Easement Appurtenant
Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access.
Delivery and Acceptance
Legal policy mandates that a deed to real property be a matter of public record; therefore, subsequent to delivery and acceptance, a deed must be property recorded.
Closing Statement
A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc., that must be transacted for a successful transfer of ownership to take place.
Attorney Review Clause
Clause found in real estate contracts that may allow buyers to walk away from an agreed upon sale for any reason.
Satisfaction of Mortgage
A document acknowledging the payment of a mortgage debt.
Certificate of Occupancy (CO)
A document issued by a governmental authority that a building is ready and fit for occupancy.
Beam
Horizontal structural member that supports a floor. Beams are typically wood, cold formed metal framing or steel.
Bearing walls
Structural walls that transfer building loads down to the foundations. Joists, beams, and roofs are typically supported by bearing walls.
Construction Drawings
Drawings produced by Architects that describe the QUANTITIES of a building.
Specifications
A written document produced by an Architect that described the QUALITY of construction for a building.
Mandated warranty for a new constructions according to NYS General Business Law 36-B:
1) 1 year of workmanship
2) 6 years of material defects
3) 2 years for plumbing, electrical and HVAC systems
Title X
A Federal law that makes real estate licensees liable for the disclosure of lead paint.
Asbestos
A naturally occurring mineral fiber sometimes found in older homes. It is hazardous to health when a possibility exists of exposure to inhalable fibers. Homeowners should be alert for friable asbestos and always seek professional advice in dealing with it.
Asbestosis
A chronic lung disease caused by inhaling asbestos fibers.
Clean Air Act (CAA)
Federal law designed to control air pollution on a national level.
Cost Approach
A method of estimating the value of real property by calculating a current construction cost, subtracting accrued depreciation and adding a land value obtained from the market.
-Used for specialized properties that don’t have many comparables.
Such as: Church or Library
Income Approach
An appraisal technique whereby the value of an income producing property is estimated by capitalizing its net operating income using an appropriate capitalization rate. Value=Income/Rate
-Commonly used in commercial properties.
Sales Comparison Approach
Valuation method which compares a subject property’s characteristics with those of comparable properties which have recently sold in similar transactions.
Brown vs. Board of Education
Determined Separate is NOT Equal.
Planning Board
Responsible for developing and controlling a municipality’s comprehensive strategy for growth and development.
The Office of Receiver of Taxes
Responsible for collecting taxes.
Building Department
A town or city that oversees and reviews building applications by licensed professionals to ensure compliance with local building code and zoning ordinances
Deductible
The amount of expenses that must be paid out of pocket before an insurer will pay any expenses.
Levy
An assessment of tax.
Assessed value
A valuation placed upon property by a public officer or a board, as a basis for taxation.
The Offering Plan
A key document provided during the purchase of a cooperative, which includes information required to be disclosed to the purchaser.
Board package
A series of documents submitted for review by a cooperative board.
By-laws
The owner’s rights and obligations for a condominium.
Condo owners rights
House rules
Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, pets, and conflict resolution.
Maintenance
Monthly payments by a shareholder to a cooperative corporation.
Pro-forma Statement
An accounting statement that forecasts income and expenses for a period of a time, typically five or more years.
Cap Rate
The capitalization rate, often just called the cap rate, is the ratio of Net Operating Income (NOI) to property asset value.
NOI/ property asset value.
Gross Income
The total amount collected from rents and other income producing opportunities.
Capital Gain
A profit that results from the sale of a property where the amount realized from the sale exceeds the purchase price.
Boot
Cash received in a tax-deferred exchange.
1031 Exchange
- 45 days to identify a new property
- 180 days to close on a new property
Mortgage Broker
An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages.
Mortgage Banker
A company, individual or institution that originates mortgages. Mortgage bankers use their own funds, or funds borrowed from a warehouse lender, to fund mortgages.
Operating Budget
An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively.
Down Payment
Anyone who holds down payment must place it in separate escrow account. Following people generally hold it: -Listing agent -Seller's attorney -Selling broker
Bridge Loan/Swing Loan
Type of SHORT-TERM loan, typically taken out for period 2 weeks to 3 years.
-Type of gap mortgage in which funds are provided over and above an already existing loan until a more permanent financing is in place.
-Allows a buyer to obtain a new property without having to sell his/her current property.
Ex: What type of financing is used to purchase a new property when the old property hasn’t been sold yet?
Regulation Z/Truth in Lending Act of 1968
U.S. Federal law designated to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.
TILA Requires four main disclosures:
1) Annual percentage rate
2) Finance charge
3) Amount financed
4) Total amt of money to be paid toward the mortgage in principal and interest payments.
SUMMARY WORD: DISCLOSURE
Zoning Board of Appeals
Local appointed board that has the power to review administrative rulings made by the planning board or another legislative body. One main duty is to maintain the essential character of the neighborhoods. Interpreter of the zoning ordinance. The zoning board of appeals is also responsible for granting variances.
Granting Variances
Responsibility of the Zoning Board of Appeals
Roof Pitch
AKA Slope. Typically used in describing the slope of a roof, driveway, sidewalk, etc
Roof Components
Pitch- slope of roof.
Eave- lowest part of the roof that project beyond wall of the structure
Soffit- Area under the roof extension.
Fascia- Area of material facing outer edge of the soffit.
Sheathing- Placed over the roof rafters, used to enclose the roof and stiffen the roofing system. Typically of plywood or exterior grade gypsum board.
PCB’s (Polychlorinated biphenyls)
PCBs widely used as dielectric and coolant fluids, in transformers, capacitors, and electric motors. PCBs known to leak into the ground from electrical transformers. Appear in groundwater and soil.
Ex: What carcinogenic component was used as insulation in electrical transformers that contaminated soil and groundwater? PCB’s
Market Value
Most probable price that a property should bring if exposed for sale in the open market for a reasonable period of time, with both buyer and seller aware of current market conditions, neither being under duress.
Market value is driven by supply and demand in the competitive marketplace.
Comparative Market Analysis (CMA)
Property evaluation that determines property value by comparing similar properties sold within the last year. I.E. Analysis of the competition in the marketplace that a property will face upon attempts. CMA is NOT an appraisal. Instead, it is an opinion of value.
1 Hectare
2.47
Municipal Engineer’s Office
Perform basic functions:
1) Estimate costs of paving, sewers and sidewalks, and other public work projects.
2) Supervise streets and other public works activities
3) Issue permits to private contractors for street openings and curb and gutter construction.
4) Assume responsibility for sewage, water supply, distribution systems.
i.e. Oversees planning and construction of major highways, sewer systems, and water connections
NYS Department of Health
Performs:
1) Drinking water safety, including standards for private and community well construction and well water safety and regulation.
2) Septic tank approval.
3) Certain wastewater treatment approval
Architectural Review Board
Oversees and upholds the quality and aesthetics of a neighborhood, town or city.
1) Approves new construction and remodeling following local zoning ordinance laws.
2) Promotes the orderly and harmonious development of the municipality.
3) Protects a municipality’s cultural heritage.
Historic Preservation/Landmark Commissions
Established to review proposed projects within historic districts for compliance with standards established for new development or alteration or improvement of historic buildings and landmarks.
Functions:
1) Recommend to municipality the adoption of ordinances preserving historic districts, landmarks, and historic sites.
2) Review and approve application for construction, alteration, demolition, and relocation of a historical property.
3) Recognize sub-districts within a preservation district. Allows the commission to adopt guidelines regulating properties in the sub-district.
Planning Board
Local elected or appointed gov’t board charged with recommending to the local town or city council the boundaries of the various zoning districts and appropriate regulations to be enforced therein.
Functions:
1) Prepare and amend master plan for the community
2) Implement the master plan through site plan and subdivision ordinances and recommendations to other agencies.
3) Make investigations, maps and reports, and recommendations that relate to the planning and devlpmnt of the municipality
4) Recommend amendments to the zoning ordinance or map
Exemptions to Licensure
Building superintendents or maintenance workers who perform tasks such as rent collecting for one owner, entity or company.
Execution and Foreclosure of a Lien
Lien= a claim or encumbrance on a property for payment of some debt, obligation or duty Qualified right that a creditor has in or over specific property of a debtor as security for the debt or for performance of some act. Right to retain property for payment of a debt.
Priority is based upon the time [day and hour] liens were recorded in office of county clerk.
Mechanic and Materialmen’s
Specific liens which if for residential property must be filed with the county clerk, within 4 months of when labor or materials was furnished.
Mechanic’s lien must be renewed annually.
Lis Pendens
Filing that gives legal notice that a lawsuit has been filed concerning the specific property.
(Lien Pending)
Laws of Intestacy
When person dies and leaves no valid will, determines the order in which the property is distributed to the heirs.
