Module 10 Flashcards
An estimate of the value of the property to be purchased for an FHA loan
Conditional Commitment
A deed that conveys any interest in a piece of real property the grantor has at the time the deed is executed
Quitclaim Deed
A brief, chronological summary of the recorded documents affecting title to a particular parcel of real property
Abstract of Title
A contract that one of the parties can disaffirm, without liability, because of a lack of legal capacity
Voidable
A property developed for co-ownership, where each co-owner has a separate interest in an individual unit, and an undivided interest in the common areas of the property
Condominium
A co-tenants interest, giving him the right to possession of the whole property, rather than a particular section of it
Undivided Interest
The illegal practice of inducing owners to sell their homes (often at a deflated price) by suggesting the ethnic or racial composition of the neighborhood is changing, with the implication that property values will decline as a result
Blockbusting
One who is licensed to represent another person in a real estate transaction with intent to receive compensation or valuable consideration
Broker
A financial encumbrance of the owner’s title
Lien
Physical land and everything attached to it
Real Estate
An ownership interest giving the owner a right to possession of the property only for a specific, limited periods
Time Share
A future interest held by the grantor that becomes possessory when a temporary estate terminates
Reversion
Channeling prospective buyers or tenants to a particular neighborhood based on their race
Steering
A charge for use of money
Interest
An antitrust violation that occurs when two or more competitors agree on what they will charge
Price-Fixing
When a tenant transfers only part of his or her right of possession to another person for part of the remaining lease term
Sublease
A person to whom an offer is made
Offeree
A form of co-ownership in which the co-owners have equal undivided interests and the right of survivorship
Joint Tenancy
A note that calls for payments of interest only during the note’s term
Straight Note
When a broker or salesperson represents both parties in a transaction
Dual Agent
When a lender refuses to make mortgage loans in a certain neighborhood because of its ethnic or racial composition
Redlining
Naturally occurring plants, generally considered part of real property
Fructus Naturales
The effect when a loan balance grows because of deferred interest when payments are not covering the interest portion of the loan
Negative Amortization
A real estate installment agreement where the vendee makes payments to the vendor in exchange for the right to occupy, use, and enjoy the land but no deed or title transfers until all or specified portion of payments have been made
Land Contract
Loan where the interest rate remains constant for the duration of the loan
Fixed Rate Loan
A person working with a fair housing organization who pretends to be interested in buying or renting property from someone suspected of unlawful discrimination
Checker
The effect when loan balance grows because of deferred interest when payments are not covering the interest portion of the loan
Negative Amortization
A form of co-ownership in which the co-owners have equal undivided interest and the right of survivorship
Joint Tenancy
Anyone who is authorized to act on behalf of someone else
Agent
A right that goes along with ownership of real property
Appurtenance
A defect that is not visible or apparent; hidden defect that would not be discovered in a thorough inspection of property
Latent defect
A system in which things of value are held by a disinterested third party until specified conditions are met
Escrow
An appraisal method which estimates the value of real estate by analyzing the amount of revenue it does or could generate
Income approach
Someone selling property by means of a land contract
Vendor
Illegally mixing monty held in trust on behalf of a client with personal funds
Commingling
When a new buyer takes over the seller’s existing mortgage loan
Assumption of Mortgage
An intentional misrepresentation or concealment of a material fact
Actual Fraud
A future interest held by the grantor that becomes possessory when a temporary estate terminates
Reversion
A form of co-ownership in which two or more persons each have an undivided interest by the entire property (unity of possession), but no right of survivorship
Tenancy in Common
A title that is free and clear from undisclosed encumbrances or other defects that would expose a purchaser to litigation or impede a purchaser’s ability to enjoy the property or to later sell the property
Marketable Title
Knowledge of a fact imputed to a person by law
Constructive Notice
An acre is a measure of land area that is equal to
43,560 square feet
A party in a transaction to whom an agent does not have a fiduciary relationship with
Customer
An item of personal property that has been attached to or closely associated with real property in such a way that it has legally become part of the real peroperty
Fixture
A listing agreement that entitles the broker to a commission if anyone other that the seller finds a buyer
Exclusive Agency
The relationship between the cost of borrowing money and the total amount financed
APR
A mortgage that permits the lender to periodically change the interest rate to reflect fluctuations in the cost of money
ARM
A legal proceeding relieving the debtor of the responsibility of paying for his or her debts
Bankruptcy
A person who leases property to another
Lessor
A zoning law that effectively prevents certain groups from living in a community
Exclusionary Zoning
When a lienholder causes property to be sold, so that the unpaid debt secured by the lien can be satisfied from the sale proceeds
Foreclosure
A form of property co-ownership by husband and wife, in which each spouse has an undivided one-half interest without the other’s consent
Tenancy by Entireties
A non-possessory interest in property burdening the property owner’s title
Encumbrance
A brief chronological summary of the recorded documents affecting title to a particular parcel of real property
Abstract of Title
The act of taking private property for public use
Condemnation
A contract in which both parties have fully performed their contractual obligations
Executed
An interest created in property upon the execution of a valid sales contract, whereby actual title will be transferred by deed at a future date (closing).
Equitable Title
Fees assessed by a lender to compensate for interest income lost if the buyer pays off a long-term loan early
Prepayment Penalties
A note and mortgage given by a buyer to a seller when the seller finances all or part of the sales price for the buyer
Purchase Money Mortgage
When a seller keeps the existing loan and continues to pay on it while giving the buyer another mortgage loan
Wraparound mortgage
A person signing a document and formally declaring to an authorized official (usually a notary public) that she signed voluntarily
Acknowledgement
Loans that follow the criteria set by the secondary markets
Conforming Loan
Equipment a tenant installs for use in his or her business
Trade Fixture
A type of estate conveying ownership interest that comes with a condition
Defeasible Fee
Water rights of landowners whose land touches a natural body of water such as a stream, a river, or inland lake
Riparian Rights
Substantial additions to real property, such as buildings
Improvements
When lenders sell mortgages to investors in order to receive funds to make additional mortgage loans
Secondary Mortgage Market
A guarantee included in a deed that the grantor really owns the property
Seizen
A physical object intruding onto neighboring property, often due to a mistake regarding the boundary
Encroachment
Permission granted to a property owner by the zoning authority, allowing some deviation from strict compliance with the zoning law
Variance
A non-exclusive listing given by a seller to as many brokers as he or she chooses
Open
An interest that gives the holder, the tenant, a temporary right to exclusive possession of the estate, without title
Leasehold
Personal property associated with real property in such a way that the law treats it as a fixture
Annexation
A mortgage that occurs between one mortgage and the beginning of the next
Bridge Mortgage
