national Flashcards
emblements
annual crops cultivated by a tenant that is treated as the tenants personal property
Borrower
Mortgagor
sherman antitrust act
prohibits: price-fixing group boycotting market allocation tie-in agreements
ad valorem
according to value
appurtenance
- item that is attached to something
- something installed on property that is passed on to new owner when sold
appurtenant easement
easement that runs with the land
arbitration
- way to resolve disputes
- 2 homeowners want to resolve issue and dont want to involve courts
attorny-in-fact
avulsion
adding or tearing away land by natural causes
blockbusting
- agents sell houses at low price to 1 race and sell those same houses at a much higher price to a minority
- the practice of persuading owners to sell property cheaply because of the fear of people of another race or class moving into the neighborhood, and thus profiting by reselling at a higher price
caveat emptor
Latin for “Let the buyers beware”.
Buyer is responsible for checking the quality of a product before purchase
cetris peribus
“other things equal”
all things remaining constant
Chatell
personal property
community property
laws based on idea that husband and wife are equal, separate, partners rather than 1 whole
CERCLA
Comprehensive Environmental Response, Compensation, and Liability Act of 1980
Also known as Superfund
US federal program fund to cleanup contaminated sites with hazardous substances and pollutants
Condemnation
procedure used by public or private entity with powers granted from eminent domain to take privately owned real estate
constructive eviction
a landlord fails to do something he has legal duty to provide
ex) landlord doesnt fix heating unit, tenant files
constructive fraud
ignorance, lying without knowing
defeasance clause
required contract provision that ensures that the title for the property is transferred to the buyer, once the morgtage is fully paid off.
Easement
a right to use land of another for a specific purpose, like driving through
eminent domain
right of the government to take over privately owned real estate for public use
encumbrance
involuntary lien on the property
equitable title
interest held by one party to purchase property BEFORE closing
escheat
when property owner dies and leaves no heirs, property reverts to government
estate in sufferance
tenant stays after term is expired
estate at will
- no formal or written agreements
- can be terminated at any time
- estate is indefinite
express contract
when both parties legally establish an agency relationship
-most common agency relationship
Fannie Mae
Federal National Mortgage Association
Buys 2ndary market mortgages, bundles them and sells to investors
defeasible estate
condition added on fee simple estate
-if condition is met, estate may be lost
functional obsolescense
loss of property value due to obsolete design feature
Government survey system
rectangular survey system
sets of 2 intersecting lines
gross lease
tenant pays fixed amount
-owner pays all expenses
gross rent multiplier (GRM)
Property sale price / gross annual rental income = GRM
Habendum Clause
statement in a contract that describes the rights and interests being given
joint tenancy
interest of deceased owner automatically gets transferred to the remaining surviving owners
latent defect
defect not discoverable by normal inspection, but is known of be the seller or homeowner
lis pendens
notice of a potential future lien
Littoral rights
rights for landowners whose land borders navigable lakes and oceans
lot and block
legal description for areas densely populated. starts with large tract of land that has already been described by another form of survey system.
metes-and-bounds
boundaries of a parcel of real estate identified by its natural landmarks and physical features
mill rate
amount of tax payable per dollar of the assessed value of the property
mortgage lien
- voluntary
- specific
- most common type of voluntary real estate lien
periodic tenancy
leasehold agreement that specifies an initial period of tenancy and the length of the agreement but does not end after the specified period. This type of leasehold agreement renews automatically
promissory note
IOU
-note states the terms of the loan, interest, # of years which the borrow has to pay back the loan
quitclaim deed
- contains no title covenant and thus offers the grantee no warranty as to the status of the property title
- quickest/simple way to transfer title
- between family members
release clause
provision typically in blanket mortgages that allows for the freeing of all or part of a property from a claim through a mortgage being paid off.
Restrictive covenants (CCR)
limit the use of a particular property or subdivision to maintain the look and feel of the community
Riparian rights
landowners whose properties adjoin a river or stream, have the right to make reasonable use of it if it flows through or over
servient estate
- parcel of land that is subject to an easement (property giving usage)
- serves the dominant estate
- the land that benefits from an easement over the servient estate is the dominant estate
special warranty deed
grantor (sellers) warrants only against defects occurring during their ownership.
special agent
- agent hired to perform specific duty
- power and authority is limited to that specific task
- most real estate agents
subordination clause
establishes order of priorities of financial claims
tax lien
placed on real estate for unpaid estate taxes
tenancy in common
death of tenant in common, share is transferred to estate of heir
tenants by the entirety
husband and wife inherits the others spouses interest upon death.
trustee
-manage a trust
Universal agent
- can act on behalf of principal with complete power
- replace principal
valid contract
meets all legal requirements and is legally enforceable
variance
deviate from current zoning requirements
void contract
-lacks one or more legal requirement
voidable contract
contract appears valid on the surface, but is not
ex) contract with forged signature
voidable contract
contract appears valid on the surface, but is not
ex) contract with forged signature
voluntary alienation
transfer of title with owners consent
ex) executing a will, gifting, selling the property
warranty deed
deed where grantor (seller) guarantees that he or she holds clear title and has a right to sell it
general agent
- can perform acts with principal’s business that they have been appointed to act in.
- agency relationship is continuous and ongoing
- property manager
- relationship ends when contract ends
special warranty deeds
only warranties and guarantees during the time that the seller owned it
Fannie Mae
-buy FHA insured mortgages from lenders
ginnie mae
- special assistance programs
- ensure liquidity for US government insured mortgages
easements in gross
-utility companies
easement by necessity
- created by court
- when someone must cross over someone elses property to gain access to their property
- become appurtenance easement and runs with the land
easement by prescription
- created by actions of 1 person against the interest of another person.
- when the action has been done for a long period of time, judge grants easement
- open and notorious
- hostile
- implied permission because the person didnt say anything for a long time
wrap around mortgages
- secondary financing for purchase of property
- junior mortgage that is paid after senior mortgage
- seller financed deal with promissary note
- buyer pays installments that include principal and interest
4 Government Powers
Police Power
- zoning
- building codes
Eminent Domain
-government takes control of property if for the good of the community/ public use
-compensation of property is through process of CONDEMNATION
Taxation
Escheat
-property transferred to government if no will to heirs
annexation
-personal property converting to real estate once it is permanently attached or annexed to land
Testate vs Intestate
testate = will intestate= no will
mechanic lien
specific lien
judgement
involuntary lien
special assessments
statutory and special lien
-taxes levied on real estate to fund public improvements
probate
legal procedure verifying the validity of a will
-for title to pass to the devisees
