NY Real Estate Flashcards
Article 12-A of the NYS Real Property Law
The section of the New York Real Property Law pertaining to real estate salespersons and brokers.
Summary of Your Submission
Obtained after you register for the New York State
1 Hectare
2.47 Acres
1031 Exchange
45 days to identify a new property
1988 Amendment to Civil Rights Act
Added 2 new protected classes:
Abstract of Title
A summary of all of the recorded instruments and proceedings which affect the title to a property, arranged in the order in which they were recorded.
Accountability
One of the more serious fiduciary responsibilities.
Acre
43,560 sq. ft
Adjustable Rate Mortage (ARM)
A mortage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.
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.
Agency by Estoppel
Exists when a principal does not stop an individual from representing them thus creating an agency relationship between the two.
Air rights
Rights in real property to use the space above the surface of the land.
Amortization
The process by which a loan principal decreases over the life of a loan.
Appraisal
An estimate of a property’s value by an appraiser who is usually presumed to be expert in his work.
APR
The actual interest rate charged, including loan fees and points.
Architectural Review Board
Oversees and upholds the quality and aesthetics of a neighborhood, town or city.
Architectural Review Board
Oversees and upholds the quality and aesthetics of a neighborhood, town, or city.
Area irregularly shaped lot
Break down lot into shapes, and add the areas of each together!
Area of a rectangle
width x depth
Area of a square
1 side x 1 side
Area of a triangle [triangle
1/2 of rectangle]
Article 12-A
Article in IRS Code section 3508
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.
Assessed value
A valuation placed upon property by a public officer or a board, as a basis for taxation.
Attorney Review Clause
Clause found in real estate contracts that may allow buyers to walk away from an agreed upon sale for any reason.
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.
Blockbusting
Practice of inducing homeowners in particular neighborhood to sell their homes quickly, often at below market prices, by creating the fear that the entry of a minority group or groups into the neighborhood will cause precipitous decline in property values.
Blockbusting
The practice of inducing homeowners in a particular neighborhood to sell their homes quickly, often at below market rates, by creating the fear that the entry of a minority group or groups into the neighborhood will cause a precipitous decline in property values.
Board package
A series of documents submitted for review by a cooperative board.
Bond beam
Concrete set in soil.
Boot
Cash received in a tax-deferred exchange.
Bridge Loan/Swing Loan
Type of SHORT-TERM loan, typically taken out for period 2 weeks to 3 years.
Brown vs. Board of Education
Determined Separate is NOT Equal.
Building Codes
Primary purpose is to ensure a safe, properly functioning environment for the occupants. NY Code provides minimum standards for all buildings in NY. If Federal or City building code is more stringent on particular issue, the more stringent Code will supersede the State code.
Building Codes
Regulates construction standards in NYS.
Building Codes
Regulations established by state or local governments stating fully that structural requirements for building.
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.
Bundle of Rights
The premise that the ownership of real estate consists of the ownership of the various rights associated with it. These rights include the right to use and/or copy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing.
By-laws
The owner’s rights and obligations for a condominium.
Cap Rate
NOI/Purchase Price
Capital Gain
A profit that results from the sale of a property where the amount realized from the sale exceeds the purchase price.
Certificate of Occupancy (CO)
A document issued by a governmental authority that a building is ready and fit for occupancy.
Chain of Title
The sequence of historical transfers of title to a property. It runs from the present owner back to the original owner of the property.
Circuit breaker
The safety valves for electrical systems.
Civil Rights Act of 1866
Has no exemptions and contains the blanket statements that ‘citizens have the same rights to inherit, buy, sell, or lease real and personal property.’ *Primarily interpreted to prohibit racial discrimination.
Clean Air Act (CAA)
Federal law designed to control air pollution on a national level.
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.
Common charges
Monthly payment by owner of a condominium.
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.
Condemnation
Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain.
Condominium
Considered real property, which is conveyed by a deed.
Confidentiality
All confidential information as described by the client must remain so unless given permission in writing.
Construction Drawings
Drawings produced by Architects that describe the QUANTITIES of a building.
Contract Requirements NYS
Must be 18 years old, if younger it is voidable.
Conveyance
The transfer of the title from one to another. The means or medium by which title of real estate is transferred.
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.
Debt-to-Income ratio
Percentage of a consumer’s monthly gross income that goes towards paying debts. Formula: Recurring monthly debt/Gross Monthly Income
Deductible
The amount of expenses that must be paid out of pocket before an insurer will pay any expenses.
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.
Disclosure of Information
Agent must communicate with client/must present all offers.
Disclosure Regarding Real Estate Agency Relationships Form
A written explanation, to
Down Payment
Anyone who holds down payment must place it in separate escrow account.
Earnest money deposit
Deposit that a buyer makes at the time of submitting an offer to demonstrate the true intent of the purchase, also referred to as a binder, good faith deposit, and escrow deposit.
Easement in Gross
Ex: Utility Company
Easement
A right to cross or otherwise use someone else’s property for a specified person.
Eminent domain
Right of the gov’t to acquire property for necessary public use by condemnation; the owner must be fairly compensated.
Encumbrance
Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation.
Encumbrance
Anything that lessens the bundle of rights. i.e. a lien or a mortgage.
Escalation Clause
A clause that allows landlord to raise rents during the term of the lease. Call for the increased costs to the tenant for different reasons at specified times during the lease term. Clauses protect the property owner against increases during the lease term.
Essential Elements of a Contract
1) Consideration
Estate for Years
A leasehold estate for any specific period of time. An estate for years is not automatically renewed.
Eviction
Legal proceeding by a lessor landlord to recover possession of leased property after the expiration of the lease term.
Exclusive Agency
An agreement of employment of a broker to the exclusion of all other brokers; if sale is made by any other broker during term of employment, broker holding
Exclusive Right to Sell
An agreement of employment by a broker under which the exclusive right to sell for a specified period is granted to the broker; if a sale during the term of the agreement is made by the owner or by any other broker, the broker holding such exclusive right to sell if nevertheless ENTITLED TO COMPENSATION.
Execution and Foreclosure of a Lien
Lien
Exemptions to Licensure
Building superintendents or maintenance workers who perform tasks such as rent collecting for one owner, entity or company.
Express Contract
A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration)
Fair Housing Act of 1968
Federal prohibition that protects buyer/renter of a dwelling from seller/landlord discrimination with regards to race, color, religion, gender, national origin, familial status, or disability.
Fee Simple Estates
Absolute ownership of a real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person’s life and descending to the person’s heirs or distributees.
Fiduciary
A person who on behalf of or for the benefit of another transacts business or
Fixed Rate Mortgage
Accounts for the majority of mortgages.
Full Covenant and Warranty Deed
A type of deed where the grantor guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee. This type of deed contains the strongest guarantee of title.
Full Covenant and Warranty Deed
Deed contains the broadest form of guarantee of title of any type of deed and provides the greatest protection to the grantee.
Fuse
Device used in electrical systems to protect against excessive current. Fuse melts and opens the circuit, causing electrical power to stop when overheating occurs. Circuit breakers perform a similar function but are more convenient and safer than fuses.
General Agent
Someone authorized to transact every kind of business for the principal. Ex: Property Manager
General Agent
Specific range of tasks, but multiple, not same as special agent who has narrow authorization like a real estate agent
Granting Variances
Responsibility of the Zoning Board of Appeals
Gross Income
The total amount collected from rents and other income producing opportunities.
Ground lease
Agreement in which a tenant is permitted to develop a piece of property during the lease period, after which the land and all improvements are turned over to the property owner. This long -term lease (also referred to as land lease) is commonly used for commercial property.
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.
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.
House rules
Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, pets, and conflict resolution.
If one has a possessory interest in property, that individual cannot own…?
Easement
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
Independent Contractor Relationship
- A person that provides services to another under
Independent Contractor
Sales agents can be provided with Office Phones by their sponsoring broker.
Laws of Intestacy
When person dies and leaves no valid will, determines the order in which the property is distributed to the heirs.
Lead
A material used in pipes and paint of many older homes.
Legal Description
The deed must contain an adequate formal legal description. The legal description describes where the property is located and the size of the lot. There are 3 acceptable types of property descriptions:
Leverage
The use of borrowed capital (mortgage) to increase the potential return of an investment.
Levy
An assessment of tax.
Liquid
The ability to have cash readily available to support the demands of running and maintaining real property.
Lis Pendens
Filing that gives legal notice that a lawsuit has been filed concerning the specific property.
Listing Agreement
An employment contract between principal and agent, authorizing the
Littoral Rights
The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on.
Loft lease
Lease for the rental of floor space that is not generally divided into rooms.
Loyalty
Agent must work in the best interest of the client.
LTV (Loan-to-Value)
Financial term used by lenders to express the ratio of a loan to the value of an asset (property) purchased.
Maintenance
Monthly payments by a shareholder to a cooperative corporation.
Management Agreement
A contract between the owner of a property and someone who agrees to manage it.
Mandated warranty for a new constructions according to NYS General Business Law 36-B:
1) 1 year of workmanship
Market Allocation
An agreement between members of a trade conspiring to refrain from competition in specific market areas.
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.
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
Security interest in the title to property for the benefit of those who have supplied labor or materials to improve the property.
Metes and Bounds
Metes: distances from point to point. Bounds: directions from one point to another.
Misdemeanor
- A crime punishable by up to a year in prison and/or a $1,000 fine.
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.
Mortgage Broker
An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages.
Mortgage Contingency Clause
A clause in a contract that states a mortgage must be obtained in order for the contract to be binding.
Mortgage Lien
Example of a specific lien.
Mortgage
Legal Agreement by which a bank lends money in exchange for taking title of the debtor’s property, with the condition that the conveyance of title becomes void upon payment of the debt.
Mortgagor
Borrower
Municipal Engineer’s Office
Perform basic functions:
Negative Amortization
Occurs when the monthly payment is less than full interest and does not pay any principal. The interest that is unpaid accrues and the principal balance owed increases.
Non-conforming use
When pre-existing use of property in a zoned area is different from that specified zoning. The existing use is not as-of-right.
NYS Department of Financial Services
Registers and licenses all companies and individuals who conduct mortgage related services in New York.
NYS Department of Health
Performs:
Obedience
Agent must act in accordance to clients demands/instructions.
Obsolescence
One cause of depreciation. Loss of desirability and usefulness caused by new inventions, changes in design, and improved processes for production, or from the influence of external factors. Obsolescence may be either economic or functional. Functional obsolescence can be outdated design or floor plan.
OLD CAR
- Obedience - Loyalty - Disclosure - Confidentiality - Accountability - Reasonable Care
Operating Budget
An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively.
Ownership in Severalty
Title to real estate is in the name of only ONE person or entity, it is an estate ownership in severalty… i.e. single individual owns real estate, therefore is ‘severed’ from all others.
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.
Percentage Lease
Lease of property in which rental is based upon percentage of the volume of sales made upon the leased premises, usually provides for minimal rent.
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.
Planning Board
Responsible for developing and controlling a municipality’s comprehensive strategy for growth and development.
Pocket Card
A card issued by the Department of State to each licensee which contains the
Police Power
The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public.
Prepayment Penalty Clause
States that the borrower can pay off the loan at any time before expiration of the full mortgage term without a financial penalty for early payoff.
Price Fixing
Conspiring to establish fixed fees or prices for services or products.
Secondary Mortgage Market
Primary mortgage market is lending institution where mortgage originates.
Principal
The employer of an agent or broker; the broker’s or agent’s client.
Pro-forma Statement
An accounting statement that forecasts income and expenses for a period of a time, typically five or more years.
Property Condition Disclosure Statement
The Property Condition Disclosure Statement Act requires the seller to submit to the buyer, a “PCDStatement” prior to signing the contract of sale. If statement is not signed the seller owes the buyers $500 credit against the purchase price of the property.
Property Management Report
An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period.
Proration
The division of certain settlement costs between buyer and seller.
Quitclaim Deed
A deed which conveys simply the grantor’s rights or interest in real estate, without any agreement or covenant as to the nature or extent of that interest, or any other covenants; usually used to remove a cloud from the title.
Quitclaim Deed
Contains no warranties whatsoever, its just a deed of release.
Radon
A colorless, odorless gas that is emitted from soils, rocks and water as a result of radioactive decay in certain areas of the country.
Reasonable Care
Agent may be liable for costly mistakes.
Red-lining
The refusal to lend money within a specific area for various reasons.
Redlining
Refusal to lend money within a specific area for various reasons. ILLEGAL. Before the Fair Housing Act, some lenders circled certain local areas with a red line on a map, refusing to make loans within the circled areas based on some characteristics of property owners in the area.
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.
Replacement costs
Replacement costs means that the insured is covered and reimbursed for the actual cost of replacing the damaged property.
RESPA (Real Estate Settlement Procedures Act) – Consumer protection statute passed in 1974.
Purpose: 1) Help consumers become better shoppers for settlement services
Right-of-way
Privilege operating as an easement upon land, whereby owner does by grant or agreement, give to another the right to pass over owner’s land, t construct a roadway, or use as a roadway, a specific part of the land; OR the right to construct over or throough the land, telephone, telegraph, or electric power lines; OR the right to place underground water, gas mains or sewer mains.
Riparian Rights
The right of a property owner whose land borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property. Riparian literally means “riverbank.”
Roof Components
Pitch- slope of roof.
Roof Pitch
AKA Slope. Typically used in describing the slope of a roof, driveway, sidewalk, etc.
Sales Comparison Approach
Valuation method which compares a subject property’s characteristics with those of comparable properties which have recently sold in similar transactions.
Satisfaction of Mortgage
A document acknowledging the payment of a mortgage debt.
Secondary Mortgage Market
The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators (securitizers) and investors.
Share in a Cooperative Unit
Considered a proprietary lease and personal property (NOT real property.)
Siding
Siding materials on buildings can be metal (such as aluminum), wood or vinyl. Behind the siding is a layer of sheathing.
Special Agent
Ex: Real Estate Agent/Broker
Specific Lien
A lien that only binds to a specific asset or property. Ex: Mortgage.
Specific lien
Attach to one or more listed properties, secured by a particular parcel of real estate and affects only that property. Taxes, mortgages, mechanic’s lien, etc.
Specifications/Blueprints
Specifications- A document provided by Architects that describes the QUALITY of construction. Blueprints- Architectural drawings that describe the layout and construction of a house. These drawings describe the layout and construction of a house. These drawings describe the QUANTITIES used in construction.
Specifications
A written document produced by an Architect that described the QUALITY of construction for a building.
Sponsor
A licensed real estate broker that holds the license of a salesperson.
Sponsor
The developer or owner organizing and offering for sale a condominium or cooperative development.
Straight-line depreciation
A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year.
Stud
Vertical framing members found in wall construction. Typically placed 12”, 16” or 24” on center.
Sub-agent
A person appointed by an agent with permission of the principal (seller) to assist in performing some or all of the tasks of the agency.
Tax Assessor
Responsible for determining a municipality’s tax rate.
Tax Lien
A lien imposed by law upon a property to secure the payment of taxes.
Tax Shelter
Any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments.
Testers
Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers.
The Offering Plan
A key document provided during the purchase of a cooperative, which includes information required to be disclosed to the purchaser.
The Office of Receiver of Taxes
Responsible for collecting taxes.
Title X
A Federal law that makes real estate licensees liable for the disclosure of lead paint.
Title
Legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest.
Triple Net Lease
A lease commonly found in a building with a single, long-term tenant.
Umbrella Policy
Insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain sum. Also called excess insurance.
Variance
The authorization to improve or develop a particular property in a manner not authorized by zoning.
Voluntary Lien
A contractual or consensual lien that is created by an action taken by the debtor, such as a mortgage loan to buy real estate. Ex: Mortgage
Wraparound Mortgage
Form of secondary financing for the purchase of real property. The seller extends to the buyer a junior mortgage which wraps around the existing in addition to any superior mortgages already secured by the property.
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.
Zoning
Determines the usage allowed for a building or subdivision. Also determines the ‘bulk’ of a house or a building, meaning the maximum size of the structure (height, square footage, size of floor plate).
The section of the New York Real Property Law pertaining to real estate salespersons and brokers.
Article 12-A of the NYS Real Property Law
Obtained after you register for the New York State
Summary of Your Submission
2.47 Acres
1 Hectare
45 days to identify a new property
1031 Exchange
Added 2 new protected classes:
1988 Amendment to Civil Rights Act
A summary of all of the recorded instruments and proceedings which affect the title to a property, arranged in the order in which they were recorded.
Abstract of Title
One of the more serious fiduciary responsibilities.
Accountability
43,560 sq. ft
Acre
A mortage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.
Adjustable Rate Mortage (ARM)
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.
Affirmative Easement Appurtenant
Exists when a principal does not stop an individual from representing them thus creating an agency relationship between the two.
Agency by Estoppel
Rights in real property to use the space above the surface of the land.
Air rights
The process by which a loan principal decreases over the life of a loan.
Amortization
An estimate of a property’s value by an appraiser who is usually presumed to be expert in his work.
Appraisal
The actual interest rate charged, including loan fees and points.
APR
Oversees and upholds the quality and aesthetics of a neighborhood, town or city.
Architectural Review Board
Oversees and upholds the quality and aesthetics of a neighborhood, town, or city.
Architectural Review Board
Break down lot into shapes, and add the areas of each together!
Area irregularly shaped lot
width x depth
Area of a rectangle
1 side x 1 side
Area of a square
1/2 of rectangle]
Area of a triangle [triangle
Article in IRS Code section 3508
Article 12-A
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.
Asbestos
A chronic lung disease caused by inhaling asbestos fibers.
Asbestosis
A valuation placed upon property by a public officer or a board, as a basis for taxation.
Assessed value
Clause found in real estate contracts that may allow buyers to walk away from an agreed upon sale for any reason.
Attorney Review Clause
Horizontal structural member that supports a floor. Beams are typically wood, cold formed metal framing or steel.
Beam
Structural walls that transfer building loads down to the foundations. Joists, beams, and roofs are typically supported by bearing walls.
Bearing walls
Practice of inducing homeowners in particular neighborhood to sell their homes quickly, often at below market prices, by creating the fear that the entry of a minority group or groups into the neighborhood will cause precipitous decline in property values.
Blockbusting
The practice of inducing homeowners in a particular neighborhood to sell their homes quickly, often at below market rates, by creating the fear that the entry of a minority group or groups into the neighborhood will cause a precipitous decline in property values.
Blockbusting
A series of documents submitted for review by a cooperative board.
Board package
Concrete set in soil.
Bond beam
Cash received in a tax-deferred exchange.
Boot
Type of SHORT-TERM loan, typically taken out for period 2 weeks to 3 years.
Bridge Loan/Swing Loan
Determined Separate is NOT Equal.
Brown vs. Board of Education
Primary purpose is to ensure a safe, properly functioning environment for the occupants. NY Code provides minimum standards for all buildings in NY. If Federal or City building code is more stringent on particular issue, the more stringent Code will supersede the State code.
Building Codes
Regulates construction standards in NYS.
Building Codes
Regulations established by state or local governments stating fully that structural requirements for building.
Building Codes
A town or city that oversees and reviews building applications by licensed professionals to ensure compliance with local building code and zoning ordinances.
Building Department
The premise that the ownership of real estate consists of the ownership of the various rights associated with it. These rights include the right to use and/or copy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing.
Bundle of Rights
The owner’s rights and obligations for a condominium.
By-laws
NOI/Purchase Price
Cap Rate
A profit that results from the sale of a property where the amount realized from the sale exceeds the purchase price.
Capital Gain
A document issued by a governmental authority that a building is ready and fit for occupancy.
Certificate of Occupancy (CO)
The sequence of historical transfers of title to a property. It runs from the present owner back to the original owner of the property.
Chain of Title
The safety valves for electrical systems.
Circuit breaker
Has no exemptions and contains the blanket statements that ‘citizens have the same rights to inherit, buy, sell, or lease real and personal property.’ *Primarily interpreted to prohibit racial discrimination.
Civil Rights Act of 1866
Federal law designed to control air pollution on a national level.
Clean Air Act (CAA)
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.
Closing Statement
Monthly payment by owner of a condominium.
Common charges
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.
Comparative Market Analysis (CMA)
Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain.
Condemnation
Considered real property, which is conveyed by a deed.
Condominium
All confidential information as described by the client must remain so unless given permission in writing.
Confidentiality
Drawings produced by Architects that describe the QUANTITIES of a building.
Construction Drawings
Must be 18 years old, if younger it is voidable.
Contract Requirements NYS
The transfer of the title from one to another. The means or medium by which title of real estate is transferred.
Conveyance
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.
Cost Approach
Percentage of a consumer’s monthly gross income that goes towards paying debts. Formula: Recurring monthly debt/Gross Monthly Income
Debt-to-Income ratio
The amount of expenses that must be paid out of pocket before an insurer will pay any expenses.
Deductible
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.
Delivery and Acceptance
Agent must communicate with client/must present all offers.
Disclosure of Information
A written explanation, to
Disclosure Regarding Real Estate Agency Relationships Form
Anyone who holds down payment must place it in separate escrow account.
Down Payment
Deposit that a buyer makes at the time of submitting an offer to demonstrate the true intent of the purchase, also referred to as a binder, good faith deposit, and escrow deposit.
Earnest money deposit
Ex: Utility Company
Easement in Gross
A right to cross or otherwise use someone else’s property for a specified person.
Easement
Right of the gov’t to acquire property for necessary public use by condemnation; the owner must be fairly compensated.
Eminent domain
Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation.
Encumbrance
Anything that lessens the bundle of rights. i.e. a lien or a mortgage.
Encumbrance
A clause that allows landlord to raise rents during the term of the lease. Call for the increased costs to the tenant for different reasons at specified times during the lease term. Clauses protect the property owner against increases during the lease term.
Escalation Clause
1) Consideration
Essential Elements of a Contract
A leasehold estate for any specific period of time. An estate for years is not automatically renewed.
Estate for Years
Legal proceeding by a lessor landlord to recover possession of leased property after the expiration of the lease term.
Eviction
An agreement of employment of a broker to the exclusion of all other brokers; if sale is made by any other broker during term of employment, broker holding
Exclusive Agency
An agreement of employment by a broker under which the exclusive right to sell for a specified period is granted to the broker; if a sale during the term of the agreement is made by the owner or by any other broker, the broker holding such exclusive right to sell if nevertheless ENTITLED TO COMPENSATION.
Exclusive Right to Sell
Lien
Execution and Foreclosure of a Lien
Building superintendents or maintenance workers who perform tasks such as rent collecting for one owner, entity or company.
Exemptions to Licensure
A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration)
Express Contract
Federal prohibition that protects buyer/renter of a dwelling from seller/landlord discrimination with regards to race, color, religion, gender, national origin, familial status, or disability.
Fair Housing Act of 1968
Absolute ownership of a real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person’s life and descending to the person’s heirs or distributees.
Fee Simple Estates
A person who on behalf of or for the benefit of another transacts business or
Fiduciary
Accounts for the majority of mortgages.
Fixed Rate Mortgage
A type of deed where the grantor guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee. This type of deed contains the strongest guarantee of title.
Full Covenant and Warranty Deed
Deed contains the broadest form of guarantee of title of any type of deed and provides the greatest protection to the grantee.
Full Covenant and Warranty Deed
Device used in electrical systems to protect against excessive current. Fuse melts and opens the circuit, causing electrical power to stop when overheating occurs. Circuit breakers perform a similar function but are more convenient and safer than fuses.
Fuse
Someone authorized to transact every kind of business for the principal. Ex: Property Manager
General Agent
Specific range of tasks, but multiple, not same as special agent who has narrow authorization like a real estate agent
General Agent
Responsibility of the Zoning Board of Appeals
Granting Variances
The total amount collected from rents and other income producing opportunities.
Gross Income
Agreement in which a tenant is permitted to develop a piece of property during the lease period, after which the land and all improvements are turned over to the property owner. This long -term lease (also referred to as land lease) is commonly used for commercial property.
Ground lease
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.
Habendum Clause
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.
Historic Preservation/Landmark Commissions
Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, pets, and conflict resolution.
House rules
Easement
If one has a possessory interest in property, that individual cannot own…?
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 Approach
- A person that provides services to another under
Independent Contractor Relationship
Sales agents can be provided with Office Phones by their sponsoring broker.
Independent Contractor
When person dies and leaves no valid will, determines the order in which the property is distributed to the heirs.
Laws of Intestacy
A material used in pipes and paint of many older homes.
Lead
The deed must contain an adequate formal legal description. The legal description describes where the property is located and the size of the lot. There are 3 acceptable types of property descriptions:
Legal Description
The use of borrowed capital (mortgage) to increase the potential return of an investment.
Leverage
An assessment of tax.
Levy
The ability to have cash readily available to support the demands of running and maintaining real property.
Liquid
Filing that gives legal notice that a lawsuit has been filed concerning the specific property.
Lis Pendens
An employment contract between principal and agent, authorizing the
Listing Agreement
The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on.
Littoral Rights
Lease for the rental of floor space that is not generally divided into rooms.
Loft lease
Agent must work in the best interest of the client.
Loyalty
Financial term used by lenders to express the ratio of a loan to the value of an asset (property) purchased.
LTV (Loan-to-Value)
Monthly payments by a shareholder to a cooperative corporation.
Maintenance
A contract between the owner of a property and someone who agrees to manage it.
Management Agreement
1) 1 year of workmanship
Mandated warranty for a new constructions according to NYS General Business Law 36-B:
An agreement between members of a trade conspiring to refrain from competition in specific market areas.
Market Allocation
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
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 and Materialmen’s
Security interest in the title to property for the benefit of those who have supplied labor or materials to improve the property.
Mechanic’s Lien
Metes: distances from point to point. Bounds: directions from one point to another.
Metes and Bounds
- A crime punishable by up to a year in prison and/or a $1,000 fine.
Misdemeanor
A company, individual or institution that originates mortgages. Mortgage bankers use their own funds, or funds borrowed from a warehouse lender, to fund mortgages.
Mortgage Banker
An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages.
Mortgage Broker
A clause in a contract that states a mortgage must be obtained in order for the contract to be binding.
Mortgage Contingency Clause
Example of a specific lien.
Mortgage Lien
Legal Agreement by which a bank lends money in exchange for taking title of the debtor’s property, with the condition that the conveyance of title becomes void upon payment of the debt.
Mortgage
Borrower
Mortgagor
Perform basic functions:
Municipal Engineer’s Office
Occurs when the monthly payment is less than full interest and does not pay any principal. The interest that is unpaid accrues and the principal balance owed increases.
Negative Amortization
When pre-existing use of property in a zoned area is different from that specified zoning. The existing use is not as-of-right.
Non-conforming use
Registers and licenses all companies and individuals who conduct mortgage related services in New York.
NYS Department of Financial Services
Performs:
NYS Department of Health
Agent must act in accordance to clients demands/instructions.
Obedience
One cause of depreciation. Loss of desirability and usefulness caused by new inventions, changes in design, and improved processes for production, or from the influence of external factors. Obsolescence may be either economic or functional. Functional obsolescence can be outdated design or floor plan.
Obsolescence
- Obedience - Loyalty - Disclosure - Confidentiality - Accountability - Reasonable Care
OLD CAR
An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively.
Operating Budget
Title to real estate is in the name of only ONE person or entity, it is an estate ownership in severalty… i.e. single individual owns real estate, therefore is ‘severed’ from all others.
Ownership in Severalty
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.
PCB’s (Polychlorinated biphenyls)
Lease of property in which rental is based upon percentage of the volume of sales made upon the leased premises, usually provides for minimal rent.
Percentage Lease
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.
Planning Board
Responsible for developing and controlling a municipality’s comprehensive strategy for growth and development.
Planning Board
A card issued by the Department of State to each licensee which contains the
Pocket Card
The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public.
Police Power
States that the borrower can pay off the loan at any time before expiration of the full mortgage term without a financial penalty for early payoff.
Prepayment Penalty Clause
Conspiring to establish fixed fees or prices for services or products.
Price Fixing
Primary mortgage market is lending institution where mortgage originates.
Secondary Mortgage Market
The employer of an agent or broker; the broker’s or agent’s client.
Principal
An accounting statement that forecasts income and expenses for a period of a time, typically five or more years.
Pro-forma Statement
The Property Condition Disclosure Statement Act requires the seller to submit to the buyer, a “PCDStatement” prior to signing the contract of sale. If statement is not signed the seller owes the buyers $500 credit against the purchase price of the property.
Property Condition Disclosure Statement
An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period.
Property Management Report
The division of certain settlement costs between buyer and seller.
Proration
A deed which conveys simply the grantor’s rights or interest in real estate, without any agreement or covenant as to the nature or extent of that interest, or any other covenants; usually used to remove a cloud from the title.
Quitclaim Deed
Contains no warranties whatsoever, its just a deed of release.
Quitclaim Deed
A colorless, odorless gas that is emitted from soils, rocks and water as a result of radioactive decay in certain areas of the country.
Radon
Agent may be liable for costly mistakes.
Reasonable Care
The refusal to lend money within a specific area for various reasons.
Red-lining
Refusal to lend money within a specific area for various reasons. ILLEGAL. Before the Fair Housing Act, some lenders circled certain local areas with a red line on a map, refusing to make loans within the circled areas based on some characteristics of property owners in the area.
Redlining
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.
Regulation Z/Truth in Lending Act of 1968
Replacement costs means that the insured is covered and reimbursed for the actual cost of replacing the damaged property.
Replacement costs
Purpose: 1) Help consumers become better shoppers for settlement services
RESPA (Real Estate Settlement Procedures Act) – Consumer protection statute passed in 1974.
Privilege operating as an easement upon land, whereby owner does by grant or agreement, give to another the right to pass over owner’s land, t construct a roadway, or use as a roadway, a specific part of the land; OR the right to construct over or throough the land, telephone, telegraph, or electric power lines; OR the right to place underground water, gas mains or sewer mains.
Right-of-way
The right of a property owner whose land borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property. Riparian literally means “riverbank.”
Riparian Rights
Pitch- slope of roof.
Roof Components
AKA Slope. Typically used in describing the slope of a roof, driveway, sidewalk, etc.
Roof Pitch
Valuation method which compares a subject property’s characteristics with those of comparable properties which have recently sold in similar transactions.
Sales Comparison Approach
A document acknowledging the payment of a mortgage debt.
Satisfaction of Mortgage
The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators (securitizers) and investors.
Secondary Mortgage Market
Considered a proprietary lease and personal property (NOT real property.)
Share in a Cooperative Unit
Siding materials on buildings can be metal (such as aluminum), wood or vinyl. Behind the siding is a layer of sheathing.
Siding
Ex: Real Estate Agent/Broker
Special Agent
A lien that only binds to a specific asset or property. Ex: Mortgage.
Specific Lien
Attach to one or more listed properties, secured by a particular parcel of real estate and affects only that property. Taxes, mortgages, mechanic’s lien, etc.
Specific lien
Specifications- A document provided by Architects that describes the QUALITY of construction. Blueprints- Architectural drawings that describe the layout and construction of a house. These drawings describe the layout and construction of a house. These drawings describe the QUANTITIES used in construction.
Specifications/Blueprints
A written document produced by an Architect that described the QUALITY of construction for a building.
Specifications
A licensed real estate broker that holds the license of a salesperson.
Sponsor
The developer or owner organizing and offering for sale a condominium or cooperative development.
Sponsor
A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year.
Straight-line depreciation
Vertical framing members found in wall construction. Typically placed 12”, 16” or 24” on center.
Stud
A person appointed by an agent with permission of the principal (seller) to assist in performing some or all of the tasks of the agency.
Sub-agent
Responsible for determining a municipality’s tax rate.
Tax Assessor
A lien imposed by law upon a property to secure the payment of taxes.
Tax Lien
Any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments.
Tax Shelter
Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers.
Testers
A key document provided during the purchase of a cooperative, which includes information required to be disclosed to the purchaser.
The Offering Plan
Responsible for collecting taxes.
The Office of Receiver of Taxes
A Federal law that makes real estate licensees liable for the disclosure of lead paint.
Title X
Legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest.
Title
A lease commonly found in a building with a single, long-term tenant.
Triple Net Lease
Insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain sum. Also called excess insurance.
Umbrella Policy
The authorization to improve or develop a particular property in a manner not authorized by zoning.
Variance
A contractual or consensual lien that is created by an action taken by the debtor, such as a mortgage loan to buy real estate. Ex: Mortgage
Voluntary Lien
Form of secondary financing for the purchase of real property. The seller extends to the buyer a junior mortgage which wraps around the existing in addition to any superior mortgages already secured by the property.
Wraparound Mortgage
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.
Zoning Board of Appeals
Determines the usage allowed for a building or subdivision. Also determines the ‘bulk’ of a house or a building, meaning the maximum size of the structure (height, square footage, size of floor plate).
Zoning
