Pre Exam Study - likely on test Flashcards
Any estate for a definite period of time, such as a lease.
Title
Estate for Years
Foreclosure
Estate for Years
Loss of desirability and useful life of a property through economic forces, such as zoning changes, traffic pattern changes, etc., rather than deterioration.
Bundle of Rights
Regulation Z
Economic Obsolescence
Economic Obsolescence
One who owns property alone.
Blockbusting
Tenant in Severalty
Deed
Tenant in Severalty
(1) Actual notice - Express or implied knowledge of a fact. (2) Constructive notice - A fact, imputed to a person by law, which should have been discovered because of the person’s actual notice of circumstances and the inquiry that a prudent person would have been expected to make. (3) Legal Notice - Information required to be given by law.
Build to Suit
Priority of Lien
Notice
Notice
Any division of real property between co-owners, resulting in individual ownership and interests.
Duress
Bundle of Rights
Partition
Partition
An estate of property held by one person alone. Sole ownership.
- Valuation
- Severalty
- Police Power
Severalty
A conveying written instrument used to pass title to property upon sale from one person (grantor) to another person (grantee). To be valid, a deed must be properly executed and delivered.
Mortgage
Deed
Balloon Payment
Deed
A deed operating as a release, intended to pass any title, interest, or claim which the grantor may have in the property, but not containing any warranty of a valid interest or title by the grantor.
Quitclaim Deed
Estate for Life
Grantor
Quitclaim Deed
One who comes into possession lawfully, but who holds over after termination of his interest.
Planned Development
Tenant at Sufferance
Duress
Tenant at Sufferance
The intentional and successful employment of any cunning, deception, collusion used to circumvent, cheat or deceive another person whereby that person acts upon it to the loss of property and to legal injury. Actual fraud is a deliberate misrepresentation or representation made in reckless disregard of its truth or its falsity, the suppression of truth, a promise made with out the intention to perform it or any other act intended to deceive.
Deferred Maintenance
Contract for Deed
Fraud
Fraud
Having force or binding force, legally sufficient, and authorized by law.
Tenancy by the Entirety
Valid
Mortgage
Valid
Clause in a mortgage or deed of trust giving the mortgagee or trustee the power to sell the property in the event of default.
Power of Sale
Satisfaction
Option
Power of Sale
An outlining on a map of certain high risk areas for real estate loan purposes, meaning that lenders will not extend credit in those areas. Illegal in most states.
Estate from Period to Period
Redlining
Trade Fixtures
Redlining
The process by which real or personal property of a party to a lawsuit is seized and retained in the custody of the court for the purpose of acquiring jurisdiction over the property, to compel an appearance before the court, or to furnish security for a debt or costs arising out of the litigation.
Purchase Money Mortgage or Trust Deed
Attachment
Life Estate
Attachment
An interest in land where there is no definite termination date but the rental period is fixed at a certain sum per week, month, or year. Also called a periodic tenancy.
Estate from Period to Period
Statutory Lien
Basis
Estate from Period to Period
An installment contract for the sale of real estate where the seller has legal title until paid in full. The buyer only has equitable title during the contract term. Also known as a land sale contract or installment sale contract.
Contract for Deed
Goodwill
Exclusive Right to Sell
Contract for Deed
An estate of inheritance in real property.
Condition
Redlining
Fee
Fee
Marketable real or personal property which a borrower pledges as security for a loan. In mortgage transactions, specific land is the collateral to secure the performance of a principal agreement (the promissory note).
Market Data Approach
Balloon Note
Collateral
Collateral
Similar properties used as comparisons to determine the value of a specific property. Also known as comparable sales.
Comparables
Planned Development
Novation
Comparables
The right of a landowner whose land borders on a stream or watercourse to use and enjoy the water which is adjacent to or flows over the owner’s land provide such use does not injure other riparian owners.
Easement
Land Sales Contract
Riparian Rights
Riparian Rights
Used to determine a cap rate using a weighted average of select rates.
Assigns, Assignees
Band of Investment
Agency
Band of Investment
A method of acquiring title by possession under certain conditions. Generally, possession must be open, continuous, and hostile. Exact time of possession and specific requirements vary from state to state.
Assumption
Adverse Possession
Power of Sale
Adverse Possession
A reversion of property to the state in the absence of an individual owner, usually when a property owner dies without a will.
Gross Rent Multiplier
Escheat
Bill of Sale
Escheat
A mortgage or trust deed given from buyer to seller to secure all or a portion of the purchase price.
Riparian Rights
Contract
Purchase Money Mortgage or Trust Deed
Purchase Money Mortgage or Trust Deed
A general term which encompasses any method of financing property going beyond traditional real estate lending.
Creative Financing
Basis
Fiduciary
Creative Financing
A short term warranty deed which warrants by inference that the seller is the undisputed owner, has the right to convey the property, and will defend the title if necessary. It protects the purchaser in that the conveyor covenants to defend all claims against the property. If conveyor fails to do so, the new owner can defend said claims and sue the former owner.
Fraud
Statutory Warranty Deed
Grantee
Statutory Warranty Deed
A time period during which a mortgage, deed of trust, or contract can be redeemed. Usually set by statute, and after judicial foreclosure.
Free and Clear
Undivided Interest
Redemption Period
Redemption Period
An estate in real property for the life of a living person. The estate then reverts back to the grantor or to a third party.
Estate for Life
Free and Clear
Dedication
Estate for Life
Land and anything permanently affixed to the land such as buildings, fences, trees, and those things attached to the buildings, such as heating and plumbing fixtures, light fixtures, or other such items.
Real Estate
Reversion
Fiduciary Duty
Real Estate
A partial interest by two or more people in the same property, regardless of the equality of the interests.
Attest
Fraud
Undivided Interest
Undivided Interest
An estate or interest in real property which is held for the duration of the life of some certain person. It may be limited to the life of the person holding it or by the life of some other person.
Life Estate
Lien Theory
Domicile
Life Estate
Appraising the value of property by comparing the price of similar properties (comparables) recently sold. This is the most widely used of the three methods of appraisal for residential property.
Market Data Approach
Severalty
Mortgagor
Market Data Approach
Personal property. Also goods or every species of property movable or immovable which are not real property.
Sublease
Purchase Agreement
Chattel
Chattel
Land that borders a lake or ocean.
Prescriptive Easement
Principal Of Substitution
Littoral
Littoral
Laws requiring certain types of contracts to be in writing. All contracts for the sale of real property must be in writing, and leases for more than one year must be in writing.
- Distress Sale
- Statute of Frauds
- Dedication
Statute of Frauds
Having force or binding force, legally sufficient, and authorized by law.
Mortgagee
Valid
Proration
Valid
The practice on the part of unscrupulous speculators or real estate agents of inducing panic selling of homes at prices below market value, especially by exploiting the prejudices of property owners in neighborhoods in which the racial make-up is changing or appears to be on the verge of changing. This practice is prohibited by fair housing laws.
Blockbusting
ALTA Title Policy
Appurtenance
Blockbusting
The filing of documents affecting real property as a matter of public record, giving constructive notice to future purchasers, creditors, or other interested parties.
Mortgagee
Recording
Real Estate
Recording
The process of canceling a defeasible title to land, such as created by a mortgage foreclosure or tax sale.
Testate
Redemption
Habendum Clause
Redemption
The determination of present value of income property by taking the annual net income and dividing by a rate of return percentage which is commonly acceptable to buyers of similar properties (i.e. $10,000 / 11% = $90,909).
Conveyance
Capitalization
Trustor
Capitalization
Similar to a mortgage. A security instrument whereby real property is given as security for a debt. See Trust Deed.
Void
Market Data Approach
Deed of Trust
Deed of Trust
A legal theory under which a person is barred from asserting or denying a fact because of the person’s previous acts or words.
Duress
Township
Estoppel
Estoppel
One who transfers property or property rights. One who gives a deed.
Eminent Domain
Grantor
Domicile
Grantor
A legal document pledging collateral for a loan that has first priority over all other claims against the property except taxes and bonded indebtedness. The trust deed that is superior to all others, usually determined by the order in which it was recorded.
Tenant in Severalty
Equity
First Trust Deed
First Trust Deed
Everything capable of being owned and acquired lawfully. The rights of ownership. The right to use, possess, enjoy and dispose of a thing in every legal way and to exclude everyone else from interfering with these rights.
Power of Attorney
Property
Mortgage
Property
The trade or exchange of one real property for another without the need to pay income taxes on the gain at the time of the trade. The tax on the gain is postponed under the rules of IRS Code Section 1031. Also known as a 1031 Exchange.
Deed
Blockbusting
Tax Free Exchange
Tax Free Exchange
The rights in real property to the reasonable use of the air space above the surface of the land.
Air Rights
Collateral
Null and Void
Air Rights
One who holds title to real property under the terms of a deed of trust.
Trustee
Property
Void
Trustee
This is the amount of money that would be paid for a property offered on the open market for a reasonable period of time with both buyer and seller knowing all the uses to which the property could be put and with neither party being under pressure to sell or buy.
Fair Market Value
Subagent
Attest
Fair Market Value
A lien which is senior or superior to all others.
Prior Lien
Base and Meridian
Assignor
Prior Lien
Affirms that the maximum value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property, assuming no costly delay is encountered in make the substitution.
Lien Theory
Principal Of Substitution
Free and Clear
Principal Of Substitution
Any estate for a definite time period (a lease).
- Statute of Frauds
- Lien Theory
- Tenancy for Years
Tenancy for Years
An acre (43,560 square feet), as distinguished from a net (usable) acre.
Fee Simple Estate
Testate
Gross Acre
Gross Acre
A form of ownership by husband and wife whereby each owns the entire property. In the event of the death of one, the survivor owns the property without probate.
Ownership
Tenancy by the Entirety
Dual Agency
Tenancy by the Entirety
Generally, construction onto the property of another, as of a wall, fence, building, etc.
Encroachment
Base and Meridian
Market Value
Encroachment
A comparison of similar properties to a subject property for the purpose of evaluating market value and proper pricing.
Assignor
Comparative Analysis
Statute of Limitations
Comparative Analysis
One who assigns or transfers property.
Prior Lien
Assignor
Mortgagee
Assignor
The giving of land by its owner to a public use and the acceptance for such use by authorized officials on behalf of the public.
Dedication
Lien
Contract
Dedication
The granting of an easement by a court, based on the presumption that a written easement was given, although none existed, after a period of open and continuous use of land.
Prescriptive Easement
Restriction
Estate from Period to Period
Prescriptive Easement
Gains realized from the sale of capital assets, and generally the difference between cost and selling price minus deductible expenses. Used mainly for income tax purposes.
Statute of Limitations
Capital Gains
Band of Investment
Capital Gains
A governmental right to acquire property for public use by condemnation, and the payment of just compensation.
Capital Gains
Eminent Domain
Null and Void
Eminent Domain
To have no force or effect. That which is unenforceable.
Trust Deed
Void
Eminent Domain
Void
An agency of the federal government that insures private mortgage loans for financing of new and existing homes and home repairs.
Bill of Sale
Littoral
Federal Housing Administration (FHA)
Federal Housing Administration (FHA)
(1) The person who gives authority to an agent or attorney. (2) Debt amount, less the interest.
Principal
Quiet Title
Ad Valorem
Principal
A federal law requiring the disclosure to borrowers of settlement (closing) procedures and costs by means of a pamphlet and forms prescribed by the United State Department of Housing and Urban Development (HUD).
Option
Condemnation
Real Estate Settlement Procedures Act (RESPA)
Real Estate Settlement Procedures Act (RESPA)
An appraisal method to determine the value of rental property by use of the estimated net income over the life of the structure. The calculation of value is a three step process, 1) determine net annual income, 2) set an appropriate capitalization rate or “present worth” factor, and 3) capitalize the income dividing the net income by the capitalization rate.
Income (Capitalization) Approach
Condition
Lis Pendes
Income (Capitalization) Approach
The building of a structure to meet the specifications of a purchaser.
Involuntary Lien
Prescriptive Easement
Build to Suit
Build to Suit
The required computation of financial adjustment between buyer and seller as of the day of closing. The final statement in most real estate transactions is known as the Closing Disclosure (CD).
Lien
Closing Statement
Open Listing
Closing Statement
An estate which takes effect after the termination of the prior estate, such as a life estate. A future possessory interest in real property.
Encumbrance
Remainder
Severalty
Remainder
An instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor) in favor of a lender (beneficiary) and reconveyed upon full payment.
Market Data Approach
Market Value
Trust Deed
Trust Deed
Discharge of an obligation by payment of the amount due, as on a mortgage or trust deed, or payment of a debt awarded, such as satisfaction of a judgment.
Valuation
Satisfaction
Lease
Satisfaction
Ownership by one who does not have legal title, such as a vendee under a land sales contract.
Exclusive Right to Sell
Ad Valorem
Equitable Ownership
Equitable Ownership
A legal theory under which a person is barred from asserting or denying a fact because of the person’s previous acts or words.
Estoppel
Estate of Inheritance
Subrogation
Subrogation
The interest or nature of the interest which one has in property.
Subrogation
Government Patent
Estate
Estate
Land that borders a lake or ocean.
Littoral
Exclusive Right to Sell
Note
Littoral
A subdivision consisting of separately owned parcels of land together with memebership in an association which owns common area. Sometimes the owners of separate interests also have an undivided interest in the common area.
Planned Development
Caveat Emptor
Estate for Life
Planned Development
The right to future possession or enjoyment by a person or the person’s heirs, creating the preceding estate.
Chain of Title
Reversion
Chattel
Reversion
To affirm to be true or genuine. An official act establishing authenticity.
Redemption Period
Personal Property
Attest
Attest
A person upon whom the powers of an agent have been conferred by an agent as authorized by the agent’s principal.
Subagent
Federal Housing Administration (FHA)
Condemnation
Subagent
Agreement by a buyer to assume the liability under an existing note secured by a mortgage or deed of trust.
Agent
Assumption
Attest
Assumption
An undivided ownership in real estate by two or more persons. The interests need not be equal, and upon death of a co-tenant, the interest passes to the deceased co-tenant’s heirs.
Tenant at Will
Federal Housing Administration (FHA)
Tenancy in Common
Tenancy in Common
One who acts for and with authority from another called the principal.
Base and Meridian
Trade Fixtures
Agent
Agent
Personal property which is attached to real property and is legally treated as real property while it is so attached.
Fixtures
Option
Subagent
Fixtures
An estate of inheritance in real property.
Fee
Rescission
Statutory Lien
Fee
Laws requiring certain types of contracts to be in writing. All contracts for the sale of real property must be in writing, and leases for more than one year must be in writing.
Basis
Purchase Agreement
Statute of Frauds
Statute of Frauds
The clause in a deed which defines the extent of the estate of the grantee. It is often referred to as the “to have and to hold” clause.
Habendum Clause
Band of Investment
Exclusive Right to Sell
Habendum Clause
(1) In contract law, a future and uncertain event which must happen to create an obligation or which extinguishes an existent obligation. (2) In conveyances of real property, conditions in which the conveyance may cause an interest to be vested or defeated.
Real Estate Settlement Procedures Act (RESPA)
Band of Investment
Condition
Condition
Imaginary lines used by surveyors to find and describe the location of private or public lands. In government surveys, a base line runs due east and west, meridians run due north and south, and are used to establish township boundaries.
Trust Deed
Base and Meridian
Tenancy for Years
Base and Meridian
An estate of inheritance in real property.
Fee
Quiet Enjoyment
Voluntary Lien
Fee
To repossess or a court action to repossess.
Replevin
Exclusive Right to Sell
Planned Development
Replevin
The amount of money the borrower or seller must pay the lender to get a mortgage at a stated interest rate. A point is equal to one percent of the loan amount.
Estate
Fee Simple Estate
Discount Points
Discount Points
An estate under which the owner is entitled to unrestricted powers to dispose of the property, and can be left by will or inherited. The greatest interest one can have in real property.
Assumption
Tenant in Severalty
Fee Simple Estate
Fee Simple Estate
A lien placed against real property by the voluntary act of the owner. Most commonly, a mortgage or deed of trust.
Voluntary Lien
Prescription
Unearned Increment
Voluntary Lien
The representation by an agent of opposing principals (buyer and seller) at the same time. This practice is legal only if properly disclosed.
Dual Agency
Power of Attorney
Estoppel
Dual Agency
Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse. Each spouse has equal rights of management, alienation and testamentary disposition of community property. Washington and California are examples of community property states.
Community Property
Subordinate
Bundle of Rights
Community Property
A second or junior mortgage with a face value of both the amount it secures and the balance due under the first mortgage. The mortgagee under the wrap-around collects a payment based on its face value and then pays the first mortgagee.
Wrap-Around Mortgage
Restriction
Contract
Wrap-Around Mortgage
The borrower under a deed of trust. One who deeds his property to a trustee as security for the repayment of a loan.
Gross Rent Multiplier
Trustor
Priority of Lien
Trustor
A court action brought to establish title. To remove a cloud on the title.
Power of Sale
Quiet Title
Lis Pendes
Quiet Title
The interest or nature of the interest which one has in property.
Undivided Interest
Free and Clear
Estate
Estate
An undivided ownership interest by partners of a partnership. Right of survivorship applies.
Tenancy in Partnership
Trustor
Exclusive Right to Sell
Tenancy in Partnership
A written instrument whereby a principal gives authority to an agent. The agent acting under such a grant is sometimes referred to as the principal’s attorney-in-fact.
Power of Attorney
Land Sales Contract
Property
Power of Attorney
A lease, usually on a retail business property, using a percentage of the gross or net sales to determine the rent. There is usually a minimum base rental, in the event of poor sales.
Agent
Percentage Lease
Contribution, Principle of
Percentage Lease
A listing contract whereby the owner promises to pay a commission to the broker if property is sold during a stated period, regardless of whether or not the broker is the cause of sale.
Base and Meridian
Exclusive Right to Sell
Trustee’s Deed
Exclusive Right to Sell
Clause in a mortgage or deed of trust giving the mortgagee or trustee the power to sell the property in the event of default.
Partition
Power of Sale
Statutory Warranty Deed
Power of Sale
A method of obtaining an approximate value of income property by using gross yearly rents. The “multiplier” amount is calculated by dividing sale price of an investment property by annual rents relating to property.
Tenancy by the Entirety
Gross Rent Multiplier
Restriction
Gross Rent Multiplier
The chronological order of conveying of a parcel of land, starting from original owner.
Planned Development
Chain of Title
Chattel
Chain of Title
A mortgage having priority over all other voluntary liens against certain property. The mortgage that is superior to all others, usually determined by the order in which it was recorded.
Right of Survivorship
First Mortgage
Principal Of Substitution
First Mortgage
A person’s legal residence.
Escheat
Deed
Domicile
Domicile
Unlawful constrain exercised upon a person whereby he or she is forced to do some act against his or her will.
Personal Property
Duress
Adverse Possession
Duress
The right to future possession or enjoyment by a person or the person’s heirs, creating the preceding estate.
Reversion
Conventional Loan
Recording
Reversion
Market value of real property, less the amount of existing loan balances.
Alienation
Exclusive Agency Listing
Equity
Equity
An estate held under a lease for the term of the lease. This is a personal property right.
First Mortgage
Equity
Leasehold Estate
Leasehold Estate
An undivided interest in property, taken by two or more joint tenants. The interests must be equal, occurring under the same conveyance, and beginning at the same time. Upon the death of a joint tenant, the interest passes to the surviving joint tenants, rather than to the heirs of the deceased.
Agency
Joint Tenancy
Condition
Joint Tenancy
An estate which vests in one other than a grantor, after the termination of an intermediate estate.
Estate in Remainder
Hypothecate
Contribution, Principle of
Estate in Remainder
The party who borrows money and gives a mortgage.
Caveat Emptor
Dual Agency
Mortgagor
Mortgagor
Title VIII of the Civil Rights Act, which forbids discrimination in the sale or rental of residential property because of race, color, sex, religion, or national origin.
Fair Housing Law
Escheat
Grant Deed
Fair Housing Law
The duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the principal by the slightest misrepresentation, concealment, duress or pressure. The common law fiduciary duties are loyalty, accounting, disclosure, care and confidentiality.
ALTA Title Policy
Fiduciary Duty
Partition
Fiduciary Duty
A written document in which a borrower promises to pay money according to the terms contained in the document. The document includes the parties ‘Maker’ and ‘Payee’.
Lis Pendes
Promissory Note
Agency
Promissory Note
An estate which may descend to heirs.
Riparian Rights
Market Value
Estate of Inheritance
Estate of Inheritance
The cancellation of a contract and restoration of the parties to the same position they held before the contract was entered into.
Rescission
An acronym for the Federal Housing Administration.
Escrow
Capitalization Rate
F.H.A.
F.H.A.
One to whom property or property rights is given, generally the buyer.
Grantee
Reversion
Remainder
Grantee
A note calling for periodic payments which are insufficient to fully amortize the loan, so that a principal sum (known as a balloon) is due at maturity.
Balloon Note
Eminent Domain
Open Listing
Balloon Note
(American Land Title Association) A type of title insurance policy issued by title insurance companies which expands the risks normally insured against under the standard policy to include unrecorded mechanic’s liens, unrecorded physical easements, facts a physical survey would show, water and mineral rights, and rights of parties in possession such as tenants and buyers under unrecorded instrument
Principal Of Substitution
ALTA Title Policy
Bundle of Rights
ALTA Title Policy
A deed by a trustee under a deed of trust, pursuant to foreclosure.
Trustee
Trustee’s Deed
Fixtures
Trustee’s Deed
A method of taxation using the value of the real estate to determine the amount of the tax.
Ad Valorem
Equitable Ownership
Special Warranty Deed
Ad Valorem
An agreement by which the owner of real property gives the right of possession to another for a specified period of time and for consideration (rent).
Equity
Separate Property
Lease
Lease
The means of acquiring incorporeal interests in land, usually an easement, by notorious, open, and long or continued use.
Contract
Prescription
Grantee
Prescription
Offer to perform
Tender
Government Patent
Basis
Tender
The means of acquiring incorporeal interests in land, usually an easement, by notorious, open, and long or continued use.
Redemption Period
Prescription
Tenancy by the Entirety
Prescription
A person’s legal residence.
Tenancy in Partnership
Bundle of Rights
Domicile
Domicile
A limited warranty deed using the word “grant” like words that assures a grantee that the grantor has not already conveyed the land to another and that the estate is free from encumbrances placed by the grantor. The most common deed form used in California. Not used in Oregon.
Depreciation
Attest
Grant Deed
Grant Deed
Deed of title transferred by the Government to a grantee.
Discount Points
Reconveyance Deed
Government Patent
Government Patent
A neutral third party which receives all funds and instruments necessary to a sale, and which processes them according to instructions.
Novation
Principal
Escrow
Escrow
An instrument releasing property from a lien of a mortgage, judgment, etc. When a deed of trust is used, the instrument is called a reconveyance.
Release
Tenant for Life
Collateral
Release
Everything capable of being owned and acquired lawfully. The rights of ownership. The right to use, possess, enjoy and dispose of a thing in every legal way and to exclude everyone else from interfering with these rights.
Open Listing
Principal Of Substitution
Property
Property
Unlike property used to equalize equities in an exchange that will trigger tax on the amount of the boot.
Grant Deed
Boot
Band of Investment
Boot
A unilateral agreement containing an express and absolute promise of the signer to pay a named person a definite sum of money at a specified date. Usually provides for interest and is secured by a mortgage or deed of trust.
Township
Note
Fiduciary Duty
Note
An instrument by which one transfers personal property.
Joint Tenancy
Bill of Sale
Priority of Lien
Bill of Sale
An intangible but saleable asset of a business derived from the expectation of continued public patronage.
Goodwill
Market Price
Prior Lien
Goodwill
A form of ownership by husband and wife whereby each owns the entire property. In the event of the death of one, the survivor owns the property without probate.
Estate for Life
Statutory Warranty Deed
Tenancy by the Entirety
Tenancy by the Entirety
(1) The lender on the security of a note and deed of trust. (2) One entitled to the benefit of a trust. (3) One who receives profit from an estate, the title of which is vested in the trustee.
Beneficiary
Right of Survivorship
Severalty
Beneficiary
An agreement between a buyer and seller or real property that sets forth price and terms of sale.
Adverse Possession
Joint Tenancy
Purchase Agreement
Purchase Agreement
The process of canceling a defeasible title to land, such as created by a mortgage foreclosure or tax sale.
- Emblements
- Estoppel
- Redemption
Redemption
Substitution of a new contract, debt, or obligation for an existing one made between the same or different parties.
Attachment
Closing Statement
Novation
Novation
Having written a last will and testament.
Testate
Rescission
Closing Statement
Testate
An agreement to do or not to do a certain thing. It must have four essential elements - parities capable of contracting, consent of the parties, a lawful object or purpose, and consideration. A contract for sale of real property must also be in writing and signed by the party or parties to be charged with performance.
Replevin
Contract
Assignor
Contract
Ownership by one who does not have legal title, such as a vendee under a land sales contract.
Subrogation
Estoppel
Equitable Ownership
Equitable Ownership
The right of the survivor of a deceased person to the property of the deceased.
Estate
Right of Survivorship
Trust Deed
Right of Survivorship
A legal theory under which a person is barred from asserting or denying a fact because of the person’s previous acts or words.
Estoppel
ALTA Title Policy
Redemption
Estoppel
A deed in which he grantor warrants or guarantees the title only against defects arising during grantor’s ownership of the property and not against defects existing before the time of grantor’s ownership.
Band of Investment
Regulation Z
Special Warranty Deed
Special Warranty Deed
In appraising, a valuation principle stating that the market value is affected by the intersection of supply and demand forces in the market as of the appraisal date.
Subagent
Principal Of Supply And Demand
Estate in Remainder
Principal Of Supply And Demand
Evidence one has of right to land possession. The rights of ownership often referred to as the “bundle of rights”.
Gross Rent Multiplier
Title
Life Estate
Title
Any estate for a definite time period (a lease).
Hypothecate
Depreciation
Tenancy for Years
Tenancy for Years
Offer to perform
Note
Tender
Satisfaction
Tender
To make subject to or junior or inferior to.
Depreciation
Subordinate
Ad Valorem
Subordinate
All rights and interests of ownership in real property considered together, but separable.
Equitable Ownership
Tenant at Will
Bundle of Rights
Bundle of Rights
The use of land which will bring the greatest economic return over a given time.
Condition
Equity
Highest and Best Use
Highest and Best Use
A listing under which the broker’s commission is protected against a sale by other agents but not by a sale by the principal.
Contribution, Principle of
Cotenancy
Exclusive Agency Listing
Exclusive Agency Listing
A partial interest by two or more people in the same property, regardless of the equality of the interests.
Undivided Interest
Agency
Involuntary Lien
Undivided Interest
The right to future possession or enjoyment by a person or the person’s heirs, creating the preceding estate.
Assigns, Assignees
Freehold Estate
Reversion
Reversion
The instrument by which real estate is hypothecated as security for the repayment of a loan.
Wrap-Around Mortgage
Mortgage
Planned Development
Mortgage
The process by which real or personal property of a party to a lawsuit is seized and retained in the custody of the court for the purpose of acquiring jurisdiction over the property, to compel an appearance before the court, or to furnish security for a debt or costs arising out of the litigation.
Attachment
Purchase Money Mortgage or Trust Deed
Real Estate Settlement Procedures Act (RESPA)
Attachment
A right created by grant, reservation, agreement, prescription, or necessary implication, which one has in the land of another.
Easement
Subrogation
Trust Account
Easement
Personal property. Also goods or every species of property movable or immovable which are not real property.
Chattel
Basis
Escheat
Chattel
The percentage used to determine the value of income property through capitalization. The selected capitalization rate is the yield rate that is necessary to attract the money of the average investor to a particular kind of investment. The yield rate is used in the process of determining value based upon net income.
Capitalization Rate
Fee
Riparian Rights
Capitalization Rate
The rights of one or more persons to possess and use property to the exclusion of all others. A collection of rights to use and enjoy a property.
Redlining
Ownership
Rescission
Ownership
A summary comprehensive appraisal report of all factual materials, techniques and appraisal methods used by the appraiser in setting forth his or her value conclusions.
Government Patent
Appurtenance
Narrative Appraisal
Narrative Appraisal
Deed given at sheriff’s sale in foreclosure of mortgage. The giving of said deed begins a statutory redemption period. Also given at a court ordered sale pursuant to the execution of a judgment.
Sheriff’s Deed
Power of Sale
Levy
Sheriff’s Deed
A short term warranty deed which warrants by inference that the seller is the undisputed owner, has the right to convey the property, and will defend the title if necessary. It protects the purchaser in that the conveyor covenants to defend all claims against the property. If conveyor fails to do so, the new owner can defend said claims and sue the former owner.
Special Warranty Deed
Economic Life
Statutory Warranty Deed
Statutory Warranty Deed
An involuntary lien, created by law rather than by contract, including tax liens, judgment liens, mechanic’s liens, etc.
Fiduciary
Release
Statutory Lien
Statutory Lien
The dividing of property tax, insurance, rental income, and other items between buyer and seller proportionately to time of use, closing date, or other agreed upon time.
Fee Simple Estate
Proration
Ad Valorem
Proration
An encumbrance against property for money, either voluntary or involuntary. Affects title.
Lien
Escrow
Closing Statement
Lien
A court action brought to establish title. To remove a cloud on the title.
Quiet Title
Exclusive Agency Listing
Riparian Rights
Quiet Title
An appraisal term wherein a component part of a property is valued in proportion to its contribution to the value of the whole. Holds that maximum values are achieved when the improvements on a site produce the highest (net) return, commensurate with the investment.
Contribution, Principle of
Fiduciary Duty
Habendum Clause
Contribution, Principle of
Any part of real property which passes upon the transfer, either attached or not, such as a barn or an easement.
Trustor
Condemnation
Appurtenance
Appurtenance
To buy back, repurchase or recover.
Redeem
Principal
Involuntary Lien
Redeem
The order in which liens are given legal precedence or preference.
Statute of Limitations
Priority of Lien
Build to Suit
Priority of Lien
The taking of private property for public use without the consent of the owner, but only upon payment of just compensation.
Condemnation
Right of Survivorship
Rescission
condemnation
Ownership interest in a particular parcel of land by more than one person, i.e., tenancy in common or joint tenancy.
Cotenancy
Grantor
Estate
Cotenancy
A written authorization to a real estate broker by a property owner, stating that a commission will be paid to the broker upon presentation of an offer which meets a specified price and terms. However, the broker has no exclusive right to sell, and must bring in his offer before any other offer is accepted.
Open Listing
Lis Pendes
Closing Statement
Open Listing
A theory followed in several states that assumes a mortgage has only a lien on the mortgaged property, and the mortgagor has legal title.
Mortgagor
Agency
Lien Theory
Lien Theory
A right given for a consideration to purchase or lease a property upon specified terms within a specified time without obligation to the party who receives the right to exercise the right.
- functional Obsolesce
- Option
- Note
Option
One who holds possession by permission of the owner or landlord, but without agreement for a fixed term of possession.
Tenant at Will
Recording
Economic Obsolescence
Tenant at Will
Transfer of title to land. Includes most instruments by which an interest in real estate is created, mortgaged, or assigned.
Tenancy by the Entirety
Conveyance
Sheriff’s Deed
Conveyance
An account used by brokers, escrow agents, or anyone holding money in trust for another.
Trust Account
Proration
Base and Meridian
Trust Account
Those to whom property or interests therein shall have been transferred.
Assigns, Assignees
Purchase Agreement
Prescription
Assigns, Assignees
A lease under which the lessor is the lessee of a prior lease of the same property.
Sublease
Gross Rent Multiplier
First Mortgage
Sublease
A claim, lien, charge, or liability attached to and binding real property.
Build to Suit
Capitalization Rate
Encumbrance
Encumbrance
The transfer or transferring of property and possession of land, or other things from one person to another.
Null and Void
Alienation
Principal
Alienation
A use or uses prohibited to the owner of land as set forth by former orders in a deed or by a recorded declaration of restrictions by a developer of a subdivision.
Levy
Redemption
Restriction
Restriction
To mortgage or pledge without delivery of the security to the lender.
Hypothecate
Prescription
Balloon Note
Hypothecate
A Cost basis is the dollar amount assigned to property at the time of acquisition under provisions of the Internal Revenue Code for the purpose of determining gain, loss and depreciation in calculating the income tax to be paid upon the sale or exchange of property. An Adjust basis is the cost basis after the application of certain additions for improvements, etc., and deductions for depreciation, etc.
Basis
Ownership
Real Estate
Basis
The need for replacement because a structure or equipment has become inefficient because of improvements since discovered or invented.
Chain of Title
Estate for Life
Functional Obsolescence
Functional Obsolescence
Replacing one person with another in regard to a legal right or obligation.
Statute of Limitations
Subrogation
Balloon Note
Subrogation
All rights and interests of ownership in real property considered together, but separable.
Assignment
Bundle of Rights
Purchase Money Mortgage or Trust Deed
Bundle of Rights
Repairs necessary to put a property in good condition.
Trade Fixtures
Lien Theory
Deferred Maintenance
Deferred Maintenance
Loss of desirability and useful life of a property through economic forces, such as zoning changes, traffic pattern changes, etc., rather than deterioration.
Priority of Lien
Tenant at Will
Economic Obsolescence
Economic Obsolescence
A lump sum payment, usually at the end of the term of a note with terms insufficient to fully amortize the loan, or due prior to the end of the amortization period.
Creative Financing
Balloon Payment
Valid
Balloon Payment
To repossess or a court action to repossess.
Estoppel
Right of Survivorship
Replevin
replevin
The profitable life of an improvement, which is generally shorter than the physical life.
Economic Life
Ad Valorem
Contract for Deed
Economic Life
An estate of interminable duration, e.g., fee simple or life estate.
Note
Freehold Estate
Exclusive Right to Sell
Freehold Estate
A mortgage or deed of trust not obtained under a government program, i.e., which is not FHA insured or VA guaranteed. This is a type of loan customarily made by a bank or savings and loan association.
Conventional Loan
Quiet Enjoyment
Principal Of Supply And Demand
Conventional Loan
One acting in a relationship of trust and confidence. In real estate practice as between a principal (seller or buyer) and a broker. The fiduciary owes the duties of loyalty, accounting, disclosure, care and confidentiality. These duties cannot be breached.
Fiduciary
Easement
Condominium
Fiduciary
A reversion of property to the state in the absence of an individual owner, usually when a property owner dies without a will.
Escheat
Prescriptive Easement
Tender
Escheat
Deed of title transferred by the Government to a grantee.
Subagent
Government Patent
Fraud
Government Patent
One who comes into possession lawfully, but who holds over after termination of his interest.
Income (Capitalization) Approach
Ownership
Tenant at Sufferance
Tenant at Sufferance
The transfer or transferring of property and possession of land, or other things from one person to another.
Alienation
Purchase Agreement
Voluntary Lien
Alienation
A territorial division of land established by federal survey; six miles square containing 36 one-square-mile sections.
Valid
Township
Grant Deed
Township
A procedure in or out of court to extinguish all rights, title, and interest of the owners of property in order to sell the property to satisfy a lien against it.
Foreclosure
Tenancy for Years
Market Data Approach
Foreclosure
A regulation issued under the Truth-In-Lending Law, which requires that a credit purchaser be advised in writing of all costs connected with the credit portion of the purchase.
Regulation Z
Reversion
Grant Deed
Regulation Z
Growing crops, which are considered personal property.
Emblements
Grant Deed
Grantee
Emblements
Let the buyer beware. The buyer must examine the goods or property and buy at his or her own risk, absent misrepresentation.
Caveat Emptor
Right of Survivorship
Federal Housing Administration (FHA)
Caveat Emptor
An estate in real property for the life of a living person. The estate then reverts back to the grantor or on to a third party.
Mortgagee
Subordinate
Tenant for Life
Tenant for Life
To have no force or effect. That which is unenforceable.
Void
Tenancy in Partnership
Assignor
Void
Real property against which there are no liens, especially voluntary liens.
Valuation
Distress Sale
Free and Clear
Free and Clear
A seizure of property by judicial process
Power of Attorney
Levy
Real Estate Settlement Procedures Act (RESPA)
Levy
A right, either permanent or temporary, created and retained by a grantor of property.
Tender
Market Data Approach
Reservation
Reservation
A structure of two or more units, the interior space of which are individually owned, with the balance of the property (both land and building) owned in common by the owners of each unit.
ALTA Title Policy
Basis
Condominium
Condominium
The primary deed form used in Oregon to convey fee title to real property.
Tenancy for Years
Warranty Deed
Statutory Lien
Warranty Deed
The price paid for a property regardless of pressures, motives, or intelligence.
Attachment
Domicile
Market Price
Market Price
A sale of property when the seller is under extreme pressure to sell, and which generally results in the property selling for less than market value.
Distress Sale
Right of Survivorship
Federal Housing Administration (FHA)
Distress Sale
Any relationship in which one party (Agent) acts for or represents another (Principal), under the authority of the latter.
Tax Free Exchange
Note
Agency
Agency
Time periods to enforce a claim by court action. After the statutorily defined time period for the type in action has expired, the court will not hear the claim.
Contract for Deed
Joint Tenancy
Statute of Limitations
Statute of Limitations
Articles of personal property annexed by a business tenant to real property which are necessary to the carrying on of a trade or business and are removable by the tenant.
Trustee’s Deed
Trade Fixtures
Chattel
Trade Fixtures
Transfer of title to land. Includes most instruments by which an interest in real estate is created, mortgaged, or assigned.
Contract for Deed
Reconveyance Deed
Conveyance
Conveyance
Property owned by a married person in his or her own right outside of the community interest including property acquired by the spouse (1) before marriage, (2) by gift or inheritance (3) from rents and profits on separate property, and (4) with the proceeds from other separate property.
Separate Property
Remainder
Estate for Years
Separate Property
A legal notice recorded to show pending litigation related to real property, and giving notice that anyone acquiring an interest in said property subsequent to the date of the notice may be bound by the outcome of the litigation.
Lis Pendes
Assignment
Encroachment
Lis Pendes
Any property that is not real property.
Statutory Lien
Personal Property
Balloon Payment
Personal Property
An installment contract for the sale of land. The seller (vendor) has legal title until paid in full. The buyer (vendee) has equitable title during the contract term.
Agent
Land Sales Contract
Income (Capitalization) Approach
Land Sales Contract
The estimating of value. An appraisal.
Valuation
Build to Suit
Economic Obsolescence
Valuation
The party lending money and receiving a mortgage.
First Mortgage
Statute of Frauds
Mortgagee
Mortgagee
A transfer to another of any property, real or personal, or of any rights or estates in said property.
Income (Capitalization) Approach
Assignment
Valid
Assignment
The means of acquiring incorporeal interests in land, usually an easement, by notorious, open, and long or continued use.
Land Sales Contract
ALTA Title Policy
Prescription
Prescription
A planning and zoning term sometimes used to describe a planned development; land not subject to conventional zoning to permit clustering of residences or other characteristics of the project which differ from normal zoning requirements.
Fraud
Planned Unit Development (PUD)
Attest
Planned Unit Development (PUD)
The right of the State to enact laws and enforce them for the order, safety, health, morals, and general welfare of the public.
Comparative Analysis
Police Power
Purchase Money Mortgage or Trust Deed
Police Power
An increase in value of real estate due to no effort on the part of the owner which is most often due to the increase in a population in an area.
Littoral
Band of Investment
Unearned Increment
Unearned Increment
Loss of value of property brought about by age, physical deterioration or functional or economic obsolescence. The term is also used in accounting to identify the amount of the decrease in value of an asset that is allowed in computing the value of the property for tax purposes.
Depreciation
Conveyance
Assigns, Assignees
Depreciation
Right of an owner or tenant to the use of the property without interference of possession.
Quiet Enjoyment
ALTA Title Policy
Principal Of Substitution
Quiet Enjoyment
Of no legal effect of validity.
Null and Void
Community Property
Conveyance
Null and Void
Having force or binding force, legally sufficient, and authorized by law.
Title
Involuntary Lien
Valid
Valid
An appraisal term wherein a component part of a property is valued in proportion to its contribution to the value of the whole. Holds that maximum values are achieved when the improvements on a site produce the highest (net) return, commensurate with the investment.
Contribution, Principle of
Exclusive Agency Listing
Discount Points
Contribution, Principle of
An interest in land where there is no definite termination date but the rental period is fixed at a certain sum per week, month, or year. Also called a periodic tenancy.
Levy
Estate from Period to Period
Tenant in Severalty
Estate from Period to Period
A lien, such as a tax lien or judgment lien, which attaches to property without the consent of the owner (rather than a mortgage lien, to which the owner agrees).
Assignor
Involuntary Lien
Remainder
Involuntary Lien
An instrument used to transfer title from a trustee to the equitable owner of real estate when title is held as secured collateral.
Reconveyance Deed
Encroachment
Fee
Reconveyance Deed
The highest price a willing buyer would pay and a willing seller would accept, both being fully informed, and the property exposed for a reasonable period of time.
Attest
Market Value
Estoppel
Market Value
