Quick Notes! Flashcards
Number of cubic feet in a cubic yard
27
Number of acres in a section
640
Number of linear feet in a mile
5280
Square footage of a square or rectangle
length x width
Square footage of a triangle
1/2 (base x height)
volume or cubic feet
length x width x height
Formula for annual taxes
tax rate x assessed value
When part of an agreement is changed, or an old agreement is replaced by a new one.
Novation
A provision in a mortgage contract that allows the mortgaged real estate to be used as security to borrow additional money.
Open-end clause
What is the voluntary relinquishment of rights of ownership or another interest?
Abandonment
A unit of measurement for lumber, equaling 144 cubic inches or 12” X 12” X 1”
Board Foot
The most detailed of the appraisal reports in which conclusions are supported and explained:
Narrative form appraisal report
“Let the buyer beware” is also known as what?
“Caveat emptor” —- the principle that only the buyer is responsible for checking the quality and suitability of goods prior to making a purchase. In real estate, this often means the buyer purchases the property as-is, without warranties of title or of condition of the property.
In valuing a single family residence by the comparison approach, an appraiser would make adjustments to:
the comparable properties.
A lender is required under the Truth-in-Lending Act (Regulation Z) to furnish an applicant for a real estate loan with a copy of a:
disclosure statement
An addition to a will, which modifies the will by adding to it, subtracting from it, or clarifying it.
CODICIL - an amendment to a will. Any modification or addition to a previously executed will is contained in a separate document called a codicil, which must comply with state law to be valid.
A trust deed may be released from the records by:
recording a reconveyance deed.
In order to clear the Deed of Trust from the title to the property, a Deed of Reconveyance must be recorded with the County Recorder or Recorder of Deeds.
ostensible authority.
Ostensible authority happens when a third-party is allowed to believe there is agency relationship between an agent and a principal through the actions of the principal. If a broker acts like a seller’s agent and the seller doesn’t say otherwise, but the broker’s actions result in a sale, the broker will most likely be considered to have an ostensible authority.
Laches
failing to do something which should have been done, i.e., to file a claim or to enforce a right, all within a prescribed time. The Statute of Limitations outlines actions that can be brought within a certain time frame.
seller disclosure
A seller disclosure is a document completed by the seller that lists any known issues and “material facts” known about the property during the time they owned the home. In most states, the seller is required to provide this disclosure within a few days of mutual acceptance.
doctrine of prior appropriation
In states where water is scarce, the “doctrine of prior appropriation” determines the use of the water. According to this doctrine, the use of the water is determined by the state, not the owner whose property is next to the body of water.
down zoning
It usually reduces the economic value of the property involved. Down zoning is the process by which an area of land is rezoned to a usage that is less dense and less developed than its previous usage.
“Let the buyer beware” is also known as what?
Caveat emptor
the principle that only the buyer is responsible for checking the quality and suitability of goods prior to making a purchase. In real estate, this often means the buyer purchases the property as-is, without warranties of title or of condition of the property.
Injunction
a court order to stop certain action(s) by certain individual(s).
For example, an injunction could be sought by local homeowners to stop another homeowner from putting up a large neon sign over his home that says “Motel”.
statute of frauds
The statute of frauds explains which contracts need to be written out to be enforceable. Normally, any contract that is not performed within one year must be in writing- for example, any contract to lease real property for more than a year must be put in writing.
BLIGHTED AREA
It is a term popular in urban renewal, referring to a run-down area in which houses are vacant or in disrepair. Blighted areas can often be accompanied by crime and low property values.
When considering portfolio risk management, the lender needs to be concerned with which of the following:
Reserves, Diversification and Liquidity
