RE - Set 05 Flashcards
PREPAYMENT CLAUSE
A clause in a trust deed that allows a lender to collect a certain percentage of a loan as a penalty for an early payoff.
ASSEMBLAGE
Putting several smaller, less valuable parcels together under one ownership to increase value of total property.
UTILITY VALUE
The usefulness of the property.
APPRAISAL
An estimate or opinion of value supported by factual information as of a certain date.
T-INTERSECTION LOT
A lot that is fronted head-on by a street. The noise and the glare from the headlights may be detractors from this type of lot.
COST
Represents expenses in money, labor, material, or sacrifices in acquiring or producing something.
CUL-DE-SAC
A lot on a dead-end street.
VALUE
The power of goods or services to command other goods in exchange for the present worth of future benefits arising from ownership.
MARKETABLE TITLE
Good or clear salable title reasonably free from risk of litigation over possible defects.
ESCROW HOLDER
An independent third party legally bound to carry out the written provisions of an escrow agreement; sometimes called an escrow agent; A neutral, bonded third party who is a dual agent for the principals.
SECURITY INTEREST
The interest of a creditor (lender) in the property of a debtor (borrower).
MORTGAGE LOAN DISCLOSURE STATEMENT
A statement that informs the buyer of all charges and expenses related to a particular loan.
ACTUAL DEPRECIATION
That depreciation occurring as a result of physical, functional, or economic forces that cause loss in value to a building.
BOOK DEPRECIATION
An accounting concept which refers to an allowance taken to provide for recovery of invested capital.
SWING LOAN
A short-term loan used to enable the purchaser of a new property to buy that property on the strength of the equity from the property the purchaser is now selling.
BALLOON PAYMENT
Under an installment loan, a final payment that is substantially larger than the other payments and repays the debt in full.
SUBORDINATION CLAUSE
A clause in which the holder of a trust deed permits a subsequent loan to take priority.
TRUTH IN LENDING ACT (REGULATION Z)
A federal law that requires borrowers to be informed about the cost of borrowing money.
LAND CONTRACT
A contract for the sale of real property in which the seller gives up possession but retains the title until the purchase price is paid in full; also known as a contract of sale or agreement of sale.
ACCELERATION CLAUSE
A clause in the loan document describing certain events that would cause the entire loan to be due.
CONTRACT FOR DEED
A contract for the sale of real property in which the seller gives up possession of the property but retains title until the total of the purchase price is paid off.
SUBJECT TO CLAUSE
A buyer takes over the existing loan payments but assumes no personal liability for the loan.
HOMEOWNER EQUITY LOAN
A cash loan made against the equity in the borrower’s home.
OPEN END LOAN
A loan in which the borrower is given a limit up to which may be borrowed, with each advance secured by the same trust deed.
VENDOR
The seller under a contract of sale (land contract).
