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Modern Real Estate v1 > REA_Terms_A_M > Flashcards

REA_Terms_A_M Flashcards

1
Q

20-day notice

A

notifies the owner, general contractor, and lender that if the subcontractor or materialman is not paid, a lien will be filed

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2
Q

90-day clause

A

provides for the listing broker to be compensated if a buyer was procured during the period of the listing contract and subsequently agreed to purchase the property within the 90-day period

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3
Q

100 percent brokerage

A

The salesperson receives all of the commission collected by the brokerage; however, the salesperson must pay a monthly fee to the brokerage and sometimes a transaction fee as well.

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4
Q

Abstract of title

A

Summary of all conveyances and legal proceedings affecting title to a parcel of real estate

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5
Q

Acceleration clause

A

enables the lender to call the loan due and payable in the event of a default

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6
Q

Accord and satisfaction

A

Occurs when the parties voluntarily agree to complete the contract, even though all of the terms and conditions have not been met.

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7
Q

Accountability

A

One of the broker agent’s fiduciary duties; the responsibility to account for any trust funds received by the broker.

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8
Q

Accretion

A

Slow buildup of land by natural forces such as wind or water

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9
Q

Accrual basis

A

A method of accounting whereby revenue is recognized when it is earned and expenses are recorded when they are due rather than when paid.

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10
Q

Accurate legal description

A

a description recognized by law; a description by which property can be definitely located by reference to government surveys or approved recorded maps.

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11
Q

Acknowledgement

A

The formal declaration by a person executing an instrument that he or she is freely signing it

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12
Q

Acre-foot

A

Volume of water equal to an area of 1 acre with a depth of 1 foot (43,560 cubic feet) and equal to 325,850 gallons

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13
Q

Active management area

A

Five Arizona areas (Prescott, Phoenix, Pinal County, Santa Cruz County, and Tucson) where withdrawal of groundwater is limited

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14
Q

Active participation

A

a lower level of involvement than material participation

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15
Q

Actual damages

A

the estimated money equivalent for loss or injury sustained

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16
Q

Actual notice

A

knowledge one has gained based on what has been actually seen, heard, read, or observed

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17
Q

Ad valorem tax

A

property tax, which means “according to value”; each piece of property is taxed according to its assessed value

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18
Q

Adjustable rate mortgage (ARM)

A

borrower and lender share risks off a fluctuating interest rate economy

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19
Q

Adjusted gross income

A

a federal income tax amount that is determined by subtracting amounts specifically authorized by the Internal Revenue Code from gross income

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20
Q

Advance rentals

A

rents received in advance of the period for which they are paid

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21
Q

Adverse possession

A

a method of acquiring property based on open and notorious possession, under a claim of right, color of title, continuous us for five year, and the payment of taxes

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22
Q

Affidavit of completion of forfeiture

A

a written statement recorded by a vendor that terminates a buyer’s interest when the buyer defaults on a land contract

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23
Q

Agency coupled with an interest

A

an irrevocable agency in which the agent has an interest in the property as part or all of his compensation

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24
Q

Agent

A

one who represents another called a principal and has authority to act for the principal in dealing with third parties

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25
Q

Agricultural lease

A

a lease by owners of agricultural land with tenants who entered one of two types of agreements; cash rent or sharecropping

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26
Q

Air lots

A

air-specific elevation boundaries over a parcel of land

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27
Q

Air rights

A

allow the owner the right to reasonable use of the airspace for light and air

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28
Q

Alienation

A

the act of transferring real property from one person to another

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29
Q

Alienation by decent

A

the transfer of one’s property after death in accordance with the laws of descent when a person dies intestate

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30
Q

Alienation by will

A

the transfer of ones property after death pursuant to the terms of the decedent’s valid will

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31
Q

Alienation clause

A

in a deed of trust or mortgage, a provision that if the secured property is sold or transferred, the lender has the option of accelerating the loan and declaring the entire unpaid balance immediately due and payable; also called a “due on-sale” clause

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32
Q

All-inclusive deed of trust or Wrap-around mortgage

A

purchase money transaction subject to, but still including, encumbrances to which it is subordinate; legal title is actually conveyed and title insurance may also be obtained

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33
Q

Allodial system

A

establishes absolute ownership, which means there is no obligation to pay rent or services

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34
Q

Alluvion

A

surface land gained by accretion

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35
Q

Amenity

A

a condition of agreeable living or a beneficial influence resulting from the location

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36
Q

American Land Title Association (ALTA)

A

association of land title companies throughout the country

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37
Q

Americans with Disabilities Act (ADA)

A

the first comprehensive American civil rights law for people with disabilities, and affects every employer, business, and public service, including real estate

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38
Q

Amortized loan

A

the liquidation of a financial obligation on an installment basis, which includes both principal and interest

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39
Q

Annual net income

A

gross income less costs and expense for a 1-year period

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40
Q

Annual percentage rate (APR)

A

the cost of credit as determined in accordance with Regulation Z of the Federal Truth in Lending Act

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41
Q

Anticipation

A

value created by expectation of benefits to be collected in the future

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42
Q

Appraisal

A

an estimate or opinion of value as of a specified date based on analysis of factual data

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43
Q

Appraiser

A

May either be staff appraisers working for county assessors, banks, or the government, or they may work as independent fee appraisers

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44
Q

Appraising

A

An important division of the real estate business, Appraisals are necessary for many purposes, including determining insurance value, assessed value, condemnation value, and so on

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45
Q

Appreciation

A

an increase in property value

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46
Q

Appurtenances

A

rights, privileges, or improvements that belong to and pass with a property

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47
Q

Appurtenant easement

A

attached to the land and if the property is sold, the easement is transferred to the new owner

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48
Q

Arizona Corporation Commission

A

a state of Arizona agency that regulates corporations and limited liability companies

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49
Q

Arizona Real Estate Code

A

the section of Arizona Revised Statutes that regulates real estate licensees

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50
Q

Arizona Residential Landlord and Tenant Act

A

the Arizona Revised Statute based on the Uniform Residential Landlord and Tenant Act

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51
Q

Article XXVI

A

article in the Arizona constitution, which gives brokers and salespersons the right to draft, fill out, and complete any and all instruments relating to real estate

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52
Q

Articles of Incorporation

A

a document filed in the state in which a corporation is formed that establishes a corporate entity

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53
Q

Articles of Organization

A

a document filed with the Arizona Corporation Commission to form an Arizona Limited Liability Company

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54
Q

Asbestos

A

mineral fiver found in rocks, which is fire resistant and extremely durable

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55
Q

Assemblage

A

the process of combining two or more parcels into one

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56
Q

Assessed value

A

the value put on the property by the county assessor for the purpose of computing ad valorem property taxes

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57
Q

Asset

A

something of value, a useful item of property, owned by a person

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58
Q

Assignee

A

third party to the contract

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59
Q

Assignment

A

a transfer to another of any property or tight; the transfer of one’s entire interest in property

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60
Q

Assignor

A

the original party to the contract

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61
Q

Associate broker

A

Has the same privileges and responsibilities as licensed sales agents

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62
Q

Assured water supply

A

a certificate issued by the director of water resources that is required before an Arizona subdivision located within a groundwater active management area can be approved

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63
Q

Avulsion

A

a sudden loss of land, which may occur as a result of a sudden shift in a riverbed, volcanic action, and earthquake, or another cause

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64
Q

Back-end ratio

A

a loan qualifying ration based on total living expenses

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65
Q

Balance

A

the principle that implies a balance between net return on investment and expenses of labor capital, management, and land

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66
Q

Balloon payment

A

a not’s final installment payment, which is greater than the preceding payments and pays the note in full

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67
Q

Bankruptcy

A

insolvency; a legal process wherein one is declared bankrupt and the estate of the bankrupt is managed under court supervision for the creditor’s benefit

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68
Q

Bare legal title

A

the trustee has the power of sale if the borrower defaults

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69
Q

Bargain and sale deed

A

a deed that contains no covenants, but does imply that the grantor owns the property being conveyed

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70
Q

Base lines

A

imaginary lines that are east-west lines parallel to the latitudinal lines

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71
Q

Bench mark

A

Brass marker embedded in a road or permanently attached to a tree or iron post to give the elevation based on the official datum

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72
Q

Beneficiary

A

One for whose benefit a trust is created; the lender in a deed of trust arrangement

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73
Q

Bequest

A

The transfer of personal property through a will

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74
Q

Bilateral contract

A

Two-sided contract, with each side making a promise of performance that is binding upon both parties. Most real estate contracts are bilateral contracts

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75
Q

Blanket mortgage

A

Mortgagor pledges more than one property to secure the note

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76
Q

Blind ad

A

Advertising property in a manner that implies that no salesperson or broker is taking part in the offer for sale, lease, or exchange

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77
Q

Blind trust

A

a trust in which the beneficiary is not disclosed

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78
Q

Blockbusting

A

Illegal practice of inducing panic selling in a neighborhood for profit, based on the introduction of minority homeowners into a neighborhood

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79
Q

Book value

A

an accounting term for the cost of real estate less depreciation recorded for accounting and tax purposes

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80
Q

Breach of contract

A

occurs when either party defaults on the contract. Rescission, damages, liquidated damages, or suits for specific performance are actions that may result from, a breach of contract

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81
Q

Broker Management Clinic

A

A required 3-hour continuing education course that new Arizona broker licensees must complete prior to license issuance and that designated brokers must complete every 2 years

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82
Q

Brokerage

A

The business of bringing buyers and sellers together in the marketplace for a fee called a commission

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83
Q

Brown v. Board of Education

A

U.S. Supreme Court decision in this case outlawed segregation in schools and marked the beginning of the end of the era of legalized segregation

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84
Q

Brownfields

A

a property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant

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85
Q

Budget loan

A

when the borrower is forced to put away money in trust for the payment of the property taxes and insurance

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86
Q

Budget mortgage

A

Features loan payments that include principal, interest, taxes, and insurance (often called PITI)

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87
Q

Buffer zone

A

Strip of land that separates one land use from another

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88
Q

Bundle of rights

A

Property rights that include the rights of control, possession, quiet and peaceful enjoyment, disposition, and encumbrance

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89
Q

Caissons

A

Small parcels of land that serve as support foundations

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90
Q

Capacity

A

Competent party; a person considered legally capable of entering into a binding contract

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91
Q

Capacity

A

Ability to pay a debt or loan being contemplated

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92
Q

Capital asset

A

Generally includes all assets owned as an investment or for personal purposes, e.g., stocks, bonds, a personal residence, household furnishings, cars precious metals, and assets used in a trade or business

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93
Q

Capital gain or loss

A

Gain or loss on the sale of a capital asset

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94
Q

Capital improvements

A

Includes carpeting, window coverings, new roof, new plumbing or electrical systems, building additions, and major repairs such as a new driveway, refurbishing stucco, or new landscaping

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95
Q

Capitalization rate

A

The percentage rate or rate of interest considered a reasonable return on the investment

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96
Q

Cash basis

A

A method of accounting whereby revenue and expenses are recognized when cash is received or disbursed

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97
Q

Cash rent

A

A lease between an agricultural landowner and a tenant, whereby the tenant pays the landowner a specified amount of money in advance in exchange for the right of the tenant to use the agricultural land to plant, maintain, and harvest a crop upon the land

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98
Q

Caveat emptor

A

A Latin phrase meaning “let the buyer beware”; the legal maxim stating that the buyer must examine the goods or property and buy at his or her own risk

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99
Q

Caveat venditor

A

A Latin phrase meaning “let the seller beware”

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100
Q

Cease and desist order

A

An order issued by a legal authority to discontinue a certain action

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101
Q

Central Arizona Project

A

Federal Bureau of Reclamation project to build the Grand Canal that delivers water from the Colorado River to central Arizona

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102
Q

Certificate of Eligibility

A

Determines a veteran borrower’s maximum entitlement

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103
Q

Certificate of Occupancy

A

A government-issued document that states a structure meets local zoning and building code requirements and is ready for use

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104
Q

Certificate of Purchase

A

Document issued to the successful bidder at a sale held by the county treasurer for delinquent property taxes

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105
Q

Certificate of Sale

A

Document issued to the highest bidder at a judicial foreclosure sale

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106
Q

Chain of title

A

A series of conveyances, encumbrances, and other instruments affecting the title from the time original patent was granted, or as far back as records are available; a history of the recorded ownership o real estate and claims against title to real estate.

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107
Q

Change

A

A principle in valuation that considers economic, social, and physical changes

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108
Q

Character

A

Desire or willingness to pay a debt or loan being contemplated

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109
Q

Chattel real

A

Leasehold estate

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110
Q

Civil Rights Act of 1866

A

An act that guarantees property rights to all citizens regardless of race

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111
Q

Civil Rights Act of 1964

A

An act that prohibited discrimination in programs receiving federal financial assistance, but had little impact in the housing market

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112
Q

Clandestine drug laboratory

A

A facility that utilizes chemicals and equipment in the manufacture of illegal substances; meth labs

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113
Q

Client

A

A person (principal) represented in the purchase or sale of real property by a broker

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114
Q

Closing costs

A

Expenses paid by the buyer and seller to complete the transaction

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115
Q

Clouds on title

A

A claim or document that affects title to real estate; the actual cloud may ultimately; prove invalid, but its existence mars the title

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116
Q

CLUE report

A

An insurance industry report based on a national database of claims and inquiries

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117
Q

Cluster zoning

A

Zoning that changes street patterns and reduces the size of individual lots, but provides for the same number of residences with more open recreational space and less traffic congestion than on a regular grid pattern of subdivision

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118
Q

Code of Ethics

A

Articles that pertain to the REALTOR’s relation to clients, other real estate agents, and the public

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119
Q

Coinsurance clause

A

The insurer and the insured share the insurance risk; calculated on the policy amount and the percent of the actual insured values

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120
Q

Collateral

A

Security pledged for payment of a loan

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121
Q

Color of title

A

That which appears to be a good title but, in fact, isn’t; for example, a forged deed

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122
Q

Colorado River water

A

Category of surface water that is governed by federal law and administered by the department of Interior through the Bureau of Reclamation

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123
Q

Commercial bank

A

A bank specializing in checking and savings accounts and short-term loans

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124
Q

Commercial facilities

A

Facilities “that are intended for nonresidential use” by a private entity and “whose operations affect commerce”

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125
Q

Commercial landlord/tenant statutes

A

Arizona statutes that apply to landlord and tenant issues for commercial rental properties

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126
Q

Commercial property insurance

A

Covers most types of commercial buildings

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127
Q

Commingled

A

The mixing of clients’ or customers’ funds with an agent’s personal funds

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128
Q

Commission

A

An agent’s compensation for performing the duties of his or her agency agreement

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129
Q

Commission sharing brokerage

A

Percentage of the commission amount collected by the brokerage is paid to the salesperson; commission sharing percentages generally range from 50 to 70 percent, depending on the experience and volume of production by the licensed salesperson

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130
Q

Commissioner

A

Refers to the Commissioner of the Arizona Department of Real Estate

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131
Q

Commissioner’s Public Report (CPR)

A

After examining a subdivision the Commissioner issues a public report (unless there are grounds for denial) authorizing the sale or lease of the lots, parcels, or fractional interest within the subdivision

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132
Q

Commissioner’s Rules

A

Real estate licensees are subject to the Commissioner’s Rules of the Arizona Administrative Code, which are authorized by statutes and allow the Commissioner to interpret and clarify the real estate code through the development of rules and regulations

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133
Q

Common elements

A

All portions of a condominium other than units

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134
Q

Common law

A

Is based on tradition, customs, and usage and is generally unwritten in statute or code; common law was developed in England and transferred to the United States with the early colonists

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135
Q

Common promotional plan

A

A person or group of persons acting in concert to offer lots for sale or lease

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136
Q

Community property

A

Property co-ownership wherein husband and wife are treated as equal partners with each owning a one-half interest

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137
Q

Community property with rights of survivorship

A

Allow a married couple to receive benefits under the federal tax code for community property while avoiding probate

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138
Q

Community Reinvestment Act

A

An act by Congress to help prevent redlining and discrimination by lenders

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139
Q

Competition

A

The appraisal principle that states that excess profits generate competition; if too much competition is attracted to an area losses in profits will result

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140
Q

Competitive market analysis

A

A comparison of prices of recently sold homes that are similar to a seller’s home

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141
Q

Comprehensive development plan

A

Provides housing, recreation, and commercial development in one self-contained development or in urban high-rise facilities where individuals can live, work, and play within the same area

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142
Q

Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)

A

The law that was enacted by congress in 1980 in response to the environmental and public health hazards imposed by improper disposition of hazardous waste

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143
Q

Concurrent ownership or co-ownership

A

Ownership by two or more persons at the same time

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144
Q

Condemnation

A

The act of taking private property for public use by a political subdivision through the exercise of the power of eminent domain

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145
Q

Condominiums

A

A system of individual ownership of units in a multifamily structure, combined with an undivided interest in the common areas of the structure and the land

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146
Q

Confidentiality

A

The part of the agent’s fiduciary duty to treat information form the client with confidence

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147
Q

Confiscation

A

Right of government to seize property without compensation in the interest of national security

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148
Q

Conforming loan

A

A conventional loan that follows Fannie Mae and Freddie Mac residential loan uniform documentation and qualification parameters

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149
Q

Conformity

A

Appraisal principle stating that a property achieves maximum value when the property reasonably conforms to the neighborhood

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150
Q

Consent order

A

An order that reflects the terms of an agreement between the Department and the licensee

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151
Q

Consideration

A

The inducement to contract; is something of value, such as money, property, personal services, or the promise to perform a specific action; consideration makes a contract enforceable

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152
Q

Construction loan

A

An open-end mortgage loan that finances the cost of materials and labor for a building; short-term loan that must be replaces with permanent financing

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153
Q

Constructive eviction

A

Termination of a rental agreement by the landlord’s noncompliance

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154
Q

Constructive notice

A

Notice given by a recorded document because a person could have discovered certain facts upon reasonable investigation and a “reasonable man” in the same situation would have conducted such an investigation

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155
Q

Contract

A

Legally enforceable agreement between competent parties who agree to perform or refrain form performing certain acts for a consideration

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156
Q

Contract for deed

A

Also called an agreement for sale or land contract, enables the seller to finance a buyer by permitting the buyer to make a down payment followed by monthly payments

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157
Q

Contract for sale

A

A real estate installment sales arrangement whereby the buyer may use, occupy, and enjoy the property; however, no deed is delivered by the seller until the entire contract price has been paid

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158
Q

Contract rent

A

The rental price stated on the lease agreement

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159
Q

Contract rescission

A

The canceling of a contract by either mutual consent of the parties or legal action

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160
Q

Contract Writing Course

A

A 6-hour continuing education course that is required to be completed prior to the insurance of an initial Arizona real estate salesperson license

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161
Q

Contribution

A

The same principle as increasing and decreasing returns, except that it applies to only a portion of the property

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162
Q

Conventional (formal) will

A

A will that is normally prepared by an attorney and properly witnessed according to statute

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163
Q

Conventional life estate

A

A fee simple estate granted for the life of an individual

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164
Q

Conventional loan

A

A loan that is made that is not federally insured or guaranteed.

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165
Q

Conversion

A

Use of funds by the broker for other than their stated purpose is illegal

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166
Q

Cooperating broker

A

The selling broker, who almost always represents the buyer

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167
Q

Cooperatives

A

Generally organized as corporations with the tenants owning the stock

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168
Q

Corporation

A

A legal entity formed and authorized by law to act as an individual person with rights and liabilities distinct from those of the persons compromising it

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169
Q

Corrective deed

A

A document used to correct an error in a previously recorded deed

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170
Q

Cost

A

The historical expenditure for the purchase, construction, or improvement of a property

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171
Q

Cost approach

A

Also called appraisal by summation, estimates today’s cost of all improvements, minus all factors of depreciation, plus the valuation of the land using the market data approach

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172
Q

Cost recovery

A

The recovery of cost through depreciation for accounting and tax purchases

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173
Q

Covenants

A

Agreements written into deeds and other instruments promising performance or non-performance of certain acts

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174
Q

Covenants, Conditions, and Restrictions (CC&Rs)

A

Document that itemizes deed restrictions that uniformly affect all of the subdivision; also called the Uniform Declaration of Restrictions

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175
Q

Credit

A

The reputation of a person or firm for the paying of bills when due

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176
Q

Credit report

A

A report reflecting the credit-worthiness of a borrower by showing past credit history

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177
Q

Credit unions

A

Similar to the original savings and loans—they are operated primarily for the benefit of their members or depositors

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178
Q

Cubic area formula

A

To compute multiply the width x length x depth or height.

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179
Q

Courtesy

A

The legal right of a widower to a portion of his deceased wife’s real property

180
Q

Customer

A

Third party to whom the seller sells or agrees to sell

181
Q

Damages

A

The estimated money equivalent for loss or injury sustained

182
Q

Datum

A

Point of reference to which heights and depths are referred

183
Q

Deal fairly

A

One of the duties of a licensee set forth in the Commissioner’s Rules, wherein a licensee must be honest and truthful with al parties to a transaction

184
Q

Debit

A

To charge as a debt

185
Q

Debit and credit statement

A

Type of settlement statement used for commercial transaction settlements and residential settlements not covered by RESPA

186
Q

Deed

A

A written instrument that when properly executed by the grantor and delivered to the grantee conveys title for the real estate described

187
Q

Deed in lieu of foreclosure

A

Mutual agreement in which the borrower is released from liability under the terms of the loan in exchange for a quitclaim deed or a regular grant deed

188
Q

Deed of reconveyance

A

Instrument used to reconvey title to a trustor under a trust deed once the debt has been satisfied

189
Q

Deed of trust

A

A security instrument transferring title to property to a third person (trustee) as security for a debt or other obligation owed by the borrower (trustor) to the lender (beneficiary)

190
Q

Deed restriction

A

Clauses in a deed restricting or limiting future uses of the property

191
Q

Default

A

Breach of one or more of the terms and conditions that the borrower agreed to in the loan and security agreements

192
Q

Defeasance clause

A

A mortgage clause that states the mortgage is defeated if the accompanying note is repaid on time

193
Q

Defensible

A

Qualified fees that can be terminated if certain conditions are met or not met

194
Q

Deficiency judgment

A

A judgment against the defaulting mortgagor for the difference between the indebtedness and the sale price through a foreclosure sale

195
Q

Delinquency

A

Past due payment

196
Q

Demand

A

The need or desire to possess something and having the money to fulfill that need

197
Q

Demise

A

The transfer of a leasehold interest

198
Q

Denominator

A

The bottom number of a fraction

199
Q

Department of Housing and Urban Development (HUD)

A

provides assistance for housing and community development; insures mortgages and promotes and enforces equal housing opportunity

200
Q

Depreciation

A

decrease in value

201
Q

Depreciation (cost recovery)

A

The annual deduction allowed for recovering the taxpayer’s cost of the investment property

202
Q

Derivative title

A

All ownership belonging to individuals or legal entities and derived form the government’s original title

203
Q

designated broker

A

Defined in the Arizona statutes as a licensed broker who is either: (a) designated to at on behalf of an employing real estate entity, or (b) doing business as a sole proprietor

204
Q

Devise

A

The transfer of real property by will

205
Q

Devisee

A

One who receives real property under a will

206
Q

Devisor

A

The person who wills the property

207
Q

Direct reduction loan

A

A constant principal reduction plus the interest due on the unpaid balance

208
Q

Discharge of contract

A

When performance of the agreed upon actions has been completed, the contract is discharged

209
Q

Disclaimer deed

A

A deed executed by one spouse that denies any interest in the property of the other spouse

210
Q

Disclosure

A

The agent’s duty to keep the principal informed of all facts or information that could materially affect a transaction

211
Q

Discount

A

A charge made by lenders to increase the effective rate of interest (yield) from the stated interest rate on the note

212
Q

Discount point

A

Charges made by lenders to adjust the effective rate of interest on a loan; one point is equal to 1 percent

213
Q

Distrait

A

Forcing the tenant to pay rent or other financial obligations by seizing the leased premises and/or personal property inside the leased premises

214
Q

Dominant tenement

A

Landowner who benefits from the easement

215
Q

Dower

A

Old English law, wherein any property bought during marriage belongs to the husband, but husband and wife share the use of the property

216
Q

Down zoning

A

Occurs when a property zoned for higher-density uses is rezoned for lower-density uses

217
Q

Dual agency

A

The representation of opposing principals (buyer and seller) by an agent at the same time

218
Q

Dwelling insurance

A

Covers losses from fire, lightening, and internal explosion for residential properties

219
Q

Dwelling unit

A

A structure or the part of a structure that is used as a home, residence, or sleeping place by one person who maintains a household or by two or more persons who maintain a common household

220
Q

Earned income

A

Includes wages, salaries, income from a business or profession, and other earned income

221
Q

Easement

A

Interest that entitles one party to some limited use of another party’s land

222
Q

Easement in gross

A

Right to use the land of another

223
Q

Economic characteristics of real estate

A

The four main categories that describe real estate in economic terms: scarcity, improvements, fixed investments and situs

224
Q

Economic obsolescence

A

Caused by an influence outside the property over which the property owner has no control

225
Q

Economic rent

A

The amount that a property would bring at current market if it were not under prior contract

226
Q

Effective annual gross income

A

Total income after deductions for vacancies and bad debts

227
Q

Effective rate

A

The average tax rate on all of the individual’s taxable income

228
Q

Engress

A

Exit

229
Q

Electromagnetic field

A

The area created by the movement of electrical current

230
Q

Eminent domain

A

Government’s right to take private property for public use without the owner’s consent, after paying the owner fair compensation

231
Q

Eminent domain

A

Taking property for the public welfare by paying fair market value for it

232
Q

Employee Retirement Income Security Act (ERISA)

A

Federal law that provides for the protection of assets set aside for pension and retirement plans through the establishment of the Pension Benefits Guaranty Corporation

233
Q

Encroachment

A

Intrusion upon another person’s property without a right to use it

234
Q

Encumbrance

A

A claim upon real property; any impediment to a clear title

235
Q

Enforceable

A

A valid contract, with all of the essential elements present, that is binding on all parties and can be enforced through a court of law

236
Q

Entitlement

A

The maximum amount the DVA will guarantee a lender in the event of default

237
Q

Entity taxation

A

Basic difference between a corporation and a partnership

238
Q

Environmental Impact Statement

A

Document that gathers information that will demonstrate a positive or negative impact of a proposed project on the physical, economic, and social environment of the area

239
Q

Equal Credit Opportunity Act (ECOA)

A

Federal law prohibiting discrimination in the extension of credit

240
Q

Equal Hosing Opportunity poster

A

A poster required to be displayed in brokerages, mortgage companies, and new home sites; failure to display the poster may be considered as evidence of discriminatory practices

241
Q

Equitable period of redemption

A

The period of time form the filing of the notice of default to the date of the sale

242
Q

Equitable title

A

The vendee has the right to occupy the property and has all the right sand obligations of ownership

243
Q

Equity of redemption period

A

The right to redeem property during the foreclosure period

244
Q

Erosion

A

Gradual wearing away of land through processes of nature

245
Q

Escheat

A

Reversion of property to the state upon the death of an owner who has no will or heirs able to inherit

246
Q

Escrow Company

A

Orders loan payoffs, prepares escrow instructions, takes signatures, disburses funds, and arranges for the recording of documents

247
Q

Escrow instructions

A

Documents in which buyers and sellers hire escrow companies to work on their behalf

248
Q

Estate

A

The degree, quantity, nature, and extent of the interest that a person has in real property

249
Q

Estate at sufferance t

A

The lowest type of estate a person can hold

250
Q

Estate at will

A

Use of the property at the will of the landlord; either party can terminate the lease at any time since there is no set termination date

251
Q

Estate for years

A

A lease that extends for a definite term

252
Q

Estate in remainder

A

The interest that takes effect after the termination of a prior estate, such as a life estate

253
Q

Estate in reversion

A

The interest that reverts to the grantor after the termination of a prior estate such as the expiration of a lease or the death of a life tenant

254
Q

Estate pur autre vie

A

A life estate pur autre vie grants a life estate to one person that expires on the death of another person

255
Q

Estoppel agency

A

An agency that cannot be denied when a broker allows a seller or buyer to create the illusion that the broker is his or her agent

256
Q

Eviction

A

The act of depriving a person of a possession of land that he has held pursuant to the judgment of the court of competent jurisdiction

257
Q

Exceptions

A

Limitations on the title, such as easements, mineral rights or deed restrictions, or other encumbrances on the property

258
Q

Exclusive agency listing

A

a written agreement giving one agent the exclusive right to sell property for a specified period of time, but reserving the right of the owner to sell the property himself or herself without liability for the payment of a commission

259
Q

Exclusive retainer agreement or exclusive right to locate property

A

Listing used to locate properties on behalf of the buyer, buyer brokerage agreement

260
Q

Exclusive right to sell listing

A

A written agreement giving one agent the exclusive right to sell property for a specified period of time the agent may collect a commission if the property is sold by anyone, including the owner, during the term of the listing agreement

261
Q

Executed contract

A

A contract in which all of the terms and conditions have been fulfilled

262
Q

Executory contract

A

Contract that is not yet finished (unperformed) and therefore incomplete

263
Q

Exempt domestic well

A

Wells not requiring special permits, which may pump up to 35 gallons per minute

264
Q

Exempt sales

A

Lot sales that are exempt from the Commissioner’s Public Report requirements of the Arizona Real Estate Code

265
Q

Express contract

A

An oral or written contract in which the parties state the contract’s terms and express their intentions in words

266
Q

Extended coverage

A

Policy that includes all of the coverage of a standard policy, plus additional insurance against anything an inspection o the property might disclose, discrepancies or conflicts in boundaries, unrecorded liens, encumbrances, leases, and not having legal access

267
Q

Fair Credit Reporting Act

A

Act that regulates the action of credit bureaus and the use of consumer credit

268
Q

Fair Housing Act of 1968

A

Bans discrimination on the basis of race, color, religion, and national origin in most types of housing transactions; in 1974, the 1968 Act was amended to include the ban on discrimination on the basis of sex

269
Q

Fair Housing Act of 1988

A

Added the protected classes of handicap and familial status

270
Q

Familial status

A

One or more individuals (under the age of 18) living with either a parent or legal guardian, or a designee holding written permission of a parent or legal guardian for the child or children to live with him or her

271
Q

Fannie Mae or Federal National Mortgage Association (FNMA)

A

Commonly known as Fannie Mae, it was established in 1938 as a government corporation to create a secondary market for FHA loans

272
Q

Federal Deposit Insurance Corporation (FDIC)

A

A federal insurance program that insures deposits in banking institutions up to $100,000

273
Q

Federal flood insurance

A

Insurance coverage for losses to real and personal property resulting from the inundation of normally dry areas

274
Q

Federal Home Loan Bank System (FHLB)

A

Now known as the Office of Thrift Supervision, it is the regulatory and supervisory agency for federally chartered savings and thrift institutions

275
Q

Federal Home Loan Mortgage Corporation (FHLMC)

A

Second major player in the secondary mortgage market is the Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac; the Emergency Home Finance Act of 1970 gave Fannie Mae the power to purchase conventional loans, authorized the establishment of a new player in the secondary market

276
Q

Federal National Mortgage Association (FNMA) or Fannie Mae

A

Commonly known as Fannie Mae, it was established in 1938 as a government corporation to create a secondary market for FHA loans

277
Q

Federal Reserve System (FED)

A

The federal central banking system of the United States under the control of a central board of governors (Federal Reserve Board); responsible for controlling and regulating the nation’s monetary policy and money supply

278
Q

Fee simple conditional

A

Also known as fee tail, is a fee simple with a restriction to the right of inheritance such as limiting the right of inheritance to a fixed line of succession, such as “to the first-born son in each generation”; fee simple conditional is not legal in Arizona

279
Q

Fee simple determinable

A

A fee simple estate in which the property automatically reverts to the grantor upon the occurrence of a specified event or condition

280
Q

Fee simple estate

A

Also known as fee, or fee simple absolute, it gives the owner the greatest interest possible and is of indefinite duration

281
Q

Fee simple on condition subsequent

A

A qualified fee estate subject to conditions on the grantee, often recognized by the negative restriction or the words “but if”

282
Q

Feudal system

A

All the land belongs to the sovereign king (or queen) and everyone owes rent or services to a superior

283
Q

FHA loan

A

One that is insured by the Federal Housing Administration

284
Q

Fiduciary relationship

A

Relationship created between the principal (client) and the agent and is one of trust and confidence

285
Q

Fief

A

An estate held as a condition of service to another

286
Q

Finder’s fee

A

Fee paid to a person for introducing or arranging an introduction between the parties to a transaction involving the rental of an apartment unit

287
Q

Fixtures

A

An item that was once tangible, personal property that has been attached to and made a part of the land or improvements

288
Q

Forbearance

A

An arrangement that effectively forestalls or delays foreclosure action

289
Q

Forcible detainer action

A

Expedites eviction of the borrower

290
Q

Foreclosure

A

Procedure that removes an owner’s property rights; when real property is pledged as security for a loan, the process of selling that property as a result of the borrower’s default is called foreclosure

291
Q

Forfeiture clause

A

The loss of money or anything of value due to failure to perform under a contract

292
Q

Foundation

A

The substructure for a superstructure; includes footings, foundation walls, columns, and pedestals

293
Q

Fractional interest

A

An undivided interest in improved or unimproved land and lots or parcels of any size created for sale or lease

294
Q

Fractional section

A

the sections where township corrections are made are confined to sections 1,2,3,4,5,6,7,18,19,30,and 31; there are 11 fractional sections in a township

295
Q

Fraudulent misrepresentation

A

Deceitful practice or material misstatement known to be false and done with intent to deceive

296
Q

Freddie Mac or Federal Home Loan Mortgage Corporation (FHLMC)

A

Second major player in the secondary mortgage market is the Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac; the Emergency Home Finance Act of 1970 gave Fannie Mae the power to purchase conventional loans, authorized the establishment of a new player in the secondary market

297
Q

Freehold

A

An estate of ownership of real property of uncertain duration

298
Q

Freehold estate

A

Real property ownership estate of uncertain duration

299
Q

Fructus industrials

A

Annual crops; these crops are considered personal property

300
Q

Fructus naturals

A

Perennial crops; these crops are considered real property

301
Q

Functional obsolescence

A

Loss of value from all causes within the property, except those due to physical deterioration

302
Q

General agent

A

One who represents the principal in a specific range of matters, such as all real estate

303
Q

General partnership

A

An association of two or more persons (natural or legal) who share in the management and operation of the business, as well as the profits and losses

304
Q

General warranty deed

A

A deed with covenants whereby the grantor agrees to protect the grantee against any claimant

305
Q

Gila and Salt River Base Line and Meridian

A

Intersection of the Arizona Base Line and Principal Meridian; establishes the initial point of the government survey

306
Q

Ginnie Mae or Government National Mortgage Association (GNMA)

A

Government Corporation under the control of the Department of Housing and Urban Development (HUD), also called Ginnie Mae, it administers special assistance programs in secondary market activities

307
Q

Government checks

A

24-mile squares established by Guide Meridians and Standard Parallels, and each containing 16 townships

308
Q

Government National Mortgage Association (GNMA) or Ginnie Mae

A

Government Corporation under the control of the Department of Housing and Urban Development (HUD), also called Ginnie Mae, it administers special assistance programs in secondary market activities

309
Q

Government rights

A

Include police power, taxation, eminent domain, and escheat

310
Q

Government-backed loan

A

Residential mortgage loans that are insured or guaranteed by federal agencies

311
Q

Graduated lease

A

A lease that provides for agreed-upon rent increases

312
Q

Graduated payment mortgage (GPM)

A

Begins with low payments but increases at regular intervals for a set number of years and then levels out for the balance of the term

313
Q

Grandfathered rights

A

Written into the 1980 Groundwater Management Act to protect the rights of historic users while prohibiting new uses

314
Q

Grantee

A

The person named in a deed who acquires ownership

315
Q

Granting clause

A

Transfers the property rights along with the grantor’s covenants (promises); the wording related to the covenants caries depending upon the type of deed

316
Q

Grantor

A

The seller or giver in the sale or gift of real property

317
Q

Gross income

A

Includes earned income, portfolio income, passive income, and capital gains and losses

318
Q

Gross lease

A

A simple lease used in most houses and apartment complexes

319
Q

Gross rent multiplier (GRM)

A

used as a rule of thumb for a quick estimate of value based on the relationship of comparable sales prices to the comparables’ monthly rental income; it is not an approach to value

320
Q

Ground lease

A

A long-term lease for the use of land

321
Q

Groundwater

A

All water under the surface of the Earth except water flowing in underground streams with definite and ascertainable beds and banks

322
Q

Growing Smarter/Growing Smarter Plus

A

Arizona legislation adopted in 1998 and 2000 establishing general plan requirements for Arizona municipalities and countries

323
Q

Guide meridians

A

Survey line running north and south that corrects for the Earth’s curvature

324
Q

Habendum clause

A

The “to have and to hold” clause that defines or limits the quantity of the estate granted in the deed

325
Q

Handicapped person

A

One who has “A physical or mental impairment which substantially limits one or more of such person’s major life activities,” and has a record of having such an impairment or being regarded as having such an impairment

326
Q

Hard money loan

A

Mortgage given for money received

327
Q

Hereditament

A

Anything capable of being inherited, both real and personal property

328
Q

Highest and best use

A

The most profitable use for which land can be used at the time of appraisal: the use that will bring the greatest return

329
Q

Hold harmless clause

A

A clause in commercial leases that transfers all liability for the leased premises to the tenant

330
Q

Holder in due course

A

Third party purchaser of a note; has all the rights of the original holder

331
Q

Holographic will

A

A handwritten will that is signed and dated by it maker; a holographic will cannot be typed, but it can be a preprinted form that was filled in by hand; a holographic will requires no witness

332
Q

Home mortgage interest deduction

A

Itemized interest expense deduction allowed on an individual taxpayer’s return

333
Q

Home warranty contract

A

A warranty on resale homes that covers mechanical items

334
Q

Homeowners’ association (HOA)

A

Manages the common elements of the condominium development and ensures compliance with the HOA rules and the development’s deed restrictions

335
Q

Homeowners’ insurance

A

Multi-line policies that they combine property and casualty coverage in the same policy

336
Q

Homestead exemption

A

Law that automatically exempts the homestead of any person 18 years of age or over, married or single, who resides in the state and is the head of the household

337
Q

HUD-1 statement

A

Closing statement required by RESPA to be used for most residential real estate closings

338
Q

Hypothecation

A

To pledge property as security without giving up possession

339
Q

Impairment

A

A substantial limitation of one of more major life activities to be covered by the Americans with Disabilities Act

340
Q

Implied agency

A

When the buyer assumes by an agent’s actions that the agent is working for the buyer

341
Q

Implied contract

A

Agreement of the parties is demonstrated by their acts or conduct

342
Q

Improper fraction

A

A fraction that equals a whole number or more

343
Q

Improved lot or parcel

A

A lot or parcel featuring a residential, commercial, or industrial building

344
Q

Improvements

A

Additions to raw land such as buildings, streets, sewers, etc.

345
Q

Income approach

A

An appraisal technique used on income-producing properties; assumes that income from property establishes value

346
Q

Income ratio

A

A ratio used to qualify borrowers for a mortgage loan that is computed by dividing the monthly mortgage payments by monthly gross income

347
Q

Increasing and decreasing returns

A

Principle of value; if funds spent on improving a property increase return, the law of increasing return applies; if they do not produce a positive return, the law of decreasing return applies

348
Q

Indefeasible fee

A

Fee simple estate; cannot be annulled forfeited, or terminated without the action of the owner, as long as the owner is not doing anything to interfere with the rights of others or the government

349
Q

Index lease

A

A lease that allows for periodic increases in base rental fees based on a predetermined guideline

350
Q

Ingress

A

entrance to landlocked property

351
Q

In-house sale

A

Brokerage transaction in which one sales associate obtains the listing and also finds the buyer, or a second associate with the same brokerage procures the buyer

352
Q

Innocent-purchaser defense

A

A defense to owner liability under CERCLA when a landowner can demonstrate that at the time of acquisition there was “no reason to know” that the property was contaminated

353
Q

Inquiry

A

Any call to the insurance agent about an actual or potential loss that would be covered by a homeowner’s policy

354
Q

Inquiry notice

A

The expected examination of public records and visual inspection for claims and the extent of those claims by anyone acquiring a property right or interest

355
Q

Installment loan

A

A loan that allows payment over an extended period of time

356
Q

Insulation

A

Material placed in walls ceilings that is rated by R-factor for its ability to resist heat transfer

357
Q

Insurable value

A

Used to determine the amount of insurance needed to meet co-insurance clause requirements

358
Q

Insurance underwriting

A

Process used by the insurance company to ascertain the types of risks it will accept through the issuance of an insurance policy

359
Q

Intangible assets

A

Incorporeal or invisible assets – with out a body

360
Q

Integration, equilibrium, and disintegration

A

Integration is the development stage, when the value of a property is increasing; equilibrium is the static period, when the property reaches its maximum value; disintegration is the period during which the neighborhood declines and the value goes down

361
Q

Interest

A

The charge or cost for the use of money

362
Q

Interest rate buy-down

A

A reduction of the interest rate stated on the note by payment of

363
Q

Interest-only loan

A

Loan that requires periodic payment of the interest only; often referred to as a straight loan

364
Q

Interstate Land Sales full Disclosure Act

A

Regulates the sale or lease when developers of 25 or more unimproved lots in a subdivision sell or lease to citizens of another state as part of a Common Promotional Plan

365
Q

Intestate

A

Dying without a will

366
Q

Intestate succession

A

The transfer of property to the surviving heirs of an individual who dies intestate

367
Q

Investor

A

One who acquires property to obtain a profit

368
Q

Involuntary alienation

A

Transfer of property ownership without the consent of the owner; accomplished by operation of the law

369
Q

Irrigation grandfathered rights

A

Grandfathered water rights established in 1980 applicable to farming for cash crops

370
Q

Itemized deductions

A

Personal expenses that can be deducted on an income tax return when computing taxable income

371
Q

Joint and several liability

A

Enforceable on the makers as a group and upon each maker individually

372
Q

Joint tenancy

A

Type of ownership in which, in the case of death, the survivor automatically acquires ownership of the property

373
Q

Jones v. Mayer

A

1968 landmark case banning discrimination based on race in the sale of housing

374
Q

Judgment

A

A court of competent jurisdiction’s final determination of a matter presented to it; the final decision by a court in a lawsuit, motion, or other matter

375
Q

Judicial foreclosure

A

Foreclosure action taken through the filing of a lawsuit

376
Q

Laches

A

Delay in asserting one’s rights

377
Q

Land

A

Land includes the surface of the Earth plus everything attached to the Earth by nature, space above the Earth (air rights), and below the surface (mineral rights)

378
Q

Land contract

A

Also known as an agreement for sale or a contract for deed, it is an executory contract, in as much as the terms have not been fulfilled

379
Q

Land developers

A

Improve lots by adding buildings and then sell the developed lots

380
Q

Land trust

A

A real estate trust wherein the person who creates the trust, the tustor, is also its beneficiary; a trust created solely for the ownership, operation, and management of real estate interests

381
Q

Landlord

A

The owner of the property, who subordinates the rights of possession

382
Q

Latent defects

A

A hidden or concealed defect that cannot be discovered by ordinary observation or inspection

383
Q

Lawful purpose

A

One of the four requirements for a valid contract

384
Q

Lead-based paint

A

Paint that has a lead component and that is extremely harmful and may be deadly to children

385
Q

Lead-based paint disclosure

A

Required disclosure by sellers or lessors of residential properties built before 1978

386
Q

Leasehold

A

An estate that is less than freehold and lasts a certain duration of time

387
Q

Leasehold policy

A

Provides protection to a tenant or a lender to the tenant against defects in the lessor’s title

388
Q

Lease-purchase

A

A simple lease for a specified period of time, after which or during which the lessor agrees to sell and the lessee has the option to purchase at an agreed price and terms

389
Q

Legal life estate

A

The life estate created by state laws; the only legal life estate applicable to Arizona is the homestead exemption

390
Q

Legal rate

A

The rate of interest allowed by law when a obligation or court-ordered judgment does not state a rate of interest on the obligation due; the legal rate of interest in Arizona is 10 percent

391
Q

Lender’s policy

A

Provides protection against defects in the title pledged as a security in a mortgage or trust deed note and insures the lender of his or her security position

392
Q

Lessee

A

A tenant; the person who is entitled to possession of property under a lease

393
Q

Lessor

A

A landlord; the property owner who executes a lease

394
Q

Leveraging

A

Borrowing money from another source to supplement your own funds in completing the acquisition of a piece of property

395
Q

License

A

Personal, non-assignable authorization to enter and perform certain acts on another’s land

396
Q

Lien

A

Claim or charge against a property ads security for the payment of a debt or obligation

397
Q

Life insurance companies

A

A source for large loans on commercial properties

398
Q

Life tenant

A

A person who holds a freehold interest (life estate) in property for his/her lifetime or for the lifetime of another designated person

399
Q

Limited liability Company (LLC)

A

A form of business organization, combining the most favorable attributes of a partnership and a corporation and consisting of members or managers that are governed by its operating agreement

400
Q

Limited partnership

A

A group of passive investors who, as a class of limited partners, join with a general partner who manages the investment or business enterprise

401
Q

Lis pendens

A

Recorded legal document that gives constructive notice that an action affecting a particular piece of property has been filed in a state or federal court

402
Q

Listing broker

A

The real estate broker who procured the listing

403
Q

Listing

A

A written employment contract between principal and agent, authorizing agent to perform services for the principal involving real estate

404
Q

Littoral rights

A

the lawful claim of a landowner to use and enjoy the water of a lake or sea bordering the land, but fan only own the land to the water’s edge of the nearest high water mark

405
Q

Livery of seisin

A

A mid-seventeenth century ceremony for the transfer of real property ownership

406
Q

Living trust

A

Also known as an intervivos trust, it is created and takes effect during the trustor’s lifetime; a living trust relieves the trustor of the responsibility of handling the estate

407
Q

Loan originator

A

Individuals or entities in the primary mortgage market who lend directly to the qualified borrower

408
Q

Loan servicing

A

Collecting payments from the borrower and passing them along to the investor for a fee; may be separated from the sale of the loan or it may be included

409
Q

Loan value

A

Value used for establishing the amount of mortgage or trust deed loan to be made

410
Q

Loan-to-value ratio

A

The collateral risk the lender takes and, conversely, the equity the borrower risks losing

411
Q

Lot reservation

A

An expression of interest by a prospective purchaser in buying a subdivided or unsubdivided lot, unit, or parcel at some point in the future; a subsequent affirmative action must be mad by the prospective purchaser to create a contractual obligation to purchase

412
Q

Loyalty

A

A requirement that an agent place his principal’s interest above his or her own

413
Q

Maintenance clause

A

Charges the mortgagor with the responsibility to maintain and preserve the property to protect the mortgagee’s interest in the property; failure to maintain the property is called waste

414
Q

Major life activities

A

To be covered under the Americans with Disabilities Act there must be an impairment that substantially limits a person’s life activities such as walking, speaking, breathing, seeing, hearing, learning, working, or independently caring for oneself

415
Q

Map and plat description or lot and block description

A

A system of describing land in urban areas

416
Q

Marginal rate

A

The rate of tax on the next dollar of income

417
Q

MARIA

A

An acronym for testing whether an item is a fixture or personal property

418
Q

Market data approach

A

Similar to the approach used by licensees or investors when listing residences

419
Q

Market value

A

An unemotional, objective price at which a seller would sell and a willing buyer would purchase, with neither party under abnormal pressure to act

420
Q

Marketable title

A

Title that is reasonably free from risk of legal dispute over possible defects

421
Q

Master planned community

A

Development consisting of two or more separately plated subdivisions and is subject to either: (1) a master declaration of covenants, conditions, or restrictions; (2) restrictive covenants that clearly indicate a general scheme for improvement or development of real property; or (3) a master owner’s association that governs or administers the development

422
Q

Material facts

A

A fact that would be likely to affect a person’s decision in determining whether to enter into a particular transaction; any information that will influence the judgment or decision of the customer

423
Q

Material participation

A

A measure of a taxpayer’s involvement in a business or investment activity related to the federal income tax passive loss limitations

424
Q

Mechanic’s lien or materialmen’s lien

A

A lien created by state law in favor of person who have performed work or furnished material in the erection or repair of a building

425
Q

Meeting of the minds

A

A complete understanding between the interested parties

426
Q

Membership camping

A

A campground for which a membership (license) is sold; in Arizona memberships cannot be sold until the Commissioner has approved the site

427
Q

Meridians

A

Imaginary lines that are north-south lines parallel to the longitudinal lines

428
Q

Metes and bounds description

A

Oldest form of legal descriptions used in the United States

429
Q

Mill

A

Money equal to 1/10 cent

430
Q

Misrepresentation

A

False statement or concealment of a material fact made to someone entitled to the information, by which that person responds with action and thereby suffers damage

431
Q

Mobile Home Act

A

Applies to the rental of mobile home lots (not the mobile homes themselves)

432
Q

Mold

A

A growth produced on damp or decaying organic matter or on living organisms; a fungus; certain molds have been identified as major contributors to illness

433
Q

Monetary encumbrance

A

A lien; a claim or charge against a property as security for the payment of a debt or obligation

434
Q

Monuments

A

Natural and man-made landmarks

435
Q

Mortgage

A

A written instrument by which real property is pledged to secure a debt or obligation: a lien on real property

436
Q

Mortgage banker

A

A person who makes loans with his own funds, then sells the loans to investors

437
Q

Mortgage broker

A

Processes loans but usually has no funds to loan: someone who brings borrowers and lenders together

438
Q

Mortgage correspondent

A

Mortgage banker who represents loan originators, such as banks, life insurance companies, and pension funds

439
Q

Mortgage insurance premium (MIP)

A

The premium charged for insuring an FHA loan

440
Q

Mortgage participation certificate (PC)

A

Guaranteed mortgage securities are sold to the public through securities dealers

441
Q

Mortgages

A

One to whom a mortgagor gives a mortgage to secure a loan or performance of an obligation; the lender under a mortgage

442
Q

Mortgagor

A

One who gives a mortgage on his or her property to secure a loan or assure performance of an obligation; the borrower under a mortgage

443
Q

MLS

A

Multiple Listing Service (MLS)

444
Q

Mutual assent

A

Or meeting of the minds, a complete understanding between the interested parties

445
Q

Mutual savings banks

A

Organized as mutual companies, share profits are distributed to the depositors through interest or dividends

Modern Real Estate v1 (11 decks)

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