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Modern Real Estate v1 > REA_Terms_N_Z > Flashcards

REA_Terms_N_Z Flashcards

1
Q

Navigable waterways

A

The landowner owns the land to the water’s edge at the high water mark, but none below the water; the Colorado River is the only navigable river in Arizona

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2
Q

Negligence

A

When an agent fails to exercise a degree of reasonable caution that would be exercised by a person of ordinary prudence under all existing circumstances in view of probable danger or injury

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3
Q

Negligence per se

A

Conduct which may be declared and treated as negligence without any argument or proof as to the particular surrounding circumstances, either because it is in violation of a statute or because it is so palpably opposed to the dictates of common prudence that it can be said without hesitation that no careful person would have been guilty of such conduct

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4
Q

Negligent misrepresentation

A

Statement contrary to fact resulting from failure to exercise reasonable care in obtaining or communicating information; the licensee could be held liable

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5
Q

Negotiable instrument

A

an instrument signed by a maker or drawer, containing an unconditional promise to pay a certain sum of money, which can be passed freely form one person to another; often a promissory note or bank draft

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6
Q

net cash flow

A

The number of dollars remaining each year after collecting rents and paying operating expenses and mortgage payments

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7
Q

Net lease

A

A commercial lease wherein the tenant pays a base rent plus maintenance, property taxes, and insurance

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8
Q

Net listing

A

listing that provides that the agent may retain as compensation for his or her services all sums received over and above a stated net price to the owner; the Arizona Department of Real Estate discourages the use of this type of listing

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9
Q

Nonconforming loan

A

Also known as jumbo loans or high balance loans, can also be sold to the secondary mortgage market, although the purchaser will most likely be a non-government entity

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10
Q

Nonconforming use

A

Building or land use that does not conform to the zoning ordinance

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11
Q

Nonjudicial foreclosure

A

Foreclosure and sale of property without resorting to court action

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12
Q

Non-monetary encumbrance

A

Affects the physical condition or use of property; includes deed restrictions, easements, and encroachments

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13
Q

Non-navigable waterways

A

The landowner owns the land beneath the surface of the water to the center of the streambed at the low water mark

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14
Q

Nonresidential property

A

Simply real property that is not residential rental property

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15
Q

Notice of default

A

a notice that is recorded in the county recorder’s office stating that a trust deed is in default and that the holder has chose to have the property sold

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16
Q

Notice of election to forfeit

A

A notice recorded by the seller at the end of the reinstatement period of a breached land contract

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17
Q

Notice of intention

A

A notice filed by the subdivider prior to offering subdivided land for sale or lease

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18
Q

Notice of reinstatement

A

A notice recorded by the seller if the buyer cures the default during the 20-day period after the filing of the notice of election to forfeit

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19
Q

Novation

A

Formal assumption in which a new borrower is substituted for the original maker of the note

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20
Q

Nuncupative will

A

An oral will usually done in the last minutes of a person’s life

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21
Q

Obedience

A

A requirement that an agent obey all legal instructions given by the principal

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22
Q

Offer

A

A proposal to make a contract

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23
Q

Offeree

A

A person to whom an offer is made

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24
Q

Offeror

A

A person who makes an offer

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25
Q

Office of Thrift Supervision

A

Replaced the Federal Home Loan Bank Board; organization that authorizes institutions to make adjustable mortgage loans

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26
Q

Oil or gas lease

A

A lease that generally requires a flat fee for the exploration for gas and oil and royalty if any is found

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27
Q

Open listing

A

an authorization given by a property owner to a real estate agent in which the agent is given the nonexclusive right to secure a purchaser; open listings may be given to any number of agents without liability to compensate any except the one who first secures a buyer ready, willing, and able to meet the terms of the listing or who secures the acceptance by the seller of a satisfactory offer

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28
Q

Open-end mortgage

A

A mortgage containing a clause that permits the mortgagor or trustor to borrow 3 additional money without rewriting the mortgage or deed of trust

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29
Q

Operating agreement

A

An agreement between members of a limited liability company that is similar to the bylaws and shareholders’ agreement of a corporation or the partnership agreement of a partnership

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30
Q

Option clause

A

A lease clause giving the tenant the option to renew the lease or to purchase the property

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31
Q

Option to purchase

A

An agreement to enter into a contract to purchase at the option of the lessee, and at a specified time during the lease

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32
Q

Option to renew

A

A lease clause that gives the tenant the right to extend the lease for a specified period of time

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33
Q

Original title

A

Title to real estate owned by the country or state

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34
Q

Owner’s policy

A

A title insurance policy designated to protect the fee owner

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35
Q

Package mortgage

A

A security instrument that includes real property and the personal property on the premises

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36
Q

Parole evidence rule

A

In a court of law, a contract must stand on the written word; no oral explanation is acceptable, except to clarify a written ambiguity

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37
Q

Part performance

A

Allows the enforcement of an oral contract covered by the Statute of Frauds where one party to the oral contract has substantially performed

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38
Q

Partially amortized loan

A

A loan that begins with amortized payments but ends with a balloon payment

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39
Q

Participation loan

A

Loan where the lender participates in the profits generated by a commercial property used to secure the debt

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40
Q

Partition action

A

A legal action by which co-owners seek to sever their joint ownership; the physical division of property between co-owners, usually through court action

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41
Q

Partnership

A

An association of two or more persons to unite their property, labor or skill, or any one or combination thereof, in prosecution of some joint business, and to share the profits in certain proportions; an agreement of two or more individuals jointly to undertake a business enterprise

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42
Q

Passive income

A

Income form a business in which the owner does not materially participate

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43
Q

Passive loss limitation

A

A federal income tax provision that prevents an investor from deducting passive losses form earned income

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44
Q

Pass-through certificate

A

A security interest in a pool of mortgages that provides for a monthly “pass-through” of principal and interest payments directly to the certificate hold; guaranteed by Ginnie Mae

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45
Q

Patent

A

The instrument used when an original title is conveyed by a state or federal government to an individual

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46
Q

Payee

A

Lender

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47
Q

Payor

A

Maker of the note

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48
Q

Pension and retirement programs

A

A source for real estate loans

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49
Q

Per stirpes

A

Method of distributing property to heirs whereby the descendant of a deceased heir receives that heir’s inheritance

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50
Q

Percentage

A

A part of a whole expressed in hundredths

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51
Q

Percentage lease

A

A commercial lease in which the tenant pays a percentage of the gross income received by the tenant, in addition to rent

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52
Q

Perimeter

A

The “distance around” the property; i.e., add all four sides, or multiply both dimensions by two and ad the sums

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53
Q

Period of reinstatement

A

90-day period from the notice of default, during which a borrower may reinstate the loan secured by a deed of trust by making up all back payments plus costs and bringing the loan current, but he is not required to pay off the entire loan balance

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54
Q

Periodic estates

A

a leasehold estate that continues indefinitely for successive periods of time, until terminated by proper notice; when the periods are 1 month in duration, it is often called a month-to month lease

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55
Q

Personal property

A

Any property that is not real property

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56
Q

Personal residence gain exclusion

A

A gain exclusion form taxable income form the sale of a personal residence that has been the taxpayer’s primary residence for 2 of the past 5 years

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57
Q

Phase One Environmental Analysis

A

The first phase of an environmental assessment; a review by competent professionals who have expertise in evaluating the presence of hazardous substances and other hazards and who are familiar with the liability implications

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58
Q

Physical characteristics of real estate

A

Three main categories that describe real estate in physical terms; immobility, indestructibility, and non-homogeneity

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59
Q

Physical deterioration

A

The loss of value due to normal wear and tear or to postponed maintenance

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60
Q

PITI

A

Type of payment (principal, interest, taxes and insurance)

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61
Q

Planned community

A

A real estate development that includes real estate owned by an association created for the purpose of managing, maintaining, or improving the property, and in which the owners of units are mandatory members and required to pay association assessments

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62
Q

Planned unit development

A

High-density, single-family structures that utilize the land area to the greatest possible extent

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63
Q

Planning & Zoning Commission

A

The commission of a municipality or count that hears petitions for zoning changes and makes recommendations to the city council or county board of supervisors

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64
Q

Plat

A

Survey that shows the location and boundaries of individual properties, dedicated streets, parks, and so on

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65
Q

Plessy v. Ferguson

A

Infamous ruling, which held that the enforcement of racial segregation of private or public facilities did not violate the U.S. Constitution as long as the separate facilities were equal

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66
Q

Plottage

A

The process of putting several parcels together as one lager parcel to achieve the highest and best use and an increase in value

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67
Q

Point

A

1 percent of the loan amount paid to the ender or the lender’s agent at the time the loan is made

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68
Q

Point of beginning

A

Indicates the place where the surveyor begins to describe the parcel in terms of the distance and direction from the point

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69
Q

Police power

A

Government’s right to enact and enforce laws for the common good

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70
Q

Portfolio income

A

Income that is a return on invested capital, such as interest and dividends

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71
Q

Potable water

A

Water capable of being safely and agreeably used to drink

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72
Q

Power of attorney

A

An instrument authorizing a person to act as the agent of the person granting it

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73
Q

Power of sale clause

A

Clause in a deed of trust that allows the trustee to conduct a foreclosure sale without first going to court

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74
Q

Prepayment clause

A

Enables the borrower to prepay the note prior to its due date without penalty

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75
Q

Prescription

A

method of acquiring an easement by continuous, open, hostile, and notorious use for a period of 10 years without the consent of the owner

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76
Q

Price

A

The amount asked and the amount paid for property; the listing price is the amount asked for property

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77
Q

price fixing

A

Set commission for all real estate brokerages-a violation of the Sherman Anti-Trust Act

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78
Q

primary mortgage market

A

A market in which lenders originate loans and make funs available to borrowers

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79
Q

Principal

A

Someone who engages the services of an agent (also called client)

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80
Q

Principal meridian

A

A survey line running due north and south, as established by the rectangular survey system

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81
Q

Principal residence

A

Not restricted to single-family homes, but may include a house, mobile home, houseboat, co-op, or condominium apartment used as the taxpayer’s main home; the home that a taxpayer lives in most of the time during the tax year

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82
Q

Prior appropriation

A

Water rights doctrine that applies to arid regions of the country, which is often translated to mean “first in time, first in use”

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83
Q

Priority of liens

A

Liens with the highest priority are superior to junior liens; real estate taxes have the highest priority followed by special assessments; priority of other liens is established v y date recorded except for mechanic’s liens

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84
Q

Private mortgage insurance (PMI)

A

Insurance for lenders against mortgage foreclosure losses

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85
Q

Probate

A

A legal process by which a court determines the assets of the estate and who will inherit the property of the deceased person

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86
Q

Procuring cause

A

Direct or proximate cause

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87
Q

Profit or profit a prendre

A

Type of easement; it is a right to remove soil, minerals, fruit, timber, or some product of the land with compensation to the surface owner of the land

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88
Q

Progression

A

Opposite of regression and exists when there is a poorer property among more expensive properties

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89
Q

Promissory note

A

A promise by the maker of the note to pay a specified amount in accordance with specific terms by a certain date

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90
Q

Proper fraction

A

Less than one whole unit-the numerator is smaller than the denominator

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91
Q

Property

A

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

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92
Q

Property assessment

A

A site analysis of the site and surrounding properties for indications of environmental hazards

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93
Q

Property development

A

includes subdividers who take raw land, do the initial planning for its best use by subdividing it into lots, and after approval of the plan by the proper authorities, do the initial development of the streets, sewers, sidewalks, and so on

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94
Q

Property management

A

The oversight of the property and the tenants if a rental property by the owner or an agent of the owner

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95
Q

Property management agreement

A

An agreement between the owner of the property and the property manager, which establishes the rights and obligations of the parties

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96
Q

Property management trust account

A

A bank account for holding property management trust funds in accordance with Arizona Revised Statues for such accounts

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97
Q

Property manager

A

Person or company who manages rental property for someone else; property managers may or may not be licensed

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98
Q

Proration

A

Allocating taxes, insurance, rents, and interest at settlement to determine the amount of money to be charged or credited to the buyer or seller

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99
Q

Protected class

A

A class of people who by law are protected from discrimination

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100
Q

Public accommodation

A

A place of public use or operation by government or private entities that must comply with ADA

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101
Q

Puffing

A

Agent making an exaggerated statement of opinion, without intending to deceive, such as, “This site has the most beautiful view in the valley”

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102
Q

Punitive damages

A

To recover amounts over the actual damages suffered as compensation for the breach of the contract

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103
Q

Purchase money mortgage

A

Also known as deed of trust, it refers to any loan, whatever the source, for all or part of the purchase price for the purchase of real property

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104
Q

Qualified fee estate

A

A fee simple estate subject to certain limitations imposed by its grantor

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105
Q

Quitclaim deed

A

a deed to relinquish any interest in property that the grantor may have, but implying no warranties; a deed that transfers only whatever right, title, or interest, if any, the grantor owns, without implying any warranties

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106
Q

R factor

A

A rating system for insulation material; determines the level of insulation provided by a substance

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107
Q

Radon

A

A colorless, odorless, tasteless, radioactive gas that is present in the environment as a by product of the natural decay of uranium in the earth

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108
Q

Range lines

A

A strip of and 6 miles wide, determined by a government survey, running in a north-south direction but measuring in an east-west direction

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109
Q

Ratified agency

A

Created when a seller or buyer accepts the benefits of an agent’s prior and unauthorized actions after the fact

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110
Q

Ready, willing, and able

A

Purchasers who have made up their minds to buy a given parcel of property and are financially able to do so according to the price and terms agreed upon with the seller

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111
Q

Real estate

A

Land and the improvements or tenements attached to it by nature or by man

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112
Q

Real Estate Advisory Board

A

A nine-member board appointed by the governor ho provides the Commissioner what recommendations it deems necessary and beneficial to the public interest

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113
Q

Real estate broker

A

A person licensed to act independently in conducting a real estate brokerage business

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114
Q

Real estate brokerage

A

Engaged in the business of bringing buyers and sellers together for the purpose of completing real estate transactions

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115
Q

Real estate entity license

A

A required Arizona license for real estate brokerages organized as a corporation, limited liability company, or partnership

116
Q

Real Estate Investment Trust (REIT)

A

A means of pooling investor money by using the trust form of ownership and featuring single taxation of profits. IRS rules require a minimum of 100 investors and distribution of 95 percent of profits to investors annually

117
Q

Real Estate Recovery Fund

A

A fund held by the Arizona Department of Real Estate, sustained by a portion of license fees, to reimburse persons who have suffered loss through the act of a licensed real estate broker or salesperson

118
Q

Real estate salesperson

A

A licensed sales person employed by a broker to list, negotiate, sell, or lease property for others

119
Q

Real property

A

Ownership rights in land and its improvements

120
Q

Real property classifications

A

The five general classifications used in zoning: residential, commercial, industrial and manufacturing, agricultural and raw land, and special purpose

121
Q

Reasonable accommodation

A

Any modification or adjustment that will enable a qualified employee or occupant with a disability to enjoy equal opportunity to use a dwelling or perform essential job functions

122
Q

Reasonable care and diligence

A

A requirement that an agent exhibit competence and expertise, keep clients informed, and take proper care of entrusted property

123
Q

Reasonable modification

A

Barrier removal and modifications required to ensure equal opportunity for access to individuals with disabilities

124
Q

Reasonable use

A

Water doctrine that declares that users must show beneficial use of water

125
Q

Receipt for public report

A

Signed by prospective purchasers of subdivided property, and states that the purchasers have been given a copy of the public report prior to signing any contract

126
Q

Reconciliation

A

The last step in the appraisal process, whereby the appraiser reconciles the three approaches to value arriving at his or her estimate

127
Q

Recording acts

A

Law that provides for the placing of documents in the public records

128
Q

Recreational Vehicle Long-Term Rental Space Act

A

Applies to rental of recreational vehicle rental spaces for more than 6 months

129
Q

Rectangle

A

Four-sided shape whose sides are at right angles to each other

130
Q

Rectangular survey or government survey

A

System of land description developed by the federal government

131
Q

Redlining

A

Mortgage credit discrimination based upon the density of minorities in a geographic area

132
Q

Regression

A

When there are properties of different values in a neighborhood, the better property is adversely affected by the poorer properties

133
Q

Regulation Z

A

Regulation pursuant to the Truth-in-Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit

134
Q

Reinstatement period

A

A right available to anyone under an accelerated promissory note secured by a deed of trust or mortgage on property. If a deed of trust is foreclosed by trustee’s sale, the debtor may have up to 3 months from the recording of the notice of default to pay the amount in arrears plus interest, late fees, and costs, thereby completely curing the default (reinstating) without additional penalty

135
Q

Release

A

Unintentional or intentional, chronic or sudden, small or major releases of hazardous substances to the environment or people’s exposure to these substances

136
Q

Remainder man

A

The third person with the remainder interest

137
Q

Rent

A

The consideration paid under a leasehold estate for the use and possession of real property

138
Q

Rental real estate passive loss allowance

A

Owner’s deduction of up to $25,000 of loss from rental real estate against earned income if the owner actively participates in the management of the rental property

139
Q

Repair

A

Keeps the real property in good operating condition. For example, repairs include painting, fixing gutters or floors, fixing leaks in plumbing or roof, plastering, and replacing broken windows

140
Q

Replacement cost

A

Estimates cost based on using today’s materials and technologies

141
Q

Rescission

A

Legal remedy of canceling, terminating, or annulling a contract and restoring the parties to their original positions

142
Q

Reservations

A

Uses that the grantor withholds form the title being conveyed for personal use

143
Q

Residential rental property

A

A building or structure in which 80 percent or more of the gross rental income is rental income form dwelling units

144
Q

Retroactive liability

A
  1. A property owner can be responsible for actions years earlier than passage of CERCLA regardless of whether the prior actions were standard practices of the time or had received approval 2. **CERCLA-comprehensive Environmental Response, Compensation, and Liability Act
145
Q

Reverse annuity mortgage (RAM)

A

The lender makes monthly payments to a homeowner who repays in a lump sum upon the home owners death or sale of the home

146
Q

Reversionary rights

A

The interest a person has in property upon the termination of the preceding estate; the right to retake possession of a leased property at some future time

147
Q

Right of rescission

A

A borrower’s right to cancel a contract within three business days

148
Q

Rights of others

A

Private, nongovernmental limitations on the bundle of rights such as deed restrictions

149
Q

Riparian rights

A

Grant owners of land located along a stream, river, or lake-generally non-navigable waters – rights to the land beneath the surface of the water

150
Q

Risk

A

The degree or possibility of loss on an investment

151
Q

Roof

A

The outside covering of the top of a building or structure

152
Q

Rooftop lease

A

Used to rent the airspace above a piece of real estate

153
Q

Sale and leaseback leases

A

Used after a person has developed a building and wants his or her working capital available for other developments

154
Q

Sale clause

A

A clause in residential leases that allows the tenant or landlord to terminate the lease in the event the subject property is sold

155
Q

Sandwich lease

A

Lease held by a lessee who becomes a lesser by subletting; typically, the sandwich leaseholder is neither the owner nor the user of the property

156
Q

Satisfaction of mortgage

A

Certificate from the lender stating that the loan has been repaid; it can be recorded to remove the related lien form the property records

157
Q

Savings and loans

A

A primary source of residential real estate loans

158
Q

Scarcity

A

An economic characteristic of real estate; shortage of land in a geographical area where there is a great demand for land

159
Q

Secondary mortgage market

A

Purchasing and selling of existing mortgages and trust deeds

160
Q

Section

A

A square mile of land, as established by government survey, containing 640 acres

161
Q

Section 1031

A

A section of the Internal Revenue Code for deferring capital gains taxes by exchanging one like kind property for another

162
Q

Security deposits

A

Deposited with the landlord solely as security for the tenant’s performance of the terms of the lease, and are usually not taxed when received

163
Q

Senior housing

A

Housing intended for and solely occupied by persons 62 years of age or older, or at least one person in 80 percent of the households is 55 years or older

164
Q

Servient tenement

A

Land on which the easement runs

165
Q

Severalty

A

Taking title as sole owner, either as a natural person or a legal person

166
Q

Sharecropping

A

a lease between an agricultural land owner and a tenant, whereby the landowner provides the land and may also provide equipment in return for the tenant’s planting, maintaining, and harvesting a crop; the proceeds are then divided (not necessarily equally) between the tenant and the landowner

167
Q

Shared appreciation mortgage (SAM)

A

Lender participates in the appreciation of the property value and in turn accepts a not with a lower rate of interest

168
Q

Sheathing

A

A 4 feet by 8 feet plywood or other wood exterior covering placed over exterior studding

169
Q

Sheriff’s sale

A

A sale ordered by the court in which a sheriff or county official has the legal right to sell a distressed or foreclosed property

170
Q

Sherman Anti-Trust Act

A

Federal laws that condemn contracts, culmination and conspiracies in restraint of trade and monopolizing, attempts to monopolize, and combinations and conspiracies to monopolize trade

171
Q

Single agency

A

Practice of representing either the buyer or seller, but never both; if a broker intends to be a single agent; he or she must take special care regarding the subagents within the office

172
Q

situs

A

Area preference or the people’s choice of a given area

173
Q

Special agent

A

Authorized to represent the principal in one specific transaction, such as in a listing, but is not given the power to bind the principal

174
Q

Special assessments

A

Improvements that enhance the value of property, such as curbs, sidewalks, streets, sewers, and streetlights

175
Q

Special use permit

A

Given by approval o the Planning & Zoning Commission for a property owner to develop a property in the public interest, as long as it does not interfere with the intent of the exiting zoning

176
Q

Special warranty deed

A

A deed in which the grantor warrants or guarantees the title only against defects arising during his or her ownership of the property and not against defects existing before the time of ownership

177
Q

Specific performance

A

Contract performance according to the precise terms agreed upon

178
Q

Speculation

A

A transaction where the profits are subject to chance; to buy or sell with the hope of profiting through the fluctuations in price

179
Q

Spot zoning

A

Zoning change is requested for an individual piece of property, as opposed to a change for an area

180
Q

Square

A

A rectangle with equal sides

181
Q

Standard coverage

A

Used in residential conveyance and is limited to insurance against forged documents of incorrect marital status, documents signed by incompetent parties, unmarketable property due to defect of title, and an improperly delivered deed

182
Q

Standard parallels

A

Lines that are “1st or 2nd Standard Parallel, North or South,” and so on, according to the distance from the base line

183
Q

Starker case

A

1979 Supreme Court decision that has had a lasting effect on tax-deferred exchanges

184
Q

State Enabling Act

A

Laws that allow the admission of a state

185
Q

State Land Department

A

Body that has been established and given authority over all trust lands and the natural products form these trust lands

186
Q

State Selection Board

A

Arizona board related to the management of trust lands

187
Q

Statute of Frauds

A

A state law that provides that certain contracts must be in writing in order to be enforceable in the courts; established in England in 1677 and adopted in full or in part by all 50 states

188
Q

Statutory law

A

Law created by the enactment of legislation

189
Q

Statutory period of redemption

A

Period after the sale during which the landowner could redeem the property

190
Q

Steering

A

Illegal practice of directing certain persons into or out of areas that are or are not integrated

191
Q

Straw person

A

Individual or entity that briefly holds title to the real estate and then transfers the interest at one time to the group of owners that now includes the new owner

192
Q

Strict liability

A

CERCLA laws apply regardless of whether intent to pollute or knowledge of the situation was present

193
Q

Stucco

A

One of the most common materials used because it is flexible and inexpensive

194
Q

Subagent

A

Person appointed by the broker agent to assist in the performance of the assignment

195
Q

Subchapter S corporation

A

A corporation that, for federal tax purposes only, is taxed similarly to a partnership; the corporate entity is disregarded for most federal tax purposes, and the shareholders are generally taxed as individual partners

196
Q

Subdividers

A

take raw land, do the initial planning or its best use by subdividing it into lots, and, after approval of the plan by the proper authorities, do the initial development of the streets, sewers, sidewalks, and so on

197
Q

Subdivision or subdivided lands

A

improved or unimproved lands divided or proposed to be divided for the purpose of sale or leased, whether immediate or in the future, into six or more lots, parcels, or fractional interests of less than 36 acres

198
Q

Subjective value

A

Emotional value of a property’s worth to a person, regardless of cost

199
Q

Sublease

A

A lease from a leasee to another leasee; the new lessee is a sublessee or subtenant

200
Q

Sublessee

A

The tenant in a sublease, who makes rent payments to the sublessor who in turn pays the lessor according to the original lease

201
Q

Sublessor

A

The original leasee, who becomes the sublessor in a sublease

202
Q

Subordination clause

A

The lender will agree to a lesser position of security and allow another person/lender to place a lien in front of the original lenders

203
Q

Subrogation

A

Substitution of one person in the place of another with reference to a lawful claim, such as when an insurance company pays a claim and then has the right to collect from the party causing the loss

204
Q

Subsequent owner exemption

A

An exemption form the Notice of Intention requirements may be granted by the Commissioner to a subdivider of lots or parcels within a subdivision for which a public report was previously issued

205
Q

Substitution

A

Principle of value wherein the maximum value of a property in the marketplace tends to be set by the cost of purchasing and equally desirable substitute property

206
Q

Subsurface rights

A

The right of the owner o use land below the earth’s surface

207
Q

Summary suspension

A

An emergency action to suspend a real estate license when the Commissioner determines that the public health safety or welfare requires the emergency action

208
Q

Superfund

A

Also known as Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), it was created to provide the authority and a source of funding for cleaning up hazardous materials released into the environment

209
Q

Superfund Amendments and Reauthorization Act (SARA)

A

Contains provisions defining who is liable to pay for the cleanup of contamination caused by past activities

210
Q

Supply and demand

A

An economic principle related to the desire and ability to acquire land related to the scarcity of land suitable for a desired purpose

211
Q

Surface area formula

A

The formula for computing square feet or square yards of a rectangle or triangle

212
Q

Surface water

A

Water that sits or flows above the earth, including lakes, oceans, rivers, and streams

213
Q

“T” formula

A

Math formula for solving word problems

214
Q

Tack or tacking

A

Adding successive periods of continuous occupation to qualify for title by adverse possession

215
Q

Tangible assets

A

Corporeal and visible assets that have a body

216
Q

Taxable income

A

The amount for federal income tax purposes computed as follows: gross income less deductions for adjusted gross income less itemized or standard deductions less personal exemptions equals taxable income

217
Q

Taxation

A

The government’s right to levy taxes against real and personal property in order to provide city, county, and state governmental services for the benefit of the people

218
Q

Tax-deferred exchange

A

transaction in which “like-kind” property is traded; like-kind means exchanging business or income property for other business or income property, or exchanging personal property for personal property

219
Q

Temporary absence

A

When a designated broker is unable to act within 24 hours

220
Q

Tenancy by the entirely

A

Type of ownership existing only between husband and wife; not used in Arizona

221
Q

Tenant

A

One who possesses real estate by any kind of title, either in fee, for life, for years, or at will; a tenant who has the temporary use of real estate that belongs to another

222
Q

Tenant in common

A

Ownership by two or more persons who hold an undivided interest in real property, without right of survivorship; the interests need not be equal

223
Q

Tenements

A

Everything of a permanent nature attached to the land

224
Q

Termites

A

A type of insect that eats wood

225
Q

Testamentary trust

A

Similar to a living trust, except that it is set up in a will and takes effect upon the maker’s death

226
Q

Tiers

A

A horizontal row of townships running in an east-west direction, but measuring in a north-south direction

227
Q

“Time is of the essence” clause

A

The parties will perform within the limits specified; any party not doing so is considered in breach of contract

228
Q

Time-shares

A

A form of joint ownership of property where numerous owners share title and enjoy use or occupation of the property according to a specific schedule

229
Q

Title

A

Gives evidence of the quality, right, and interest in real property, which allows a government, individual, individuals, or legal entity to retain possession of the property

230
Q

Title Commitment/Preliminary Title Report

A

A statement of current condition of title for a parcel of land; obligates the title insurance company to issue a policy of title insurance when curative requirements have been satisfied

231
Q

Title insurance

A

Insurance policy written by a title company to protect a property owner against loss, if the title is defective or not marketable

232
Q

Topography

A

Nature of the surface of the land, the characteristics of the land in terms of elevation, slope, and orientation

233
Q

Torrens system

A

A legal system for the registration of land ownership; the Torrens system verifies ownership of land the status of title, including any encumbrances except tax liens

234
Q

Township

A

A territorial subdivision that is 6 miles long and 6 miles wide and that contains 36 sections, each 1 mile square

235
Q

Township lines

A

East-west lines that run parallel to the base line every 6 miles

236
Q

Trade fixtures

A

Items that are the personal property of a tenant or owner and used to carry on his or her business

237
Q

Transferability

A

Ability to transfer a good or service to another person

238
Q

Treasurer’s deed

A

A document that conveys title to property purchased at a tax deed

239
Q

Triangle

A

A three-sided figure

240
Q

Trust

A

An entity created to own assets, including real and personal property, for the benefit of a person, persons, or another entity

241
Q

Trust deed

A

Deed given by a borrower to a trustee to be held pending fulfillment of an obligation, which is usually repayment of a loan to a beneficiary; a deed of trust

242
Q

Trustee

A

Person who manages the property for the benefit of one or more beneficiaries

243
Q

Trustee

A

one who holds property in trust for another; the person who holds property in trust for another; in a deed of trust, the person who holds bare legal title in trust

244
Q

Trustee deed

A

The deed issued by the trustee after the foreclosure and sale of property under a deed of trust

245
Q

Trustor

A

One who conveys his or her property to a trustee to be held on the behalf of a beneficiary

246
Q

Truth in Lending Act

A

A federal statute that requires certain disclosures when extending or advertising credit

247
Q

Type 1 Non-irrigation grandfathered rights

A

Occurs when a farm is converted to non-farming use

248
Q

Type 2 Non-irrigation grandfathered rights

A

Arose form pre-1980 commercial uses that were not crop related

249
Q

Unadjusted basis

A

The original cost of the property, if it was purchased

250
Q

Underground storage tanks

A

Registration is required for all tanks containing regulated substances (all petroleum products) that are not already listed as hazardous “wastes”

251
Q

Unending liability

A

Liability for a problem on a site does not end with the transfer of property, but extends as long as the problem exists

252
Q

Unenforceable

A

A contract that is void is not enforceable in a court of law; a valid contract whose enforcement is barred by the statute of limitations or the doctrine of laches

253
Q

Uniform Commercial Code

A

Code that requires that the sale of personal property with value in excess of $500 be in writing

254
Q

Uniform Standards of Professional Appraisal Practice (USPAP)

A

Mandatory requirements for certain federally related real estate appraisals

255
Q

Unilateral contract

A

One-sided contract in which one party makes a promise in order to induce a second party to perform

256
Q

Unimproved lot or parcel

A

Lot or parcel of a subdivision that is not an improved lot

257
Q

Unit

A

A portion of a condominium designated for separate ownership or boundaries

258
Q

Universal agent

A

Someone empowered to perform any act that fan be lawfully authorized to an agent; usually established by a power of attorney

259
Q

Unlicensed activity

A

A person who acts as a broker or salesperson or who advertises in a manner indicating that he or shi is licensed as a broker or salesperson without actually being licensed

260
Q

Unsubdivided lands

A

Six or more parcels, each measuring from 36 acres up to 160 acres

261
Q

Urban Lands Act

A

A 1981 act that enabled the Arizona land trust to capitalize on the significant increase in raw land values that result form planning and zoning

262
Q

Urea formaldehyde foam insulation

A

Thermal insulation material that is pumped into the spaces between the walls of a building, where it hardens to form a solid layer of insulation

263
Q

Usury

A

Charging interest at a higher rate than allowed by law

264
Q

Utility

A

The capacity to satisfy human needs and desires

265
Q

VA loan

A

Real estate mortgage available to qualified veterans for the purpose of buying or refinancing real estate for personal residential use only

266
Q

Valid

A

A contract is valid if it will contain all of the essential elements previously discussed; a valid contract is legal, enforceable, and binding on all parties

267
Q

Value

A

Exchange of present worth for future benefits to the owner of the property

268
Q

Variable lease

A

A lease that provides that the rent may increase during the term of the lease including an index lease and a graduated lease

269
Q

Vendee

A

Buyer in a contract for deed (land contract)

270
Q

Vendor

A

Seller in a contract for deed (land contract)

271
Q

Verification of deposit (VOD)

A

Confirmation to the lender by the borrower’s bank of the amounts on deposit

272
Q

Void

A

To have no force or effect; does not exist

273
Q

Voidable

A

Contract that seems valid and enforceable on the surface, but may be voided by one of the parties

274
Q

Voluntary alienation

A

The transfer of ownership with the consent of the owner

275
Q

Water Quality Assurance Revolving Fund

A

Also known as the Arizona “mini-Superfund”; liability, it is similar to CERCLA

276
Q

Water rights

A

The right to use water on or below or bordering a parcel of land

277
Q

Water table

A

The natural level at which water will be located, be it above or below the surface of the ground

278
Q

Wetlands

A

Areas that are inundated or saturated by surface water or groundwater at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions

279
Q

Wood frame construction

A

Is the most frequent method of construction in Arizona for single family homes

280
Q

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

281
Q

Writ of attachment

A

Legal process of seizing the real or personal property of a defendant in a lawsuit and holding it in the custody of the court as security for satisfaction of a judgment

282
Q

Writ of execution

A

An order directing the proper officer of the court to seize property to satisfy a judgment or carry out any other such judgment or decree

283
Q

Yield

A

Annual interest income divided by the amount invested in the loan

284
Q

Zoning changes

A

May be initiated by a property owner or by the local government; requires a petition and formal hearing before the Planning and Zoning Commission

285
Q

Zoning variances

A

A minor change in zoning for one specific property without changing the character of the zoned area

Modern Real Estate v1 (11 decks)

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