Real estate def Flashcards
ESCHEAT
The reverting of property to the State when heirs capable of inheriting are lacking.
GRADUATED PAYMENT MORTGAGE
Providing for partially deferred payments of principal at start of loan. (There are a variety of plans.) Usually after the first five years of the loan term the principal and interest payment are substantially higher, to make up principal portion of payments lost at the beginning of the loan. (See Variable Interest Rate.)
REAL ESTATE SYNDICATE
An organization of investors usually in the form of a limited partnership who have joined together for the purpose of pooling capital for the acquisition of real property interests.
FIRST TRUST DEED
A legal document pledging collateral for a loan (See “trust deed”) that has first priority over all other claims against the property except taxes and bonded indebtedness. That trust deed superior to any other.
TRUTH IN LENDING
The name given to the federal statutes and regulations (Regulation Z) which are designed primarily to insure that prospective borrowers and purchasers on credit receive credit cost information before entering into a transaction.
CURRENT INDEX
With regard to an adjustable rate mortgage, the current value of a recognized index as calculated and published nationally or regionally. The current index value changes periodically and is used in calculating the new note rate as of each rate adjustment date.
DUE ON SALE CLAUSE
An acceleration clause granting the lender the right to demand full payment of the mortgage upon a sale of the property.
EFFECTIVE DATE OF VALUE
The specific day the conclusion of value applies.
CORPORATION
An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it. A corporation is a creature of law having certain powers and duties of a natural person. Being created by law it may continue for any length of time the law prescribes.
EXCHANGE
A means of trading equities in two or more real properties, treated as a single transaction through a single escrow.
PURCHASE AND INSTALLMENT SALEBACK
Involves purchase of the property upon completion of construction and immediate saleback on a long-term installment contract.
PUBLIC RECORDS
Records which by law impart constructive notice of matters relating to land.
NOTARY PUBLIC
An appointed officer with authority to take the acknowledgment of persons executing documents, sign the certificate, and affix official seal.
DEBTOR
A person who is in debt; the one owing money to another.
PERCENTAGE LEASE
Lease on the property, the rental for which is determined by amount of business done by the lessee; usually a percentage of gross receipts from the business with provision for a minimum rental.
