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Real Estate > Real Estate Terms-Definitions > Flashcards

Real Estate Terms-Definitions Flashcards

1
Q

collateralize

A

to provide something as collateral for a loan (z.B. the loan is collateralized by a property)

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2
Q

collateral

A

something pledged as security for repayment of a loan, such as property

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3
Q

intangible property

A

property whose value does not come from physical attributes: for example, patents, software, trademarks and licenses

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4
Q

to debit

A

to take money from

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5
Q

declaration of homestead

A

this means that any equity is “off-limits” to creditors

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6
Q

attorney-in-fact

A

has the right to “act” for another

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7
Q

secured debt

A

debt that is backed by collateral (such as property) to reduce the risk associated with lending

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8
Q

procuring cause (person)

A

The “procuring cause” of a real estate transaction is the agent whose actions and efforts result in the sale of a property.

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9
Q

blanket mortgage

A

mortgage that covers more than one piece of property and may have release clause that allows one to be released from lien of mortgage after being paid off

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10
Q

What does “prorate an expense mean”?

A

to “_________ an expense” means to divide and allocate it proportionately, according to time, interest, or benefit.

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11
Q

Escrow Proration is based on what type of year?

A

…an “escrow year” or “banker’s year”, which is 360 days, to allow for 12 months of 30 days each.

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12
Q

What is Leverage?

A

The effective use of borrowed money to finance an investment such as real estate is called…

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13
Q

A temporary RE license for someone who is child support delinquent is good for how many days?

A

150 days

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14
Q

What is a balloon payment?

A

A balloon payment is a larger-than-usual one-time payment at the end of the loan term.

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15
Q

What is the purpose of a mortgage (deed of trust)?

A

The purpose of a MORTGAGE (DEED OF TRUST) is to provide security for the loan that’s evidenced by a promissory note. They ARE RECORDED.

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16
Q

What is a promissory note?

A

A PROMISSORY NOTE goes hand-in-hand with a MORTGAGE (DEED OF TRUST). It is the document that contains the promise to repay the amount borrowed. They are NOT RECORDED!

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17
Q

What is an “or more” clause?

A

An “or more” clause is an essential clause in any mortgage agreement. It prevents the mortgage company from charging any penalties if the borrower wants to make extra payments or sell the house before the term of the loan expires.

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18
Q

What does “trust deed and note” mean?

A

“Trust deed and note” means a mortgage (deed of trust) and a promissory note: in other words,

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19
Q

What is collateral?

A

Any real or personal property having marketable value that a borrower pledges as security in order to obtain a loan.

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20
Q

An “or more clause” means there will be no? (2-word answer)

A

Prepayment penalty.

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21
Q

Appurtenances

A

Rights that go along with ownership of a particular piece of property, such as water rights, mineral rights. Ordinarily transferred with property but can sometimes be sold separately.

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22
Q

Bundle of Rights

A

The rights inherent in ownership of property, including the right to use, lease, enjoy, encumber, will, sell, or do nothing with the property.

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23
Q

Easement

A

An irrevocable right to use some part of another person’s real property for a particular purpose.

24
Q

“appurtenant to”

A

means “stuck to” as in an appurtenance that goes with/runs with a piece of property

25
Q

A Land Contract or Real Estate Contract or Conditional Sales Contract…is a?

A

A contract for the sale of real property in which the buyer (vendee) pays in installments.

26
Q

Assignment

A

In the case of a lease, the transfer by the original tenant of her entire leasehold estate to another.

27
Q

What is R.E.S.P.A.?

A

The Real Estate Settlements Procedures Act-A federal law that prohibits kickbacks between settlement service providers and requires lenders to make closing costs disclosures. It also prohibits the payment of a “finder’s fee”.

28
Q

With regards to foreclosure, what is redemption?

A

When the defaulting borrower pays the full amount of the debt, plus costs, to avoid the loss of his property due to foreclosure.

29
Q

What is accretion?

A

The gradual addition to dry land by the forces of nature, such as waterborne sediment deposited on waterfront property.

30
Q

What is a lessee?

A

A lessee is a person who leases property from another; a tenant.

31
Q

What is appropriation (water rights)?

A

Appropriation (water rights) means applying to the State Division of Water Resources for water rights .

32
Q

A mortgage loan broker must have what to practice?

A

A real estate license.

33
Q

An unlicensed secretary working in a real estate office is allowed to do what?

A

Type listing agreements for salespersons.

34
Q

What is the Unruh Civil Rights Act?

A

A California civil rights law that guarantees the right of all persons to use the services provided by any business establishment (including housing and accommodations).

35
Q

What is the Fair Employment and Housing Act (Rumford Act)?

A

A California civil rights law that prohibits all housing discrimination in California based on race, color, religion, sex, etc.

36
Q

What is an acceleration clause?

A

If the borrower defaults, this is a clause that gives the lender the option of declaring the entire loan balance (all of the principal still owed) due and payable immediately.

37
Q

What is a promotional note?

A

A short-term (promissory) note of up to and including 36 months in its term.

38
Q

Life insurance companies that make real estate loans normally do so with the assistance of:

A

A mortgage banker or mortgage broker.

39
Q

For a homestead to be effective, it must be filed before the…

A

Judgement is recorded (which occurs after the judgement is rendered).

40
Q

What are liquidated damages?

A

A sum that the parties to a contract agree in advance will serve as full compensation in the event of a breach. They have been disliked by the courts.

41
Q

What is the statute of limitations (in California) for written contracts (after they have been breached)?

A

4 years.

42
Q

What is a commercial acre?

A

A commercial acre is the remainder of an acre of newly subdivided land after deducting the amount of land dedicated for streets and sidewalks.

43
Q

Under the Federal Fair Housing Law (Title VIII of the 1968 Civil Rights Act), how long do you have to file a complaint after an alleged act?

A

180 days.

44
Q

What is the party called that furnishes the funds for a loan used to purchase real estate (aka “the lender”)?

A

The beneficiary.

45
Q

What is the preferred method for the appraisal of a shopping center?

A

The Cost-Income method: Replacement Cost Approach and Capitalization of Net income Approach.

46
Q

What is an attachment?

A

A legal seizure of the title to a property by a court. Doing so with real property creates a lien.

47
Q

An enforceable standard listing agreement that has been signed by seller and broker requires a…

A

…meeting of the minds, because a standard listing agreement is an example of a contract.

48
Q

With regards to contracts, what does “meeting of the minds” refer to?

A

It refers to the comprehension and mutual agreement or mutual assent of both parties to a contract’s terms.

49
Q

What is the Principle of Substitution?

A

A principle of appraisal that holds that the upper limit of value tends to be set by the cost of acquiring an equally desirable substitute, assuming no untimely delays.

50
Q

How is airspace considered real property?

A

It’s considered real property for the amount of airspace the property owner can reasonably use in connection with his own parcel.

51
Q

Does Regulation Z of the Truth in Lending Act allow exceptions?

A

Yes. For example, you do have to spell out “annual percentage rate”, but you don’t have to spell out other credit terms.

52
Q

How many parcels does each deal with? Subdivision Map Act and Subdivided Lands Law?

A

Subdivision Map Act-at least 2; Subdivided Lands Law-5 or more

53
Q

What is a Voidable Contract?

A

A contract that one of the parties can disaffirm without liability, because of lack of capacity or a negative factor such as fraud or DURESS.

54
Q

With regards to appraisal, what is capitalization?

A

A method of appraising real property by converting the anticipated net income from the property into the present value. Also called the Income Approach to Value.

55
Q

What is a Bulk Sale?

A

It is a sale, not in the ordinary course of the seller’s business, of more than half of the seller’s inventory. The seller’s creditors must be notified. This comes from the Uniform Commercial Code.

Real Estate (3 decks)

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