Real Estate Vocab List 3 Flashcards
F.H.A. -Title II
F. H.A. insures home “203B” loans
F.H.L.M.C.
Federal Home Loan Mortgage Corporation (Freddie Mac), active in the secondary mortgage market.
F.N.M.A.
Federal National Mortgage Association (Fannie Mae), purchases paper from primary lenders.
Facade
The front of a building; the part seen from the street.
Familial Status
A protected class under the Federal Fair Housing Law-A family is one or more persons under the age of 18 years, living with a parent or guardian.
Federal Fair Housing Act
Law enacted by Congress that prohibits discrimination by race, color, religion, national origin, sex, familial status, and handicap. The law relates primarily to the sale or lease of a residential real estate.
Federal Fair Housing Act 1968
Prohibits discrimination based on race, religion, color, creed, national origin and sex.
Federal Fair Housing Act 1988
Prohibits discrimination based on handicap and familial status-these items were add to the 1968 act.
Federal Housing Administration (F.H.A.)
F.H.A. -insures lenders against loss by requiring the borrower to pay a mortgage insurance premium.
Federal Reserve System
Regulatory agency for Federally chartered commercial banks.
Fee Simple
The highest form of ownership under the allodial system.
Fee Simple Conditional
If previously agreed conditions are violated, the Grantor must take action to terminate the Grantee’s interest in property (Not automatic termination)
Fee Simple Determinable
A fee interest in real estate that may be automatically terminated if certain circumstances are violated.
Fee Tail
A freehold estate that may terminate when and if the Grantor’s specified heirs die. “Unlawful in most states.”
FEMA
A federal agency that coordinates disaster relief, also designates flood areas and creates flood maps.
Feudal System
All rights of land ownership remain with the king.
FICO Score
Fair Isaac Company-calculates credit scores.
Fiduciary
The trust and confidence an agent owes a principal in an agency relationship.
Financing Statement
A document recorded to protect a creditor’s interest in personal property.
FIRPTA
Foreign Investment Real Property Tax Act
First Right of Refusal
A party who has the first opportunity to meet an offer to either buy or lease a property.
Fissure
A long narrow crack in the earths surface.
Fixture
Personal property that is now affixed and is considered real property.
Flexible Payments
A loan payment plan in which the payments increase over a set number of years.
Flood Plain
An area of low-lying ground adjacent to a stream this subject to flooding.
Flood Way
A channel for diverting flood water.
Floor Value
An appraisal concept which states that the sales price of comparable properties set the lowest market price.
Forcible Detainer
A legal action that a landlord can take if the existing occupant refuses to leave.
Foreclosure
An action by which property used as security is sold to pay the debt.
Forfeiture
The losing of equity one has in a property due to nonperformance of an obligation-such as in an Agreement for Sale. The process by which a Vendor retakes the property from the Vendee due to default by the Vendee.
Formal Will
A written Will that is written, signed and witnessed.
Foundation
The supporting portion of a structure on which all else rests.
Fractional Sections
Irregular sections due to the curvature of the Earth. There are 11 fractional and 25 full sections n a township.
Fraud
Intentional deception that, when relied upon, causes financial loss or personal injury.
Freehold
An estate held in fee simple or for life-no predetermined time for termination.
Friable
When asbestos particles become air-born.
Front End Ratio
A ratio that indicates what portion of an individuals income is used to make mortgage payments.
Frozen Assets
An asset that cannot be easily converted into cash without taking a loss.
FTC
Federal Trade Commission-regulates the “CAN-SPAM ACT”
Functional Depreciation
Physical features within the property lines that are obsolete and no longer desirable. May be curable or incurable.
Funding Fee
A fee paid to the V.A. to guarantee a V.A. loan.
G.N.M.A.
Governmental National Mortgage Association (Ginnie Mae) active in the secondary mortgage market.
Gable Roof
A pitched roof with two sloping sides.
Garnishment
A court directive to the party who is holding the assets of another to freeze said assets.
General Agent
An agent having the power to perform any and all acts on behalf of a Principal expressed in a legal document.
General Lien
A lien that encumbers both real and personal property.
General Partnership
Each partner is responsible and liable for the total profit or loss of the operation regardless of the initial investment.
General Warranty Deed
A conveying deed in which the grantor states that he or she will forever guarantee the title of real property.
Gift Deed
A deed conveyed with love and affection as the consideration.
Good Consideration
Love and affection given in exchange for real property.
Good Faith Estimate
An estimate of all anticipated closing costs regarding a residential transaction. This estimate is required to be given to all buyers by the lender under R.E.S.P.A guidelines.
Good Will
The intangible value of a business due to the habit of patronage. Goodwill may be depreciated for accounting purposes.
Government Lot
In a Government Rectangular Survey System, those irregular sections due to curvature of the Earth or acts of nature.
Government Rights
Taxation, Escheat, Eminent Domain, Police Power
Govt Rectangular Survey System
A governmental method of surveying land located by using a principal base line and principal meridian.
Graduated Lease
A lease that will go up in rent at specified intervals.
Grandfather Clause
A clause that indicates something was once allowed and may still continue despite changes in the law.
Grant
The transferring of real property by a deed.
Grantee
The person who receives an interest in real property via a deed.
Granting Clause
The words in a deed that state. “I hereby grant and convey…”
Grantor
The person who conveys an interest in real property via a deed.
Gross Lease
A lease where the lessor is responsible for all expenses.
Gross Rent Multiplier
A figure used that, when multiplied by the annual gross rent, will estimate the property value.
Gross Schedule Income
The total potential of all income that can be derived from investment property.
Ground Lease
A lease for land only.
Ground Water
The classification of all underground water except for underground streams.
Guardian
One appointed by the court to handle the affairs of an incompetent party.
H.U.D.
Department of Housing and Urban Development
Habendum Clause
The degree, quantity or quality of the estate conveyed.
Handicap
A protected class under the Fair Housing Law; a handicap is considered an impairment that substantially limits life’s activities.
Hard Money Mortgage
A mortgage that is given for direct cash.
Hereditament
The right to will to another personal and real property.
High Water Mark
Highest place on shoreline reached by rising water.
Highest and Best Use
Land usage at the time of an appraisal which would create the highest net return.
Hold Harmless Clause
A contract clause stating one party agrees to protect another from losses.
Holder in Due Course
The party who is holding a note for value and has the protection of law for its enforcement.
Holdover Tenant
A tenant who remains in possession of the property after lease expiration.
Holographic Will
Hand-written Will that is signed by the maker but does not require witnessing.
Homestead
A legal right of a homeowner to protect a portion of his equity against a force sale.
Homogeneous
A word used in appraising that describes similar or like properties.
Horizontal Property Regime
Condominium-The owner of the unit only has cubage rights; rights and sub-surface rights are not included.
Hypothecate
To pledge property as collateral and still retain possession of the pledged property.
Illusory Contract
An expression of intent to do something, not a binding agreement.
Implied Agency
An agency create by the actions or words of the parties involved.
Impound Account
An amount held by the lender to pay the taxes and insurance.
INA
Irrigation Non Expansive Area
Inchoate
Incomplete (not perfected)-additional steps must be taken to strengthen the claim.
Income Approach
An appraisal process that estimates the value of income property by converting annual net income into value.
Incompetent Party
One who is not legally qualified to manage his or her own affairs due to age, mental capabilities, or legal action.
Incorporeal
The rights accompanying ownership of property.
Indemnify
an agreement to hold harmless another from damages.
Index Lease
A lease that is based on a certain price index such as the Consumer Price Index found in commercial leases.
Index Rate
A rate in a variable rate loan that is tied to a T-Bill, 11th District or U.S. Cost of Funds.
Industrial Fruit
Fruits or Crops that are produced on a property for income-personal property.
Infancy
A person who is under the legal age (usually under 18 years).
Ingress and Egress
The right to enter and exit a parcel of land.
Installment Sale
A tax method of reporting only the amount of income actually received as it is received.
Intangible
The rights that accompany personal property.
Inter-State land Disclosure Act
A federal registration system when 25 or more lots are offered for sale or lease inter-state.
Interest
Rent paid for the use of money.
Interest Only
Payment consists of interest only and no repayment of principal.
Interim Financing
A short term loan sometimes called a gap or bridge loan.
Internal Rate of Return
A rate of discount that is calculated on the basis of projected cash flows from the initial investment.
Interpleader
A third party (court) who is called upon to settle a dispute, usually in an escrow situation.
Interstate
A person who dies without a Will.
Involuntary Alienation
The transferring of ownership against one’s will.
Involuntary Lien
Alien placed on property without the owner’s permission or by act of law.
Joint and Several Liability
One party only or all parties together can be held liable for the debt.
Joint Tenancy
Co-ownership that features the right of survivorship and requires the unities: Possession, Interest, Time, Title.
Joist
The horizontal supports that hold up a floor or ceiling.
Jones V Mayer
A court case that prohibits discrimination by race both in private and governmental properties.
Judgment Lien
An involuntary lien on both real and personal property-a general lien.
Junior Mortgage
Any security agreement having a priority after the first mortgage.
K1
A form to report income or loss in a business, partnership, or trust.
Laches
The legal time has expired to file a valid claim.
Land Contract
Contract where the Seller finances the Buyer’s purchases of realty and retains legal title. Vendee has Equitable Title.
Landlocked
A parcel of land having no ingress or egress without crossing over another’s property.
Landlord
One who owns real property but transfers a leasehold interest to another with the reversion right.
Law of Agency
A legal relationship in which one is hired to represent another with trust and confidence. The party hired is referred to as the Agent.
Law of Situs
Real Estate is subject to the laws of the state in which is located.
Lawful Object
A contract requirement stating that a valid contract must be for an item or purpose that is legal in the eyes of the law.
Lease
An agreement giving possession and use of property in return for a specified consideration.
Leasehold
The Lessee’s right to use property for a specified period of time.
Legacy
Money or personal property left to another through will.
Legal Description
A formal description that defines the boundaries of real property. This description is sufficient to locate the property and may be enforced through a court of law.
Legal Description (Informal)
Identifying a parcel of land by a street address or local terminology.
Legal Life Estate
A non-Inheritable right provided by law.
Legal Person
A person created by law such as a corporation.
Legal Rate
The interest rate the court assigns to those documents that have no specified interest rate.
Legal Title
The lawful claim to ownership.
Legatee
One who receives money or personal property through a Will.
Lender’s Policy
An extended coverage Title Insurance policy purchased for the Lender.
Less than Freehold
An estate of possession but not ownership-a lease.
Lessee
The tenant in a lease
Lessor
A landlord in a lease.
Level Payment Mortgage
A repayment plan that includes principal and interest. The total of which is the same amount each payment.
Leverage
Using borrowed funds to finance investments with little or no personal cash invested.
License
A personal privilege one has to use the land of another. (Privilege revocable)
Lien
A money claim against property.
Lien Theory State
States in which the Lender of cash does not hold legal title, but only a lien as security against title.
Life Estate
An interest in property that is limited to the life grantee-or the life of some specified person.
Life Tenant
One who possesses a life estate.
Like-Kind Property
Property held for an investment when qualifying for a real estate tax deferred exchange.
Limited Agent
An agent having the power to perform only in those areas expressed in a legal document.
Limited Partnership
Parties who contribute capital to an investment and are responsible for the amount invested.
Liquid Asset
An asset that can easily be converted into cash.
Liquidated Damages
The dollar amount stated in the contract paid to the injured party if a breach occurs. The dolla amount is usually pre-agreed.
Lis Pendens
Lawsuit pending.
Listing Agreement
A written agreement between a principal and Broker to sell or lease property for compensation.
Listing Broker
The agent who act for the owner of property in either leasing or selling.
