Real Estate Vocab list 4 Flashcards
Littoral Land
A property owners right to use the land abutting a lake or ocean.
Loan to Value Ratio
The amount of loan in relationship to property value.
Long Term Capital Gain
The taxable gain on the sale of a capital asset held for more than the statutory period of time.
Lot Release
Clause in a Blanket Mortgage to release individual lots.
Lot, Block, Subdivision
A method of identifying land in a subdivision by referring to a certain lot, block, and a recoded plat of that subdivision.
Love and Affection
Consideration that is given to support a gift deed.
M.I.P.
Mortgage Insurance Premium-Insurance pertaining to an F.H.A. Insured loan.
Majority
A person who is legally competent according to the minimum age law of that state.
Margin
In an adjustable rate loan, the amount added to the index to determine the rate.
Market Data Approach
An appraisal process that uses comparables to estimate the value of a specified property.
Market Price
The price a property actually sells for.
Market Value
The price a property should sell for if enough time is allowed and neither Seller nor Buyer is under pressure to act.
Master Plan
The long-range guide for orderly growth of a given area.
Mechanic’s Lien
The legal right of a contractor to place a lien on real property for work or materials rendered.
Megalopolis
A continuous series of ongoing cities all heavily populated.
Megan’s Law
A law requiring sex offender registration and notification.
Menace
The threat of force in acquiring an agreement.
Meridian
In the Government Rectangular Survey System, a reference line that runs North and South and crosses the principal baseline.
Metes and Bounds
A legal description of land that uses an identifiable starting point to define the boundaries of real property.
Mill Rate
A property tax rate that is equivalent to one tenth of one unit. Expressed as .001 or 1/1000 of a dollar.
Mineral Rights
Sub-surface rights to all underground assets.
Misrepresentation
To represent falsely or to give untrue statements.
Monolithic Slab
A foundation formed by a single pouring of concrete.
Monument
A natural object that is given as part of a survey.
Moral Turpitude
An act of conduct the is base, vile, depraved.
Moratorium
A temporary halting of payments due on a debt.
Mortgage
A security document to insure the payment of a Note.
Mortgage Assumption
The buyer assumes the Seller’s mortgage and agrees to pay the debt. Original maker is not necessarily free from liability.
Mortgage Broker
One who is paid a fee to arrange loans between a Lender and a Borrower.
Mortgage Relief
In a tax deferred exchange-the assumption of a mortgage of lesser value than an existing mortgage.
Mortgagee
The Lender under a mortgage-type transaction. The receiver of the security instrument.
Mortgagor
The party who gives and is the maker of the security.
Mud Sill
The lowest horizontal member of a frame house that rests on the foundation.
Multiple Listing Service
A general pooling of listing information available to those members of the local Board of Realtors.
Multiple Nuclei Theory
Theory of land use development around several central business areas.
Mutual Assent
A meeting of the minds between the two parties in a contract.
Narrative Appraisal Report
A written appraisal showing in detail the reasoning behind the assigned estimate of value.
Natural Person
A person by birth, not by operation of law.
Navigable Stream
A designated public highway of water. The stream bed is owned by the government.
Negative Leasehold
Contract rent exceeds the economic rent.
Negotiable instrument
A written document that , when endorsed, can be assigned to another.
Neighborhood
Adjoining areas of land that have common characteristics and similar usage.
Net Lease
Tenant pays rent and other costs pertaining to the property.
Net Listing
An agreement in which a minimum sales price is set by the Seller. The Broker receives his commission from that amount over and above the minimum sales price.
Net Operating Income
The income obtained from property after operating expenses.
Nominee
A person who is acting for a party to be named later.
Non disturbance Clause
A mortgage clause which states that the lender will not disturb the present tenant’s rights even in the event of a foreclosure.
Non-conforming Use
The continuance of a certain use even though the area has been zoned for a different purpose; a property use that is not consistent with current zoning.
Non-Homogeneous
No two parcels of real estate are alike or occupy the same geographic location.
Non-Inheritable Estate
An estate which cannot be passed to one’s heirs.
Non-Navigable Stream
A stream not designated as a public highway; the stream bed is owned privately.
Notary Public
A public officer who is able to attest and certify legal documents by a signature and seal.
Note
A document that is evidence of debt-an obligation.
Notice of Completion
A legal notice that indicates a completed and mechanic’s lien must be filed within a certain time period.
Novation
The original obligor is relieved of any further loan obligation due to the substitution of a new party.
Nuncupative Will
An oral Will that is witnessed.
Objective Value
The value in the object itself.
Obligatory Advances
An open-ended loan has lien priority as per recondition regardless of future draws.
Obsolescence
A loss in property value due to outmoded functional economic changes.
Offer
A proposal freely made by one party to another.
“Or More” Clause
A clause in a note or security device that indicates no pre-payment penalty. The debt can be paid in full at any time by the debtor.
Open End Loan
A loan in which draws are available up to a set limit.
Open Listing
A listing between the principal and numerous agents simultaneously.
Option
A future right of a party to buy or lease property at a specified price.
Optionee
The party who receives an option.
Optionor
The party who gives an option.
Orientation
Placing a house on property so that it brings the best advantages to the occupant.
Origination Fee
A fee charged by the Lender for processing a new loan.
Ostensible Authority
Authority arising when a principal has intentionally caused a third party to rely upon the apparent authority even through it has not been given.
Owner’s Policy
A title Insurance purchased for the benefit of the Buyer in a real estate transaction.
P.I.T.I
Principal, Interest, Taxes, Insurance
Paper
A lending term referring to a note and a security instrument.
Parol Evidence Rule
A rule stating that oral evidence may not be added to a written agreement.
Partition
The dividing of co-ownership in property so that each holds his or her interest sole and separate. A legal process terminating a co-tenancy.
Partnership
Consists of two or more people conducting business as co-owners.
Patent Deed
The instrument used by a Sovereign Power to transfer real property to an individual.
Percentage Lease
A rental payment which is based on a percentage of the gross sales.
Percolation Test
A soil test which determines drainage and absorption.
Perpetuity
With no end-to go on forever.
Personal Property
Items that are tangible and movable, not real property.
Personal Representative
An appointed individual authorized to settle an estate.
Phase I Audit
An evaluation of a site to determine environmental problems. Phase 1 inspects public records and adjacent properties.
Phase II Audit
An environmental survey that requires soil sampling to determine the level of hazardous substances.
Physical Depreciation
A loss of value due to the physical deterioration of the property.
Plat Map
A recorded map that shows the smaller parcels in a subdivision by book and page number.
Plate
A horizontal piece that supports the trusses or rafters of a roof.
Plessy V Ferguson
A court case established the doctrine of “Separate but Equal”
Plottage
The process of combining two or more parcels of land so that together they have a greater total value.
Point of Beginning
The starting pint at one corner of the surveyed land in a Metes and Bounds description.
Police Power
The right of the government to enact laws for the protection, health, and welfare of the general public.
Positive Leasehold
Economic rent exceeds the contract rent.
Power of Attorney
A written document that authorizes one party to act for another.
Preliminary Title Report
A document provided in escrow which shows all claims
affecting title.
Prepayment Penalty
An additional charge for paying off a debt before its time.
Primary Lenders
Those Lenders that originate loans, thereby creating “paper”
Principal
The party represented in an agency relationship.
Principal Balance
The original loan amount. The current remaining unpaid debt on the loan.
Prior Appropriation
Water rights that are based on a government permit system. The rights to use the water in a river or stream adjacent to the land.
Private Mortgage Insurance
A form of insurance required on conventional loans that exceed a loan value-ration of 80%,
Pro Rata Share
Per front foot a specific portion allocated to a property owner-usually used in an assessment calculation.
Probate
A court action to prove the validity of a will, or settle an estate.
Procuring Cause
The actions of a Broker that bring about the desired results.
Progression
Lesser value properties will be increased by locating near more expensive properties.
Promissory Note
A written promise by a person to pay a debt under terms specified in the note.
Property Tax
Tax levied by the local governments to meet the needs of the community-Real estate taxes are primary liens and are usually based on Ad Valorem.
Proration
To divide or assess proportionately between Buyers and Seller the obligations that have been paid or due. The close of escrow is the buyer’s day.
Public Report
A report required before a subdivision can be offered for sale or lease-Discloses all facts about the property for the buyer’s protection.
Puffing the Goods
Over exaggeration of one’s opinion.
Punitive Damages
Damages extending far beyond the actual loss.
Pur Autre Vie
A life estate that is based on a life another.
Purchase Money Mortgage
A mortgage given by a buyer as part of the consideration for the price-one usually carried by the seller in a credit transaction.
Qualified Mortgage
A home loan that meets certain standards set forth by the federal government. The loan is presumed to have met the “ ablility to repay rule” per the Dodd-Frank Act.
Quantity Survey Method
An appraisal method which takes into account all the component parts along with the installation costs.
Quarter Section
One fourth of a township that contains 160 acres.
Quiet Title Suit
A court action to remove a cloud on title and create marketable title.
Quit Claim Deed
A Deed which releases any or all interest one may have in real property.
R.E.I. T.
Real Estate Investment Trust-A corporation with a minimum of 100 investors and 95% of the profit passes to the shareholder.
R. E. S. P. A
Real Estate Settlement Procedures Act. Requires disclosures of closing costs to buyers and sellers. Required within 72 hours of a loan application-required on residential loans, one, three or four-plex.
Radon Gas
A colorless, odorless gas from decaying minerals in high concentrations that is known to cause lung cancer.
Rafters
Sloping boards that extend from the top of the exterior wall to the ridge board.
Range Lines
Survey lines that are six miles apart and run parallel to the principal meridian.
Pare of Return
The percentage earned on an investment.
Realtor
A term used to identify members of the National association of Realtors.
Recapture
The amount of depreciation taken for tax purposes is now taxable.
Recording
Entering a document in the Recorder’s office at the prescribed country.
Recovery Fund
A state fund that monetarily reimburses the aggrieved public due to dishonest acts of the licensee.
Redemption Period
The statutory period of time the borrower has to redeem in a mortgage foreclosure, usually six months after the sheriff sale.
Redlining
An illegal practice that restricts loans by geographical area.
Reduction Certificate
A document issued by lender for buyer’s beefit stating the existing loan balance.
Regression
An appraisal principle which states that the worth of an expensive property is lessened by the presence of less expensive properties.
Regulation Z
Truth in Lending Laws apply to residential financing-full disclosure of all financing charges. Interest rates are expressed in A.P. R.
Reinstatement Period
The period of time the trustor has to make all delinquent payments prior to the trustee foreclosure sale in a Deed of Trust.
Release Clause
A clause in a blanket security instrument that allows for individual release of secured lots from the lien.
Reliction
The gaining of land due to the subsidence of water of a non-navigable stream.
Relief Map
A map indicating by lines, shading, or color, different elevations of land.
Remainder (Vested)
One who is entitled to an estate upon termination of a life estate.
Remainder Estate
A future interest in real estate after a life estate.
Rent
Consideration given for the use of property.
Replacement Cost
The cost of replacing a property using today’s materials.
Reproduction Cost
The cost of rebuilding an exact replica.
Reservations
Rights retained by the grantor when property is conveyed. Frequently call Deed Restrictions.
Residual Value
The value that remains after a property’s economic life.
Reversionary Estate
An estate returned to the original grantor. Usually at the end of a life estate or lease.
Ridge board
A large horizontal beam placed at the peak of a roof to which rafters are attached.
Right of Way
The right one has to cross the land of another.
Rights of Survivorship
An incident whereby the surviving joint tenant automatically receives the interest and rights of the deceased joint tenant.
Riparian Rights
The property owner’s right to enjoy or use the water abutting his land.
Rod
A unit of measurement that consists of 16.5 feet.
Run With The Land
A right that remains with the land even upon transfer such as easement appurtenant.
S Corporation
A regular corporation that has elected to be treated as a partnership for tax purposes-restrictions do apply.
