Short Simple Terms Flashcards
Real Estate Terms
1
Q
Chattel Real
A
Personal Property
2
Q
Fixture
A
Was Personal now real through
MARIA (Method, Adaptability, Relationship, Intention, Agreement)
3
Q
Trade Fixture
A
Personal property used to conduct business
4
Q
Reliction
A
Gradual recession of water leaving land permanently uncovered
5
Q
Free Simple Estate
A
Infinite duration, no limitations, highest form of ownership
6
Q
Less than Freehold Estate
A
Personal, limited, rental, leasehold estates
7
Q
Estate from Year to Year (Periodic Tenancy)
A
Month to month lease; notice required to terminate
8
Q
Estate at Will
A
End at anytime
9
Q
Estates at Sufferance
A
Landlord is suffering as tenant is in possession passed agreed upon time
10
Q
Lease
A
Personal property goes with the person; possession not ownership from lessor to lessee
11
Q
Net Lease
A
Tenant pays taxes, insurance, and maintenance
12
Q
Gross Lease
A
Tenant pays fixed amount
13
Q
Sandwich Lease
A
Owner is lessee and lessor
14
Q
Tenant Improvement Allowance
A
Money to customize usually for business
15
Q
Abandonment
A
Leave with no notice
16
Q
Subleases
A
Possession but not responsibility
17
Q
Assignment
A
Possession AND responsibility
18
Q
Surrender
A
Return property to landlord before end of lease
19
Q
Constructive Eviction
A
Landlord fails to provide something they have a legal duty to provide (ex. heat)
20
Q
Deeds
A
Evidence of transfer
21
Q
Grant Deed
A
Transfer of real property to another person/entity
22
Q
Quitclaim Deed
A
Deed releasing a person’s interest with no warranties; usually non-sale of property
23
Q
Warranty Deed
A
Deed warrants a clear title to buyer of real property
24
Q
Special Warranty Deed
A
Seller only warrants the title against defects that may have come up during the period of ownership of the property
25
General Warranty Deed
Seller warrants the title against defects that may have come up during the ENTIRE LIFE of the property
26
Quiet Title Action
Lawsuit in order to establish a party's title
27
Title Insurance
Ensure clear and marketable title
28
Standard Policy of Title Insurance
Standard Coverage: Defects found in public records, forged documents, incompetent grantors, incorrect marital statements, improper delivery of deeds
29
ALTA Policy of TItle Insurance
Protects real property owners & mortgage lenders against losses from defects in titles
30
Extended Policy of Title Insurance
Includes everything in a standard policy plus defects found in a property inspection...including unrecorded rights of parties in possession, examination of survey, unrecorded liens, not known by a policyholder.
31
Severalty
One-Owner
32
Concurrent Estate
Ownership with Others
33
Joint Tenancy
Right of Survivorship; No Wills; PITT -possession, interest, time, title, interest
34
Tenancy in Common
Unity of Possession
35
Encumbrances
Limitations
36
Dominant Tenement
Gaining the benefit of the easement
37
Servient Tenement
Suffers the burden of the easement
38
Easement by Prescription
Granted after hostile, continuous and open use for a statutorily period
39
Appurtenant Easement
Right to use adjoining property that runs with the land
40
Easement in Gross
No dominant tenement
41
Government Powers
PETE- Police, Escheat, Taxation, Eminent Domain
42
Variance
Exception to the rule
43
Grandfather Clause
Exempt from new rule
44
Building Codes
Protect public health, safety, and general welfare
45
Probate
Executor for the estate of a deceased person sells property in order to divide the property among the beneficiaries
46
Marginal Tax Rate
Percentage taken from your next dollar of taxable income
47
1031 Tax Deferred Exchange
Defer taxes; Identify 45 days, acquire in 180 days of closing previous property
48
Boot
Fair market value of other property received in an exchange
49
Inverse Condemnation
Suing the government for money when property is taken
50
General Liens
Lien against ALL person property
51
Specific Liens
Liens against one single property
52
Voluntary Liens
Liens that exists because of actions taken by debtor
53
Involuntary Liens
Liens that were imposed on an individual (taxes, judgment)
54
Mechanics Lien
Lien on behalf of those who have supplied labor or materials that improve the property
55
Judgment Liens
Lien placed by the court
56
Injunctions
Court order that compels a party to do or refrain from specific acts
57
Escrow
Neutral third party
58
Debit
Money owed
59
Credit
Money received
60
Short Rate
Higher periodic rate for a shorter term than what was originally contracted
61
Impounds
Money set aside by a lender to pay for reoccurring costs that take priority over the loan such as taxes and insurance
62
RESPA
Elimination kickbacks and referral fees which add unnecessary costs to settlement services
63
TILA
Inform use of consumer credit; Require disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.
64
Fed Fair Housing Act of 1968
Can't discriminate: race, color, religion, sex, national origin
65
Americans w/Disabilities Act
1990 act prohibiting discrimination against people with disabilities in employment transportation, public accommodation, communications, and government activities
66
Material Fact
a fact that if known might have caused a buyer or seller of real estate to make a different decision
67
Steering
Buyers- You should live by "those" people
68
Blockbusting
Sellers- You better sell because you don't want to live by "those" people
69
Panic Selling
Sellers- You better sell because you don't want to live by "those" people
70
Panic Peddling
Sellers- You better sell because you don't want to live by "those" people
71
Redlining
Denying loans or raising prices to residents of certain areas based on race and ethnicity.
72
Misrepresentation
The action or offense of giving a false or misleading account of the nature of something
73
Actual Fraud
Committed with the intent to deceive and thereby injure another
74
Constructive Fraud
Person gained an unfair advantage over another by unfair methods; intent does not need to be shown
75
Commingling
Mixing of funds
76
Caveat Emptor
Latin: Buyer Beware
77
Bilateral Contract
Promise for a promise (exclusive listing)
78
Unilateral Contract
Promise for an act (open listing or option contract)
79
Executed Contract
Contract fully performed
80
Executory Contract
a contract that has not yet been fully performed
81
Statute of Frauds
Contracts must be in writing
82
Statute of Limitations
States time frames for certain contracts
83
Novations
Latin: New as in certain contracts
84
Codicil
Amendment
85
Fiduciary
Position of trust, good faith, and honesty
86
Actual Authority
Expressly confirmed by a principal to an agent to act on the principal's behalf
87
Ostensible Authority
Authority granted by acceptance of action on the principle's behalf
88
Dual Agent
Buyer & seller has the same BROKER
89
General Agent
Authorized to perform any and all acts associated w/the job
| Real Estate licensee acting in the capacity of a property manager
90
Special Agent
Limited authority granted to him or her through a principal
91
Estoppel
Prevents asserting something contrary to what is implied by a previous action or statement
92
Listing
Bilateral employment contract
93
Exclusive Listing
One Broker to be paid
| No need to show procuring cause in order to be paid
94
Exclusive Agency Listing
Owner sells agent doesn't get anything
| Agent must show you're the procuring cause in order to be paid
95
Exclusive Authorization and Right to Sell Listing
Broker gets paid if property sold regardless of procuring cause
96
Open Listing
Seller can hire multiple brokers
| Broker that proves procuring cause would be compensated
97
Net Listing
Money received above and beyond a designated amount
98
Protection Period Clause (Safety Clause)
Compensated after the listing expires if agent proves to be procuring cause
99
Contingency Clause
Condition or action that must be met in order for a real estate contract to become binding
100
Hold Harmless Clause (Liability Waiver)
Parties agree not to hold the other party responsible for any loss, damage, or legal liability that may arise under the agreement
101
Interim Occupancy Agreement
Staying after the sale
102
Deposit
Something of value to show that you are serious about your offer
103
Value
What a willing and able buyer will pay on an open market
104
Essentials Elements of Value (STUD)
STUD- Scarcity, Transferability, Utility, Demand
105
Principle of Substitution
No one would pay very much for a property when another one readily available that has the same use, design, and income and is less.
106
Principle of Contribution
How much does an item contribute to the net income of a property?
107
Principle of Regression
Value of a more expensive home in a neighborhood of less expensive homes will drop in value
108
Principle of Progression
Value of less expensive properties will increase when placed in the area of more expensive properties
109
Principle of Highest & Best Use
How much of a net return you can get while building on a property?
If the use is temporary it would then be considered the interim use
110
Plottage
Joining of several parcels to make a larger better one together (1+1=3)
111
Appraisal
Estimate of value
112
Narrative Appraisal
Comprehensive report is a "complete" apprasal
113
Market Data (Comparison) Approach
Examination and comparison of actual sales of comparable properties.
Best used to find values of houses and vacant lots.
114
Cost (Replacement) Approach
How much would it cost to replace a brand new building (libraries, government offices)
115
Capitalization (Income) Approach
Converts income into value
| Property that can prove to bring in more income will increase the value. (Shopping center)
116
Gross Multipliers
Price➗Rent
117
Cap Rate
Higher cap rate represents higher risk
118
Acre
43,560
119
Commercial Acre
acre minus streets, curbs and sidewalks
120
Depreciation
Loss in value to any cause
121
Physical Deterioration
Wear and tear
122
Functional Obsolescence
Poor planning (1 bath 5 beds)
123
Economic Obsolescence
Outside causes
124
Mortgage Brokers
Intermediary between consumers and lenders
| Originates loans while mortgage lender funds loans
125
Mortgage Banker
Direct mortgage lender
126
Interest
Rent on money
127
Leverage
Borrowed capi/
128
Injunction
Deed restriction; Enforcement thru the courts
129
Fructus Naturales
Trees, bushes, flowers, planed items that will be permanent (real property)
130
Easement
The right to cross another's property
131
Permanence of Improvement
Permanent commercial development of land and construction of improvements
132
Freehold Estates(Fee Simple)
```
Qualified Fee Estate
Life Estate
Estate in Remainder
Life Estate pur autre vie
Reversion Estate
Statutory Estate
```
133
Termination of Contract
```
Performance
Abandonment
Lapse of Time
Permissible revocation
Breach
Recession
```
134
Qualified Fee Estate (Fee Simple Defeasible)
Unless...or as long as
| Must be used under conditions
135
Defeasance Clause
Lender must release the lien upon repayment
136
Lis Pendens
Legal notice of a pending lawsuit
137
Life Estate
When a person owns a property for the rest of their life and property reverts back to the original owner when he/she dies
138
Appurtenances
All right, privileges and improvements belong to the land
| Described in the deed
139
Marketable Title
Reasonably free from doubt
140
Legal Title
Ownership with rights of possession and use
141
Chain of Title
History of conveyances and encumbrances
142
Abstract of Title
Summary of chain of title
143
Cloud on Title
Problem with the title (lien or forged deed)
144
Percentage Lease
Tenant pays lease plus % of sales (mall tenant)
145
(Agency) Agent Duties
ACOLD: Accounting, Confidentiality, Obedience, Loyalty. Disclosure
146
1 Mile
5,280 FT
147
Inquiry Notice
Should have investigated
148
Deed of Trust
Used instead of a mortgage
149
Sherman Anti-Trust
Prohibits monopolies, price-fixing, boycotts, market allocation, tie-in arrangement
150
Government Survey (Rectangular Survey)
Meridian & Baselines; Townships & Sections
151
Lease 1 year or less
Doesn't have to be in writing
152
Granting Clause
Grants title and ID's parties and property
153
Life Estate Pur Autre Vie
Giving one person ownership; Based on someone else's life
154
Torrens System
Registration of title with a court (old method)
155
Taxation
Government power to levy property taxes
156
3 Types of legal descriptions
Metes and Bounds
Rectangular Survey
Recorded Plat
157
Equitable Title
Right to legal title upon completion of a contract
158
Tenancy of Entireties
Just like joint but married couples only
159
Certificate of Title
A written opinion of title
160
Police Power
Power of govt. to regulate use through zoning and building codes
161
Escheat
Power of govt. to take property when owner dies without a will
162
Eminent Domain
Power of govt. to take property for public use
163
Assemblage
Combining two or more parcels of land
164
Satisfaction of Lien
Documents recorded to release the lien
165
Priority of Liens
Determined by the date of recordation
166
Valid Contract
Have 5 essential elements & are enforceable
167
Intestate
To die without a will
168
Testate
To die with a will
169
Patent Deed
Deed from government
170
4 Unities of Joint Tenancy
```
PITT-
P- All enjoy possession of property
I- All own same interest of property
T- All got title at same time
T- One title (all owners named on deed)
```
171
Fructus Industriales
Crops that need to be seeded (personal property)
172
Annual Interest
Loan amount X Interest Rate
173
Deed in Trust
Used to create a trust
174
Recorded Plat
Blocking off a track of land and each block has plats of land
175
Puffing
Harmless statement of exaggeration
176
5 Essential Elements of a Contract
```
Legally competent parties
Clearly ID property
Meeting of the minds
Contract must include consideration
Lawful purpose
```
177
Void Contract
Missing one or more of essential elements
178
Voidable Contract
Appears valid on face but could be voided by either or both parties
179
Property Taxes
First priority of all liens
180
Attachment Lien
Makes property collateral for lawsuit
181
Economic Characteristics of Land
Scarcity, Situs, Permanency of Improvements, Production, Assemblage
182
Situs
Another word for location
183
Estate in Remainder
Property goes to a third party when life estate has died
184
Township
36 Sections
185
Condemnation
Process of eminent domain
186
Lien
Monetary claim-making property security for payment of debt
187
Constructive Notice
Should have known (recorded deed made public)
188
Trusts
Title held by a trustee on behalf of a beneficiary
189
Actual Notice
Known as a fact
190
Estate for Years
Start date and end date
Any definite period
No notice to terminate required
191
Encroachment
When an improvement impeeds a neighbor's land
192
Ad Valorem
According to Value
193
Prior Appropriation
First in time; First in right
194
Zoning Ordinance
Specific ruler regarding types of improvements, lot size, setbacks, etc
195
Special(limited) Warranty
Only one promise made which is from the act of grantor (Usually trust or bank owned)
196
Bundle of Rights
```
Rights that come with ownership:
Possession
Control
Enjoy
Exclude others from entering
Encumber as with a mortgage
Dispose of by selling, will or transfer
```
197
Alienation
To sell or convey (any change of ownership)
198
Personal Easement of Gross
Attached to a person
Non-assignable
Servient estate only
199
Down Zoning
More density to less (commercial to residental)
200
Holographic Will
Written entirely in testator's handwriting, with date and signature
201
Accretion
A natural increase in the land by phenomena
202
Avulsion
Natural tearing away of land
203
Littoral Rights
Lake/bay rights only to the high watermark
204
Riparian Rights
Rights to land at a river
205
Real Estate
land and all manmade structures permanently attached to it
206
Personal Property
all property not real; except trade fixtures and emblements
