Terms Flashcards
Condemnation
The taking of property under eminent domain. The property must be for use by the general public and the owner must be paid fair market value.
Eminent Domain
The power of the government to take private property for public use.
Escheat
The power the government has to claim property after someone dies without a will, creditors or heirs.
RESPA
Real Estate Settlement Procedures Act.
- Only available to residential federally financed or refinanced properties.
- Provides advance disclosure of settlement costs to buyers and sellers.
- Protects borrowers from expensive abusive practices.
- Ensures borrowers have timely, sufficient information about the nature and cost of the settlement practice.
- Eliminates referral fees or kickbacks that increase the cost of settlement services.
What does RESPA require before settlement?
- Good faith estimate within 3 days
- HUD booklet at the time of application
- HUD form No. 1 at or before final settlement
Habendum clause
Describes the estate granted and must agree with the granting clause. Begins with the words “to have and to hold”.
Metes and bounds
Description of property from a surveyor which always ends at the beginning and must have a place of beginning.
Plat of subdivision
When the boundaries of a property are contained in a plat (map) book.
Full Covenant and Warranty Deed
Contains the strongest and broadest for of guarantee of title of any type of deed.
What are the 6 covenants in a full covenant and warranty deed?
- Covenant of seisin which assures the grantee that the the grantor holds the title specified in the deed.
- Covenant of right to convey which assures the grantee that the grantor is legally able to convey the title.
- Covenant against encumbrances assures the grantee that there are no encumbrances except for those detailed in the deed.
- Covenant of quiet enjoyment assures the grantee that he will not be disturbed in the use and enjoyment of the property due to a title defect.
- Covenant of further assurance which states the grantor will do what is necessary to correct any defect in the title and any errors in the deed itself.
- Covenant of warranty is the most important of all and states the grantor will warrant and defend the title against anyone’s lawful claims.
Bargain and sale deed
May be with or without covenants of warranty and gives an implied representation on the part of the grantor that he has good title and possession of the property. Bargain and sale deeds without covenants are not acceptable to NY lenders and are the same as quitclaim deeds.
Quitclaim deed
Contains no warranties whatsoever and is simply a deed of release.
Use variance
A permitted deviation from specific requirements of the zoning ordinance prohibited by the current zoning restriction. The owner must demonstrate hardship.
What 4 things must a use variance include?
- The owner is deprived of use or benefit of the property and must give financial evidence of this hardship.
- The hardship is unique and not universal to the neighborhood.
- The variance will not change the essential character of the neighborhood.
- The hardship is not self-created.
What is an example of a use variance?
The formerly one-family homes on the west side being converted to two-family homes.
What is an area variance?
Permission to use the land in a way that is not normally allowed because to the size of the land.
What is an example of an area variance?
An variance allowing a home to be built on 11,850 square feet when the current zoning ordinance requires 12,000 square feet.
Non-conforming use
When a property owner continues to use their property even after it’s rezoned. They are grandfathered in.
What is an example of nonconforming use?
When a land is rezoned for commercial use but a homeowner continues to live there. They are grandfathered in.
Doctrine of laches
When property owners are lax in protecting their rights, the courts cannot enforce restrictive covenants. The covenant can terminate.
What is an example of doctrine of laches?
Tommy Traveler learns that his father has died, but waits four years to come forward until the entire estate has been distributed on the belief that Tommy was dead.
Spot zoning
Illegal in NY.
Severalty
Ownership by only one person
Lis pendens
A legal notice that a lawsuit is pending affecting title or possession of a specific property
Special use permit
Special permission given by the planning board to use an area usually not permitted in the zone.
What is an example of a special use permit?
When a pizzeria is allowed to operate in an industrial zone since it is beneficial to the neighborhood and doesn’t adversely affect it.
Restrictive covenants
A deed restriction that prevents future owners to use the property for certain uses.
What is the federal agency that oversees fair housing issues?
HUD
In order to comply with the federal Fair Housing Act of 1968, what must be displayed prominently in a broker’s place of business?
HUD poster
What types of discrimination were added to the Fair Housing Act in 1988?
Familial status and disability
What agency regulates and enforces anti-discrimation law in NY?
Division of Human Rights
How many CEUs in fair housing are required every two years?
Three
How many CEUs are required every two years?
22.5 with 3 of them in fair housing
How often must agents renew their licenses?
Every two years.
Define OLDCAR
Obedience Loyalty Disclosure of information Confidentiality Accountability Reasonable care, skill and diligence
What are the unities that make up a joint tenancy?
Time, title, interest and possession.
What kind of deed is used in bankruptcies and fore closures?
Referee’s deed
What is an alienation clause?
A mortgage clause that allows the bank to declare the balance due if the borrower sells the property.
What does Regulation Z address?
Truth in Lending. The accurate advertising of credit terms.
What is the fine for a first offense for violating the Federal Fair Housing Act?
$10,000
