Terms Flashcards
Intestate:
Without leaving a will (estate -> kin)
Investment Yield
gain from an investment in real property
Joint Note
A note signed by two or more persons
Judgment
The final determination of a court having jurisdiction over a specific case.
Laches
Delay or negligence in asserting one’s legal rights.
Land Sales Contract:
An installment contract for the sale of land.
Conventional Loan
not obtained under a government program,
Conversion
unlawful ap- propriation of another’s property,
Conveyance
Transfer of title to land
Cooperating Broker
broker who finds the buyer
Cooperative
partment build- ing, owned by a corporation and in which tenancy in an apartment unit is obtained by purchase of shares of the stock of the corporation
Correlation / reconciliation
appraisal process involving the interpretation of data derided from the three approaches to value
Cost Approach
estimating the replacement cost of a structure, less depreciation, plus land value
Covenant
An agreement or promise to do or not to do a par- ticular act
Creative Financing
financing property going beyond traditional real estate lending
Debtor/Debetee
A person who is in debt/owed debt
Decree of Foreclosure
Decree by a court ordering the sale of mort- gaged property and the payment of the debt
Dedication
giving of land by its owner to a public use
grantor/grantee
gives land /accepts land
Deed of Trust:
real property is given as security for a debt
Defeasance Clause
gives the mort- gagor the right to redeem mort- gagor’s property once payment fullfilled
Defeasible Fee/qualified fee
fee simple absolute in- terest in land the is capable of be- ing defeated
Deficiency Judgment
judg- ment given by a court when the value of security pledged for a loan is in- sufficient to pay off the debt of the defaulting borrower.
Determinable Fee
An estate which may end on the happening of an event
Discount
sell a promissory note before maturity at a price less than the outstanding principal balance
Distress Sale
property selling for less than market value
Documentary Transfer Tax:
allows a county to adopt a documentary transfer tax to apply on all transfers of real prop- erty located in the county
Domicile
person’s legal resi- dence.
Donor/Donee
gives/receives gift
Due on Sale Clause
acceleration clause, lender full payment upon sale
Economic Obsolescence
Loss of desirability and useful life of a prop- erty through economic forces, such as zoning changes, traffic pattern changes, etc., rather than deteriora- tion.
Effective Age:
Age of a struc- ture as estimated by condition
Effective Interest Rate
actual interest paid, not just nominal
Ejectment
court action to re- cover real property.
Emblements
Growing crops. Are considered personal property.
Endorsement
The act of signing one’s name on the back of a check or note,
Equal Credit Opportunity
Fed- eral act granting women certain independent status, and preventing lenders from considering such negative credit aspects as the possibil- ity of a woman having children and dropping out of the labor market.
Equity Loan:
A loan based upon the equity in a property
Equity of Redemption:
right to redeem property during the fore- closure period
Morgatge forclosure redemption period
three months (if sale proceeds were enough to pay off debt) or one year (if sale proceeds were not enough to pay off debt in full).
Escalation
Lender right to increase interest or payment
Estoppel
A legal theory under which a person is barred from assert- ing or denying a fact because of the person’s previous acts or words
Et Ux
And wife
Exchange
Transfer of property - tax advantage. 1031 exchange.
Exculpatory Clause:
A clause in a lease that relieves an owner of lia- bility.
Executor/executrix
man named in a will to carry out its provisions as to the disposition of the estate of a deceased person.
Executory Contract:
A contract in which something remains to be done by one or both parties
F.H.A
Federal Housing Ad- ministration.
F.H.A. Escape Clause
the borrower shall not be obligated to buy nor shall any de- posit be lost if the appraisal is less than purchase price.
Fair Credit Reporting Act
A federal law giving one the right to see his or her credit report, among other rights.
Fair Housing Law
Title VIII of the Civil Rights Act, which forbids discrimination in the sale or rental of residential property because of race, color, sex, religion, or national origin.
FANNIE MAE:
Federal National Mortgage Association (FNMA)
Farmers Home Administration:
An agency of the Department of Agriculture. Primary responsibil- ity is to provide financial assistance to farmers and other living in rural areas
FDIC
Federal Deposit Insurance Corporation:
FHA
Federal Housing Administration. insures private mortgage loans for financing of new and existing homes and home re- pairs.
FNMA
Federal National Mortgage Association. Fannie Mae. Is a quasi-public agency converted into a private corporation whose primary function is to buy and sell FHA and VA mortgages in the secondary market.
Federal Reserve System
Controlled by Federal Reserve Board. Control intrest and money circulation.
Fee
An estate of inheritance in real property
Financing Statement:
gives public notice of morgatge
Forfeiture
Loss of money or any- thing of value, due to failure to per- form.
Freehold Estate
An estate of in- terminable duration,
Front Foot Cost:
The determi- nation of the value of real property based on a value per foot as mea- sured along the frontage of a par- cel
Front Footage:
Linear measure- ment along the front of a parcel,
Functional Obsolescence
Obsolescence because of improvements since discovered or invented.
Future Advance Clause:
A clause in a mortgage or deed of trust which allows the borrower to borrow addi- tional sums at a future time
Gable Roof
A pitched roof with sloping sides.
Gambrel Roof:
A curb roof, hav- ing a steep lower slope with a flatter upper slope above.
General Lien
A lien on all the property of the debtor
Gift Deed:
A deed for which there is no consideration.
Government National Mortgage Association:
An agency of HUD, which functions in the secondary mortgage market. Ginnie Mae
Government Patent
Deed of title transferred by the Government to a grantee.
Government Survey System
parcel of land using prime meridians, base lines, standard parallels, guide meridians townships and sections
Grade
Ground level at the founda- tion.
Graduated Lease
A lease calling for a varying rental,
Grant
A technical legal term in a deed of conveyance bestowing an in- terest in real property to another.
Grant Deed
grantor has not already conveyed the land to another and that the estate is free from encumbrances placed by the grantor.
Grantor/Grantee
gives/receives deed
Gross Acre:
43,560 square feet
Gross Income Multiplier:
X* income = rental home value
Gross Lease:
lessor to pay all or part of the expenses of the leased property (taxes, insurance, utilities)
Gross Rent Multiplier:
X * annual rents = sale price
Ground Lease
vacant land lease
Growing Equity Mortgage:
graduated payments, fixed interest rate
H.U.D:
Department of Hous- ing & Urban Development. A fed- eral cabinet department responsible for the major housing programs in the United States
Habendum Clause
to have and to hold”
Hazard Insurance
Real estate insurance protecting against loss caused by fire, some natural causes, vandalism, etc.,
Hectare
10,000 square meters (2.471 acres).
Hip Roof
A pitched roof with slop- ing sides and ends.
Holdback
Portion of a loan held back by the lender until a certain contingency is met.
Holding Period
time period used by the I.R.S. to determine a long or short term capital gain
Holdover Tenant:
Tenant who re- mains in possession of leased prop- erty after the expiration of the lease term.
Homestead
The dwelling of the head of a family.
Housing Financial Discrimina- tion Act of 1977 (Holden Act):
designed pri- marily to eliminate discrimination in lending practices based upon the character of the neighborhood (Redlining)
Hypothecate
To mortgage or pledge without delivery of the secu- rity to the lender.
Latent Defect
A hidden or con- cealed defect,
Leasehold Estate:
An estate held under a lease for the term of the lease
Lessee/Lessor
rentee/renter
Level Payment Mortgage
same payment every month
Levy
seizure of property by judi- cial process
Lien
An encumbrance against a property. Type of encumberance, A lien affects title.
Lien Theory
mortgagor has legal title.
Lintel
A horizontal board that sup- ports the load over an opening such as a door or window.
Liquidated Damages
A sum agreeded to (ex. buy pulls out)
Lis Pendes
A legal notice recorded to show pending litigation related to real property,
Loan Commitment
Lender’s con- tractual commitment to make a loan based on the appraisal and under- writing.
Market Data Approach
Ap- praising the value of property by comparing the price of similar prop- erties (comparables)
Marketable Title
Title which can be readily marketed (sold) to a rea- sonably prudent purchaser aware of the facts
Master Lease
A lease controlling subsequent leases
Master Plan
A zoning plan for an entire governmental entity
Master Policy
An insurance policy to a lender covering property in more than one location.
Maturity
ermination period of a note.
Meridians
north-south lines
base lines
east-west lines
Metes and Bounds
Description of land by boundary lines, with their terminal points and angles
Mile
5280 feet
Mobilehome
transportable, 2 or fewer units, with or without foundation
Monetary Controls
Federal Re- serve tools for regulating the avail- ability of money and credit
Month to Month Tenancy:
no written lease is required, rent being paid monthly
Mortgage
instrument by which real estate is hypothecated as security for the repayment of a loan.
Mortgage Banker
A company providing mortgage financing with its own funds
Mortgage Broker:
brings together borrower and lender, and handles the necessary ap- plication
Mortgage Loan Disclosure Statement:
show all fees and charges associated with obtaining and closing or settling the loan, including commissions, taxes and insurance
RESPA
requires mortgage lenders to give homebuyers information about costs and fees associated with their loan
Mortgage Servicing/loan servicing
provides all loan service
Mortgagee/Mortgagor
Lender/borrower
Multiple Listing
ex- clusive right to sell listing submitted to all members of an association, so that each may have the opportunity to sell the property.