Terms Flashcards
1
Q
Intestate:
A
Without leaving a will (estate -> kin)
2
Q
Investment Yield
A
gain from an investment in real property
3
Q
Joint Note
A
A note signed by two or more persons
4
Q
Judgment
A
The final determination of a court having jurisdiction over a specific case.
5
Q
Laches
A
Delay or negligence in asserting one’s legal rights.
6
Q
Land Sales Contract:
A
An installment contract for the sale of land.
7
Q
Conventional Loan
A
not obtained under a government program,
8
Q
Conversion
A
unlawful ap- propriation of another’s property,
9
Q
Conveyance
A
Transfer of title to land
10
Q
Cooperating Broker
A
broker who finds the buyer
11
Q
Cooperative
A
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
12
Q
Correlation / reconciliation
A
appraisal process involving the interpretation of data derided from the three approaches to value
13
Q
Cost Approach
A
estimating the replacement cost of a structure, less depreciation, plus land value
14
Q
Covenant
A
An agreement or promise to do or not to do a par- ticular act
15
Q
Creative Financing
A
financing property going beyond traditional real estate lending
16
Q
Debtor/Debetee
A
A person who is in debt/owed debt
17
Q
Decree of Foreclosure
A
Decree by a court ordering the sale of mort- gaged property and the payment of the debt
18
Q
Dedication
A
giving of land by its owner to a public use
19
Q
grantor/grantee
A
gives land /accepts land
20
Q
Deed of Trust:
A
real property is given as security for a debt
21
Q
Defeasance Clause
A
gives the mort- gagor the right to redeem mort- gagor’s property once payment fullfilled
22
Q
Defeasible Fee/qualified fee
A
fee simple absolute in- terest in land the is capable of be- ing defeated
23
Q
Deficiency Judgment
A
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.
24
Q
Determinable Fee
A
An estate which may end on the happening of an event
25
Discount
sell a promissory note before maturity at a price less than the outstanding principal balance
26
Distress Sale
property selling for less than market value
27
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
28
Domicile
person’s legal resi- dence.
29
Donor/Donee
gives/receives gift
30
Due on Sale Clause
acceleration clause, lender full payment upon sale
31
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.
32
Effective Age:
Age of a struc- ture as estimated by condition
33
Effective Interest Rate
actual interest paid, not just nominal
34
Ejectment
court action to re- cover real property.
35
Emblements
Growing crops. Are considered personal property.
36
Endorsement
The act of signing one’s name on the back of a check or note,
37
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.
38
Equity Loan:
A loan based upon the equity in a property
39
Equity of Redemption:
right to redeem property during the fore- closure period
40
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).
41
Escalation
Lender right to increase interest or payment
42
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
43
Et Ux
And wife
44
Exchange
Transfer of property - tax advantage. 1031 exchange.
45
Exculpatory Clause:
A clause in a lease that relieves an owner of lia- bility.
46
Executor/executrix
man named in a will to carry out its provisions as to the disposition of the estate of a deceased person.
47
Executory Contract:
A contract in which something remains to be done by one or both parties
48
F.H.A
Federal Housing Ad- ministration.
49
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.
50
Fair Credit Reporting Act
A federal law giving one the right to see his or her credit report, among other rights.
51
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.
52
FANNIE MAE:
Federal National Mortgage Association (FNMA)
53
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
54
FDIC
Federal Deposit Insurance Corporation:
55
FHA
Federal Housing Administration. insures private mortgage loans for financing of new and existing homes and home re- pairs.
56
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.
57
Federal Reserve System
Controlled by Federal Reserve Board. Control intrest and money circulation.
58
Fee
An estate of inheritance in real property
59
Financing Statement:
gives public notice of morgatge
60
Forfeiture
Loss of money or any- thing of value, due to failure to per- form.
61
Freehold Estate
An estate of in- terminable duration,
62
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
63
Front Footage:
Linear measure- ment along the front of a parcel,
64
Functional Obsolescence
Obsolescence because of improvements since discovered or invented.
65
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
66
Gable Roof
A pitched roof with sloping sides.
67
Gambrel Roof:
A curb roof, hav- ing a steep lower slope with a flatter upper slope above.
68
General Lien
A lien on all the property of the debtor
69
Gift Deed:
A deed for which there is no consideration.
70
Government National Mortgage Association:
An agency of HUD, which functions in the secondary mortgage market. Ginnie Mae
71
Government Patent
Deed of title transferred by the Government to a grantee.
72
Government Survey System
parcel of land using prime meridians, base lines, standard parallels, guide meridians townships and sections
73
Grade
Ground level at the founda- tion.
74
Graduated Lease
A lease calling for a varying rental,
75
Grant
A technical legal term in a deed of conveyance bestowing an in- terest in real property to another.
76
Grant Deed
grantor has not already conveyed the land to another and that the estate is free from encumbrances placed by the grantor.
77
Grantor/Grantee
gives/receives deed
78
Gross Acre:
43,560 square feet
79
Gross Income Multiplier:
X* income = rental home value
80
Gross Lease:
lessor to pay all or part of the expenses of the leased property (taxes, insurance, utilities)
81
Gross Rent Multiplier:
X * annual rents = sale price
82
Ground Lease
vacant land lease
83
Growing Equity Mortgage:
graduated payments, fixed interest rate
84
H.U.D:
Department of Hous- ing & Urban Development. A fed- eral cabinet department responsible for the major housing programs in the United States
85
Habendum Clause
to have and to hold"
86
Hazard Insurance
Real estate insurance protecting against loss caused by fire, some natural causes, vandalism, etc.,
87
Hectare
10,000 square meters (2.471 acres).
88
Hip Roof
A pitched roof with slop- ing sides and ends.
89
Holdback
Portion of a loan held back by the lender until a certain contingency is met.
90
Holding Period
time period used by the I.R.S. to determine a long or short term capital gain
91
Holdover Tenant:
Tenant who re- mains in possession of leased prop- erty after the expiration of the lease term.
92
Homestead
The dwelling of the head of a family.
93
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)
94
Hypothecate
To mortgage or pledge without delivery of the secu- rity to the lender.
95
Latent Defect
A hidden or con- cealed defect,
96
Leasehold Estate:
An estate held under a lease for the term of the lease
97
Lessee/Lessor
rentee/renter
98
Level Payment Mortgage
same payment every month
99
Levy
seizure of property by judi- cial process
100
Lien
An encumbrance against a property. Type of encumberance, A lien affects title.
101
Lien Theory
mortgagor has legal title.
102
Lintel
A horizontal board that sup- ports the load over an opening such as a door or window.
103
Liquidated Damages
A sum agreeded to (ex. buy pulls out)
104
Lis Pendes
A legal notice recorded to show pending litigation related to real property,
105
Loan Commitment
Lender’s con- tractual commitment to make a loan based on the appraisal and under- writing.
106
Market Data Approach
Ap- praising the value of property by comparing the price of similar prop- erties (comparables)
107
Marketable Title
Title which can be readily marketed (sold) to a rea- sonably prudent purchaser aware of the facts
108
Master Lease
A lease controlling subsequent leases
109
Master Plan
A zoning plan for an entire governmental entity
110
Master Policy
An insurance policy to a lender covering property in more than one location.
111
Maturity
ermination period of a note.
112
Meridians
north-south lines
113
base lines
east-west lines
114
Metes and Bounds
Description of land by boundary lines, with their terminal points and angles
115
Mile
5280 feet
116
Mobilehome
transportable, 2 or fewer units, with or without foundation
117
Monetary Controls
Federal Re- serve tools for regulating the avail- ability of money and credit
118
Month to Month Tenancy:
no written lease is required, rent being paid monthly
119
Mortgage
instrument by which real estate is hypothecated as security for the repayment of a loan.
120
Mortgage Banker
A company providing mortgage financing with its own funds
121
Mortgage Broker:
brings together borrower and lender, and handles the necessary ap- plication
122
Mortgage Loan Disclosure Statement:
show all fees and charges associated with obtaining and closing or settling the loan, including commissions, taxes and insurance
123
RESPA
requires mortgage lenders to give homebuyers information about costs and fees associated with their loan
124
Mortgage Servicing/loan servicing
provides all loan service
125
Mortgagee/Mortgagor
Lender/borrower
126
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.
127
N.A.R. - National Association of REALTORS
An association of people dedicated to the betterment of the real estate industry
128
Narrative Appraisal
A summary comprehensive appraisal report of all factual materials, techniques and ap- praisal methods
129
Negative Amortization
loan payment is less than interest alone
130
Negative Cash Flow
income from an investment property does not equal the usual expenses.
131
Net Acre
usable for building
132
Net Income
difference between AGI and operating expenses
133
Net Lease:
tenant pays taxes and insurance in addition to rent
134
Net Listing:
real estate broker receives any amount over a given net amount
135
Nominal Interest Rate:
Interest rate (before APR)
136
Non recurring Expense:
Fire, natural disaster, etc.
137
Non-recourse Loan:
A loan not allowing for a deficiency judgment (property only security)
138
Notice of Cessation
Notice - work stoped on construction
139
Notice completion
notice - construction completed
140
Notice of Nonresponsibility:
Filed by homeowner - states not responsible for work done
141
Notice to Quit
tenant must vacate
142
Novation
substitution of contract, debt, or obligation
143
Null and Void
no leagal validity
144
Observed Condition
used to estimate property value by eye
145
Obsolescence
function (outdated kitchen) or economic (poor economy) obsolescence.
146
Open Listing
a commission will be paid to the broker upon presentation of an offer which meets a specified price and terms.
147
Open Mortgage
Can be pre-paid
148
Open Space Ratio
Ratio of land area to floor area of building
149
Open-End Mortgage
mortgagor can borrow additional money
150
Ostensible Authority
principal is bound by the agent's actions
151
P.I.T.I:
Principal, Interest, Taxes, Insurance
152
Package Mortgage
real property, improvements and moveable equipment
153
Partial Release
release of a portion of property covered by a mortgage.
154
Participation
Lender involvement in a development for a percentage
155
Partition:
division of real property between co-owners
156
land Patent
used to convey government land to someone
157
Patent Defect
obvious defect
158
Payment Cap
maximum payment under adjustable rate loan
159
Percentage Lease
leased based on precentage of gross or net sales
160
Performance Bond
Bond posted by builder to insure completion of project
161
Permanent Mortgage
A mortgage on completed construction
162
Planned Development
subdivision consisting of separately owned parcels of land with HOA and common space
163
Planning Commission
agency, planning the development, re- development or preservation of an area.
164
Pledge
security for a debt.
165
Plottage Increment:
increase in value created by joining smaller adjacent properties
166
Police Power
State enforce laws for order, safety, health, morals and general welfare of the public.
167
Power of Attorney:
principal gives authority to an agent. principal’s attorney-in-fact.
168
Power of Sale
mort- gagee or trustee the power to sell the property in the event of default.
169
Prescription
acquir- ing incorporeal interests in land, usu- ally an easement, by notorious, open and long or continued use.
170
Prescriptive Easement:
granted by court, based on the presumption that a written easement was given
171
Prima Facie
a fact presumed to be true until disproved
172
Prime Lending Rate
most favorable interest rates
173
Prime Tenant:
major tenant in an oce building or shopping cen- ter
174
Progression, Principle of:
home vale increases because of neighborhood
175
Promisorry Note:
The promissory note estab- lished person liability for it s pay- ment and is the evidence of the debt created.
176
Puffing
not fact, but intended to enhance the value of property
177
Purchase Money Mortgage or Trust Deed
mortgage or trust deed given from buyer to seller to se- cure all or a portion of the purchase price.
178
Quiet Title
A court action brought to establish title. To remove a cloud on the title.
179
Quitclaim Deed:
A deed operat- ing as a release, intended to pass any title, interest, or claim which the grantor may have in the property, but not containing any warranty
180
Range
six mile wide row of townships, run- ning North and South,
181
Range Lines:
A series of gov- ernment survey lines running north and south at six-mile intervals
182
Real Property Loan Law
CA law. real estate licensee negotiating loans se- cured by real property within a spec- ified range is required to give the borrower a statement disclosing the cots and terms of the loan
183
REALTOR
broker or agent who is a member of a board associated with the National Association of REAL- TORS.
184
Reclamation
bring- ing economically unusable land to a higher value
185
Reconditioning
estoring a prop- erty to good condition without changing its plan or character,
186
Reconveyance Deed
transfer title from a trustee to the equitable owner of real estate,
187
Recordation
recording and giving notice
188
Redlining
High risk area where lending is not given
189
Regulation Z
Truth-In-Lending Law - lender must give all costs associated with a loan
190
Title Reissue Rate
Reduced rate for re-pulling title
191
Lien Release
Used to release property from a lien
192
Replevin
To repossess or a court action to repossess
193
Rescission
cancellation of a contact and restoration of the parties to the same position they held before the contract was entered into.
194
Revenue Stamps/ state tax stamps
Formerly fed- eral tax on the sale of real estate. Replaced by state tax stamps, they are aðxed to the deed to show the amount of the tax.
195
Right of Anticipation
The right to prepay without penalty.
196
Sash
wood frame with window
197
Seisin (Seizin)
Possession of real estate
198
Set Back Ordinance
egulates the distance from the lot line
199
Shared Appreciation
gain- ing or retaining of equity in a prop- erty by someone other than the buyer
200
SheriÕs Deed
Deed given at sher- iÕs sale in foreclosure of mortgage.
201
Short Term Lease:
202
Square (roofing)
10x10 square
203
Standard Coverage Policy
Title insurance policy used in some states, not having as broad of coverage as A.L.T.A. policy.
204
Standard lot Depth:
Tradition- ally, 100 feet for a residential lot
205
Statute of Frauds
real property sale and lease > 1 year in writting
206
Statutory Lien:
created by law rather than by contract, including tax liens, judg- ment liens, mechanicÕs liens, etc.
207
subagent
granted anget powers by agent
208
Statutory Warranty Deed
short term warranty deed - seller has right to sell property
209
Subrogation
Replacing one person with another in regard to a legal right or obligation.
210
Principal Of Substitution
value of property set by comparables
211
Surety
One who guarantees the performance of another
212
Survivorship
Gaining an interest in property by outliving another who had the interest
213
Sweat Equity
program which allows a purchaser to do work on the property in place of all or part of the down payment
214
Tax Roll:
contains the descriptions of all parcels within the county, owner, and tax bill
215
Tax Sale
Sale of property after the non-payment of taxes
216
Tenancy by the Entirety / joint with right of suviorship
husband wife ownership. In the event of the death of one, the survivor owns the property with- out probate.
217
Tenant at Suerance:
hold over tenant
218
Tenant for Life
tenantacy for life of someone
219
Tender
give an offer
220
Tentative Map
Subdivision Map Act requires subdividers to sub- mit initially a tentative map of their tract to the local planning commis- sion for study
221
Testate
Having a will
222
Testator
One who makes a will.
223
Threshold
under door, thin strip of wood
224
Time is of the Essence
A denti- tion of a contract expressing the es- sential nature of performance of the contract by a party in a specified period of time
225
Title
Evidence one has of right to land possession
226
Title Insurance
Insurance against loss resulting from defects of title
227
Title Theory (not lien theory)
mortgagee has legal title to the mortgaged property and the mortgagor has equitable ti- tle.
228
Tort
Any wrongful act (not involv- ing a breach of contact) for which a civil action may be brought
229
Transfer Tax
state tax on the transfer of real property.
230
Trust Deed
Property is transferred to a trustee by the borrower (trustor), in favor of a lender (beneficiary)
231
Trustor/Trustee
receives money/holds title
232
TrusteeÕs Deed
A deed by a trustee under a deed of trust, pur- suant to foreclosure
233
Truth in Lending
Regulation Z) which are designed primarily in insure that prospective borrowers and pur- chasers on credit receive credit cost information
234
Underlying Financing
A mort- gage, deed of trust, or contract prior to new security instruments on the same property
235
Unencumbered
Free of liens and other encumbrances
236
Unearned Increment
gradual rise in home prices beause area is more desirable
237
Unit Cost-in-Place Method:
estimate cost by determining cost of each buiding part
238
Utility
An element of value.
239
V.A. Escape Clause
borrower shall not be obligated to buy nor shall any de- posit be lost if appraisal is less than the agreed upon price.
240
Valid
Having force or binding force, legally sucient and authorized by law.
241
Variance
Change of a portion of zoning requirements for a specific property, without changing the zon- ing.
242
Vendee/vendor
purchaser/seller
243
Wainscoting
Wood lining of an in- terior wall
244
Waive
To relinquish or abandon
245
Warehousing
depositing of loans by a lender such as a mortgage company, in a bank, for sale at a later date. The mortgage company then borrows against these loans.
246
Warranty Deed
A deed used in many states to convey fee title to real property.
247
Water Table
Distance from the surface of the ground to a depth at which natural groundwater is found.
248
Writ of Ejectment
action for the recovery of real property.
249
Writ of Execution
An action to carry out the judgment or decree of a court.
250
Real Property Loan Law
CA law. real estate licensee negotiating loans se- cured by real property within a spec- ified range is required to give the borrower a statement disclosing the cots and terms of the loan
251
REALTOR
broker or agent who is a member of a board associated with the National Association of REAL- TORS.
252
Reclamation
bring- ing economically unusable land to a higher value
253
Reconditioning
estoring a prop- erty to good condition without changing its plan or character,
254
Reconveyance Deed
transfer title from a trustee to the equitable owner of real estate,
255
Recordation
recording and giving notice
256
Redlining
High risk area where lending is not given
257
Regulation Z
Truth-In-Lending Law - lender must give all costs associated with a loan
258
Title Reissue Rate
Reduced rate for re-pulling title
259
Lien Release
Used to release property from a lien
260
Replevin
To repossess or a court action to repossess
261
Rescission
cancellation of a contact and restoration of the parties to the same position they held before the contract was entered into.
262
Revenue Stamps/ state tax stamps
Formerly fed- eral tax on the sale of real estate. Replaced by state tax stamps, they are aðxed to the deed to show the amount of the tax.
263
Right of Anticipation
The right to prepay without penalty.
264
Sash
wood frame with window
265
Seisin (Seizin)
Possession of real estate
266
Set Back Ordinance
egulates the distance from the lot line
267
Shared Appreciation
gain- ing or retaining of equity in a prop- erty by someone other than the buyer
268
SheriÕs Deed
Deed given at sher- iÕs sale in foreclosure of mortgage.
269
Short Term Lease:
270
Square (roofing)
10x10 square
271
Standard Coverage Policy
Title insurance policy used in some states, not having as broad of coverage as A.L.T.A. policy.
272
Standard lot Depth:
Tradition- ally, 100 feet for a residential lot
273
Statute of Frauds
real property sale and lease > 1 year in writting
274
Statutory Lien:
created by law rather than by contract, including tax liens, judg- ment liens, mechanicÕs liens, etc.
275
subagent
granted anget powers by agent
276
Statutory Warranty Deed
short term warranty deed - seller has right to sell property
277
Subrogation
Replacing one person with another in regard to a legal right or obligation.
278
Principal Of Substitution
value of property set by comparables
279
Surety
One who guarantees the performance of another
280
Survivorship
Gaining an interest in property by outliving another who had the interest
281
Sweat Equity
program which allows a purchaser to do work on the property in place of all or part of the down payment
282
Tax Roll:
contains the descriptions of all parcels within the county, owner, and tax bill
283
Tax Sale
Sale of property after the non-payment of taxes
284
Tenancy by the Entirety / joint with right of suviorship
husband wife ownership. In the event of the death of one, the survivor owns the property with- out probate.
285
Tenant at Suerance:
hold over tenant
286
Tenant for Life
tenantacy for life of someone
287
Tender
give an offer
288
Tentative Map
Subdivision Map Act requires subdividers to sub- mit initially a tentative map of their tract to the local planning commis- sion for study
289
Testate
Having a will
290
Testator
One who makes a will.
291
Threshold
under door, thin strip of wood
292
Time is of the Essence
A denti- tion of a contract expressing the es- sential nature of performance of the contract by a party in a specified period of time
293
Title
Evidence one has of right to land possession
294
Title Insurance
Insurance against loss resulting from defects of title
295
Title Theory (not lien theory)
mortgagee has legal title to the mortgaged property and the mortgagor has equitable ti- tle.
296
Tort
Any wrongful act (not involv- ing a breach of contact) for which a civil action may be brought
297
Transfer Tax
state tax on the transfer of real property.
298
Trust Deed
Property is transferred to a trustee by the borrower (trustor), in favor of a lender (beneficiary)
299
Trustor/Trustee
receives money/holds title
300
TrusteeÕs Deed
A deed by a trustee under a deed of trust, pur- suant to foreclosure
301
Truth in Lending
Regulation Z) which are designed primarily in insure that prospective borrowers and pur- chasers on credit receive credit cost information
302
Underlying Financing
A mort- gage, deed of trust, or contract prior to new security instruments on the same property
303
Unencumbered
Free of liens and other encumbrances
304
Unearned Increment
gradual rise in home prices beause area is more desirable
305
Unit Cost-in-Place Method:
estimate cost by determining cost of each buiding part
306
Utility
An element of value.
307
V.A. Escape Clause
borrower shall not be obligated to buy nor shall any de- posit be lost if appraisal is less than the agreed upon price.
308
Valid
Having force or binding force, legally sucient and authorized by law.
309
Variance
Change of a portion of zoning requirements for a specific property, without changing the zon- ing.
310
Vendee/vendor
purchaser/seller
311
Wainscoting
Wood lining of an in- terior wall
312
Waive
To relinquish or abandon
313
Warehousing
depositing of loans by a lender such as a mortgage company, in a bank, for sale at a later date. The mortgage company then borrows against these loans.
314
Warranty Deed
A deed used in many states to convey fee title to real property.
315
Water Table
Distance from the surface of the ground to a depth at which natural groundwater is found.
316
Writ of Ejectment
action for the recovery of real property.
317
Writ of Execution
An action to carry out the judgment or decree of a court.
