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.
N.A.R. - National Association of REALTORS
An association of people dedicated to the betterment of the real estate industry
Narrative Appraisal
A summary comprehensive appraisal report of all factual materials, techniques and ap- praisal methods
Negative Amortization
loan payment is less than interest alone
Negative Cash Flow
income from an investment property does not equal the usual expenses.
Net Acre
usable for building
Net Income
difference between AGI and operating expenses
Net Lease:
tenant pays taxes and insurance in addition to rent
Net Listing:
real estate broker receives any amount over a given net amount
Nominal Interest Rate:
Interest rate (before APR)
Non recurring Expense:
Fire, natural disaster, etc.
Non-recourse Loan:
A loan not allowing for a deficiency judgment (property only security)
Notice of Cessation
Notice - work stoped on construction
Notice completion
notice - construction completed
Notice of Nonresponsibility:
Filed by homeowner - states not responsible for work done
Notice to Quit
tenant must vacate
Novation
substitution of contract, debt, or obligation
Null and Void
no leagal validity
Observed Condition
used to estimate property value by eye
Obsolescence
function (outdated kitchen) or economic (poor economy) obsolescence.
Open Listing
a commission will be paid to the broker upon presentation of an offer which meets a specified price and terms.
Open Mortgage
Can be pre-paid
Open Space Ratio
Ratio of land area to floor area of building
Open-End Mortgage
mortgagor can borrow additional money
Ostensible Authority
principal is bound by the agent’s actions
P.I.T.I:
Principal, Interest, Taxes, Insurance
Package Mortgage
real property, improvements and moveable equipment
Partial Release
release of a portion of property covered by a mortgage.
Participation
Lender involvement in a development for a percentage
Partition:
division of real property between co-owners
land Patent
used to convey government land to someone
Patent Defect
obvious defect
Payment Cap
maximum payment under adjustable rate loan
Percentage Lease
leased based on precentage of gross or net sales
Performance Bond
Bond posted by builder to insure completion of project
Permanent Mortgage
A mortgage on completed construction
Planned Development
subdivision consisting of separately owned parcels of land with HOA and common space
Planning Commission
agency, planning the development, re- development or preservation of an area.
Pledge
security for a debt.
Plottage Increment:
increase in value created by joining smaller adjacent properties
Police Power
State enforce laws for order, safety, health, morals and general welfare of the public.
Power of Attorney:
principal gives authority to an agent. principal’s attorney-in-fact.
Power of Sale
mort- gagee or trustee the power to sell the property in the event of default.
Prescription
acquir- ing incorporeal interests in land, usu- ally an easement, by notorious, open and long or continued use.
Prescriptive Easement:
granted by court, based on the presumption that a written easement was given
Prima Facie
a fact presumed to be true until disproved
Prime Lending Rate
most favorable interest rates
Prime Tenant:
major tenant in an oce building or shopping cen- ter
Progression, Principle of:
home vale increases because of neighborhood
Promisorry Note:
The promissory note estab- lished person liability for it s pay- ment and is the evidence of the debt created.
Puffing
not fact, but intended to enhance the value of property
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.
Quiet Title
A court action brought to establish title. To remove a cloud on the title.
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
Range
six mile wide row of townships, run- ning North and South,
Range Lines:
A series of gov- ernment survey lines running north and south at six-mile intervals
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
REALTOR
broker or agent who is a member of a board associated with the National Association of REAL- TORS.
Reclamation
bring- ing economically unusable land to a higher value
Reconditioning
estoring a prop- erty to good condition without changing its plan or character,
Reconveyance Deed
transfer title from a trustee to the equitable owner of real estate,
Recordation
recording and giving notice
Redlining
High risk area where lending is not given
Regulation Z
Truth-In-Lending Law - lender must give all costs associated with a loan
Title Reissue Rate
Reduced rate for re-pulling title
Lien Release
Used to release property from a lien
Replevin
To repossess or a court action to repossess
Rescission
cancellation of a contact and restoration of the parties to the same position they held before the contract was entered into.
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.
Right of Anticipation
The right to prepay without penalty.
Sash
wood frame with window
Seisin (Seizin)
Possession of real estate
Set Back Ordinance
egulates the distance from the lot line
Shared Appreciation
gain- ing or retaining of equity in a prop- erty by someone other than the buyer
SheriÕs Deed
Deed given at sher- iÕs sale in foreclosure of mortgage.
Short Term Lease:
Square (roofing)
10x10 square
Standard Coverage Policy
Title insurance policy used in some states, not having as broad of coverage as A.L.T.A. policy.
Standard lot Depth:
Tradition- ally, 100 feet for a residential lot
Statute of Frauds
real property sale and lease > 1 year in writting
Statutory Lien:
created by law rather than by contract, including tax liens, judg- ment liens, mechanicÕs liens, etc.
subagent
granted anget powers by agent
Statutory Warranty Deed
short term warranty deed - seller has right to sell property
Subrogation
Replacing one person with another in regard to a legal right or obligation.
Principal Of Substitution
value of property set by comparables
Surety
One who guarantees the performance of another
Survivorship
Gaining an interest in property by outliving another who had the interest
Sweat Equity
program which allows a purchaser to do work on the property in place of all or part of the down payment
Tax Roll:
contains the descriptions of all parcels within the county, owner, and tax bill
Tax Sale
Sale of property after the non-payment of taxes
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.
Tenant at Suerance:
hold over tenant
Tenant for Life
tenantacy for life of someone
Tender
give an offer
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
Testate
Having a will
Testator
One who makes a will.
Threshold
under door, thin strip of wood
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
Title
Evidence one has of right to land possession
Title Insurance
Insurance against loss resulting from defects of title
Title Theory (not lien theory)
mortgagee has legal title to the mortgaged property and the mortgagor has equitable ti- tle.
Tort
Any wrongful act (not involv- ing a breach of contact) for which a civil action may be brought
Transfer Tax
state tax on the transfer of real property.
Trust Deed
Property is transferred to a trustee by the borrower (trustor), in favor of a lender (beneficiary)
Trustor/Trustee
receives money/holds title
TrusteeÕs Deed
A deed by a trustee under a deed of trust, pur- suant to foreclosure
Truth in Lending
Regulation Z) which are designed primarily in insure that prospective borrowers and pur- chasers on credit receive credit cost information
Underlying Financing
A mort- gage, deed of trust, or contract prior to new security instruments on the same property
Unencumbered
Free of liens and other encumbrances
Unearned Increment
gradual rise in home prices beause area is more desirable
Unit Cost-in-Place Method:
estimate cost by determining cost of each buiding part
Utility
An element of value.
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.
Valid
Having force or binding force, legally sucient and authorized by law.
Variance
Change of a portion of zoning requirements for a specific property, without changing the zon- ing.
Vendee/vendor
purchaser/seller
Wainscoting
Wood lining of an in- terior wall
Waive
To relinquish or abandon
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.
Warranty Deed
A deed used in many states to convey fee title to real property.
Water Table
Distance from the surface of the ground to a depth at which natural groundwater is found.
Writ of Ejectment
action for the recovery of real property.
Writ of Execution
An action to carry out the judgment or decree of a court.
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
REALTOR
broker or agent who is a member of a board associated with the National Association of REAL- TORS.
Reclamation
bring- ing economically unusable land to a higher value
Reconditioning
estoring a prop- erty to good condition without changing its plan or character,
Reconveyance Deed
transfer title from a trustee to the equitable owner of real estate,
Recordation
recording and giving notice
Redlining
High risk area where lending is not given
Regulation Z
Truth-In-Lending Law - lender must give all costs associated with a loan
Title Reissue Rate
Reduced rate for re-pulling title
Lien Release
Used to release property from a lien
Replevin
To repossess or a court action to repossess
Rescission
cancellation of a contact and restoration of the parties to the same position they held before the contract was entered into.
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.
Right of Anticipation
The right to prepay without penalty.
Sash
wood frame with window
Seisin (Seizin)
Possession of real estate
Set Back Ordinance
egulates the distance from the lot line
Shared Appreciation
gain- ing or retaining of equity in a prop- erty by someone other than the buyer
SheriÕs Deed
Deed given at sher- iÕs sale in foreclosure of mortgage.
Short Term Lease:
Square (roofing)
10x10 square
Standard Coverage Policy
Title insurance policy used in some states, not having as broad of coverage as A.L.T.A. policy.
Standard lot Depth:
Tradition- ally, 100 feet for a residential lot
Statute of Frauds
real property sale and lease > 1 year in writting
Statutory Lien:
created by law rather than by contract, including tax liens, judg- ment liens, mechanicÕs liens, etc.
subagent
granted anget powers by agent
Statutory Warranty Deed
short term warranty deed - seller has right to sell property
Subrogation
Replacing one person with another in regard to a legal right or obligation.
Principal Of Substitution
value of property set by comparables
Surety
One who guarantees the performance of another
Survivorship
Gaining an interest in property by outliving another who had the interest
Sweat Equity
program which allows a purchaser to do work on the property in place of all or part of the down payment
Tax Roll:
contains the descriptions of all parcels within the county, owner, and tax bill
Tax Sale
Sale of property after the non-payment of taxes
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.
Tenant at Suerance:
hold over tenant
Tenant for Life
tenantacy for life of someone
Tender
give an offer
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
Testate
Having a will
Testator
One who makes a will.
Threshold
under door, thin strip of wood
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
Title
Evidence one has of right to land possession
Title Insurance
Insurance against loss resulting from defects of title
Title Theory (not lien theory)
mortgagee has legal title to the mortgaged property and the mortgagor has equitable ti- tle.
Tort
Any wrongful act (not involv- ing a breach of contact) for which a civil action may be brought
Transfer Tax
state tax on the transfer of real property.
Trust Deed
Property is transferred to a trustee by the borrower (trustor), in favor of a lender (beneficiary)
Trustor/Trustee
receives money/holds title
TrusteeÕs Deed
A deed by a trustee under a deed of trust, pur- suant to foreclosure
Truth in Lending
Regulation Z) which are designed primarily in insure that prospective borrowers and pur- chasers on credit receive credit cost information
Underlying Financing
A mort- gage, deed of trust, or contract prior to new security instruments on the same property
Unencumbered
Free of liens and other encumbrances
Unearned Increment
gradual rise in home prices beause area is more desirable
Unit Cost-in-Place Method:
estimate cost by determining cost of each buiding part
Utility
An element of value.
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.
Valid
Having force or binding force, legally sucient and authorized by law.
Variance
Change of a portion of zoning requirements for a specific property, without changing the zon- ing.
Vendee/vendor
purchaser/seller
Wainscoting
Wood lining of an in- terior wall
Waive
To relinquish or abandon
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.
Warranty Deed
A deed used in many states to convey fee title to real property.
Water Table
Distance from the surface of the ground to a depth at which natural groundwater is found.
Writ of Ejectment
action for the recovery of real property.
Writ of Execution
An action to carry out the judgment or decree of a court.
