terms Flashcards
abstract of title
The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstracter that the history is complete and accurate
acceleration clause
The clause in a mortgage or trust deed or note that can be enforced to make the entire amount of principal and interest due immediately if the mortgagor defaults on an installment payment or other covenant.
accrued item
on a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.
acknowledgment
a formal declaration before a notary public or other authorized public officer that authenticates signatures on a document for the purpose of recording.
actual eviction
the result of legal action, originated by a lessor, whereby a defaulted tenant is physically ousted from the rented property pursuant to a court order
actual notice
the result of legal action, originated by a lessor, whereby a defaulted tenant is physically ousted from the rented property pursuant to a court order
adjustable-rate mortgage
a mortgage loan in which the interest rate may increase or decrease at specified intervals over the life of the loan
adverse possession
the actual, visible, hostile, notorious, exclusive, and continuous possession of another’s land under a claim of title. possession for a statutory period may be a means of acquiring title
alienation clause
the clause in a mortgage or deed of trust stating that the balance of the secured debt becomes immediately due and payable at the mortgagee’s option if the property is sold by the mortgagor. in effect, this clause prevents the mortgagor from assigning the debt without the mortgagee’s approval; also called a due-on-sale clause
amortization
a loan in which the principal as well as the interest is payable in monthly or other periodic installments over the term of the loan
appraisal
an estimate of the quantity, quality, or value of something. the process through which conclusions of property value are obtained; also refers to the report that sets forth the process of estimation and conclusion of value
appraisal
an estimate of the quantity, quality, or value of something. the process through which conclusions of property value are obtained; also refers to the report that sets forth the process of estimation and conclusion of value
appreciation
an increase in the worth or value of a property due to economic or related causes, which may prove to be either temporary or permanent; opposite of depreciation.
area
the size in square units (square inches, etc.) of a two-dimensional figure such as a triangle or a rectangle
attorney’s opinion of title
a writing based on a lawyer’s reading of an abstract of title that specifies any interprets it; states whether a seller may convey good title
auctioneer
a person who conducts the sale of property by competitive bid using any method, format, or venue; licensed by the Texas Department of Licensing and Regulation
automated underwriting
the process of electronically evaluation a loan application, assessing a borrower’s ability to repay, and subsequently providing a recommendation for or against loan approval.
balloon payment
a final payment of a mortgage loan that is considerable larger than the required periodic payments because the loan amount was not fully amortized
bargain and sale deed
a deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title; a bargain and sale deed
basis
the dollar amount associated with an asset to determine annual depreciation and gain or loss on the sale of the asset. the owner’s basis is the cost of the property; adding the value of any capital expenditures for improvements to the property and subtracting any depreciation claimed as a tax deduction yields the adjusted basis
bequest
the transfer of personal property to a legatee in accordance with will
biweekly payment plan
a loan that calls for 26 half-month payments a year, resulting in an earlier loan retirement date and lower total interest costs than with a typical fully amortized loan
blanket mortgage
a mortgage covering more than one parcel of real estate, providing for each parcel’s partial release from the mortgage lien or repayment of a definite portion of the debt
boot
money or property given to make up any difference in value or equity between two properties in an exchange
buffer zone
zoning districts that gradually change from a high-intensity use to a lower-intensity use
building code
an ordinance that specifies minimum standards of construction for buildings to protect public safety and health
building permit
a permission issued by a city for the construction of a building to ensure compliance with building codes
business interruption insurance
a form of coverage that provides income to a business in the event the premises become untenable
buydown mortgage
a mortgage on which a cash payment, usually measured in points, has been made to the lender to reduce the interest rate a borrower must pay; usually “bought down” for the first two or three years of the loan
capital gain
income earned from the sale of an asset
capitalization rate
the rate of return a property will produce on the owner’s investment
cash flow
the net spendable income from an investment, determined by deducting all operating and fixed expenses from the gross income. if expenses exceed income, a negative cash flow is the result
casualty insurance
a type of policy that protects a property owner or other person from loss or injury sustained as a result of theft, vandalism, or similar occurrences
chain of title
the succession of conveyances from some accepted starting point, whereby the present holder of real property derives title
closing
the consummation of a real estate transaction, when the seller delivers title to the buyer in exchange for payment by the buyer of the purchase price
closing agent
the person who employs an agent to perform a service for a fee
closing statement
a detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made, and all cash paid out in the transaction
codicil
a supplement or an addition to a will, that normally does not revoke the entire will
commercial broker
broker that specialize in business property, including offers, shopping center, stores, theaters, hotels, industrial parks, and parking facilities
commitment
a statement of the terms and conditions on which a title insurance underwriter is willing to issue a title insurance policy
comparative market analysis (cma)
a comparison of the prices of recently sold homes that are similar to the subject home in terms of location, style, and amenities. compiled by a broker or a sales agent to assist a seller in determining a listing price
comparative market analysis (cma)
a comparison of the prices of recently sold homes that are similar to the subject home in terms of location, style, and amenities. compiled by a broker or a sales agent to assist a seller in determining a listing price
comprehensive plan
a master plan to guide the long-term development of a government subdivision, such as a city or a county, to ensure that social and economic needs are balanced against environmental and aesthetic concerns.
computerized loan origination (clo)
a computer network tied into a major lender that allows agents across the country to initiate mortgage loan applications in their own offices
conditional-use permit
a grant approved by a planning and zoning commission allowing, with conditions, a special use of property that is in the public interest
construction loan
a short-term loan usually made during the construction phase of a building project (in this case, often called a construction loan)
constructive eviction
actions of the landlord that so materially disturb or impair the tenant’s enjoyment of the lease premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent
constructive notice
notice given to the world by recorded documents. all people are charged with knowledge of such documents and their contents, whether or not they actually have examined them. possession of property also is considered constructive notice that the person in possession has an interest in the property
consumer
an individual, partnership, corporation, or Texas government agency that seeks or acquires, by purchase or lease, any goods or services, as defined by the Texas Deceptive Trade Practices Act.
contract for deed
a contract for the sale of real estate wherein the purchase price is paid in periodic installments by the purchaser, who is in possession of the property even though title is retained by the seller until final payment. also called an installment contract, land contract, or contract of sale
contract for deed
a contract for the sale of real estate wherein the purchase price is paid in periodic installments by the purchaser, who is in possession of the property even though title is retained by the seller until final payment. also called an installment contract, land contract, or contract of sale
conventional loan
a loan that is not insured by the FHA or guaranteed by the VA
cost approach
an estimate of value based on current construction costs, less depreciation, plus land value. contrast with the income approach to value and the sales comparison approach to value
credit
on a closing statement, an amount entered in a person’s favor - either an amount the party has paid or an amount for which the party must be reimbursed
debit
on a closing statement, an amount charged, that is, an amount that a party must pay
decedent
a person who has died
deed
a written instrument that, when executed and delivered, conveys title to or an interest in real estate
deed in lieu of foreclosure
a deed given by the mortgagor to the mortgagee when the mortgagor is in default under the terms of the mortgage. this is a way for the mortgagor to avoid foreclosure
deed in lieu of foreclosure
a deed given by the mortgagor to the mortgagee when the mortgagor is in default under the terms of the mortgage. this is a way for the mortgagor to avoid foreclosure
deed in trust
a form of deed by which real estate is conveyed to a trustee
deed of trust
an instrument used to create a mortgage lien by which the mortgagor (borrower) conveys title to a trustee, who holds it as security for the benefit of the lender (beneficiary); also called a trust deed
deed restriction
clauses in a deed limiting the future uses of the property
deed without warranty
a deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title; a bargain and sale deed
defeasance clause
a provision in leases and mortgages that cancels a specified right on the occurrence of a certain condition, such as cancellation of of a mortgage on repayment of the mortgage loan
deficiency judgment
a personal judgement levied against the mortgagor when a foreclosure sale does not produce sufficient funds to pay the mortgage debt in full
delivery and acceptance
title passes when the grantor delivers the deed and the grantee accepts it. the deed may be delivered personally or through a third-party escrow agent; recordation by the county clerk creates an assumption of delivery and acceptance
depreciated cost
the value of a property after deducting an allowance for depreciation
depreciation
- in appraisal, a loss of value in property due to any cause, including physical deterioration, functional obsolescence, and external obsolescence.
- in real estate investment, an expense deduction for tax purposes taken over the period of ownership of income property. see also cost recovery
developer
one who converts raw land into a platted subdivision, installs utilities, and paves streets, and who also may construct buildings on lots and sell them
discount points
an added loan fee charged by a lender to make the yield on a lower-than-market-value loan competitive with higher-interest-rate loans
diversification
distribution of investments along several types of investments (such as savings accounts, individual retirement accounts, stocks, bonds, mutual funds, and real estate) in order to average the risk of loss
doctrine of relation back
irrevocable deposit of the executed deed, purchase money, and instructions into escrow pending performance of escrow conditions
economic life
the period of time during which a structure may reasonably be expected to perform the function for which it was designed or intended
equity loan
a line of credit made against the equity in the borrower’s home
escrow
the closing of a transaction through a third party called an escrow agent, or escrowee, who receives certain funds and documents to be delivered on the performance of certain conditions outlined in the escrow agreement
estate for years
a leased interest in property for a certain, exact period of time and for a specified consideration
estate from period to period
an interest in leased property that continues from period to period - week to week, month to month, or year to year
evidence of title
proof of ownership of property, commonly a title insurance policy or an abstract of title with an attorney’s opinion of title
exchange
a transaction in which all or part of the consideration is the transfer of like-kind property (such as investment real estate for investment real estate)
external obsolescence
reduction in property’s value caused by factors outside the subject property, such as social or environmental forces; also called economic or locational obsolescence
extraterritorial jurisdiction
a half-mile to five-mile area surrounding an incorporated area over which the municipality has the right of subdivision approval and the potential for annexation
extraterritorial jurisdiction
a half-mile to five-mile area surrounding an incorporated area over which the municipality has the right of subdivision approval and the potential for annexation
fannie mae
a privately owned corporation that participates in the secondary market by buying conventional, FHA and VA loans. formerly the Federal National Mortgage Association (FNMA)
farm and ranch or land sales broker
brokers that specialize in farms, timeberland, pastureland, ranches, and orchards
farm service agency (fsa)
an agency of the u.s. department of agriculture that makes and guarantees loans and provides credit counseling and supervision to farmers and ranchers who are temporarily unable to obtain private, commercial credit
farmer mac
a secondary market for farm real estate loans; the federal mortgage corporation
federal reserve system (the ‘fed’)
a central banking system designed to manage the nation’s economy; ‘the fed’
fha loan
a loan insured by the federal housing administration and made by an approved lender in accordance with fha regulations
financing
the business of providing the funds necessary to complete real estate transactions
fire and extended coverage insurance
a type of policy to protect against fire, hail, windstorn, and other damage
flexible-payment loan
a payment plan in which a mortgagor makes lower monthly payments for the first few years of a loan and larger payments for the remainder of the term
forcible detainer suit
a court suit initiated by a landlord to evict a tenant from leased premises after the tenant has breached one of the terms of the lease or has held possession of the property after the lease’s expiration
foreclosure
a legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of default in in payment of the mortgage note or default of other terms in the mortgage document
formal will
a written instrument disposing of property on the death of the marker. the testator must be of legal age and sound mind, and not subject to undue influence. the document must be signed and witnessed; also known as a witnessed will
freddie mac
a corporation established to purchase primarily conventional mortgage loans in the secondary mortgage market. chartered as the federal home loan mortgage corporation (fhlmc)
fully amortized loan
a loan in which the principal and interest are payable in monthly or other installments to reduce the loan balance to zero at the end of the loan term
functional obsolescence
a loss of value to improved real property to inadequate, outmoded, or inappropriate improvements
general warranty deed
a deed in which the grantor fully warrants good clear title to the premises. used in most real estate deed transfers, a warranty deed offers the greatest protection of any deed; a warranty deed
ginnie mae
a corporation within hud that participates in the secondary market. it sells mortgage-backed securities that are backed by pools of fha and va loans. chartered as the government national mortgage association (gnma)
good and indefeasible title
title that cannot be defeated by a superior claim, set aside, or made void
granting clause
words in a deed of conveyance that state the grantor’s intention to convey the property at the present time. this clause generally is worded as ‘convey and warrant,’ ‘grant, bargain, and sell,’ or ‘remise, release, and quitclaim’
grantor/grantee indices
public record books that are maintained in the county clerk’s office that list all recorded instruments and reference the volume and page where the exact documents can be found
green
made with little environmental harm; produced in an environmentally and ecologically friendly way by using renewable resources
gross income multiplier
the ratio used to convert annual income into market value in appraising industrial and commercial properties
gross lease
a lease of property under which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses. most residential leases are gross leases
grantor
the person transferring title to or an interest in real property to a grantee
ground lease
a lease of land only, on which the tenant usually owns a building or is required to build his own building as specified in the lease. such leases are usually long-term net leases
grantee
a person who receives a conveyance of real property from the grantor
gross rent multiplier
a figure used as a multiplier of the gross monthly rental income of a property to produce an estimate of the property’s value
habendum clause
that part of a deed beginning with the words “to have and to hold,” following the granting clause and defining the extent of ownership the grantor is conveying
habitability statute
a law that imposes a duty on the landlord to make the leased premises habitable and ready for occupancy and to maintain them in a state of repair throughout the term of the lease
heir
one who might inherit or succeed to an interest in land under the state law of descent when the owner dies without leaving a valid will
highest and best use
the possible use of land that would produce the greatest return and thereby develop the highest land value. the optimum use of a site, as used in appraisal
holdover tenncy
a tenancy whereby a lessee retains possession of leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant’s continued occupancy
holographic will
a will that is written, dated, and signed in the testator’s handwriting but is not witnessed
hypothecation
the pledge of specific real or personal property as security for an obligation without surrendering possession of it
income approach
the process of estimating the value of an income-producing property by capitalization of the annual net income expected to be produced by the property during its remaining useful life
inflation
an increase in the volume of money and credit relative to available goods resulting in a substantial and continuing rise in the general price level
installment sale
a transaction in which the sales price is paid in two or more installments over two or more years. if the sale meets certain requirements, a taxpayer can postpone reporting such income to future years by paying tax each year only on the proceeds received that year
interest
- a charge made by a lender for the use of money
2. the type and extent of ownership in property
interstate land sales full disclosure act
a federal law requiring that a property report be furnished to prospective buyers of certain types of real estate
intestate
the condition of a property owner who dies without leaving a valid will. title to the property will pass to the heirs as provided in the state law of descent
intrinsic value
an appraisal term meaning the result of a person’s individual choices and preferences
involuntary alienation
the act of transferring property to another. alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession
jurat
a person signing a document swears before a notary that the information in the document is true and correct and signs the document in the presence of the notary
laches
an equitable doctrine used by courts to bar a legal claim or prevent the assertion of a right because of undue delay or failure to assert the claim or right
last will and testament
a document providing for the transfer of title to property owned by the deceased, called the testator. see formal will and holographic will
league
in texas, a tract of land that was granted to a settler by the mexican government; a league consists of 6.919 square miles
lease
a written or oral contract between a landlord (the lessor) and a tenant (the lessee) that transfers the right to exclusive possession and use of the landlord’s real property to the lessee for a specified period of time and for a stated consideration (rent)
leasehold estate
a tenant’s right to occupy real estate during the term of a lease; generally considered a personal property interest
leverage
the use of borrowed money to finance the bulk of an investment and to magnify the rate of return
liability coverage
insurance that protects against risks that could render the property owner responsible for certain damages to the property or persons of others
lien theory
some states’ interpretation of a mortgage as being purely a lien on real property. the mortgagee thus has no right of possession but must foreclose the lien and sell the property if the mortgagor defaults. texas is a lien theory state
linear measurement
a measurement made on a line. the linear measure of a 4-foot square is 16 feet; also called lineal measure
loan discount
an added loan fee charged by a lender to make the yield on a lower-than-market-value loan competitive with higher-interest-rate loan
loss
the difference between the purchase price and the selling price of a property if the purchase price exceeds the selling price
management agreement
a contract between the owner of income property and a management firm or an individual property manager that outlines the scope of the manager’s authority to manage the property
marketable title
good or clear title, reasonably free from the risk of litigation over possible defects
marketable title
good or clear title, reasonably free from the risk of litigation over possible defects
mitigate damages
to take reasonable steps to reduce or eliminate the amount of damages to be incurred by another party. for example, a landlord has a duty to find a replacement tenant for space vacated in breach of a lease
month-to-month tenancy
a periodic tenancy under which the tenant rents for one month at a time. in the absence of a rental agreement (oral or written), a tenancy is generally is generally considered to be month to month
mortgage
a conditional transfer or pledge of real estate as security for the payment of a debt. also, the document used to create a mortgage lien
mortgage-backed securities
securities that are secured by pools of mortgages and are used to channel funds from securities markets to housing markets; fannie mae, freddie mac, and ginnie mae have mortgage-backed securities programs
mortgagee
a lender in a mortgage loan transaction
mortgagor
a borrower who conveys property as security for a loan
multiperil policies
a type of insurance that packages several types of coverage into one policy
negotiable instrument
a written instrument, such a note, that may be transferred by endorsement or delivery. the holder, or payee, may sign the instrument over to another person or, in certain cases, merely deliver it to the person. the transferee then has the original payee’s right to payment
net lease
a lease requiring that the tenant pay not only rent but also all costs incurred in maintaining the property, including taxes, insurance, utilities, and repairs
nonconforming use
a use of property that is permitted to continue after a zoning ordinance prohibiting it has been established for the area
nonrecourse note
a loan for which the sole source of satisfaction for default is the property that was given as collateral’ the debtor has no personal liability for any shortfall. equity loans and reverse-annuity mortgages are nonrecourse
open-end mortgage
a mortgage loan that is expandable by increments up to an maximum dollar amount, the full loan being secured by the same original mortgage
package mortgage
a method of financing in which the loan that finances the purchase of a home also finances the purchase of certain items of personal property, such as washers, dryers, refrigerators, stoves, and other specified appliances
percent
by the hundred
percentage lease
a lease, commonly used for retail property, whose rental is based on the tenant’s gross sales at the premises; it generally stipulates a base monthly rental plus a percentage of any gross sales above a certain amount
periodic estate
an interest in leased property that continues from period to period - week to week, month to month, or year to year
petroleum landman
a person who conducts business activities related to oil, gas, and mineral exploration
physical deterioration
a reduction in a property’s value resulting from a decline in physical condition; can be caused by action of the elements or by ordinary wear and tear
planned unit development
a planned combination of diverse land uses, such as housing, recreation, and shopping, in one contained development or subdivision
plottage value
the increase in value or utility resulting from the consolidation (assemblage) of two or more adjacent lots into one larger lot
power-of-sale clause
a provision in a deed of trust authorizing the trustee to sell a property in the event of the borrower’s default
prepaid items
item on a closing statement that has been paid in advance by the seller, such as insurance premiums, which must be reimbursed to the seller by the buyer
prepayment penalty
a charge imposed on a borrower who pays off the loan principal early. this penalty compensates the lender for interest and other charges that otherwise are lot
primary mortgage market
a document acknowledging the payment of a debt secured by a two-party mortgage document
priority
the order in which unpaid debts or obligations will be satisfied if the property goes through a court sale
private mortgage insurance
default insurance on conventional loans, normally insuring the top 20% to 25% of the loan and not the whole loan
probate
a legal process by which a court determines who will inherit a decedent’s property and what the estate’s assets are; literaly means “to prove”
profit
the increase in value when the selling price exceeds the purchase price
promissory note
an unconditional written promise of one person to pay a certain sum of money to another at a future specified time
property development
a business that includes the work of land developers and subdividers who purchase raw land, divide it into lots, build roads, and install utilities. it also involves builders and architects who plan and construct the houses and other buildings, which are then sold
property management
a real estate agent who operates a property for its owner
property manager
someone who manages real estate for another person for compensation. duties include collecting rents, maintaining the property, and accounting for income and expenses
public ownership
ownership of land by a government entity
purchase money mortgage
- a note secured by a mortgage or trust deed given by a buyer, as mortgagor, to a seller, as mortgagee, as part of the purchase price of the real estate
- a mortgage given as part of the buyer’s consideration for the purchase of real property
pyramiding
a process of acquiring additional properties through refinancing properties already owned and then reinvesting the loan proceeds in additional property
quitclaim deed
a conveyance by which the grantor transfers whatever interest she has in the real estate, without warranties or obligations
real estate counselor
a person who helps clients choose among the various alternatives involved in purchasing, using, or investing in real property
real estate inspector
a person who, under the indirect supervision of a professional inspector, accepts employment for the purpose of performing a real-property inspection for a buyer or seller
real estate investment trust (reit)
trust ownership of real estate by a group of a least 100 individuals who purchase certificates of ownership in the trust, which in turn invests the money in real property and distributes the profits back to the investors free of corporate income tax
real estate mortgage investment conduit (remic)
a tax device that allows cash flows from an underlying block of commercial mortgage to be passed through to security holders without being subject to income taxes at the level of trustee or agent
reconciliation
the final step in the appraisal process, in which the appraiser weighs the estimates of value received from the sales comparison, cost, and income approaches to arrive at a final estimate of market value for the subject property
redemption
buying back real estate sold in a tax sale. the defaulted owner is said to have the right of redemption
regulation z
law requiring credit institutions to inform borrowers of the true cost of obtaining credit; commonly called the truth in lending act
release deed
a document that transfers all rights given a trustee under a trust deed loan back to the grantor after the loan has been fully repaid; also known as a deed of reconveyance
release of lien
an instrument indicating that a previously existing lien has been released and is no longer enforceable
replacement cost
the construction cost at current prices of a property that is not necessarily an exact duplicate of the subject property but serves the same purpose or function as the original
residential broker
brokers who deal in property used for housing, including small city lots, acreage, and single-family and multifamily units in urban, suburban, and rural areas
reproduction cost
the construction cost at current prices of an exact duplicate of the subject property
residential rental locator
a person, other than the owner of the property or an onsite manager, who offers, for consideration, to locate a unit in an apartment complex for lease to a prospective tenant
restrictive covenant
a clause in a deed that limits the way property may be used; generally originated by the owner or developer in a deed
reversionary right
an owner’s right to regain possession of leased property on termination of the lease agreement
risk management
evaluation and selection of appropriate property and insurance coverage
sale-and-leaseback
a transaction in which an owner sells improved property and, as part of the same transaction, signs a long-term lease to remain in possession of the premises
sales comparison approach
the process of estimating the value of a property by examining and comparing actual sales of comparable properties
satisfaction of mortgage
a document acknowledging the payment of a debt secured by a two-party mortgage document
secondary mortgage market
a market for the purchase and sale of existing mortgages, designed to provide greater liquidity for mortgages; also called the secondary money market. mortgages are originated in the primary mortgage market
security deposit
a payment by a tenant, hold by the landlord during the lease term and kept (wholly or partially) on default or destruction of the premises by the tenant
shared-appreciation mortgage
a mortgage loan in which the lender, in exchange for a loan with a favorable interest rate, participates in the profits (if any) the mortgagor receives when the property is eventually sold
short sale
a sale of a house in which the proceeds fall short of what the owner still owes on the mortgage, the lender agrees to accept the proceeds of the sale and forgive the balance on the loan
special warranty deed
a deed in which the grantor warrants, or guarantees, the title only against defects arising during her tenure and ownership of the property and not against defects existing before the time, generally using the language, “by, through or under the grantor but not otherwise.
spot zoning
a change in a local zoning ordinance to permit a particular use that is inconsistent with the area’s zoning classification. spot zoning is not favored in the law
statutory year
a year composed of 12 months, each with 30 days, for a total of 360 days in a statutory year. also known as a banker’s year; contrast with a calendar year, which has 365 days, or 366 in a leap year
sublease
the leasing of premises by a lessee to a third party for part of the lessee’s remaining term. contract with agreement
subrogation
relegation to a lesser position, usually in respect to a right or security
substitution
an appraisal principle stating that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property, assuming that no costly delay is encountered in making the substitution
suit to quiet title
a court action intended to establish or settle the title to a particular property, especially when a cloud on the title exists
suit to quiet title
a court action intended to establish or settle the title to a particular property, especially when a cloud on the title exists
surety bond
an agreement by an insurance or bonding company to be responsible for certain possible defaults, debts, or obligations contracted for by an insured party; used to ensure that a particular project will be completed at a certain date or that a contract will be performed as stated
suit for possession
a court suit initiated by a landlord to evict a tenant from leased premises after the tenant has breached one of the terms of the lease or has held possession of the property after the lease’s expiration
tax shelter
a legal means by which an investor may reduce or defer payment of part of her federal income tax
tenancy at sufferance
the tenancy of a lessee who lawfully comes into possession of a landlord’s real estate but who continues to occupy the premises improperly after lease rights have expired
tenancy at will
an estate that gives the lessee the right to possession until the estate is terminated by either party; the term of this estate is indefinite
term loan
see interest-only loan
testate
having made and left a valid will
testator
a person who makes a last will and testament
term loan
a loan in which interest is paid periodically but no principal is paid until the due date on the note, when the entire principal amount is due with the final interest payment
texas veterans land board
created in 1946 to administer a program to provide low-interest, long-term loans to texas veterans for the purchase of land (the land program). also administers the housing assistance program and the home improvement program
time-share
a form of ownership where permission is given to use certain property for certain intervals of time; may be fee simple title or merely a right to use (license)
title
- the right to or ownership of land
2. the evidence of ownership of land
title insurance
a policy insuring the owner or mortgagee against loss by reason of defects in the title to a parcel of real estate, other than encumbrances, defects, and matters specifically excluded by the policy
title search
an examination of the public records to determine what, if any, defects are in the chain of title; usually performed by a title company or abstracter
title theory
some states’ interpretation of a mortgage to mean that the owner of mortgaged land. on full payment of the mortgaged land. on full payment of the mortgage debt, the borrower becomes the landowner; not recognized in texas
trigger terms
specific credit terms, such as down payment, monthly payment, the amount of finance charge, or the term of the loan, which, if included in an advertisement, trigger full disclosure of all financing terms under Regulation z
trust deed
a deed of trust
trustee’s deed
a deed executed by a trustee conveying land held in a trust
value
the amount of goods or services considered to be a fair and suitable equivalent for something else
variance
a waiver from compliance with a specific provision of the zoning ordinance; for the benefit of one parcel only
volume
the size in cubic units (cubic inches, ect.) of a three-dimensional figure such as a cube
voluntary alienation
see alienation
warehousing agency
an agency that purchases a number of mortgage loans and assembles them into one or more packages of loans for resale to investors; fannie mae, freddie mac, and ginnie mae are warehousing agencies
warranty clause
the part of a deed in which the seller warrants the title conveyed to the buyer
workers’ compensation insurance
insurance carried by an employer to provide medical care and a portion of lost wages to an employee who has a work-related illness or is injured at work
writ of possession
a court order authorizing a sheriff to return leased premises to the owner following an eviction suit, pursuant to a judgment for possession
voluntary alienation
the act of transferring property to another. alienation may voluntary, such as by a gift or sale, or involuntary, as through eminent domain or adverse possession
zoning ordinance
an exercise of police power by a municipality to regulate and control the character and use of property
loan-to-value ratio
the ratio of debt to value of a property; the loan amount divided by the lesser of sales price or appraisal
wraparound loan
a method of refinancing in which the new mortgage is placed in a secondary, or subordinate, position; the new mortgage includes both the unpaid principal balance of the first mortgage and whatever additional sums are advanced by the lender
testator
a fiduciary arrangement whereby property is conveyed by a trustor to a person or institution, called a trustee, to be held and administered on behalf of another person, called a beneficiary
formal will
a written instrument disposing of property on the death of the marker. the testator must be of legal age and sound mind, and not subject to undue influence. the document must be signed and witnessed; also known as a witnessed will
holographic will
a will is written, dated, and signed in the testator’s handwriting but is not witnessed
