Unfamiliar Terms Flashcards
Estovers
legally allowed necessities, such as the right of a tenant to use timber on leased property to support a minimum need for fuel or repairs
Noncontiguous
-Not touching
Inchoate
A right not yet perfected
Downzoning
downsizing..ex going from Commercial to Residential
Spot Zoning
Small area of land that does not conform to the zoning of the rest of the area
PUD
Mixed use developments
City Plan Specifications
tax on real estate requiring property owners to pay for area improvements
Floodplain
land located near bodies of water that tend to flood, generally restricted bldg
Wetlands
groundwater close to surface may produce swamps, floodplains etc (also used for conservation)
HVCC
makes sure borrowers receive a copy of appraisal report 3 days before closing
Arms Length Transaction
those that mirror the definition of market value
Intermediate theory
state allows lender to take possession of mortgaged real estate default
Graduated Payment Mortgage
smaller payments then increased payments-causes negative amortization
Subprime Loans
for people w/bad credit, higher interest rates and higher fees
Power of Sale Clause
NO court (nonjudicial) for foreclosure
Portfolio Loan
When an institution keeps the loans instead of selling to a secondary market
Participation Mortgage
Lender receives interest and equity position in a project, known as Equity Kicker, or a % of income of the property
Tandem Plan
when Ginnie Mae works with Fannie Mae in times of tight $$$ and high interest rates. FNMA purchases high risk while GNMA guarantees payments and absorbs the difference
Truth in Lending Act
requires disclosure of loan terms and APR Developed the Homeownership & Equity Protection Act- Aimed at predatory mortgage loans
Disintermediation
lenders experience a rapid withdrawal of funds into alternative investments which weakens the lenders position in the $$ market
Property Insurance INfo
Homeowners Insurance HO-2, HO-3
Renters insurance HO-4
Condo Insurance HO-6
…for interior surfaces
CLUE
(Claim activity and Property damage) reports are ordered by most insurance companies on property being purchased, insurers use the report to ascertain patterns of possible future claims and adjust their insurance premiums according to risk
Underwater Mortgage
mortgage on a home in which the home is worth less than the amount owed to the banks that hold the mortgage on the home; often referred to as negative equity or an upside down mortgage
Forbearance
promise not to do something that a party is legally entitled to do
Reliction
New land is acquired as water recedes
Indemnity
Security or Protection against a loss or financial burden
Capital Gains
Profit from the Sale of Property
-Married couples may exclude as much as $500K from cap gains tax for profits on the sale of a principal residence if they file jointly.
must have occupied residency for 2 out of past 5 years
-Homeowners who file as individuals are entitled to a $250K exclusion each
FORMS
1031 Tax Deferred Exchange-postpone paying taxes on the gain if reinvest proceeds in similar property
1040- If Self Employed how agents report income
1099S- Closing agents report details of closing
1099 MISC- Report Commission
Fair Housing Rules
1st offense $16K
2nd offense w/in 5 years $37K Max
2+ offenses w/in 7 years $65K Max
Leasehold estate
considered Personal Property
Pyramiding
selling or refinancing currently owned property in order to purchase additional property
Conveyance
Deed-Real Property
Bill of Sale- Personal Property
UCC Uniform Commercial Code
law that governs documents and forms when personal property is being used as security for a loan/regulates the sale of an actual business and its personal property apart from the real estate
