Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate Key Terms Test > Unit 12 Key Terms > Flashcards

Unit 12 Key Terms Flashcards

1
Q

acceleration clause

A

Stipulation in a mortgage that the entire unpaid balance of the debt may become due and payable if a default of expressed conditions should occur.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

assignment of mortgage

A

A legal instrument stating that the mortgagee assigns (transfers) the mortgage and promissory note to the purchaser.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

assumption

A

The buyer of real property that is already mortgaged assumes liability for the mortgage payments of the original loan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

blanket mortgage

A

One debt instrument covering two or more parcels.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

buydown

A

A financing technique in which points are paid to the lender by the seller or the builder that lowers (buys down) the effective interest rate paid by the buyer/borrower, thus reducing the amount of the monthly payment for a set period of time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

contract for deed (land contract)

A

A financing technique wherein the seller agrees to deliver the deed at some future date and the buyer takes possession while paying the agreed amount. Also called an installment sale contract or agreement for deed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

deed in lieu of foreclosure

A

A friendly foreclosure (nonjudicial procedure) in which the mortgagor gives title to the mortgagee.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

default

A

Failure to comply with the terms of an agreement or to meet an obligation when due.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

defeasance clause

A

A provision in a mortgage that specifies the terms and conditions to be met in order to avoid default and thereby defeat the mortgage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

discount points

A

A method for increasing a lender’s yield. Se also mortgage discount points.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

due-on-sale clause

A

A provision in a conventional mortgage that entitles the lender to require the entire loan balance to be paid in full if the property is sold.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

equity

A

The market value of a property less and debt against it; in a business entity, assets minus liabilities equals capital (owner’s equity); a system of legal rules administered by a court of chancery.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

equity of redemption

A

The right of a mortgagor, before a foreclosure sale, to reclaim forfeited property by paying the entire indebtedness.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

escrow

A

An impound account required by most lenders that require borrowers to pay in advance monthly installments for property taxes and hazard insurance. The monthly escrow payment is one-twelfth of the estimated annual expense for property taxes and the hazard insurance premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

estoppel certificate

A

A written statement that bars the signer from making a claim inconsistent with the instrument (commonly used with a mortgage assumption).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

first mortgage

A

A mortgage on a property that is superior in right to any other mortgage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

foreclosure

A

A legal procedure whereby property used as security for a debt is sold to satisfy the debt owing to default in payment of the mortgage note or default of other terms in the mortgage document.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

hypothecation

A

To pledge real or personal property as security for a debt or obligation without giving up possession of the property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

interest

A

The price paid for the use of borrowed money; estate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

land development loan

A

Financing instrument for the installation of on- and offsite improvements to the land, including sewers, streets, and utilities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

lien theory

A

Legal concept that regards a mortgage as a just claim on specific property pledged as a security for a mortgage debt.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

lis pendens

A

A pending legal action.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

loan origination fee

A

A charge by a lender for taking a mortgage in exchange for a loan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

loan servicing

A

An additional source of income for lenders. Servicing fees typically rage from 3/8 to 3/4 of 1% of the unpaid balance of loans serviced.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

loan-to-value ration (LTV)

A

Relationship between amount borrowed and appraised value (or sale price) of a property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

mortgage

A

A written agreement that pledges property as security for payment of a debt.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

mortgagee

A

A lender who holds a mortgage on specific property as security for the money loaned to the borrower.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

mortgagor

A

A borrower who gives a mortgage on the borrower’s property in order to obtain a load from a lender.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

note

A

Legal evidence of a debt that must accompany a mortgage in Florida; a legally executed pledge to pay a stipulated sum of money. see also promissory note.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

novation agreement

A

A written agreement making the buyer solely responsible for the assumed mortgage amount with the lender.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

partial release clause

A

Stipulates the conditions under which the mortgagee will grant freeing building lots from a mortgage lien upon payment of a certain amount of money.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

PITI

A

Principal, interest, taxes, and insurance payment on a mortgage loan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

prepayment clause

A

A provision in a mortgage that allows the mortgagor to pay the mortgage debt ahead of schedule without penalty.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

prepayment penalty

A

The amount set by the creditor that the debtor is charged for retiring the debt early.

35
Q

receivership clause

A

A provision in a mortgage, related to income-producing property, that is designed to require that income derived be used to make mortgage payments in the event the mortgagor (borrower) defaults.

36
Q

right to reinstate

A

A mortgage clause based on the equity of redemption. The mortgagor’s right to reinstate the original repayment terms in the note after the mortgagee has initiated the acceleration clause.

37
Q

satisfaction of mortgage

A

A certificate issued by the lender when the debt obligation is paid in full.

38
Q

short sale

A

A sale of secured real property that produces less money than is owed the lender. The lender releases its mortgage so that the property can be sold free and clear to the new purchaser.

39
Q

subject to

A

A buyer makes regular periodic payments on the mortgage but does not assume responsibility for the mortgage.

40
Q

subordination agreement

A

A written agreement between holders of liens on a property that changes the priority of mortgage, judgement, or other liens under certain circumstances.

41
Q

takeout commitment

A

A written commitment from a financial institution certifying that permanent financing will be provided when the project is completed.

42
Q

title theory

A
43
Q

Stipulation in a mortgage that the entire unpaid balance of the debt may become due and payable if a default of expressed conditions should occur.

A

acceleration clause

44
Q

A legal instrument stating that the mortgagee assigns (transfers) the mortgage and promissory note to the purchaser.

A

assignment of mortgage

45
Q

The buyer of real property that is already mortgaged assumes liability for the mortgage payments of the original loan.

A

assumption

46
Q

One debt instrument covering two or more parcels.

A

blanket mortgage

47
Q

A financing technique in which points are paid to the lender by the seller or the builder that lowers (buys down) the effective interest rate paid by the buyer/borrower, thus reducing the amount of the monthly payment for a set period of time.

A

buydown

48
Q

A financing technique wherein the seller agrees to deliver the deed at some future date and the buyer takes possession while paying the agreed amount. Also called an installment sale contract or agreement for deed.

A

contract for deed (land contract)

49
Q

A friendly foreclosure (nonjudicial procedure) in which the mortgagor gives title to the mortgagee.

A

deed in lieu of foreclosure

50
Q

Failure to comply with the terms of an agreement or to meet an obligation when due.

A

default

51
Q

A provision in a mortgage that specifies the terms and conditions to be met in order to avoid default and thereby defeat the mortgage.

A

defeasance clause

52
Q

A method for increasing a lender’s yield. Se also mortgage discount points.

A

discount points

53
Q

A provision in a conventional mortgage that entitles the lender to require the entire loan balance to be paid in full if the property is sold.

A

due-on-sale clause

54
Q

The market value of a property less and debt against it; in a business entity, assets minus liabilities equals capital (owner’s equity); a system of legal rules administered by a court of chancery.

A

equity

55
Q

The right of a mortgagor, before a foreclosure sale, to reclaim forfeited property by paying the entire indebtedness.

A

equity of redemption

56
Q

An impound account required by most lenders that require borrowers to pay in advance monthly installments for property taxes and hazard insurance. The monthly escrow payment is one-twelfth of the estimated annual expense for property taxes and the hazard insurance premium

A

escrow

57
Q

A written statement that bars the signer from making a claim inconsistent with the instrument (commonly used with a mortgage assumption).

A

estoppel certificate

58
Q

A mortgage on a property that is superior in right to any other mortgage.

A

first mortgage

59
Q

A legal procedure whereby property used as security for a debt is sold to satisfy the debt owing to default in payment of the mortgage note or default of other terms in the mortgage document.

A

foreclosure

60
Q

To pledge real or personal property as security for a debt or obligation without giving up possession of the property.

A

hypothecation

61
Q

The price paid for the use of borrowed money; estate.

A

interest

62
Q

Financing instrument for the installation of on- and offsite improvements to the land, including sewers, streets, and utilities.

A

land development loan

63
Q

Legal concept that regards a mortgage as a just claim on specific property pledged as a security for a mortgage debt.

A

lien theory

64
Q

A pending legal action.

A

lis pendens

65
Q

A charge by a lender for taking a mortgage in exchange for a loan.

A

loan origination fee

66
Q

An additional source of income for lenders. Servicing fees typically rage from 3/8 to 3/4 of 1% of the unpaid balance of loans serviced.

A

loan servicing

67
Q

Relationship between amount borrowed and appraised value (or sale price) of a property.

A

loan-to-value ration (LTV)

68
Q

A written agreement that pledges property as security for payment of a debt.

A

mortgage

69
Q

A lender who holds a mortgage on specific property as security for the money loaned to the borrower.

A

mortgagee

70
Q

A borrower who gives a mortgage on the borrower’s property in order to obtain a load from a lender.

A

mortgagor

71
Q

Legal evidence of a debt that must accompany a mortgage in Florida; a legally executed pledge to pay a stipulated sum of money. see also promissory note.

A

note

72
Q

A written agreement making the buyer solely responsible for the assumed mortgage amount with the lender.

A

novation agreement

73
Q

Stipulates the conditions under which the mortgagee will grant freeing building lots from a mortgage lien upon payment of a certain amount of money.

A

partial release clause

74
Q

Principal, interest, taxes, and insurance payment on a mortgage loan.

A

PITI

75
Q

A provision in a mortgage that allows the mortgagor to pay the mortgage debt ahead of schedule without penalty.

A

prepayment clause

76
Q

The amount set by the creditor that the debtor is charged for retiring the debt early.

A

prepayment penalty

77
Q

A provision in a mortgage, related to income-producing property, that is designed to require that income derived be used to make mortgage payments in the event the mortgagor (borrower) defaults.

A

receivership clause

78
Q

A mortgage clause based on the equity of redemption. The mortgagor’s right to reinstate the original repayment terms in the note after the mortgagee has initiated the acceleration clause.

A

right to reinstate

79
Q

A certificate issued by the lender when the debt obligation is paid in full.

A

satisfaction of mortgage

80
Q

A sale of secured real property that produces less money than is owed the lender. The lender releases its mortgage so that the property can be sold free and clear to the new purchaser.

A

short sale

81
Q

A buyer makes regular periodic payments on the mortgage but does not assume responsibility for the mortgage.

A

subject to

82
Q

A written agreement between holders of liens on a property that changes the priority of mortgage, judgement, or other liens under certain circumstances.

A

subordination agreement

83
Q

A written commitment from a financial institution certifying that permanent financing will be provided when the project is completed.

A

takeout commitment

84
Q
A

title theory

Real Estate Key Terms Test (20 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions