Vocab Flashcards
Right & interest of having title such as possession, control, exclusion, sell, and of
enjoyment
Bundle of Rights
- goes with the property
- Generally immovable
Real Property
- goes with the person
- Generally movable
Personal Property
- personal property
Chattel
- was personal and is now real
Fixture
personal because it goes with a business
Trade Fixture
river - moving body of water
Riparian Rights
additional of land
Accretion
tearing away of land
Avulsion
gradual recession of water leaving land permanently uncovered.
Reliction
Runs with the land
Appurtenances
no fixed duration of ownership.
Freehold Estate
- highest possible ownership..
- also know as fee simple absolute
Fee Simple Estate
ownership of land for the duration of a person’s life
Life Estate
- defined period of time
- for example 6 months or july 3rd - september 8th
Estate for Years
landlord is suffering as tenant is in possession passed agreed upon time.
Estate at Sufferance
possession but not ownership from lessor to lessee
- considered personal property
Lease
tenant pays taxes, insurance and maintenance
Net Lease
tenant pays fixed amount
gross lease
landlord fails to do something that he/she has a legal duty to provide.
Constructive Eviction
evidence of transfer
Deeds
Deed releasing a person’s interest with no warranties. Typically in non-sale situa-
tions
A Quitclaim Deed
deed that guarantees a clear title to the buyer of real property.
Warranty Deed
Seller only warrants or guarantees the title against defects that may have arisen dur-
ing the period of ownership of the property.
Special Warranty Deed
Seller warrants or guarantees the title against defects that may have arisen during
the entire life of the property.
General Warranty Deed
ownership
title
Defect in title ie.. single women married
Cloud on title
lawsuit in order to establish a party’s title
Quiet title action
sole ownership
Severalty
TTIP right of survivorship
Joint Tenancy
all parties have unity of possession
Tenancy in Common
Gaining the benefit of the easement
dominant tenement
Suffers the burden of an easement.
servient tenement
no dominent tenament
Easement in Gross
States ability to regulate for the betterment of the health, safety, morals, and general
welfare of community.
Police Power
Police power that divides and into areas for designated uses
Zoning
A type of zoning variance where a parcel of land may be given an exception from
current zoning ordinances due to improvements made by a prior owner or before the
current zoning ordinances made the desired use non-conforming under local law.
nonconforming use
codes that protect public health, safety and general welfare
Building codes
Reversion of property to the state when the owner dies without heirs.
Escheat
financial charge by a state to fund various public expenditures
taxation
Latin for according to value
Ad Valorem
Government ability to take private property for public use
Eminent Domain
Process of compensating a person when property is taken by eminent domain.
Condemnation
When a structure is built in part on a neighbor’s property.
Encroachment
money owned
Liens
lien against all personal property
General Liens
lien that is on a single property
Specific liens
lien that exists because of an action taken by a debtor
Voluntary Lien
Liens that were imposed on a individual. i.e. .. taxes and judgment liens
Involuntary Lien
Lien on behalf of those who have supplied labor or materials that improve the prop-
erty.
Mechanics lien
Lien placed by the court
Judgment lien
lawsuit pending involving either the title to the property or a claimed ownership in-
terest in it.
lis penden
Signifies that a person should have known as a reasonable person would have.
constructive notice
neutral third party
Escrow
Eliminating kickbacks and referral fees which add unnecessary costs to settlement
services.
RESPA
1968 act banning refusal to sell or rent a dwelling to any person because of race,
color, religion, sex, or national origin.
Fair Housing Act
a fact that, if known, might have caused a buyer or seller of real estate to make a
different decision
Material fact
buyers - You should live by “those” people
Steering
sellers - You better sell because you do not want to live by “those” people
Blockbusting
denying services such as a loan, either directly or through selectively raising prices,
to residents of certain areas based on race or ethnicity.
Redlining
mixing of funds
Commingling
gross exaggeration of facts
puffing
promise for a promise example would be a exclusive listing
bilateral contract
promise for a act example would be a open listing or a option contract
Unilateral contract
states what contracts must be in writing
The Statute of Frauds
States time frames for certain contracts
Statute of Limitations
latin for new as it relates to contracts
Novation
A position of trust, good faith and honesty
Fiduciary
buyer & seller have the same BROKER
Dual agent
- authorized to perform any and all acts associated with the job.
- A real estate licensee acting in the capacity of a property manager.
General agent
- Limited authority granted to him or her through a principal.
- Relationship with the principal is not expected to be continuous.
- Listing contract creates a special agency.
Special agent
bileteral employment contract
Listing
- one broker can be paid
- no need to show procuring cause in order to be compensated.
Exclusive listing
- Owner sells agent gets nothing
- You need to show your are the procuring cause in order to be compensated
Exclusive Agency Listing
- Seller can hire multiple brokers
- Broker that proves procuring cause would be compensated
Open Listing
Money received above and beyond a designated amount
Net listing
Estimate of value
Appraisal
- Examination and comparison of actual sales of comparable properties.
- Best used to find values of houses and vacant lots.
Market Data Approach
- Finding out how much would it cost to replace the building brand new
- Better for new buildings not old.
Cost approach
- Converts Income into value.
- A property that can prove to bring in more income will increase the value.
- Most appropriate for a shopping center.
Capitalization approach
price divided by rent
gross multiplier
43,560
Acre
wear and tear
Physical Deterioration
poor planning
Functional Obsolescence
outside causes
Economic Obsolescence
a voluntary, specific lien
Mortgage
- Intermediary between consumers and lenders.
- Mortgage broker originates loans while the mortgage lender funds loans.
Mortgage brokers
A direct mortgage lender.
Mortgage banker
rent on money
Interest
borrowed capital to increase the potential return of an investment
Leverage
the paying off of debt
Amortization
interest paid but debt increases
Negative Amortization
loan that does not fully amortize over its term
Balloon loan
increase in value over time
Appreciation
short-term loan used to finance the building of a property.
Construction loan
Current debts will take priority over debts made in the future.
Subordination Clause
Balance of the loan may be called to repay in full upon sale
Due-on-sale clause
Where Lenders make mortgage loans directly to borrowers
Primary Mortgage Market
resale marketplace
Secondary mortgage market
- Small downpayment required
- insures the lender, does not make loans.
- unconventional loan because they are backed by the government.
- no pre-payment penalty
- Single family homes, one to four units owner occupied
FHA
- Does not require a down payment, however the lender can require one.
- owner occupied house, condominium, or townhouse
VA loans
A governmental part of the secondary market that deals primarily in recycling VA and
FHA mortgages.
GNMA
federally sponsored private corporation which provides a secondary market for
housing mortgages.
FNMA
Limitation
Encumbrances
Personally given to someone
Actual Notice
Money owed
Debit
money received
credit
inform use of consumer credit
require disclosures about its terms and cost to standardize the maker in which costs associated with borrowing are calculated and disclosed
TILA
bans anti competitive behavior such as price fixing
Sherman anti trust act
prohibits discrimination against people with disabilities in employment, transportation, public accommodation, communications, and governmental activities
ADA
lacks one of the 4 essential elements ( mutual consent, lawful object, consideration, capable parties)
Void contract
open to rescind
voidable contract
A contract that has been fully performed
Executed Contract
broker gets paid if property sold regardless of procurance cause
Exclusive right to sell listing
STUD- Scarcity, Transferability, Utility, Demand
Essential elements of value
How much of a net return you can get by building on the property? If the use is temporary, it would then be considered the interim use
principal of highest and best use
Higher cap rate represents higher risk
cap rate
seller liable, buyer not liable
subject to
relieves seller, buyer is liable
assume
