Vocab Flashcards
Exclusive longer term lease given to a person who lives in a cooperative and own stock in the cooperative
Proprietary lease
 A property developed for co-ownership, where each co-owner has a separate interest in an individual unit, combined with an undivided interest in common areas of the property
Condominium
Professional liability insurance that protects real estate licenses from mistakes or negligence
Errors and omissions insurance
When a landlords act or failure to act interferes with the tenants, quiet enjoyment of the property, or makes the property unfit for its intended, use, such as an extent that the tenant is forced to move out
Constructive eviction
Lease where the landlord pays all property, taxes, insurance, etc.
Gross lease
Lease where the tenant pays a percentage of gross sales, in addition to rent
Percentage lease
A building owned by a cooperation where the residence are shareholders in the corporation. Each shareholder receives a proprietary lease on an individually unit and the right to use common areas.
Cooperative
What tenants are actually paying in rent
Contract rent
In ownership interest that gives the owner a right to possession of the property only for specific limited period each year.
Timeshare
The rent, the property hood currently command on the open market
Economic rent
When a tenant transfers, only part of his or her right of possession, or other interest in least property to another person for part of the remaining lease term, as opposed to an assignment, where the tenant gives up possession for the entire remainder of the least term
Sublease
Lease where tenants pay all taxes, insurance, etc. plus utilities, and rent
Net lease
A gradual addition to dry land by the forces of nature, as when the tide deposits, water borne sediment on Shoreline property.
Accretion
- A government valuation of property for tax purposes. 2. A special assessment.
Assessment
- Taking private property for public use, through the government’s power of eminent domain. Also called appropriation. 2. A declaration that a structure is unfit for occupancy, and must be closed or demolished.
Condemnation
A fee estate in real property that may be defeated or undone if certain events occur or conditions aren’t met. Also: Fee simple, defeasible .
Defeasible fee
An easement granted to another in a deed or other document.
Easement by express Grant
A special kind of easement by implication that occurs when the dominant tenement would be completely useless without an easement, even if it is not a long standing, apparent use.
Easement by necessity
A non-possessory interest in property: a lien, easement, or restrictive covenant, burdening the property owners title.
Encumbrance
A leasehold estate set to last for a definite period, (one week, three years) after which it terminates automatically. Also called a term tenancy.
Estate for years
A future interest that becomes possessory when a temporary estate (such as a life estate, terminates), and that is held by the grantor, (or his, or her successors in interest). also called: reversion.
Estate in Reversion
The greatest estate one can have in a day real property: freely, transferable, and inheritable, and a definite duration, with no conditions on the title. Often called fee the simple or fee title. Also fee simple absolute.
Fee simple
A man-made attachment: an item of personal property that has been attached to, or closely associated with real property in such a way that it has legally become part of the real property
Fixture
A form of co-ownership in which the co-owners have equal undivided interests, and the right of survivorship. Joint tenancy must have the four unities present. see unities, four.
Joint tenancy
If freehold estate that lasts only as long as a specified person lives. That person is referred to as the measuring life.
Life estate
A specific lien claimed by someone who performed work on the property (construction, repairs, or improvements) and has not been paid. This term is often used in a general sense, referring to materialmen’s liens as well as actual mechanics’ liens.
Mechanics’ lien
A life estate “mark for the life of another”, where the measuring life is someone other than the life tenant. Also called: life estate Pur Autre Vie
Pur Autre Vie
A future interest that becomes possessory when a temporary estate (such as a life-estate) terminates, and that is held by the grantor (or his, or her successors in interest).
Reversion
A form of co-ownership of property by husband and wife, in which each spouse has an undivided, 1/2 interest, and the right of survivorship, with neither spouse able to convey or encumber his or her interest without the others spouse’s consent.
Tenancy by the Entireties
A Latin phrase meeting “according to value” ; used to refer to taxes assessed on the value of property.
Ad Valorem
A right that goes along with ownership of real property: usually transferred with the property, but may be sold separately.
Appurtenance
A provision in a contract, deed, law, regulation, guideline, etc, that makes the parties’ rights and obligations dependent on the occurrence, ( or non-occurrence) of a particular event. Also called a contingency clause.
Condition
A person who has easement rights on another’s property: either the owner of a dominant tenement or someone who has an easement in gross.
Dominant Tenant
An easement created in a deed when a land owner is dividing the property, transferring the servient tenement, but retaining the dominant tenement.
Easement by express reservation
An easement acquired by prescription. Also called a prescriptive easement.
Easement by prescription
A physical object intruding onto neighboring property, often due to a mistake regarding the boundary.
Encroachment
A freehold estate that lasts only as long as I specified person lives. That person is referred to as the measuring life also called: life estate.
Estate for life
A future interest that becomes possessory when a life estate terminates, and that’s held by someone other than grantor of the life estate: (reversion is a future interest held by the granter). Also called: remainder.
Estate in remainder
An easement created in a deed, when a landowner is dividing the property, transferring the servient tenement but retaining the dominant tenement. Also: easement by express reservation.
Express reservation
A fee estate in real property that may be defeated or undone if certain events occur or conditions aren’t met.
Fee simple, defeasible
A lien against all property of a debtor, instead of a particular piece of property.
General lien
- A courts binding determination of the rights and duties of the parties in a lawsuit.
- A court order requiring one party to pay the other damages.
Judgment
A recorded notice, stating that there is a lawsuit pending that may affect title to the defendants real estate.
Lid Pendens
Ownership by a single individual as opposed to co-ownership.
Ownership in Severalty
When a body of water gradually receives, exposing land, that was previously underwater. Also called dereliction.
Reliction
The water rights of a landowner who’s property is adjacent two or crossed by a river. (Or any body of water)
Riparian Rights
A lean that attaches only to a particular piece of property. (As opposed to a general lien, which attaches to all of the debtors property)
Specific lien
Equipment a tenant installs for use in his or her trade or business, and can be removed by tenant before the lease expires.
Trade fixtures
The right to undisturbed use and control of the airspace over a parcel of land, within reasonable limits, for air travel: may be transferred separately from the land.
Air rights
Personal property that is closely associated with real property, such as a lease.
Chattel Real
A restriction on a real property use, imposed by a former owner: promised to do or not to do an act relating to real property: usually owner’s promise to not use property in a particular way. May or may not run with land. Also called; restrictive covenant.
Deed restriction
A right to use some part of another person’s real property for a particular purpose. An easement is irrevocable and creates an interest in the property.
Easement
An easement created by operation of law, (not expressed grant, or reservation) when land is divided, if there is a long-standing, apparent use that is reasonably necessary for enjoyment of the dominant tenant. Also called and implied easement.
Easement by implication
An easement that benefits, a person, instead of a piece of land: there is a dominant tenant, but no dominant tenement.
Easement in gross
A gradual loss of soil due to the action of water or wind.
Erosion
The greatest estate one can have in real property: freely, transferable, and inheritable, and of indefinite duration, with no conditions on the title. Often called: fee simple
Estate in fee simple
An estate that can be weird or descend to heirs, such as a fee, simple estate.
State of inheritance
An easement granted to another in a deed or other document. Also easement by express grant.
Express Grant
The greatest estate one can have in real property, freely, transferable, and of inheritable, and if indefinite duration, with no conditions on the title. Often called fee simple or fee title.
Fee Simple Absolute
A possessory interest in real property of uncertain (and often unlimited) duration; an ownership estate in real property: either a fee, simple or life-estate. Holder of the freehold estate has title.
Freehold
A non-possessory interest in property, giving a lienholder the right to foreclose if the owner does not pay a debt owed the lienholder; a financial encumbrance on the owners title.
Lien
The water rights of a landowner whose property is adjacent to a lake or contains a lake; often called riparian rights, (although that term really refers only to the water rights of a landowner on a river).
Littoral Rights
An easement acquired by prescription. Also called: easement by prescription.
Prescriptive easement
A future interest that becomes possessory when a life estate terminates, and that’s held by someone other than grantor of the life estate; (reversion is a future interest held by the grantor).
Remainder
Place where some thing exists; an area of preference or preference by people for a certain location thus giving economic attributes (value) to the property.
Situs
A form of co-ownership, in which two or more persons each have an equal undivided interest in the entire property, (unity of possession) but no right of survivorship.
Tenancy in common
A form that states whether an agent is representing the seller or the buyer, or both, in a transaction.
Agency disclosure statement
When someone is held legally responsible for an injury to another, even though he, or she did not act negligently.
Strict liability
Not fit for occupancy. Used to describe rental property.
Untenantable
A naturally occurring radioactive gas that emanates from rocks, it is odorless colorless, and tasteless, but has been identified as a cancer, causing agent
Radon gas
Persons are individually held liable for damages along with the group.
Joint and Severo liability
A document, required by law, which reveals specific information. For example, federal law requires that lenders give buyers a disclosure, statement detailing the actual cost of borrowing money from the lender.
Disclosure statement
Destruction, damage, or material alteration of property by someone in possession, who holds less than a fee a state.(such as a life tenant or lessee)
Waste
A property is undesirable to most people, because of a past event, often a crime or environmental hazard.
Stigmatized property
A defect that is not visible, or apparent; a hidden defect that would not be discovered in a reasonably thorough inspection of property.
Latent defect
Points or facts that must be revealed. For example, the law requires certain financial disclosures, specific disclosures for ARMs and disclosures under truth in lending act
Disclosures
Real estate settlement procedures act- federal law, dealing with the real estate closings which sets for the specific procedures and guidelines for disclosure of settlement costs
RESPA
A fibrous material that was once very common in many building materials because of its insulating and heat-resistant value. (now banned in most places for most uses and subject to strict EPA regulations.
Asbestos
One who insures another, or takes risks, such as approving alone.
Underwriter
Federal national mortgage association – the nations largest, and privately owned, investor in residential mortgages.
Fanny Mae
Banks that provide services to financial institutions, E. G. Check clearing. (one main office in each federal reserve district) All nationally chartered commercial banks, must join federal reserve and buy stock in its district reserve bank.
Federal reserve banks
A fixed rate mortgage set up like a 30-year conventional loan, but payments increase regularly like an arm, also rapidly amortizing mortgage.
Growth equity (GEM) Mortgage
Program where a commitment is made by FHLMC to buy mortgages for 6 -8 months, with delivery of mortgages at the option of seller
Forward commitment purchase program
The department of housing and urban development; government agency that deals with housing issues.
HUD
States where a mortgagee only holds a lien against property (not actual title) until the loan is repaid, and the mortgagor holds the actual title
Lien theory states
An instrument that creates a voluntary lien on real property to secure repayment of a debt. The parties to a mortgage are the mortgagor (borrower) and the mortgagee (lender).
Mortgage
When the federal reserve board sells or buys government securities, (or US dollars) as a means of controlling supply and demand and confidence in those items.
Open market operations
A mortgage for the personal property, like furniture, is included in the property sale and financed together with the one loan.
Package mortgage
When lenders make mortgage loans directly to borrowers. This is also referred to as primary mortgage markets.
Primary market
An instrument that is evidence of a promise to pay a specific debt.
Promissory note
Filling a document at the county recorders office, so that it will be placed in the public record.
Recording
When a homeowner over age 62, with little or no outstanding liens, mortgages his or her home to a lender and in return receives a monthly check. Also called reverse mortgage.
Reverse annuity mortgage
A loan when a buyer and another investor (or seller, lender, etc.) enter into a partnership, with buyer paying an equity share in a deal in lieu of interest. Also called: participation plan.
Shared equity loan
A contract clause that gives a mortgage recorder at a later date the right to take priority over in earlier recorded mortgage.
Subordination clause
The total amount of money that can be made from an investment.
Yield
One who originates, sells and services, mortgage loans, and usually acts as the originator and servicer of loans on behalf of large investors, such as insurance companies, pension plans, or FNMA.
Mortgage banker
The federal reserve target for short term interest rates.
Federal funds rate
A type of credit scoring, where a number from 300- 850 is assigned to a credit report. The lower the score, the greater risk of default. Above 660 is an acceptable risk. 620 -660 is a marginal risk, below 620 is a high risk also referred to as beacons score.
FICO score
Federal home loan mortgage corporation, - (FHLMC) Non-profit, federally charactered institution that functions as a buyer and seller of savings and loan residential mortgages.
Freddie Mack
A law requiring all institutional mortgage lenders with assets of more than $10 million to make annual reports of all mortgage loans made in a given geographic area, where they have at least one office. This law is designed to help the government detect patterns of red lining.
Home mortgage disclosure act
To make property security for a loan, without giving up possession of it, (as with a mortgage)
Hypothecate
The form lenders require potential buyers to fill out, listing all pertinent information about the borrower and property.
Loan application
One who, for a fee, places loans with investors, but typically does not service such loans.
Mortgage broker
A mortgage, allowing the borrower to request for funds from the lender, up to a certain pre-defined limit, without having to be negotiate the loan.
Open-End mortgage
Office of thrift supervision - The government entity, that regulates savings and loans in the same manner that the federal reserve regulates commercial banks.
OTS
Additional money charged by a lender for the borrower, paying a loan off early.
Prepayment penalties
PMI insurance offered by private companies to ensure a lender against default on a loan by borrower.
Private mortgage insurance
REIT a real estate investment business with at least 100 investors, organized as a trust.
Real Estate Investment Trust
(RTC) an agency formed to manage the disposition of bankrupt savings and loans.
Resolution, trust corporation
The process of collecting loan payments, keeping records and handling defaults.
Servicing
Loans that have more risks, then are allowed in the conforming market. Also called B - C loans or B - C credit.
sub-prime loans
Act that requires lenders to disclose customer credit costs in order to promote informed use of consumer credit.
Truth-in-lending act
An interest created in property upon execution of a valid sales contract, whereby actual title will be transferred by deed at a future date (closing). Also the vendee’s (buyer’s) interest in property under a land contract. Also called an equitable interest.
Equitable title
(FHA) government agency that insures mortgage loans.
Federal housing administration
The system of a land ownership, or a king or queen owns all the land and all other people are merely tenants.
Feudal system
When a lienholder causes property to be sold, so that the unpaid debt secured by the lien can be satisfied from the sale proceeds.
Foreclosure
Mortgage that allows borrowers to make smaller payments in early years of the mortgage, with payments increasing yearly until payments are high enough that the fully amortize the loan.
Graduated payment mortgage (GPM)
The relationship of a borrower’s total monthly housing expense to income, expressed as a percentage.
House, expense ratio
Any mortgage that has a lower lien position, then another mortgage.
Junior mortgage
(LTV) the amount of money borrowed compared to the value or price of the property.
Loan-to-value-ratio
Promissory note or other finance instrument that is freely transferable.
Negotiable instrument
Fee charge by lender to cover the administrative costs of making a loan, usually based on the percentage of the loan amount (where 1% = 1 point). Also called: Loan origination fee, or loan service fee.
Origination fee
1% of the loan amount. Points are charged for any reason, but are often used for buydowns, (where they may also be called discount points). Points are used to increase the lenders yield on a loan.
Points
The lowest interest rate that banks charge their best commercial customers.
Prime rate
A mortgage with the seller, finances, all or part of the sale price of a piece of property for a buyer.
Purchase money mortgage
The amount of income, a borrower has left after subtracting taxes, housing, expenses, and all reoccurring debts and obligations. Used for VA loan qualifying.
Reschedule income
Private, investors, and government agencies that buy and sell mortgages. Also called: secondary mortgage market.
Secondary market
A note that calls for payments of interest only during the term of the note, with a balloon payment at the end of the loan term to pay off the principal amount.
Straight note
Charging an interest rate that exceeds legal limits.
Usury
A percentage rate of return used by investors to calculate the present value of future income. Used for an income approach to appraisal, also called rate.
Cap rate
The measurement of a parcel of land by the number of feet of street or road frontage.
Front foot
The fee for transfer of title to real property from one person, to another, by means of a written document, such as a deed.
Conveyance Fee
One - tenth of one cent used in some states to compute real estate taxes.
Mill
Simple depreciation method that takes the total cost of a building and divides that by the number of years the building is expected to be useful.
straight. line depreciation
Income after expenses. Also called net operating income.
Net income
Amount of goods or services offered in the marketplace in exchange for something.
Value
The difference between the money made from an investment and the money actually invested.
Profit
