Vocab Flashcards
(1) Cost basis is the dollar amount assigned to property at the time of acquisition under provisions of the internal revenue code for the purpose of determining gain, loss and depreciation in calculating the income tax to be paid upon the sale or exchange of property. (2) Adjust basis is the cost basis after the application of certain additions for improvements, Etc., and deductions for depreciation, etc.
Basis
(1) The person who gives authority to an agent or attorney. (2) debt amount, less the interest.
Principal
(American land title Association) A type of title insurance policy issued by title insurance companies which expands the risks normally insured against under the standard policy to include unrecorded mechanics lien; on recorded physical easements; facts a physical survey would show; water and mineral rights; and rights of parties in possession, such as tenants and buyers under unrecorded instruments.
ALATA Title Policy
A burden on title; in other words, a temporary restriction on a property that can be removed when certain conditions are met. A mortgage against your property, you must pay it or you could lose the property. A claim, lien, charge, or liability attached to and binding Real Property.
Encumbrance
A claim, such as a taxes or a judgment, which attaches to a property without the consent of the owner for the purpose of paying of the debt.
Involuntary lien
A comparison of similar properties to a subject property for the purpose of evaluating market value and proper pricing.
Comparative analysis
A contractual agreement under which the listing broker acts as the agent and the seller(s) agrees to pay a commission to the listing broker if the property is sold through the efforts of any other real estate broker.
Exclusive agency listing
A conveying written instrument used to pass title to property upon sale from one person (grantor) to another person (grantee). To be valid it must be properly executed and delivered.
Deed
A court action brought to establish title. To remove a cloud on the title.
Quiet title
A deed in which the grantor guarantees the title only against defects arising during grantors ownership of the property and not against defects existing before the time of grantors ownership.
Special warranty deed
A deed operating as a release, intended to pass any title, interest, or claim which the grantor may have in the property, but not containing any warranty of a valid interest or title by the grantor. A legal form that allows a person, entity, or trust to transfer real estate in Nevada.
Quitclaim deed
A deed used to convey real property which contains warranties of title and quiet possession, and the grantor thus agrees to defend the premises against the lawful claims of third persons. The primary deed form used in Washington to convey fee title to real property.
Warranty deed
A feature of the house might be outdated and not easily improved. This reduces the property’s desirability and, in turn, its value. A structure or equipment has become inefficient because of improvements since discovered or invented. Having to go through a bathroom to get to a dining room.
Functional obsolescence
A federal law requiring the disclosure two borrowers of settlement (closing) procedures and costs by means of a pamphlet and forms prescribed by the United States department of housing and urban development (HUD).
Real estate settlement procedures act (RESPA)
A form of ownership by husband and wife whereby each owns the entire property. In the event of the death of one, the survivor owns the property without probate.
Tenancy by the entirety
A formal agreement between parties that may be rendered unenforceable for any number of legal reasons.
Voidable Contract
A general term which encompasses any method of financing property going beyond traditional real estate lending.
Creative financing
A gift of real property by will
Devise
A governmental right to acquire property for public use by condemnation, and the payment of just compensation.
Eminent domain
A judicial proceeding in which the validity of a will is established and the executor is authorized to distribute the estate property; or, when there is no valid will, an administrator is appointed to distribute the estate to the heirs.
Probate
A lease, under which the lessor is the lessee of a prior lease of the same property.
Sub lease
A lease, usually on a retail business property, using a percentage of the gross or net sales to determine the rent. There is usually a minimum base rental, in the event of poor sales.
Percentage lease
The way in which a property is described by law and by legal terms.
Legal Description
A legal document in which title to property is transferred to a third-party trustee as security for an obligation owed by the trustor (borrower) to the beneficiary (lender). Also called a trust deed. A deed of trust is similar to a mortgage – the main difference is that it involves three parties. When a borrower repays the note secured by a deed of trust, the trustee must reconvey title back to the borrower by way of a deed of reconveyance, which is also called a release deed.
Trust deed
A legal document pledging collateral for a loan that has first priority over all other claims against the property except taxes and bonded indebtedness. Is superior to all others, usually determined by the order in which it was recorded.
First trust deed
A legal document that details how you prefer to receive medical treatment when you can no longer make decisions for yourself and how assets are to be divided.
Living will
A legal document used to transfer real estate between a previous owner (the grantor) and a new owner (the grantee). A limited warranty deed that assures a grantee that the grantor has not already conveyed the land to another and that the estate is free from encumbrances placed by the grantor. The most common deed form used in California. Not used in Washington.
Grant deed
A legal notice recorded to show pending litigation related to Real Property, and giving notice that anyone acquiring an interest in said property subsequent to the date of the notice may be bound by the outcome of the litigation.
Lis Pendens
A legal promise made by a seller to a buyer that the property being sold is free from any liens or other claims that could prevent the buyer from enjoying full ownership of the property.
Covenant against encumbrances
A legal promise that the seller will do whatever is necessary to remove a defect associated with title, such as an encumbrance, if it arises, and if the problem is not fixed, damages will be awarded.
Covenant of further assurances
Easement given by one property owner to the other for commercial purposes. normally utilities.
Commercial easement
A legal theory under which a person is barred from asserting or denying a fact because of the person’s previous acts or words.
Estoppel
A lien on all the property of a debtor
General Lien
A lien which is senior or superior to all others.
–
Prior lien
A life estate a wife acquires in the property her husband’s death.
Dower
A life estate a husband acquires in the property his wife’s death.
Curtsey
A listing contract whereby the owner promises to pay a commission to the broker if property is sold during a stated period, regardless of whether or not the broker is the cause of sale.
Exclusive right to sell
A lump sum payment, usually at the end of the term of a note with terms insufficient to fully amortize the loan, or due prior to the end of the amortization period.
Balloon payment
A method of obtaining an approximate value of income property by using yearly rents. Amount is calculated by dividing sale price of an investment property by annual rents relating to property.
Gross rent multiplier (GRM)
A method of taxation using the value of the real estate to determine the amount of the tax.
Ad Valorem
A mortgage or deed of trust not obtained under a government program, i.e. which is not FHA insured or VA guaranteed. Type of loan customarily made by a bank or savings and loan association.
Conventional loan
A mortgage or trust deed given from buyer to seller to secure all or a portion of the purchase price.
Purchase money mortgage or trust deed
A neutral third-party which receives all funds and instruments necessary to a sale, and which processes them according to instructions. Home Insurance, Property tax, etc.
Escrow
A nonprofit association of homeowners organized pursuant to a declaration of restrictions or protective covenants for a subdivision, PUD or condominium.
Homeowner’s Association (HOA)
A note calling for periodic payments which are insufficient to fully amortize the loan, so that a principal sum known as a balloon is due at maturity.
Balloon note
A partial interest by two or more people in the same property, whether the interest of each is equal or unequal.
Undivided interest
The full repayment of a loan,
Redemption
In possession of real estate owned by someone else attempts to claim title because they have a history of continuous use of the property 5 years in NV and paid property taxes.
Adverse possession
A person named in a will to carry out its provisions as to the disposition of the estate of a person deceased.
Executor
A person upon whom the powers of an agent have been conferred, not by the principal, but by an agent as authorized by the agents principal.
Sub agent
A person who died without leaving a will.
Intestate
A person’s legal residence.
Domicile
A present or future right to ownership and/or possession of real property. The interest or nature of the interest which one has in real property.
Estate
A procedure in or out of court, to extinguish all rights, title, and interest of the owners of property in order to sell the property to satisfy a lien against it. A notice of default, a danger notice, and a notice of sale.
Foreclosure
A property that was purchased and is owned jointly by two or more people. All owners are included on the title of the home, and all parties hold a portion of ownership in the property. Includes Joint tenancy, Tenancy in common.
Co-ownership
A real estate loan having priority over all other voluntary liens against certain property. The loan that is superior to all others, usually determined by the order in which it was recorded.
First mortgage
A regulation issued under the truth in lending law (TILA), which requires that a credit purchaser be advised in writing of all costs connected with the credit portion of the purchase.
Regulation Z
A reversion of property to the state in the absence of an individual owner, usually when a property owner dies without a will. the right of a government to take ownership of estate assets or unclaimed property in the event there are no heirs or beneficiaries.
Escheat
A revocable trust whereby one party (the Trustee) agrees to hold ownership of a piece of real property for the benefit of another party (the Beneficiary)
Land trust
A right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligation the party who receives the right to exercise the right.
Option
A right, either permanent or temporary, created and retained by a grantor of property.
Reservation
A sale of property when the seller is under extreme pressure to sell, and which generally results in the property selling for less than market value.
Distress sale
A second or junior mortgage with a face value of both the amount it secures and the balance due under the first mortgage. The mortgagee collects a payment based on its face value and then pays the first mortgagee.
Wrap around mortgage
A seizure of property by judicial process.
Levy
A short term warranty deed which warrants by inference that the seller is the undisputed owner, (protects the new owner), has the right to convey the property, and will defend the title if necessary. This type of deed protects the purchaser in that the conveyor covenants to defend all claims against the property. If conveyor fails to do so, the new owner can defend said claims and sue the former owner.
Statutory warranty deed
A small community that can contain many types of single-family homes, like townhomes or condominiums. Right to access common areas. Owning the footprint of real estate under the unit.
Planned unit development (PUD)
A structure of two or more units, the interior space of which are individually owned, with the balance of the property (both land and building) owned in common by the owners of each unit.
Condominium
A subdivision consisting of separately owned parcels of land together with membership in an association which owns common area. Sometimes the owners of separate interests also have an undivided interest in the common area.
Planned development
A summary comprehensive appraisal report of all factual materials, techniques and appraisal methods used by the appraiser in setting forth his or her value conclusions.
Narrative appraisal
A system of individual ownership of units in a multi-family structure, combined with joint ownership of common areas of the structure and the land.
Condominium
A territorial division of land established by federal survey, being 6 mile Square and containing 36 sections, each 1 mile Square.
Township
A time period during which a mortgage, deed of trust, or contract can be settled. Usually set by statute, and after judicial foreclosure.
Redemption period
The transfer of the right, title and interest in the property of one person to another. Ownership
Assignment
A trust in which the trustor cannot take back the trust once it has been formed.
Irrevocable trust
A use or uses prohibited to the owner of land.
Restriction
A will that is not written but rather is spoken aloud by an individual who is nearing death.
Nuncupative will
A written authorization to a real estate broker by a property owner, stating that a commission will be paid to the broker upon presentation of an offer which meets a specified price and terms. However, the broker has no exclusive right to sell, and must bring in his offer before any other offer is accepted.
Open listing
A written instrument whereby a principal gives authority to an agent. The agent acting under such a grant is sometimes referred to as the principles attorney-in-fact. Document allowing a person (“principal”) to designate someone else (“agent”) to represent them in financial affairs.
Power of attorney
A
A unilateral agreement containing an express and absolute promise of the signer to pay a named person a definite some of money at a specified date. Usually provides for interest and is secured by a mortgage or deed of trust.
Note
Acts of ownership must be observable by others, obvious, and not be secret or hidden. Requirement for adverse possession.
Open and notorious
Information that is learned by reading, seeing or hearing.
Actual notice
Affirms that the maximum value of a property tends to be set by the cost of acquiring an equally desirable and valuable property, assuming no costly delay is encountered in making the trade.
Substitution, principle of
Agreement by a buyer to assume the liability under an existing note secured by a mortgage or deed of trust.
Assumption
All rights and interests of ownership in Real Property considered together but separable.
Bundle of rights
Also known as tenancy at will. An estate in which a person holds or occupies real estate with the permission of the owner for an unspecified or uncertain period of time.
Estate at will
Marketable real or personal property which a borrower pledges as security for a loan. In mortgage transactions, specific land is used to secure the performance of a principal agreement (the promissory note).
Collateral
An account used by brokers, escrow agents, or anyone holding money securely for another.
Trust account
An acre (43,560 ft), as distinguished from a net (usable) acre.
Gross acre
An acre measured to remove certain features such as reads, utilities, and open space
Net acre
An action taken when another (such as a neighbor, puts a structure that intrudes on or over the owner’s land/boundary). There are several instances where boundary issues take place, and they can be quite difficult. Generally, construction onto the property of another, as of a wall, fence, building, etc.
Encroachment
An addition or supplement that explains, modifies, or revokes a will or part of one.
Codicil
An agency of the federal government that insures private mortgage loans for financing of new and existing homes and home repairs.
Federal Housing Administration (FHA)
An agreement between a buyer and seller of Real Property, setting forth price and terms of sale.
Purchase agreement
An agreement by which the owner of Real Property gives the right to hold and use the property to another, for a specified period of time, and for consideration.
Lease
An appraisal method to determine the value of rental property by use of the estimated net income over the life of the structure. The calculation of value is a three-step process 1) determine net annual income, 2) set an appropriate rate or “present” worth factor by deriving the rate or multiplier, and 3) Apply the derived rate or multiplier to value the subject property: Rate = Net Operating Income / Current Market Value
Income (capitalization) approach
An appraisal term wherin a component part of a property is valued in proportion to its contribution to the value of the home. Holds that maximum values are achieved when the improvements on a site produce the highest (net) return, commensurate with the investment.
Contribution, principle of
An arrangement whereby legal title to property is transferred by the grantor (or trustor) to a person called a trustee, to be held and managed by that person for the benefit of another, called a beneficiary
Trust
An association of two or more persons who invest as co-owners.
Partnership
An easement that is created when the owner of a landlocked parcel has no access to a public right of way such as a street or highway.
Easement by Necessity
An encumbrance against property for money, either voluntary or involuntary.
Lien
An estate held under a lease for the term of the lease.
Leasehold estate
The right to ownership of the land for the length or duration of a person’s life. Upon death, the ownership of the property may revert to the original owner or another designated party. Involves a grantor of the life estate and a remainderman, or the person receiving the estate.
Estate for life
An estate in Real Property for the life of a living person. The estate then reverts back to the grantor or onto a third-party.
Tenant for life
An estate lease agreement that lasts a specific amount of time, with opportunities for renewal at the end of each lease.
Tenancy for years
An estate of inheritance (land or other realty) over which a person has absolute ownership.
Fee
An estate of property held by one person alone. Sole ownership.
Severalty
An estate under which the owner is entitled to unrestricted powers to dispose of the property, and can be left by will or inherited. The greatest interest one can have in Real Property.
Fee simple estate
An estate, a freehold interest in land, which may descend to heirs.
Estate of inheritance
An estate which takes effect after the death of the prior estate, such as a life estate. A future possessory interest in real property created from Pur autre vie.
Remainder or remainderman
An estate which vests in one other than a grantor, after the termination of an intermediate estate.
Estate in remainder
An increase in value of real estate due to no effort on the part of the owner which is most often due to the increase in the population in an area that creates an increased demand for it.
Unearned increment
An instrument by which one transfers personal property.
Bill of sale
An instrument freeing property from a lien of a mortgage, judgment, etc. When a deed of trust is used, the instrument’s called a reconveyance.
Release
An instrument used to transfer title from a trustee to the equitable owner of real estate, when title is held as secured collateral.
Reconveyance deed
An interest in land where there is no definite termination date but the rental period is fixed at a certain sum per week, month, or year. Also called a periodic tenancy.
Estate from period to period
An interim loan, generally made between a short-term loan and long-term loan, when the borrower needs to have more time before taking the long term, or permanent, financing.
Bridge loan
An involuntary lean, created by law rather than by contract, including tax liens, mechanics liens, etc.
Statutory lien
An outlining on a map of certain high-risk areas for real estate loan purposes, meaning that lenders will not extend credit in those areas. Illegal in most states.
Redlining
An unattested will that is written and signed in the testator’s own handwriting. Must be witnessed to be valid.
Holographic will
There are multiple owners of a piece of property, and each owner owns their interest separately. Although the ownership interest is divided, the property itself is not. Each owner may sell, convey,
mortgage, or transfer their interest without consent of other co-owners. No individual tenant may transfer ownership of the entire property. the ownership transfers as defined by the deceased’s will or to his/her heirs if no will exists.
Tenancy in common, Cotenancy,
And agreement to do or not to do a certain thing. It must have four essential elements – parties who are capable, consent of the parties, a lawful object or purpose and consideration. For sale of real property must also be in writing and signed by the party or parties to be charged with performance.
Contract
Any division of Real Property between co-owners, resulting in individual ownership and interests. Comes from the basic word to break into “parts” as in physically dividing real estate into separate parts.
Partition
Any estate for a definite period of time, such as a lease.
Estate for years
Any encumbrance placed on property with consent of, or as a result of, the voluntary act of the owner.
Voluntary lien
Any part of Real Property which passes upon the transfer, either attached or not, such as a barn or an easement.
Appurtenances
Any property that is not Real Property that is not attached or made part of the structure itself. Also called chattel or personalty.
Personal property
Any relationship in which one party (agent) acts for or represents another (principal), under the authority of the latter.
Agency
Anything of value such as money, goods, services, or promises, given to induce another person to enter into a contract.
Consideration
Anything that is actually fastened to the real property. They become part of the real property.
Fixtures
Appraising the value of property by comparing the price of similar properties (comparables) recently sold. This is the most widely used of the three methods of appraisal for residential property.
Market data approach
Articles of personal property annexed to real property, but which are necessary to the carrying on of a trade and are removable by the owner of the fixtures.
Trade fixtures
Similar properties used as a comparison to determine the value of a specific property.
Comparables or comparable sales
Attaches the right of use to a single individual or entity rather than to the property itself. Utility worker, hunter, etc.
Easement in Gross
Land that borders a flowing water source, like a river.
Riparian
Clause in a mortgage or deed of trust giving the mortgagee or trustee the power to sell the property in the event of default.
Power of sale
Combining successive periods of continuous use or occupation of real property to establish adverse possession or a prescriptive easement
Tacking
A dividing structure owned by two tenants in common unless there is some proof suggesting otherwise.
Party wall easement
Communal ownership and use of real estate that permits multiple purchasers to buy undivided interests in real property (usually in a resort condominium or hotel) with a right to use the facility for a fixed or variable time period.
Timeshare
Conveyance of real property pursuant to a judge’s order.
Judicial deed
Court ordered easement,
Legal action easement
Created by deed, contract, or other written instrument which specifies the location and dimensions of the easement as well as the permitted use or uses of the easement and who may use it.
Express easement
Created when the parties intended to create an easement but, for whatever reason, did not include it in a written instrument and was used through the years.
Implied easement
Deed given at sheriff’s sale in foreclosure of mortgage. The giving of said deed begins a statutory redemption period. Also given at a court ordered sale, pursuant to the execution of a judgment.
Sheriffs deed
Deed of title transferred by the government to a grantee.
Government land patent
Defines ownership, is used to clear the defects and secure marketable title to the property. Will put to rest other claims against the property that were recorded against the property before you took title.
Quiet title action
Discharge of an obligation by payment of the amount due, as on a mortgage or trust deed, or payment of a debt awarded.
Satisfaction
Enjoy the way the owner wishes to use the property.
Right to Use
Estate benefited by an easement right of use.
Dominant Tenement
Everything capable of being owned and acquired lawfully. The rights of ownership. The right to use, possess, enjoy and dispose of anything in every legal way and to exclude everyone else from interfering with these rights.
Property
Evidence one has of right to land possession. The rights of ownership often referred to as the “bundle of rights”.
Title
Filing documents affecting Real Property as a matter of public record, giving constructive notice to future purchasers, creditors, or other interested parties.
Recording
Financial instrument that contains a written promise by one party (the note’s issuer or maker) to pay another party (the note’s payee) a definite sum of money, either on demand or at a specified future date.
Promissory note
Profit realized from the sale of capital assets, and generally the difference between cost and selling price, less deductible expenses. Used mainly for income tax purposes.
Capital gains
Information about properties that is given to the public via recorded documents about interests and rights in real estate.
Constructive notice
Gives part of their property in order to provide access to the public right of way or public use,
Voluntary Dedication
Giving an entity the right to access the land or property of another for a specific purpose.
Easement
Grants your tenant peace and quiet while staying in your rental unit. As the landlord, you’re responsible for maintaining a harmonious home environment and keeping the disturbances to your tenants’ lives minimal.
Covenant of Quiet Enjoyment
Having force or binding force, legally sufficient and authorized by law.
Valid
A person who died leaving a will.
Testate
Having written a last will and testament.
Testate
Imaginary lines used by surveyors to find and describe the location of private or public lands. In government surveys, a baseline runs due east and west, meridians run due north and south, and are used to establish township boundaries.
Base and Meridian
In a deed, a phrase of: “I, the seller, hereby convey and warrant this property to the buyer.”
Granting clause
In appraising, a valuation principle stating that the market value is affected by intersection of supply and demand forces in the market as of the appraisal date.
Supply and demand, principle of
In contract law, a future and uncertain event which must happen to create an obligation or which extinguishes an existent obligation.
Condition
Incomplete right, such as a wife’s dower interest in her husband’s property during his life.
Inchoate right
Installments for the sale of land. The seller (vendor) has legal title until paid in full. The buyer (vendee) has equitable title during the term. A form of seller financing that may appeal to buyers or sellers who want an alternative to a traditional mortgage.
Land sales contract
Involuntary transfer of property such as foreclosure or eminent domain.
Involuntary Alienation
Is a gift from the estate of a person who has passed away.
Legacy
Recorded in the county, gives the creditor the right to be paid a certain amount of money from proceeds from the sale of the debtor’s property after it is sold.
Judgment Lien
Land (the shore) that borders a lake, ocean, or sea.
–
Littoral
Land and anything permanently affixed to the land, such as buildings, fences, trees, and those things attached to the buildings, such as heating and plumbing fixtures, light fixtures, or other such items.
Real estate
Laws requiring certain types of contracts to be in writing. All contracts for the sale of real property must be in writing, and leases for more than one year must be in writing.
Statute of frauds
Legal agreement for the sale of property between a buyer and seller, alternative to a mortgage. The seller has legal title until paid in full. The buyer only has equitable title until paid in full.
Contract for deed
Legal document that coordinates the distribution of assets after death and can appoint guardians for minor children.
Will
Life estate created by law.
Legal Life Estate
Let the buyer beware. The buyer must examine the goods or property and buy at his or her own risk, absent misrepresentation.
Caveat emptor
The holder of a life estate
Life Tenant
Limit the use of a particular property, a condominium, or a subdivision. The main purpose is to maintain the look and feel of the community.
Restrictive Covenants (CCRs)
Loss of desirability and useful life of a property through economic forces, such as zoning changes, traffic pattern changes, etc., rather than deterioration.
Economic obsolescence
Loss of value of property brought about by age, physical deterioration or functional or economic obsolescence. The term is also used in accounting to identify the amount of the decrease in value of an asset that is allowed in computing the value of the property for tax purposes.
Depreciation
Market value of Real Property, less the amount of existing loan balances.
Equity
Most common form of will, usually drafted by an attorney.
Formal written will
Multiple ownership of a property, with the distinguishing feature of the right of survivorship. If one of the joint tenants dies, the remaining tenants remain joint tenants rather than the heirs of the deceased. Equal ownership. PITT
Joint tenancy
Of no legal effect of validity
Null and void
Offer to perform.
Tender
A relationship of trust and confidence. In real estate practice as between a principal (seller or buyer) and a broker. Loyalty, accounting, disclosure, care and confidentiality. This cannot be breached.
Fiduciary
One entitled to the benefit of a trust.
Beneficiary
One to whom property or property rights is given, generally the buyer.
Grantee
One who acts for and with authority from another called the principal.
Agent
One who assigns or transfers property.
Assignor
One who comes into possession lawfully, but who holds over after termination of his interest or lease.
Tenant at sufferance
One who holds possession by permission of the owner or landlord, no definite lease term.
Tenant at will
One who holds title to real property under the terms of a deed of trust.
Trustee
One who owns property alone.
Tenant in severalty
One who transfers property or property rights. One who gives a deed.
Grantor
Ownership of a property without legal title, such as a vendee under a land sales contract.
Equitable ownership
Ownership of an estate of indefinite, interminable duration, E.G., fee simple or life estate.
Freehold estate
Person making the will.
Devisor
Person pledging assets to a trust.
Trustor
Personal property. Goods or every species of property movable or immovable which are not real property.
Chattel
Possession of property is an actual invasion of, or infringement upon, the true owner’s property rights, w/o permission.
Hostile
Property accumulated by husband and wife by the efforts of either, which is equally divisible at time of divorce or dissolution, whether the spouse is on the title or not has equal rights to or interest in the property.
Community property
Property acquired by husband and or wife during a marriage when not acquired as the separate property of either spouse. Each spouse has equal rights of management, alienation and testamentary disposition of the property. Washington is a <BLANK> property state.</BLANK>
Community property
Property has no legal access road to it.
Landlocked
Property owned by a spouse before marriage, or. It was acquired during the marriage as a gift, by inheritance, or as an award of damages for personal injury.
Separate property
Protects home against judgments up to specified amounts.
Homestead
Real estate sale prices are not publicly available.
Non-disclosure state
Real Property against which there are no liens, especially voluntary liens.
Free and clear
Repairs necessary to put a property in good condition.
Deferred maintenance
Replacing one person with another in regard to a legal right or obligation.
Subrogation
Required signatures on a deed.
Important signatures
The cancellation of a contract and restoration of the parties to the same position they held before the contract was entered into.
Rescission
Right of an owner or tenant to the use of the property without interference of possession.
Quiet enjoyment
Similar to a mortgage, a security instrument whereby Real Property is given as security for a debt.
Deed of trust
Something in the immediate area, such as, a busy street, train tracks, airports, something that will deter a buyer buying the home.
External Obsolescence
Something that can be severed or removed from the property. Crops
Emblements
States that the grantor solely owns the land or property being purchased, and no other parties have a property interest or claim to ownership of the land.
Covenant of seisen
Substitution of a new contract, debt, or obligation, for an existing one, between the same or different parties.
Novation
Taking private property for public use through the government’s power of eminent domain.
Easement by condemnation
Co-ownership of property by husband and wife (in states that don’t use a community property system). Both must sign deed together and one spouse can not sell by themselves.
Tenancy by Entirety
The acquisition of ownership of real estate by inheritance, or by any act of law.
Descent
The act of transferring the deed from one party to another. Mortgage company transfers deed to owner after loan is paid off.
Deed of conveyance
The amount of money the buyer or seller must pay the lender to get a mortgage at a stated interest rate, equal to 1% increments.
Discount points
The borrower holds the title to the property. Instead of a Deed of Trust, a Mortgage is recorded in the public record and acts as a lien against the property until the debt is paid off. With a mortgage, a homeowner has both legal and equitable title. Nevada is such a state.
Lien theory
The borrower under a deed of trust. One who deeds his property to a trustee as security for the repayment of a loan.
Trustor
The building of a structure to meet the specifications of a purchaser.
Build to suit
The chronological order of conveying of a parcel of land, starting from original owner.
Chain of title
The clause in a deed which defines the extent of the estate of the grantee. It is often referred to as the “to have and to hold” clause.
Habendum clause
The determination of present value of income property by taking the annual net income, and dividing by a rate of return percentage which is commonly acceptable to buyers of similar properties (i.e. $10,000/11% = $90,909).
Capitalization
The dividing of property tax, insurance, rental income, and other items between buyer and seller proportionately to time of use, closing date, or other agreed-upon time.
Proration
Legal obligation by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the principal by the slightest misrepresentation, concealment, duress or pressure. The common law actions are loyalty, accounting, disclosure, care and confidentiality.
Fiduciary duty
The form of co-ownership, an undivided ownership interest, title to the property will be held in the name of the association.
Tenancy in partnership
The four unities are: Possession (the owners together have possession of the property), Interest (they have the same interest; if two owners; then 50/50; if four owners; then 25% each, etc.), Time (their ownership began at the same time), and. Title (proof of ownership comes from a single deed). Joint tenancy.
PITT
The granting of an easement by a court, based on the presumption that a written easement was given, although None existed, after a period of open and continuous use of land.
Prescriptive easement
The guarantee that the title will always be good, and that the grantor will compensate the grantee if it is later found that the title is defective.
Covenant of warranty forever
The highest price a willing buyer would pay and a willing seller would accept, both being fully informed, and the property exposed for a reasonable period of time.
Market value
The instrument by which real estate is hypothecated as security for the repayment of a loan.
Mortgage
The intentional and successful employment of any cunning, deception, collusion used to circumvent, cheat or deceive another person whereby that person acts upon it to the loss of property and to legal injury. A deliberate misrepresentation or representation made in reckless disregard of its truth or it’s falsity, the suppression of truth, a promise made without the intention to perform it or any other act intended to deceive.
Fraud
The interest in the property is reliant on the life expectancy of another person who is not on the deed. Upon death, property reverts to the remainderman. In property law of the US and Canadian provinces, its a duration of a property interest.
Pur autre vie
The legal right to void a voidable contract.
Disaffirmance
The means of acquiring incorporeal interests in land, usually an easement, by notorious, open and long or continued use.
Prescription
The order in which liens are given legal precedence or preference.
Priority of lien
The owner of a servient tenant, that is, someone whose property is burdened by an easement.
Servient Tenant
The owners of a subdivision or other property file a plat that results in a grant of public property, such as the streets in a development. When private property is transferred to public use deed is filed.
Statutory dedication
The party lending the money and receiving the mortgage.
Mortgagee
The party who borrows the money and gives the mortgage.
Mortgagor
The percentage used to determine the value of income property through capitalization. The yield rate that is necessary to attract the money of the average investor to a particular kind of investment. The yield rate is used in the process of determining value based upon net income.
Capitalization rate
The practice on the part of unscrupulous speculators or real estate agents of inducing panic selling of homes at prices below market value, especially by exploiting the prejudices of property owners in neighborhoods in which the racial make-up is changing or appears to be on the verge of changing. This practice is prohibited by fair housing laws.
Block busting
The price paid for a property regardless of pressures, motives or intelligence.
Market price
The process by which real or personal property of a party to a lawsuit is seized and retained in the custody of the court for the purpose of acquiring jurisdiction over the property, to compel an appearance before the court, or to furnish security for a debt or costs arising out of the litigation.
Attachment
The property that is burdened by an easement. It must “serve” the dominant tenement
Servient Tenement
The representation by an agent of opposing principals (buyer and seller) at the same time. This practice is legal only if properly disclosed.
Dual agency
The required computation of financial adjustment between buyer and seller as of the date of closing. The final statement in most real estate transactions is known as a HUD-1 statement.
Closing statement
The right of a land owner whose land borders on a stream, watercourse, or river to use and enjoy the water which is adjacent to or flows over the owners land provide such use does not injure other similar owners.
Riparian rights
The right of the state to enact laws and enforce them for the order, safety, health, morals and general welfare of the public.
Police power
Right to acquire the interests of a deceased joint owner; distinguishing feature of a joint tenancy.
Right of survivorship
The right to ownership of the land for the length or duration of a person’s life. Upon death, the ownership of the property may revert to the original owner or another designated party. Involves a grantor of the estate and a remainderman, or the person receiving the estate.
Life estate
The right to resume possession or enjoyment by a person, or the person’s heirs, creating the preceding estate. Example of the estate that is returned to the lessor at the end of a lease.
Reversion
The rights in real property to the reasonable use of the airspace above the surface of the land.
Air rights
The rights of one or more persons to possess and use property to the exclusion of all others. A collection of rights to use and enjoy a property.
Ownership
The specific amount of time which a property or an improvement, can be put to profitable use.
Economic life
The taking of private property for public use without the consent of the owner, but only upon payment of just compensation.
Condemnation
The trade or exchange of One Real Property for another without the need to pay income taxes on the gain at the time of the trade. The tax on the gain is postponed under the rules of IRS code section 1031. Also known as a 1031 exchange.
Tax-free exchange
That clause in a deed which states, “to have and to hold to said grantee, his heirs, successors, and assigns, forever.”
Habendum Clause
The transferring of property to another; the transfer of property and possession of land, or other things from one person to another. Lease
Alienation
The trust that can be amended or revoked as the grantor desires,
Revocable trust
The use is regular and uninterrupted.
Continuous
The use of land which will bring the most economic return over a given time.
Highest and best use
The value that exceeds its assets minus the liabilities. It represents the non-physical assets, such as the value created by a solid customer base, brand recognition or excellence of management. An intangible but saleable asset of a business derived from the expectation of continued public patronage.
Goodwill
The warranty deed where the seller guarantees that the title title that is free of debt, claims, or other legal encumbrances full of entire bundle of rights that goes with the property.
General Warranty Deed
This is a limitation in the deed to a property that dictates certain uses that may or may not be made of the property.
Deed Restriction
This is the amount of money that would be paid for a property offered on the open market for a reasonable period of time with both buyer and seller knowing all the uses to which the property could be put and with neither party under pressure to sell or buy.
Fair market value
Those to whom property or interests therein shall have been transferred.
Assignees
Time periods to enforce a claim by court action. After the statutorily defined time period for the type in action has expired, the court will not hear the claim.
Statute of limitations
Title is held in the lender’s name until the final payment is made, when title is passed or re-conveyed to the borrower.
Title theory or mortgage states
Title VIII of the Civil Rights Act of 1968 prohibits discrimination in the provision of housing and housing-related services based on race color, religion, national origin, sex (gender), familial status (presence of children under the age of 18), and handicap. Nevada state law also includes protections based on ancestry, sexual orientation, and gender identity or expression.
Fair housing law
To affirm to be true or genuine; an official act establishing authenticity.
Attest
To buy back, re-purchase or recover after foreclosure.
Redeem
To enter
Ingress
To exit
Egress
To make subject to or junior or inferior to.
Subordinate
To mortgage or pledge without delivery of the security to the lender. When an asset is pledged as collateral to secure a loan.
Hypothecate
To repossess or a court action to repossess.
Replevin
To return
Regress
Transfer of title to land. Includes most instruments by which an interest in real estate is created, mortgaged, or assigned.
Conveyance
Type of deed with a specific purpose.
special purpose deed
Type of easement that stays with the property regardless of who owns it
Appurtenant easement
Unlawful constrain exercised upon a person whereby he or she is forced to do some act against his or her will.
Duress
Unlike property used to equalize equities in an exchange that will trigger tax on the amount of the boot.
Boot
Used to determine a cap rate using a weighted average of select rates.
Band of investment
To have no force or effect. That which is unenforceable.
Void
Whatever method is legally specified for official notification. Can include a registered letter, advertisement in a designated newspaper, telegram, or other methods.
Legal notice
When a seller gives a warranty deed to the buyer.
Assurance of quality of title
When an owner voluntarily transfers an interest to someone else.
Voluntary Alienation
An estate which vests back to the grantor, after the termination of an intermediate estate. When the original grantor of the original conveyance retains the right to future possession of the property.
Estate in reversion
Whichever lien is recorded first in the land records has higher priority than later recorded liens except Government has first rights.
Lien priority
Seller of property; one who signs a deed.
Grantor
The purchaser, a person to whom a grant is made.
Grantee
A set of regulations written by city or county officials with the help of construction pros that governs the design, construction and modification of commercial buildings, homes and other structures in the jurisdiction.
Building codes
A zoning exception that allows you to use your property in non-conforming ways. It can be an alternative to applying for rezoning, and it can allow you to use your property in a unique way where rezoning is not possible.
Conditional use permit
Immediate necessity for the trespass and must have trespassed in genuine good faith that it was to protect public safety.
Emergency
The event in which the government takes private property but fails to pay compensation or just compensation.
Inverse condemnation
The police power of enforcing or imposing regulations in an industry.
Licensing
A property use that doesn’t conform to current zoning requirements, but is allowed because the property was being used in that way before the present zoning ordinance was enacted.
Nonconforming Use
Revitalization of older properties through eminent domain.
Urban renewal
Allows a property owner to deviate from current zoning laws for any number of reasons.
Variance
A person who uses an agent for negotiations with a third party who has no knowledge of the identity of the agent’s principal.
Undisclosed principal
An agent who is authorized to do everything that can be lawfully done for the principal.
Universal Agent
You must have your agency relationship in place and verified before moving forward with a contract.
Agency before contracts
Who in addition to managing the office also helps buyers and sellers with their own needs alongside their own agents.
Competing Broker
A brokerage unaffiliated with a franchise.
Independent brokerage
Taking the time to be thorough making sure that all data is complete and accurate.
Reasonable efforts
A brokerage specializing in certain aspects of real estate.
Specialty brokerage
Knowingly making a false statement about a material fact.
Willful misrepresentation
A fixed charge that a home seller pays to have their home listed on the market, instead of a percentage-based commission based on the final sale price of the home.
“A la carte” service agreement.
Flat fee
Defects that are not visible or apparent.
Latent Defect
The fiduciary duty of an agent to maintain and preserve the property and money of the principal. The agent must keep accurate records of funds and documents received.
Accounting
Looking out for the client’s best interests to the greatest extent possible.
Championing
A method of determining the approximate market value of a home by comparing the subject property to similar homes that have sold, are presently for sale, or did not sell in a given area.
Comparative Market Analysis (CMA)
Fiduciary duty for agents who must keep all information that a client provides to them private except to their broker.
Confidentiality
The fiduciary duty of revealing completely and fully all information concerning the transaction and property that might affect the client’s decision.
Disclosure
a licensee who, with the written and informed consent of all parties to a real estate transaction, represents both the seller and buyer or both the landlord and tenant.
Limited agent
A fiduciary duty that requires a real estate licensee to put the principal’s interests above all others’ interests, including her own.
Loyalty
To confer with another so as to arrive at the settlement of some matter.
Negotiate
Specialized sectors of the property market.
Niche market
A fiduciary duty that requires a licensee to follow the (legal) instructions of the principal, obey the parameters of the agency relationship, and not stray beyond the scope of authority.
Obedience
Certain fiduciary responsibilities to their client: Obedience, Loyalty, Disclosure, Confidentiality, Accountability, and Reasonable Care/Diligence.
OLD CAR
An agent is to detect any potential warning signals, research and gather information, and if required, always seek, and refer clients to other expert professionals.
Reasonable Care/Diligence
A fee or commission a broker charges to execute transactions or provide specialized services on behalf of clients.
Brokerage fee
The commission that a real estate agent earns
Buyer Agent commission
The nonperformance of a duty or obligation that is part of a contract. Occurs when a borrower does not make his or her mortgage loan payment and falls behind.
Default
The failure to disclose material defects, due to ignorance, which should have been obvious.
Negligent misrepresentation
Superlative statements (exaggeration) about a property that shouldn’t be considered assertions of fact.
Puffing
The seller also must indicate any defect of which the seller is aware that affects the value of the property.
Seller acknowledgements
Laws that are enacted by the state legislature.
Statutes
A home that may be displeasing to buyers for other reasons besides its physical condition.
Stigmatized property
Multiple representation
Same as dual agency, representing both buyer and seller in the same transaction.
An actual agency that arises by deduction or inference from other facts and circumstances, including the words and conduct of the parties.
Implied Agency
An agent assigned to a specific task.
Specific agent
An agent that performs any and all acts associated with the continued operation of a particular job or a certain business of the principal.
General Agent
A written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction.
Disclosure of agency
A clause that buyers include when making an offer on a home that allows them to back out of buying the house if the terms of the clause aren’t met.
Contingency
Meeting of the minds (Offer and acceptance), consideration, legally competent parties, legal purpose, must be in writing.
Four essential elements of a contract
Mutual consent is achieved through offer and acceptance. When all parties freely agree to the terms of a contract, without fraud, undue influence, duress, menace, or mistake.
Meeting of the minds
The expression of intent of a person receiving an offer to be bound by the terms of the offer.
Acceptance
Non-refundable down payment made by a purchaser of real estate as evidence of good faith.
Earnest Money
The ability to carry out effectively.
Enforceability
A contract in which one or both parties have not yet completed performance of their contractual obligations.
Executory Contract
An agreement that’s been expressed in words, either written or spoken.
Express Contract
one in which the parties have not yet performed their obligations under the agreement. and have also agreed to all terms and conditions.
Fully executed contract
One in which the parties have not yet performed their obligations under the agreement except one party has not yet performed their obligations under the agreement.
Fully executed executory contract
Intent to perform.
Good Consideration
Determining the value of something.
Valuable consideration
Seen on deeds
Good and valuable consideration
An unwritten contract inferred from the actions of the parties.
Implied Contract
A material error in the facts or circumstances surrounding a contract or error in what the contract says, omitting disclosures.
Mistakes of facts or law
A promise by one party to act or perform in a specified manner, provided the other party acts or performs in the manner requested.
Offer
