vocab! Flashcards
natural deposits of soil increase the amount of land
accretion
an addendum forcing the borrower to pay the remaining balance of the loan
acceleration clause
The additional costs outstanding at the end of a real estate deal including taxes, HOAs, and interest
accrued items
an acre is ………sf and …………square yards
43560 sf & 4840 sy
a clause used to provide more specific information to clarify a contract
addendum
The final cost of a property after improvements and any deductions (reduced value) is called
adjusted basis
the date agreed upon by seller and buyer for financial changes
adjustment date
a court appointed individual who executes a persons estate if there is no will
administrator
property tax on the current value of the land
ad valorem tax
The ways a person may acquire property including purchase, squatting, and inheritance
adverse possession
placing ownership of property from one person/ company to another “”””
alienation
an addendum to the mortgage contract which keeps the borrowing from reselling without paying the lender
alienation clause
paying off the principal and interest on a debt with equal payments until repaid; the time frame of which the debt is repaid
amortization, amortization schedule
a statute that stops the lender from pursuing the buyer for a loss on a property after a foreclosure sale
anti-deficiency law
national laws that encourage free market trade and practices and prohibit the restriction of such
anti-trust laws
The division of costs such as fees and HOA responsibilities, between the seller and purchaser
apportionments
An attachment to land of edifices that now conveys with the property
appurtenance
dispute resolution through the use of a third party
arbitration
An online company that encourages the cooperation of decision makers in the real estate business
ARELLO
the tax related value of a property
assessment
The worth of land or property, assessed by a professional, usually licensed
appraisal
the transfer of mortgage from one agency to another
assignment
The process of a buyer taking over the sellers mortgage
assumption
Placing a legal hold on a property to pay for a judgement
attachment
To agree to the truth of a document by signing it
attest
A person who acts as a legal rep to another; does not need to be a professional lawyer.
attorney-in-fact
transfer of land because water (such as a stream or brook) changes course
avulsion
A mortgage of small payments for a specified period, such as 3-5 years, with a lump sum-or, balloon- due at the end of the mortgage.
balloon mortgage
a document transferring property from seller to buyer without guaranteeing validity of the transfer
bargain and sale deed
A line in surveying that runs east to west and acts as a point of reference for corresponding lines that run N to S
baseline
A fixed point of reference by which elevation is marked
benchmark
a transfer of personal property through a will
bequest
an upgrade to property
betterment
A contract such as a rent agreement where both parties agree or don’t agree to comply with certain terms.
bilateral agreement
Money paid to hold a property for set terms
binder
payments made to real estate every 2 weeks instead of once a month. in some cases this can lower time needed to pay off the loan.
biweekly mortgage
A mortgage owned by the same person on at least two properties
blanket mortgage
An illegal process that involves scaring residents of an area into selling their property at reduced prices so that an agent can take advantage of them.
blockbusting
a legal adjective that describes faithful, trustworthy, actions or people
bona fide
a type of insurance money that protects an agent against loss
bond
a sum of cash in a buyer/seller agreement to even out exchange.
boot
a satellite or other office that is in a separate place from headquarters
branch office
breaking a binding agreement illegally
breach of contract
An estimate, on the worth of real estate, by a professional in the industry
Brokers Price Opinion> BPO
An invisible boundary line around the property,the building must remain in this boundary
building line
Privileges associated with property ownership, such as residency or use
bundle of rights
payment by the buyer of added fees or points to the seller orr lender for lower interest rate
buy down
the procedural guidelines used to conduct business at an organization such as a homeowners association
bylaws
a section of a contract that permits parties to nullify the obligations of the contract
cancellation clause
Surveying or soliciting an area to see if people are interested in selling their homes
canvassing
the max increase in interest for a mortgage with changing rates
cap
the total yearly potential earnings on a property, such as rental
capitalization
a percentage that can be used to compare investment opportunities. Divide the capitalization by the cost of a property.
capitalization rate
The final amount of income generated from a rental property after income and expenses.
cash flow
Latin expression meaning “let the buyer beware”
caveat emptor
covenants, conditions, and restrictions- the bylaws for a group of homeowners
CC&R
An IRS document that allows the government to waive taxes on a property
certificate of discharge
formal doc from the VA proving that person qualifies for a VA loan.
certificate of eligibility
The max value permitted for a VA mortgage
certificate of reasonable value> CRV
Permits buyer to receive title for purchase of a property
certificate of sale
The legal title that tells the history of a piece of real estate
chain of title
property someone owns, except real estate
chattel
The use of personal property as security for debt repayment
chattel mortgage
a questionable title as to the availability of sale
cloud on the title
a group of residential buildings used to maximize land use
clustering
an addendum to the will that explains additions or deletions to the doc.
codicil
a clause in an insurance policy that divides financial responsibilities for a loss between 2 parties
coinsurance clause
a title that is invalid even though it appeared to be valid initially
color of title
a doc from the mortgage company that informs the borrower regarding approval and terms
commitment letter
real estate and chattel owned by 2 parties, usually husband and wife
community property
taking over ownership of a property,usually by the government, and paying the owner for the real estate
condemnation
the belief that similar pieces of real estate will keep their value
conformity
the transfer of ownership in a condo from one owner to many for each residence
condo conversion
when a tenant moves out of a residence because of the poor quality of the residence without being liable for rent
constructive eviction
public notice, common info to all
constructive notice
a deferment of the price of a property for a specific time frame
contract for deed
an agreement that the buyer can change an Adjustable interest rate to a fix; there is a cost associate with this option
conversion option
an agreement that the buyer can change an adjustable interest rate to a fixed one; there is a cost associated with this option
convertible ARM
the legal transfer of property from one party to another
conveyance
specifications included in the deed requiring obligations or restrictions on real estate use.
covenant
a legal verification that the owner has the right to the property
covenant of seisin
a mans ownership of some or all of his spouses property even if she will deny him such ownership
curtesy
a horizontal reference point used to make vertical measurements
datum
a person who passed away, usually to discuss their estate, will, inheritance, or other financial matters
decedent
Used instead of foreclosure when the property owner returns the deed to lender to avoid public record of foreclosure in some cases
deed in lieu
The legal option that the lender has to repossess delinquent payments or the property from the borrower in case of default
defeasance clause
a legal doc ordering the collection of the difference between what the borrower owes to the bank and the sale price of the home
deficiency judgement
regulations prohibiting more than a certain number of homes in the area
density zoning
the passing down of property to an heir if the deceased has not left specific provisions
descent
a gift of real estate to an heir through a will
devise
the direction in which a city is expanding
directional growth
Money paid to the mortgage holder to reduce the interest payment. The more paid, the more the interest will fall.
discount point
the interest rate a bank will pay to the federal reserve to borrow cash for short-term loans
discount rate
legal process of eviction
disposses
property that benefits from the shared use of land on a neighboring property
dominant estate (tenement)
a woman’s ownership of all or some of her husbands property even if his will denies her such
dower
The clause that requires the loan to be repaid to the lender when the real estate is sold
due-on-sale clause.
a person feels threatened into doing something, such as selling a property
duress
money to prove the buyers serious intent to purchase the home
earnest money
accepted use of property that remains with the individual and does not convey with the property
easement in gross
the length of time when real estate will continue to earn money
economic life
the age of the building based on the condition
effective age
different types of farming crops considered part of the property
emblements
the purchase of private property by the government for public purposes
eminent domain
assessments against a property such as delinquent HOA fee, any mortgages or easements that impact the value
encumbrance
the right someone has to a property when they commit to buy it although the deal is not yet finalized
equitable title
The worth of the property above mortgage or other debts on the property
equity
the reclaiming of real estate by the mortgage holder because of foreclosure
equity of redemption
Passing on increased expenses to tenants such as fuel or HOA fees
escalation clause
money or something of value held in trust by a third party until the completion on a specific transaction
escrow
real estate goes to the state if the person dies without a will and without any heirs
escheat
monies collected from the buyer that the lender holds in reserve to pay property taxes and insurance
escrow account
A yearly review that assesses the monies collected in escrow to ensure the amount is correct. It may be increased or decreased at that time to reconcile the acount
escrow analysis
The use of the escrow account to pay taxes, insurances, and expenses
escrow disbursements
time frame during which a person accesses land or property
estate for years
the tax on the worth of the assets when a person dies. A certain person of the estate is exempt
estate tax
certificate of written confirmation that the borrow signs stating that the mortgage amount is correct
estoppel
latin for “and wife”
et ux
latin for “and husband”
et vir
history of title; not as detailed or complete as a title search
examination of title
similar business or investment properties that can be traded tax-free per IRS code 1031
exchange
official paperwork that proves that someone owns the property
evidence of title
permits the borrower to return the real estate to the lien holder without personal responsibility to repay the mortgage
exculpatory clause
when a creditor wants to enforce the payment of the debt, they will require the debtor to return the property
execution
a legal agreement that is awaiting action by at least one party for completion
executory contract
a contract that details all aspects of the contract such as, offer, acceptance and consideration
express contract
a reduction in the worth of a specific home improvement because of something separate the real estate that decreases the worth of the home
external obsolecence
a government agency that guarantees loans to make housing easier to obtain.
Federal housing administration (FHA)
a federal organization that helps keep the home loan market solvent by purchasing notes from bankers
federal national mortgage association (Fannie Mae)
the government banking system that oversees banks, offers services, & sets national economic policy
Federal reserve system
a mortgage that is backed by the government through the FHA. VA loans are also backed by the government
FHA insured loan
a person who acts on another’s behalf in business or general matters
fiduciary relationship
money that the realtor pays to a third party who finds a buyer, usually illegal
finders fee
continued ownership or stake in a property as compared to a temporary stake or a lease.
freehold estate
the measurement at the front of the home nearest the street; used to compare home value especially on same street
front foot
the decrease in worth on the real estate except those caused by wear and tear
functional obsolescence
a right to real estate that will come to pass in the future
future interest
someone who can do any job duties related to the business on behalf of the principal. A real estate agent acts as a special agent.
general agent
a mortgage that covers more than 1 property owned by the same person
general lien
a guarantee that the title is free and clear of other claims against it for the protection of the buyer
general warranty deed
a loan backed by the federal government as contrasted with a conventional loan
government-backed mortgage
a federal agency that supplies funding for government loans
government national mortgage association (ginnie mae)
a process to divide land into rectangular sections in order to set boundaries
government survey system
the legal doc used to transfer real estate to another
grant deed
a way to asses the profitability of property arrived at by dividing the total price paid by the monthly rental rate
gross income multiplier
a rental agreement when the landlord pays all costs associated with the property,including HOA, repairs, taxes, etc
gross lease
a lease of land only, not of buildings
ground lease
a contract between the seller and the real estate agent/broker. The broker promises to buy the property for predetermined terms if the property does not sell by a certain date
guaranteed sale plan
a person who the court deems legally responsible for someone who is incapable of managing their affairs
guardian
“to have and to hold” that specifies any restrictions on property ; fee simple absolute
habendum clause
a small populated area; municipality
hamlet
anything either tangible or non tangible given through a will
hereditament
The most productive use of real estate that will provide the greatest financial return over a specified period of time
highest and best use
a renter who stays on the property when the lease ends
holdover tenancy
a handwritten will signed by the person who makes the will; does not need a notary or a witness
holographic will
reverse mortgage or when a lender makes payments, usually monthly, to a homeowner
home equity conversion mortgage (HECM)
a loan available to homeowners based on the equity in the home; similar to a credit card
home equity line of credit
permitted by some states, protects a residence against lawsuits or judgements up to certain limits
homestead
federal agency that regulates some aspects of the housing industry
HUD or housing urban and development department
a promise of something as pledge for a loan without physically relinquishing that item. Most home owners live in their primary residence through this method unless they own free and clear
hypothecate
a specific formula used to assess the income producing worth of a property
income capitalization approach
intangible rights associated with real estates, such as easements and future income
incorporeal rights
to insure against loss
indemnify
payments made to a seller over a longer period of time in order to defer taxes
installment sale
financial backing for a loan that protects the lender against default, sometimes called PMI
insured mortgage
a plan that uses money from a still uncompleted home sale to reduce the interest rate and the monthly costs to buyer
interest rate buy out plan
a transitional loan to bridge the time frame until the buyer can obtain permanent financing, for example a construction loan
interim financing
court order to force the sale of real estate to pay off debt. The satisfaction of debts will stop foreclosure
judicial foreclosure
the delay of the time period during which a legal claim can be enforced
laches
the renter can decide to buy the property under certain conditions
lease option
property is subject to a long-term leasing agreement
leasehold
a legal order of payment of any money due
levy
a lifelong interest in a specific real estate that ends when the owner dies
life estate
latin for”suit pending” notice of possible restrictions on a title when a lawsuit is filed
lis pendens
The shore land next to an ocean or very large water body that the property owner has rights to
littoral rights
the borrower pays a fee to guarantee a certain interest rate for a specific time period, especially if the borrower thinks the interest rates will rise
lock-in
a legal process of finding real estate based on its lot and block identification within the housing area
lot and block description
a flat percentage used to adjust interest rates up or down according to the index used in ARM
margin
a comparison of recent property sales to assess real estate worth
market data approach
one-tenth of a penny; used for taxation
mill
the person who lends money in a real estate transaction
mortgagee
the person who borrows money in a real estate transaction
mortgagor
an agreement to void a contract by all involved parties
mutual rescission
a deferment of interest payments on a loan, which is added on to the principal and results in an eventual increase in the payment over time and a loss of value on the home
negative amortization
the renter, pays costs such as HOA, repairs, and upkeep
net lease
any funds above the original price of the property that are paid to the agent; illegal in some places
net listing
sometimes called a “rate and term refinance” the borrower receives no cash, but the money is used to recalculate the loan and related costs
no cash put refinance
a code violation related to property use that is permitted because it was “grandfathered in”
non-conforming use
the substitution of one party for another party in a contract
novation
a suggestion or expression of desire to buy or sell real estate
offer
a loan with smaller amount than the maximum funds that a borrower can access from the lender
open-end mortgage
legal authentication that the title is clear
opinion of title
fees assessed to the borrower that cover loan expenses related to the title, appraisal and credit checks
origination fee
a combination loan that covers both the residence and the land
package mortgage
a loan that permits the holder to receive a portion of the profits from the property
participation mortgage
equal division of property between all owners
partition
a wall that divides 2 properties with ownership rights for both users
party wall
rental payment determined by sales volume of the renter with a minimum rental amount
percentage lease
a rental agreement that goes for a specific time frame, such as month-to-month
periodic estate
zoning permission to design a subdivision with flexibility and creativity
planned unit development (PUD)
description of a section of land that provides detailed information about the area
plat
public information with the description of a section of land that provides detailed information about the area
plat book
combining small sections of real estate into a larger parcel
plottage
Used to cover the default of the loan
PMI private mortgage insurance
one percent of the loan amount; monies paid to entice a lender to loan money to the borrower, sometimes used in exchange for a reduction in the interest rate on the loan
point
the exact same starting and ending point on a land survey borders and encloses the property
point of beginning
expenses associated with early pay-off of a loan
prepayment penalty
receiving the right to a property through common use, such as squatter or adverse possession
prescription
An imaginary north/south line used as a reference point in surveying to describe land
principal meridian
to confirm the authenticity of a will
probate
“for the life of another” use of property that 1 individual gives another, as long as the third person is alive
pur autre vie
a mortgage loan that the purchaser gives the seller as a partial payment to property
purchase money mortgage
the ratio of a buyers debt when compared to the buyers income, which must be below a certain percentage for a lending institution to offer the loan
qualifying ratios
a release of rights in a property without confirming the validity or the rights of the person who keeps the deed
quitclaim deed
a six mile area of land. Using the rectangular survey system, it is numbered east or west.
range
a law requiring the lender to give updated info to the buyer throughout the home buying process
real estate settlement procedures act (RESPA)
A time frame when an owner can buy back real estate that was foreclosed
redemption period
illegal action of refusing to lend money to am individual in a lower socio-economic area without considering the circumstances of the individual
redlining
obtaining a new loan on real estate and paying off the first loan using the same real estate as collateral
refinance transaction
federal requirement that a lender must disclose all terms of a loan,including the APR
Regulation Z
a section in a contract that allows the buyer to pay off part of the loan, which then frees a piece of the real estate from the loan
release clause
the real estate that passes to another individual when the first individuals rights in the real estate end
remainder estate
the individual who real estate goes to when a life tenant dies
remainderman
the negating of a contract so that it is no longer in effect
rescission
the landlords right to take possession of rental property when the rental agreement ends
reversion
the interest the remainderman has in the real estate as it passes to them when the life tenant dies
reversionary interest
a property loan used for a person with high equity when the lender makes yearly payments to the homeowner
reverse annuity mortgage
the right to leave real estate; the right to go to real estate
right of egress; ingress
the option an individual or entity has to fulfill a legal agreement before another person or entity meets those obligations
right of first refusal
The owners privilege to take possession of real estate when the financial obligations of the loan have been met even during process of foreclosure
right of redemption
an extender clause pr protection clause that gives the broker commission if a buyer who sees the home returns later to close the sale.
safety clause
the sale of real estate to a new owner and the new owner rents the real estate back to the original owner
sale-leaseback
a mortgage obtained after the first mortgage used for a down payment,refinancing, or cash
second mortgage
a unit of measurement in the government rectangular system, one-square mile
section
the owner who owns the title to the property free and clear
seisin
property that gives shared use of land to a neighboring propery for their good
servient tenement
A full accounting of all the monetary transactions that occur in a property sale
settlement statement (HUD-1)
independent interest of real estate by a person
severalty
a financial levy against RealEstate to pay for something of benefit to that real estate
special assessment
a deed that pertains only to the title under under the person issuing it, not to any title issues from previous title holders
special warranty deed
a mortgage or lien against only a specified part of the real estate
specific lien
mandate by the court that the party in a contract fulfill their duties
specific performance
legal necessity for real estate contracts to be written
statute of frauds
a legal obligation on the property, such as taxes
statutory lien
the total depreciation divided by the number of years of depreciation
straight-line depreciation
the legal substitution of one individual for another individual, with all rights passing onto the new party
subrogation
eviction lawsuit after a break of contract by a renter
suit for possession
a lawsuit filed by the buyer for breach of contract in property sale. The court can either require the seller to pay damages and expenses or complete the sale.
suit for specific performance
the boundaries of a parcel of real estate; a map of the property surveyed
survey
a group of people or entities who join resources to invest in real estate
sydicate
a renter who can no longer stay on the property because the lease has ended
tenancy at sufferance
equal rights to property shared between between individuals without surviving rights but determined through a will upon one party’s death
tenancy in common
a fixture that remains as part of the land
tenement
a short-cut type of title registration available in some jurisdictions without going through the lengthy process of a title search
torrens system
a section of land in the government rectangular survey system; six-square miles
township
fixtures such as furniture and appliances,used in specific business; may convey with the property at the expiration of the lease
trade fixtures
federal requirement that a lender must disclose all terms of a loan including APR
Truth-in-Lending law
shared rights and ownership of property among all owners
undivided interest
The period of time during which improvements will yield income
useful life
charging a higher than maximum interest rate; illegal
usury
a written agreement that becomes unenforceable after it is signed
voidable contract
a legal right of protection against any type of claim
warranty deed
an order that permits the court to sell the persons real estate, such as after a foreclosure
writ of execution
1 mile=
5280 ft
received a notice to quit by landlord, how many days until he must leave?
30
a projected annual operating statement showing income, expense and net income is:
pro forma statement
a trust of at least 100 persons chartered to acquire and develop real estate is:
REIT or real estate investment trust
purchasing property by reinvesting proceeds from refinancing previously owned properties is:
pyramiding
the mortgagee is the: ………and the mortgagor is the:…………
bank; borrower
the relationship of a broker to a buyer, in an exclusive buyer agency contract, would be :
single agent
assignment or transfer of real estate where the purchaser agrees to take over monthly payments of principal and interest, but does not assume personal liability for the obligation
subject to mortgage
