Vocab A-D Flashcards
a condensed summary of all recorded documents affecting the property’s title, showing recorded conveyances, transfers, encumbrances etc. Used as evidence of title
Abstract
the method of depreciation, for income tax purposes, which increases the write off at a rate higher than the straight line method was used
accelerated depreciation
the clause in a note mortgage or deed of trust which requires immediate payment of the entire debt if certain conditions are violated (default and alienation of title most common)
Acceleration clause
the voluntary consent with a complete and unconditional agreement by the offeree to be bound by the terms of the contract
Acceptance
gradual build up of additional land by the forces of nature
accretion
something that has accumulated over a period of time (interest.. expenses etc)
Accrued
any loss of utility of title
accrued depreciation
the act by which a party signing a document goes before authorized official (notary)
Acknowledgement
the total amount of money or other valuable consideration given to obtain an interest in the property
acquisition cost
43560 square feet
Acre
actual expulsion of the tenant out of all or some part of the leased premises. the physical ousting.
actual eviction
knowledge that one has gained based on what he has seen, read, or heard
Actual notice
in appraising, the value of comparable property after adjusting for differences between it and the subject property
Adjusted market price
the person appointed by the probate court to settle the estate of a person who died intestate. (Personal Representative)
Administrator
based on or according to value
Latin
Ad Valorem
A method of acquiring title to real property that is owned by someone else by holding open, continuous, hostile, and notorious possession for a statutory period of time
Adverse Possession
A statement or declaration reduced to writing, signed and sworn to before a notary public or other authorized official
Affidavit
A detailed plan used to overcome the causes and effects of discrimination.
Affirmative action program
the relationship between principal and agent, formed by a contract in which the principal employs the agent to act in his behalf in dealing with 3rd parties
Agency
the person authorized to represent someone
agent
a designated cube of air such as a condominium unit on the second floor
air lot
the right of the real property owner to use, control, and occupy the space above the physical surface of his or her land
air rights
the transferring of the title to property from one person to another. Either involuntary or voluntary.
alienation
a clause in a mortgage, note, or deed of trust that requires full payment of the debt in the event title is transferred without the approval of the creditor
Alienation clause
the free ownership system in which the ownership of the land is held by individual owners. Used in the US. Opposite of feudal system where the land is owned by the “king.”
Allodial system
the satisfaction one receives through using the rights in realty; the enjoyment gained from home ownership, not money or income, but pleasure, such as a beautiful view or enjoyment from a swimming pool
Amenities
the process of paying off a debt by regular installments
Amortization
a loan in which regular payments are made from each payment the amount of interest due is subtracted and the balance of the payment applies to the principal. Final payment leaves a zero balance.
Amortized loan
a desirable tenant, such as a large department store.
anchor tenant
once a year
annual
the total cost of credit expressed as a percentage
Annual percentage rate (APR)
to render ineffective
annul
changes in value because of a future benefit or detriment that will affect the property
Principal of anticipation
a formal opinion or estimate of value by one who is qualified to evaluate factors of value (professional)
Appraisal
the worth of a property as determined by an appraiser
appraised value
an individual who gives his or her professional opinion as to the value of the property
appraiser
an increase in property value
appreciation
the percentage figure used to compute the increases in the value of real property
appreciation rate
anything such as a physical item that passes with the title to the land (buildings, fences, fixtures, easements, mineral rights)
Appurtenance
the science and art of structural design
architecture
a transaction between two parties that have equal bargaining positions (no special relationship)
Arm’s length transaction
the value placed on a property for the purpose of taxation. Usually a certain percentage of the market value
Assessed value
- the act of evaluating a property for the purpose of levying a tax.
- a special levy to pay for such items as sidewalks…
- the allocation of proportionate individual shares of a common expense (dividing up maintenance for a condo etc)
Assessment
a public official who evaluates property for the purpose of taxation
Assessor
one to whom a transfer of interest is made
assignee
the transfer by a party of all of his or her rights and interests in something to another (usually ownership of personal property)
Assignment
the transfer of the lessee’s interest in a lease to another person
assignment of lease
the transfer of a mortgage from one to another
assignment of mortgage
one who transfers an interest in property to another person
assignor
a broker who works in conjunction with one or more other brokers or within a corporation
associate broker
a name chosen under which to conduct business (or DBA)
Assumed name
the process of acquiring title to property which is the security of an existing mortgage and agreeing to be personally liable for the terms and conditions of the mortgage
Assumption of mortgage
a qualified licensed legal agent
attorney-at-law
a person who has been given the authority to act for another person. Power of attorney
Attorney-in-fact
a statement issued by an attorney after he has examined the abstract or other documents giving his opinion of the marketability of the title
attorney’s opinion of title
the sudden removal of land from one property to that of another owner. usually the result of a sudden or violent act of nature
avulsion
occurs when one person, the bailor, gives the possession and control of personal property, but not ownership, to another person, called a bailee
Bailment
A loan in which one or more payment is larger than the regular payment
balloon loan
a payment in a balloon loan that is larger than the regular payments
balloon payment
1 a commercial establishment whose main purposes are to a. hold money in safekeeping b. loan money c. exchange money ….
2 ground bordering a watercourse
bank
a deed that contains no covenants but does imply that the grantor owns the property being conveyed
bargain and sale deed
imaginary lines, running east and west in the government survey method of property description and running perpendicular to meridian lines
Base lines
the minimum rent charged in a percentage lease
base rent
permanent markers that show the elevation, at that point, placed by a surveyor
bench marks
- a person who is designated to receive the proceeds from a will, insurance policy, trust etc.
- the lender under a deed of trust
Beneficiary
to leave personal property in a will or to give as a gift
bequeath
occurring twice a year
biannual
occurring once every 2 years
biennial
a contract which results when a promise is exchanged for another party’s promise
bilateral contract
a document used to transfer ownership of personal property
bill of sale
- an agreement made preliminary to the actual contract to sell property, used as a temporary arrangement.
- an insurance ______ given immediate insurance coverage until a regular policy can be issued
binder
a mortgage which is secured by two or more properties
blanket mortgage
an advertisement, placed by a licensee that does not include the license status or the correct name in which the broker is licensed. Illegal in michigan
blind ad
the illegal practice of inducing a change in the neighborhood and or/ exploitation of the situation for profit by urging residents to sell their homes quickly at deflated prices.
blockbusting
genuine and in good faith
bona fide
a purchaser who, in good faith and for valuable consideration, acquires property without any actual or constructive notice of any prior rights or claims of 3rd party persons against the title
Bona Fide purchaser
a person who receives money or something of value with the expressed or implied intention of repayment
borrower
an additional office for conducting business. In MI they must have a license
Branch Office
failure to perform as required by a contract without a legal excuse
Breach of contract
a living or legal person licensed to act as an agent to negotiate for the sale, lease, exchange, or financing of a property for a fee
broker
the business of buying, selling, or managing property for others
brokerage
a mortgage loan that includes in each periodic payment a proportional amount for taxes, insurance, or other costs. Referred to as PITI (principal, interest, taxes, and insurance)
Budget Mortgage
the codes or restrictions established by a government body, such as a city, county, or state for regulating the construction of buildings and specifying minimum construction standards.
Building codes
an agreement entered into by a contractor and an owner for the construction of a building
building contract
the authorized individual who reviews the various stages of building construction to verify conformance with the requirements of building codes
building inspector
a written authorization from the local government allowing the construction or remodeling of improvements within its jurisdiction
building permit
a sale of a business in which a major part of the inventory or supplies are included in the sale
bulk transfer
describes the legal rights and interests included in the ownership of real estate
bundle of rights
a business or going concern which is for sale
business opportunities
an economic situation in which there are more sellers in the market than there are buyers
buyer’s market
- the money and assets that a person has or uses.
2. the net worth of a business enterprise
Capital
profit from the sale of a capital asset other than from the usual course of business
Capital gain
improvements that will extend the useful life of the property and/or increase its value
capital improvements
the mathematical process of using the net income to indicate the value of a property by using a reasonable rate of return
capitalization
a percentage that reflects an acceptable return on the original investment ….
Capitalization rate
the net income from an investment after deducting all expenses, except income taxes, from the gross income
Cash flow
a latin phrase meaning “let the buyer beware”
caveat emptor
a certificate issued by a governmental body that states a structure meets local zoning and building codes (AKA certificate of occupancy)
Certificate of compliance
a certificate to a veteran who has been determined to qualify for a VA loan
Certificate of eligibility
a written payoff balance that states the total balance that is owed (AKA estoppel certificate)
Certificate of no defense
an appraisal commitment from the VA used to set the value of property …
Certificate of reasonable value (CRV)
given in some states by a sheriff at a foreclosure sale …
Certificate of sale
a certificate issued by a title examiner giving his opinion as to the marketability of the title of a certain parcel of real estate. Doesn’t have guarantees or protection against hidden defects .
Certificate of title
a fee to have the records checked to show if the taxes have been paid. required in michigan
certification of taxes
a check guaranteed to be good by the bank
Certified check
a linear land measurement which equals 66 feet. Divided into 100 links of 7.92 inches each
Chain
the consecutive conveyances or other forms of alienation affecting a particular parcel of land that connects the present owner to the original source of the title
chain of title
movable personal property. also called Personalty
Chattel
a mortgage in which personal property is used as collateral
Chattell mortgage
any lawsuit between private parties
civil action
a person who employs an agent to act for him in exchange for a fee or commission
client
a mortgage that cannot be paid until maturity
closed mortgage
the settlement sheet which lists the credits and deeds of the buyer and seller. in MI must be signed by the broker
closing statement
an outstanding claim or condition which may impair or injure the title to the property
Cloud
a written addition or amendment made subsequent to an existing will
codicil
an indication of good title but due to certain conditions or defects is, in fact, not good title
color of title
federal or state chartered lending institution…
Commercial bank
the mixing of personal funds with your client’s money
commingling
- the broker’s fee for his services
2. a group of people formed to a specific function
Commission
the parts of land or improvements in a condo, co-op, or planned unit development (PUD) that are shared
Common elements
an undivided ownership
common interest
law resulting from past court decisions or accepted traditions
common law
a system of property ownership in which each spouse shares equally the property that has been acquired during their marriage
community property
the borrowers in a mortgage transaction where there are two or more borrowers
co-morgagors
similar properties that are used to indicate property value during an appraisal
comparables
a person who instigates a complaint or legal action
complainant
ownership that is shared by two or more persons at the same time (AKA co-tenancy)
concurrent estate
the procedure of taking private property for a public use through court procedure (exercising eminent domain)
Condemnation
a specific event or requirement which directly affects the instruments or documents involved in a transaction …
condition
a commitment by a lender to make a loan but only upon the fulfillment of certain conditions
conditional commitment
a contract to sell real estate to another upon completion of certain required acts such as payment of specific sums. title remains vested in the seller until the contract is completely fulfilled.
Conditional sales contract
a system of individual fee ownership units in a multi-unit complex, combined with an interest in the common elements
Condominium
changing rental units into individually owned units
condominium conversion
the document that legally establishes a condominium regime
- condominium declaration
- Enabling declaration
- Master deed
a condominium development
condominium regime
a person appointed by the court to handle the estate of a person unable to do so
conservator
anything of value that is given to induce another to enter into a contract. required to make the contract enforcible.
Consideration
a loan to finance the improvement of real estate. Usually “interim” financing.
construction loan
any action, or inaction, by the landlord that materially disturbs or impairs a tenant’s rights in leased property so that the tenant is effectively forced to move out
Constructive eviction
notice given to the public by recorded documents or by possession of the property
constructive notice
a condition placed in a contract which requires a specified event to happen or not happen before it’s binding
contingency
an agreement entered into by two or more legally competent parties, for a consideration, to do or to refrain from doing some legal act or acts
contract
a contract between the buyer and seller in which the seller retains the title to the property until the buyer has met certain agreed conditions.
contract for deed
the person who does construction work….
contractor
in appraising, the theory that an improvement is not valued at it’s actual cost to the construct, but rather, at the value it adds to the property’s total value
the principle of contribution
estates that are created by the parties to the transaction, as opposed to an estate created by operation of law
Conventional estates
a loan that is neither insured nor guaranteed by the government
Conventional loan
the act of transferring title or some interest from one person to another
Convey / Conveyance
a multi unit complex in which the title is usually held by a corporation or trust for the benefit on the persons living in the units who are the stockholders of the corporation. Each of these “owners” is given a proprietary lease on a unit
Cooperative
the legal shield or curtain that protects a corporation where an individual would be liable
Corporate veil
a non living entity or organization established by a group of owners. Is treated as a legal person and has rights and liabilities that are distinct from the owners.
Corporation
A document that corrects an error in a previous deed
Correction deed
the step in which the appraiser weighs the 3 different approaches and correlates these conclusions to arrive at an estimate of value for the property he or she is appraising (aka reconciliation)
Correlation
someone who accepts an equal obligation for the performance of a contract, note, or other act by signing the document involved
co-signer
that which was given up to obtain something
cost
a method of appraising in which the value is found based on determining the cost to replace or reproduce the structure and other improvements, less any depreciation, plus the value of the land
Cost approach
used in income tax calculations. the adjusted ___ ______ is the amount paid for the property plus acquisition costs and other expenses…..
Cost basis
A new offer made in reply to a previous offer received. It constitutes a rejection of the original offer.
Counter offer
an agreement or promise
Covenant
a written promise, guaranteed by a warranty deed, that the grantor warrants that there are no encumbrances other than those stated in the deed.
Covenant against encumbrances
A written promise, guaranteed by a limited warranty deed, in which the grantor assures that he has not done, or suffered, anything to encumber the property, other than as stated on the deed, but makes no warranties concerning the title prior to his ownership
Covenant against grantors acts
a written promise made by the seller of a business in which he or she agrees not to compete against the purchaser in an agreed area for an agreed length of time.
Covenant not to compete
a written promise, guaranteed by a warranty deed, in which a grantor warrants that, if necessary, he will procure any subsequent documents to make the grantee’s title good
Covenant of further assurance
a written promise, guaranteed by a warranty deed, in which the grantor warrants that the grantee and the grandee’s heirs and assigns will not be disturbed in their rights to the property
Covenant of quiet enjoyment
a written promise, guaranteed by a warranty deed, in which the grantor is warranting that he does, indeed, own the property
Covenant of Seisin
a written promise, guaranteed by a warranty deed, in which the grantor assures the grantee that the grantor will bear the expense of defending the grantee’s title to the property if any person asserts a claim on it
Covenant of warranty forever
- the ability of an individual to secure money or obtain goods with the payment due at a later date
- in a settlement, an amount which is due either the buyer or seller; a rebate. the opposite of a debit or charge
Credit
the person who whom a debtor owes a debt or obligation
Creditor
a volume measurement. An area which is 1 foot wide, one foot long and one foot tall
cubic foot
a volume measurement. an area which is 1 yard wide, one yard long, one yard tall
cubic yard
a dead end street with a wide circular area at the end to allow cars to turn around
Cul-de-sac
any depreciation in which the cost to repair or replace will sufficiently enhance the property’s value by at least that amount.
Curable depreciation
the right or interest that some states give to husbands in their deceased wife’s property
Curtesy
the person given responsibility for the care of something that has been entrusted to him or her
custodian
usually refers to the prospective buyer, if that buyer is not paying a fee. Not to be confused with client which is the person that pays. (usually the listing seller)
Customer
A horizontal plane from which heights and depths are measured
Datum
used to identify a trade name or a fictitious business name
DBA (Doing business as)
an IRS designation for a person who regularly buys and sells real property
Dealer
a type of note or bond given as the security of debt, but unlike a mortgage note, it’s not secured by a specific property
Debenture
- Something that must be repaid or a duty owed such as a loan
- In real estate, it’s a charge. An item that must be paid. Opposite of a credit
Debit
the borrower
Debtor
the voluntary transfer by the owner of privately owned property to the public for a public use, such as for streets, schools, parks etc
Dedication
a written document that, when properly drawn, conveys title to real property
deed
the warranties that the seller makes to protect the buyer
deed covenants
a document that conveys legal title to a neutral third party as a security for debt
Deed of trust (or Trust deed)
provisions placed in deeds to control the future use of the property and improvements
Deed restrictions
the failure to perform a duty or obligation. EX: not making a payment as required
Default
a clause in leases, mortgages, or other documents that “defeat” or cancel that agreement upon the happening of a specified condition.
Defeasance clause
something that can be voided
defeasible
the person being sued by the plaintiff in a lawsuit
Defendant
repairs that are needed but have not been done
Deferred maintenance
a judgement awarded by a court against a mortgagor or trustor when the security for the debt was insufficient to cover the obligation after it was sold to pay the balance of the loan.
Deficiency Judgement
The legal act of transferring an item, right, or interest therein from the owner to another. Legally, it does not refer to the physical act of transferring the document but rather the intention of the grantor and the knowledge of this by the person receiving it
Delivery
A note or mortgage that can be called in for payment at any time without prior notice
Demand note (or mortgage)
- To lease property; the transfer of an estate or interest in real property primarily by lease
- to bestow by will
Demise
the number of building units/ occupants/ families per unit of land
Density
zoning ordinances that restrict the average max number of people/residential units per unit of land
Density zoning
a federal department created to solve the complex housing problems of the american city
Department of housing and urban development (HUD)
- the money or other consideration placed in trust as evidence of good faith for the future performance of a real estate transaction
- money given as a pledge to do something later
Deposit (also called Earnest Money, good faith money, and down payment)
a formal testimony, usually in writing, to use as evidence or for preserving testimony in a legal action
deposition
a decline in a property’s value due to any cause
depreciation
Considered an expense and can be deducted from the taxpayers income. Can occur even when the market value of the property is increasing.
Depreciation (for tax purposes)
The annual rate of the decrease in value of property
Depreciation rate
The process by which property of a decedent passes to his legal heirs
Descent
an estate in which the property will automatically revert to the grantor upon the occurrence of a specified event or condition (aka qualified fee)
Determinable fee
- a person who, for profit, subdivides land into smaller units or home sites
- one who attempts to put land to its most profitable use by the construction of improvements
Developer
A granting of real property through a will
Devise
The recipient of real property through a will
Devisee
The person who gives real property through a will
Devisor
A mortgage that is to be paid by periodic payments of fixed amounts plus interest on the unpaid balance. Although the principal part of the payment remains the same, in each payment the interest portion will decline
Direct reduction mortgage
- money paid out
- at a real estate settlement, the necessary monies expended by the buyer or seller in order to complete the transaction
disbursement
the document that is recorded when a recorded lien has been paid or settled. the document is signed by the lien holder
discharge of lien
an unveiling of facts
disclosure
- that which can be taken off of the established amount
- a sum paid to obtain certain preferred mortgages as the payment of pints to a lending institution for FHA or VA mortgages
- to sell a note or land contract for less than its face value
Discount
a loan that has been discounted
Discount loan
a loan fee charged by a lender in order to increase the yield on a lower than market interest loan. Each _______ _______ will cost 1% of the mortgage amount.
Discount Point
Legal action to remove an occupant from real property
Dispossess
a legal instrument establishing facts or giving instructions (deeds, contracts wills etc)
document
the land in an easement appurtenant which benefits and has the use of the easement
Dominant estate
The owner of the land in an easement appurtenant who has the use of the easement
Dominant tenant
the person receiving a gift
donee
the person giving a gift
donor
the legal rights that some states give a wife in her husband’s property
Dower
The amount of money that a purchaser pays at the settlement while the balance of the purchase price is financed. (usually includes the EMD but the terms are not synonymous)
Down Payment
a situation in which an agent is representing both parties, such as both the buyer and seller. Legal in michigan only with prior written consent from both parties
Dual agency
A clause used in mortgages that allows the lender to accelerate the balance owed if the borrower sells the property (AKA non-assumption clause or alienation clause)
Due-on-Sale
The use of force to make someone enter into a contract
Duress
