Vocab N-Z Flashcards
A professional trade organization
National association of relators (NAR)
documents that are legally capable of being transferred from one person to another (stocks, bonds, checks…)
Negotiable instruments
gross income less operating expenses
net income
a lease in which the tenant pays the ownership type expenses (taxes, insurance.. etc)
Net lease
a listing agreement in which the broker agrees to offer the property for sale and promises to get a certain price for the seller, and anything above that amount is the broker’s commission. Illegal in Michigan
Net listing
an oral will made in front of witnesses
Noncupative will
a use that does not conform to the present zoning laws but is allowed to continue because the use started before the new zoning
Non-conforming use
non-ownership interests in real property
non-freehold estates
a written promise to repay a debt, signed by the borrower, acknowledging the existence of the debt
Note
Giving information to the public
Notice
A written notice given by the landlord to his or her tenant requiring that the tenant leave the leased premises
Notice to quit
Substitution of a new contract or party for an old one by mutual agreement (ie a new mortgage written to take the place of an old one)
Novation
Invalid and unenforceable
Null and Void
the person entitled to the performance of a duty, such as the lender
Obligee
the person who owes a duty such as the borrower
Obligor
the necessary elements of mutual assent; for example, one party agrees to buy and the other agrees to sell
Offer and acceptance
a person who receives an offer
offeree
a person who makes an offer
offeror
a mortgage which contains a clause that allows the borrower to borrow additional money without rewriting the mortgage, usually back up to the original amount borrowed
Open end mortgage
a listing in which the broker is paid a commission ONLY if he finds a ready, willing, and able buyer BEFORE the seller or any other brokers do
Open listing
a mortgage that can be repaid earlier than its maturity date
open mortgage
an attorney’s opinion as to whether the title is clear and marketable or defective
opinion of title
the right to purchase property at a stipulated price and terms with a certain period of time
option
a person who gives an option to someone
Optionor
a person who has an option to purchase someone’s property
optionee
finance fee charged by a lender for arranging a mortgage loan
origination fee
an improvement that costs more than the extra value it has added to the property
over improvement
an association, made up of the owners in a condominium or PUD, that meets to establish rules and to regulate and maintain the upkeep of the common elements
Owners’ association
a mortgage that is secured by a combination of both real and personal property
package mortgage
the illegal practice of making a profit by inducing fear among property owners that an undesirable element (based on illegal discrimination) is moving into the area and will lower property values if they wait to sell
Panic selling
oral; unwritten
parol
a rule that even though a written contract usually supersedes any conflicting oral agreements that had been made, sometimes statements made orally will be allowed to augment a contract
Parol evidence rule
a clause in a mortgage that will release a portion of the secured property from the mortgage. A blanket mortgage, for example, that covers two properties may contain this to release one of the properties from the mortgage after 1/2 of the debt was paid
Partial release clause
a mortgage agreement between a borrower and a lender that requires the borrower to give the lender, in addition to interest, a percentage of ownership in the property
Participation Mortgage
the legal dividing of jointly owned property among its owners
partition
a grant of land from the government
patent
per year; each year
per annum
a lease in which the amount of rent is based on a percentage of the gross sales made on the leased property
percentage lease
a test which determines soil suitability for a septic disposal system
perculation test
per day; each day
per diem
movable objects; everything that is not real property
personal property (or Chattel)
Loss in value due to wear and tear
Physical depreciation (deferred maintenance)
4 items in a budget mortgage
PITI (principal, interest, taxes, and insurance)
a planning design that utilizes the land better by placing individually owned units very close in one area, which allows large common areas for use by all
Planned unit development (PUD)
a book of maps showing the location and boundary lines of individual properties
plat book
a card that identifies licensees and must be carried when conducting real estate business
Pocket card
the starting point in a metes and bounds legal description
point of beginning
the right of a state to enact laws and enforce them for the order, safety, health, and general welfare of the public
Police Power
Authorization a person gives to another to act for him
Power-of-attorney
a clause in a mortgage, which allows the lender to sell the property in the case of the borrower’s default
power-of-sale
the beginning part of a deed that states the names of the parties, the agreements and consideration etc
Premise
a fee charged by a lender for allowing a borrower to repay his loan before it is due
Prepayment penalty
acquiring an easement by continuous use over a statutory period of time
prescriptive easement
where loans are made from the lender to the borrower
primary mortgage market
a person who employs an agent to act in his behalf
principal
the balance owed on a loan
principal balance
an insurance program that charges borrowers a fee for the private mortgage insurance company to assure the lender that they will make restitution if the borrower defaults.
Private mortgage insurance
a court that handles minors, incompetents, and property distribution when the owner dies
probate court
the agent’s efforts that bring about the desired results such as when an agent is required to find a ready, willing, and able buyer
procuring cause
a written promise to repay a debt
promissory note
a person employed by a property owner to collect rents, negotiate leases, maintain the property etc
Property manager
a lease that has attributes of ownership in which the tenant is treated like an owner, commonly used in a cooperative
proprietary lease
dividing an expense, such as property taxes or insurance, between two people, such as the buyer and seller
prorate or proration
taxes that have been paid in advance
prospective taxes
a government operated facility where documents are recorded to give notice to the public
public recorder’s office
a public auction to sell property that is in default of mortgage payments, taxes, etc
public sale
exaggerating (ie “this is the prettiest lot in the whole town!”)
Puffing
for another’s life time; a term used in life estate if the life tenant is allowed to possess the property for the duration of someone else’s life
Pur Autre Vie
a mortgage given by the buyer to the seller to cover all of part of the sales price
purchase money mortgage
in conjunction with; as a part of; in accordance with
pursuant to
an estate that is subject to certain limitations imposed by a previous owner
Qualified fee estate or defeasible fee
on a basis equal to the amount of service rendered (latin)
Quantum Meruit
as if; or similar to (latin)
quasi
the right of possession and undisturbed use of property
quiet enjoyment
a court action to clear clouds on a title and determine the true owner
quiet title suit
a deed used to convey to the grantee whatever title the grantor had in the property.. Contains no covenants or warranties nor any implication that the grantor is the actual owner.
quitclaim deed
the rate at which an investment is being returned through income produced by that investment.
rate of return
ready and qualified to enter into an agreement
Ready, willing, and able
land and everything that is so permanently attached that it transfers with the title to the land
Real estate
an organization of a group of investors to invest in real estate and is given tax advantages over corporations
Real estate investment trust (REIT)
a federal law that requires certain procedures be followed in certain settlements so that buyers and sellers are informed about the settlement costs
Real estate settlement procedures act (RESPA)
land and its improvements and the rights therein
real property
a person who belongs to the board of ____________, a professional trade organization of real estate agents
Realtor
a clause in a percentage lease that allows for the lessor to have the property back if the tenant’s gross drops below a set amount
Recapture clause
a person appointed by the court to handle the affairs of a person that is in bankruptcy
Receiver
the final step in the appraisal process in which the appraiser looks at the different approaches used and arrives at the final indication of value
reconciliation
a map of subdivided land that is recorded in the public records
recorded plat (lot and block or subdivision)
the process of entering a legal document, such as a deed, into the public record; thereby giving constructive notice
recording
the government system of using imaginary intersecting liens to describe and locate land
- Rectangular Survey System
- Governmental Survey
- US public lands survey
the right of the mortgagor (borrower) to a redemption period after default so that he or she has time to come up with the money needed to pay the mortgage and keep his or her property
equitable right of redemption
the period of time after a borrower defaults on a mortgage that he has to redeem the property by paying the total owed and court costs
redemption period
the illegal practice by lenders of refusing to lend money on any property in specific areas of a city
redlining
action to correct an error in a previous deed or other document
reformation
the governmental officer in charge of the records office
registrar of deeds
a federal law requiring lenders to disclose information about actual borrowing expenses to all prospective borrowers so that they can compare terms of different lenders
Regulation Z
the person who holds title to the property and will receive possession at the end of a life estate
remainderman
a mortgage loan in which the interest rate may increase or decrease within certain limits at specified intervals
renegotiable rate mortgage (RRM)
the cost of replacing a building with a similar structure, having the same usefulness, using today’s building methods and prices
replacement cost
the cost of replacing a building with an exact replica, using today’s building methods and prices
Reproduction cost
the legal method of canceling or terminating a contract
Rescind (rescission)
a clause in a deed that places limitations or restrictions of the property’s use
restrictive covenants
Taxes that are not paid until the end of the period; paid in arrears. If these taxes are prorated at the closing, they are a debit to the seller and a credit to the buyer
retrospective taxes
the rate at which an investment will be returned
return OF investment
the rate at which money is being made on an investment
return ON investment
a mortgage agreement in which the lender gives the borrower monthly payments until a certain sum is reached, at which time the borrower pays all the money back.
Reverse mortgage (or Reverse annuity mortgage)
the landlord’s interest in a lease; a right to a future possession, retained by the owner, such as when he leases his property to someone
reversion
a withdrawal; termination; cancellation
revocation
the right to have the first opportunity to either purchase or lease property
right of first refusal
upon the death of one of the owners, his interest passes onto the surviving owners: a characteristic of joint tenancy and tenants by entireties
right of survivorship
the rights of owners and property that borders a watercourse, river, or stream to the reasonable use of that water
Riparian rights
16.5 feet
ROD
something, such as a covenant or easement that passes with the title. Each grantee receives these rights or liabilities when the property is conveyed
“Running with the land”
a transaction to raise money for the owner in which he or she sells his or her property to an investor and then leases it back so he or she retains possession and his or her money is not tied up in the property
Sale and leaseback
an agreement between buyer and seller agreeing on the price and terms of the sale. The buyer agrees to buy and the seller agrees to sell.
Sales contract/ sales agreement
a person licensed to list, negotiate, sell, appraise, or lease real property while employed and supervised by a broker
Salesperson
the expected worth of a piece of property at the end of its economic life
salvage value
the paying of a mortgage or other lien
satisfaction
federally or state-chartered lending institution
savings and loan association (S & L)
the purchase and sale of existing mortgages. The lender selling the mortgage to a permanent investor.
Secondary mortgage market
a mortgage on a property that already has a first mortgage loan. First mortgage usually takes priority.
Second mortgage/ junior mortgage
refers to a one-mile square area used in the rectangular survey system. Contains 640 acres.
Section
An economic condition that occurs when there are more buyers available than properties, therefore sellers can demand higher prices
seller’s market
property on which an easement exists. the owner of this property must allow the easement holder the right to use the easement
Servient estate
The owner of the servient estate
Servient tenant
a zoning ordinance, which requires all structures to be at least a certain set distance from the property lines
Setback
closing; the closing of a real estate transaction. The broker lists the buyer’s and seller’s credits and charges and handles the exchange of money and documents to complete the transaction.
settlement
a lease that provides for agreed upon rent increases at specified times during the lease period
set-up lease
ownership by one personal alone. upon his or her death, the property descends to his or her heirs or devisees
estate in severalty
a mortgage loan in which the lender, in exchange for a loan with favorable interest rate, participates in the profits, if any, that the borrower makes when he or she eventually sells the property
Shared appreciation mortgage (SAM)
a deed given when property is ordered sold by a court in order to satisfy a judgment or mortgage foreclosure
sheriff’s deed
a public sale of property conducted by a sheriff as ordered by a court to satisfy a judgement
sheriff’s sale
a charge on real estate levied by a public authority to help fund the cost of public improvements, such as sidewalks, streets etc
special assessment
a deed containing only one warranty, that the title is clear of defects arising during the time that he or she has owned the property, but not against defects existing before that time
special warranty deed
a legal action brought in special cases to compel a party to carry out the terms of the contract. The basis for this action is when the contract concerns something unique, such as land
specific performance
an area 3 feet wide and 3 feet long containing 9 square feet
square yard
a “front;” a person who is put up in name only to take part in a transaction
straw man
means “as before” for example: if a contract is voided, the parties are to be returned to the _______ _____ meaning a return to their positions before the contract
status quo
a law that requires certain contracts to be in writing in order to be enforceable. One exception is an oral lease for a year or less.
Statute of frauds
estates that are created by law (ie dower or curtesy)
statutory estates
the right that a buyer has after a foreclosure to repay his defaulted loan and redeem his property
statutory redemption
the illegal practice of discrimination by directing minorities to or away from certain neighborhoods
steering
a method of computing depreciation for tax purposes in which the depreciation is evenly spread over the economic life so that the amount of depreciation is the same each year
straight line depreciation
dividing a large parcel of land into smaller parcels
subdividing
the property that is being appraised
subject property
a purchaser taking title to the property but not assuming responsibility of an existing loan
subject to an existing loan
a lease given by a lessee to a sublessee
sublease
the person who receives a sublease
sublessee
the lessee who gives a sublease to someone
sublessor
a clause in a mortgage (or other lien) that would allow a junior mortgage (or other lien) to take priority
subordination clause
an appraisal principle that the maximum value of a property tends to be set by the cost of similar property
principle of substitution
having the legal ability and capacity to sign contracts etc
sui juris
the process of locating and measuring a parcel of land
survey
a group of investors pooling their money to invest in real estate
syndication
the adding of successive periods of continuous use of real property by different adverse possessors in order to total the amount of years necessary to claim adverse possession
tacking on
a deed issued when property is sold to pay delinquent taxes
tax deed
a method of deferring capital gains taxes by exchanging one qualified property for another qualified property
tax free exchange
a sale of land for unpaid taxes
tax sale
the unlawful holding over by a tenant whose lease has terminated
tenancy at sufferance
a type of lease in which there is no fixed term and continues until either the landlord or tenant terminates it
tenancy at will
an ownership estate held by a husband and wife, where upon one spouse’s death, the survivor becomes the sole owner of the property
tenancy by the entirety
estate created when two or more people own property at the same time. upon the death of one owner, his or her share descends to his or her heirs or devisees
tenancy in common
one who has the temporary possession of real property owned by another
tenant
the borrower only pays interest during the term of the loan until the expiration of the term, when the entire principal is paid
term loan
to die leaving a will
testate
a person who has made a will
testator
a clause used in some contracts which requires that performance of the contract be completed before a certain set of time
time is of the essence
a method of ownership that permits multiple ownership of real property. each of the owners is given the right to use the property during a certain specified time, often a week or two week period each year.
timesharing
legally recognized evidence of ownership
title
one which often prepares abstracts and provides title insurance
title company
insurance that protects agains loss or damage due to defects in the title
title insurance
the process of checking the public records to establish the current owner
title search
states that give the mortgage lender title to the property until the mortgage is paid
title theory states
a system of registering title to land with the government
torrens system
a civil wrong
tort
a six mile by six mile area in the rectangular survey, which contains 36 sections
township
personal property items installed and used by a tenant in his business which have been attached to the real property. these items remain personal property and may be removed by the tenant
trade fixtures
a tax charged to the seller of real estate. in michigan this charge is 4.30 per $500
transfer tax
an irregular shaped area, which has 4 sides, but only 2 are parallel.
trapezoid
TRID
Truth in lending act, RESPA, Integrated, Disclosure
a third party who holds title of property for another person in a deed of trust
trustee
the borrower in a deed of trust
trustor
an act that requires the borrower be informed of the true amount he will pay for credit. this also enables borrowers to compare the amounts charged by different lenders
truth in lending act (TIL)
occurs when an agent does not reveal the identity of his principal
undisclosed principal
the interest that co-owners have which is not separable
undivided interests
an act that regulates transactions in which personal property is included in the sale, such as bulk transfers
uniform commercial code (UCC)
a contract in which one party promises to the other party to do something to induce the second party to do something. the second party is not bound to perform, but if he or she does, the first party is obligated to keep the promise
unilateral contract
in order to create joint tenancy, these 4 must be present: time, title, interest, and possession. They are called the _______
Unities of joint tenancy
a requirement in joint tenancy and tenants by the entirety in which each of the owners holds exactly the same size interest
unity of interest
the legal premise that husband and wife is an indivisible legal unit
unity of person
a requirement in joint tenancy and tenants by the entirety in which all of the owners share the same undivided possession of the whole property
unity of possession
a requirement in joint tenancy and tenants by the entirety in which each owner must acquire his or her ownership at the same moment
unity of time
a requirement in joint tenancy and tenants by the entirety in which all of the owners must have received title through the same conveyance, such as the same deed
unity of title
an agency wherein the agent is empowered to handle ALL of his principal’s affairs
Universal agency
home loan programs that provide loans in rural areas for modest housing to households at or below 80% of the adjusted median income. Offered through the US department of agriculture
USDA rural development
the act of charging a rate of interest above the limit set by the law
usury
the usefulness of real property
utility
the value to an owner/user
utility value
the estimated percentage of vacancies in a rental project.
vacancy rate
a mortgage loan made to a qualified veteran by a lender and guaranteed by the Veteran’s administration in order to limit the lender’s risk of loss due to default.
VA guaranteed mortgage
a binding agreement that contains all of the essential elements to make it enforceable in a court of law
valid contract
appraising; estimating value
valuation
the power of a good or service to command other goods or services
value
a mortgage in which the interest rate charged by the lender may go up or down according to the current interest rates
Variable rate mortgage (VRM)
permission from zoning authorities to a property owner who is unfairly burdened by a zoning law allowing an exception to the zoning
variance
a buyer; the buyer under a land contract
vendee
a seller; the seller under a land contract
vendor
an agreement that is capable of being void. one that could be voided. IE a contract with a minor
Voidable contract
a contract which is entirely null; not binding on either party
void contract
the voluntary transfer of property ownership, usually by deed
voluntary alienation
a release of lien
waiver of lien
a financing term that describes the process of loan bankers packaging a number of mortgage loans and selling these packages in the secondary mortgage market
warehousing
a deed in which the grantor makes certain promises to guarantee the quality of title
warranty deed
abusive or destructive use of property
waste
the grantor’s statement in a deed in which he or she states that he or she is making a grant to the grantee
words of conveyance
a mortgage that encompasses any existing mortgages
wraparound mortgage
when an individual cannot write his or her name, he or she may place this letter on the document. A witness must then write the person’s name along side of it and sign it as the witness.
X
the return on an investment; profit
yield
governmental regulations of land use. land use controlled by local government under police power of state
zoning
