Vocabulary Flashcards
A history of a title in the current status of the title based on title examination
Abstract of title
The gradual buildup of land in a watercourse overtime by deposits of silt, sand, and gravel.
Accretion
How many square feet in an acre
43,560 ft.²
A lawsuit to clear a title to real property
Action to quiet title
Latin meaning according to value; real property is tax on an ad valorem basis.
Ad valorem
A method of acquiring title to real property by conforming to statutory requirement; a form of involuntary alienation of title
Adverse possession
A fiduciary relationship between a principal and an agent
Agency
Transfer of title to real property
Alienation
A statement in a mortgage or deed of trust and titling the lender to declare the entire principal balance of the debt immediately due and payable if the borrower sells the property during the mortgage term. Also known as due on sale clause.
Alienation clause
The type of land ownership existing in the United States whereby individuals may hold title to real property absolutely.
Allodial system
Increased soil, gravel, or sand on a stream bank resulting from flow or current of water
Alluvion
Addition of an area into the city.
Annexation
All rights or privileges that result from ownership of a specific property and move with the title.
Appurtenances
The dollar amount of words to which a local tax rate is applied to calculate the amount of real property tax
Assessed value
A levy against property
Assessment
One to whom contractual rights are transferred
Assignee
Transfer of legal rights and obligations by one party to another
Assignment
The person transferring contractual rights to another
Assignor
Founded in 1929 a group of real estate license law officials that regulates more than 2 million real estate licenses
Association of real estate license law officials (ARELLO)
The surrender or release of the right claim or interest in real property
Abandonment
Witnessing of a document
Attestation
Sudden loss or gain of land as a result of water or shift in the bed of a river that has been used as a boundary
Avulsion
A form of deed with or without covenants of title
Bargain and sale deed
And east west line in the rectangular method of property description
Baseline
The value of property for income tax purposes; consists of original cost plus capital improvements less accrued depreciation.
Basis
(A) recipient of the gift of personal property by will.
(B) lender in a deed of trust.
Beneficiary
A gift of personal property by will
Bequest
In agreement based on mutual promises that provide the consideration
Bilateral contract
In good faith
Bona fide
Recipient of cash in an exchange
Boot
Failure, without legal excuse, to perform any promise that forms the whole or part of a contract.
Breach of contract
A person or nonperson (partnership, Association, corporation, common law trust, or combination) acting as an agent for others and negotiating the purchase price and sale of real property or other commodities for a fee.
Broker
Abandoned, Idle, or underused properties where expansion or redevelopment is complicated by environmental contamination.
Brownfields
The lender requires one 12th of the estimated cost of the annual property taxes and hazard insurance on the mortgaged property in addition to paying monthly principal and interest.
Budget mortgage
The rights of an owner of a freehold estate to possession, enjoyment, control, and disposition of real property
Bundle of rights
The document setting forth the terms and conditions of the brokerage relationship with the purchaser.
Buyer agency agreement
Tax laws allowing investors to exclude a percentage of their profit on real estate investments from taxation
Capital gain
The process of converting future income into an indication of the present value of a property by applying a capitalization rate to net annual income.
Capitalization
Investment or value of real estate times the capitalization rate equals the annual net income of the real estate
Capitalization formula
A statement in a listing contract protecting the brokers commission entitlement for a specified period of time after the contract expire; also called extender clause.
Carryover provision
A statement provided to veterans of military service setting forth the amount of loan guaranteed to which they are entitled at the time.
Certificate of eligibility
A document setting forth the value of a property as the basis for the loan guarantee by the veterans administration to the lender.
Certificate of reasonable value (CRV)
A report, based on a title examination, setting forth the examiners opinion of the quality of a title to real property.
Certificate of title opinion
In land measurement, a distance of 66 feet.
Chain
Personal property
Chattel
One in which personal property is pledged to secure payment of a debt
Chattel mortgage
Nonfreehold interest in real property; also includes fixtures.
Chattel real
City ordinances that require an inspection by the city when the property is transferred.
City certification
A lawsuit between private parties.
Civil action
A federal law that prohibits all discrimination on the basis of race.
Civil rights act of 1866.
Fair housing act of 1968.
Civil rights act of 1968
Sets out primary and secondary Ambia air-quality standards to protect human health, safety, and environment.
Clean air act
Governs discharge of oil and hazardous substances into US waters.
Clean water act
The principal in a real estate transaction.
Client
Type of mortgage that imposes a prepayment penalty.
Close mortgage
Type of mortgage that cannot be refinanced.
Closed-end mortgage
The consummation of a real estate contract; also called settlement.
Closing
An accounting of the funds received and disbursed in a real estate transaction.
Closing statement
A form of zoning providing for several different types of land-use within a zone area.
Cluster zoning
A requirement of hazard insurance policies that property be insured for a certain percent of value to obtain the full amount of loss.
Coinsurance clause
Deceptive appearance of claim to a title.
Color of title
A form of coownership limited to husband-and-wife; does not include the right of survivorship
Community property
This law created a tax on the chemical and petroleum industry and provided broad federal authority to respond directly to releases or threatened releases of hazardous substances that may endanger public health or the environment.
Comprehensive environmental response compensation and liability act (CERCLA)
Simultaneous ownership of real property by two or more people.
Concurrent ownership
Exercise of the power of eminent domain; taking private property for public use.
Condemnation
A form of ownership of real property, recognized in all states, consisting of individual ownership of some aspects and coownership and other aspects of the property.
Condominium
The document that, when recorded, creates a condominium; also called a master deed.
Condominium declaration
Those process on uniform loan forms and according to FNMA/FHLMC guidelines.
Conforming loans
Homogenous use of land within a given area, which results in maximizing land value.
Conformity
Anything of value, as recognized by law, offered as an inducement to contract.
Consideration
Protects and enforces, by lein, the rights of persons performing labor or providing material or equipment for the improvement a real estate.
Construction lien act and recovery fund
Results from some action or in action by the landlord that renders the premises unsuitable for the use agreed to any lease or other rental contract.
Constructive eviction
All affected parties are bound by the knowledge of a fact even though they have not actually been notified of such a fact.
Constructive notice
An index of the change in prices of various commodities and services, providing a measure of the rate of inflation.
Consumer price index
Title insurance that protects contract buyer against defects in contract sellers title.
Contract buyer’s policy
Another name for land contract
Contract for deed
A mortgage in which the federal government does not ensure or guarantee payment to the lender
Conventional mortgage loan
To pass to another (as in title).
Convey
A three-day right of rescission for certain loan transactions
Cooling off period
One who participates in the sale of a property through the listing broker.
Cooperating broker
A form of ownership and which stockholders and a corporation occupied property owned by the corporation under a lease.
Cooperative
Title to real property held by two or more persons at the same time also called concurrent ownership.
Co-ownership
Tangible
Corporeal
In appraisal method whereby the cost of constructing a suitable structure as calculated, depreciation is deducted, and land value was added.
Construction costs - depreciation + land value = cost
Cost approach
A new offer made by an offer or rejecting an offer.
Counter offer
A promise in writing
Covenant
A promise in a deed that the title causes no encumbrances except those set forth in the deed.
Covenant against encumbrances
A promise in a deed that the grantor will execute further assurances that may be reasonable or necessary to perfect the title in the grantee.
Covenant for further assurances
A promise and a deed (or lease) that the grantee (or lessee) will not be disturbed in his or her use of the property because of a defect in the grantors (or lessor’s) title.
Covenant of quiet enjoyment
A promise in a deed assuring the grantee that the grantor has the title being conveyed.
Covenant of seisin and right to convey
A promise and ID that the grantor will guarantee and defend the title against lawful claimants.
Covenant of warranty
A means of estimating reproduction or replacement cost, using the volume of the structure.
Cubic foot method
A type of zoning permitting a higher priority use even though it is different from the type of use designated for the area.
Cumulative zoning
A condition of property that exists when correction as physically possible and the cost of correction is less than the value increase.
Curable depreciation
A husband’s interest in real property of his wife.
Curtesy
The third-party in a real estate transaction.
Customer
A dead person
Decedent
Master deed containing legal description of the condominium facility, a plat of the property, plans and specifications for the buildings and units, a description of the common areas, and the degree of ownership in the common areas available to each owner.
Declaration
The instrument used to record restrictive covenants on the public record
Declaration of restrictions
A court order
Decree
And appropriation of land or an easement there in by the owner to the public.
Dedication
A written instrument transferring an interest in real property when delivered to the grantee.
Deed
Conveyance of title to the mortgagee by the mortgagor in default to avoid a record of foreclosure. Also called friendly foreclosure.
Deed in lieu of foreclosure
A deed transferring title to a trustee in a land trust
Deed in trust
A deed with or without warranties except an implied covenant that the grantor has title and possession.
Deed of bargain and sale
A form of mortgage where in there is a third-party, who is called a trustee.
Deed of trust
Limitation on land-use appearing in deeds.
Deed restriction
A statement in a mortgage or deed of trust giving the borrower the right to redeem the title and have the mortgage lien released at any time prior to default by paying the debt in full.
Defeasance clause
Subject to being defeated by the occurrence of a certain event.
Defeasible
A title subject to being lost if certain conditions occur.
Defeasible fee
A homeowner who wanted to defer the tax obligation on resale profit had to purchase a replacement home of essentially equal or greater value.
Deferred gain roll over
A court judgment obtained by a mortgagee for the amount of money a foreclosure sale proceeds were deficient and fully satisfying the mortgage debt.
Deficiency judgment
The transfer of the title by deed requires the grantor to deliver and the grantee to except a given indeed.
Delivery and acceptance
What does HUD stand for
Department of housing and urban development
Property, other than land, held as an investment or for use in a business.
Depreciable assets
The distribution of property to legally qualified errors of one who has died intestate.
Descent
Property description that may referred to a map and lot number that has been recorded or to a previous deed conveying the same property.
Description by reference
The client (buyer or seller) has an agency relationship with only those persons named in the listing contract or buyer agency contract.
Designated agency
A gift of real property by will
Devise
The recipient of a gift of real property by will.
Devisee
An accounting of all financial aspects of a mortgage loan required of lenders to borrow ours and residential mortgage loans by regulation Z of the federal reserve board.
Disclosure statement
A percentage of the loan amount the lender requires for making a mortgage loan.
Discount points
The loss of funds available to lending institutions for making mortgage loans, caused by depositors withdrawal of funds for making investments that provide greater yields.
Disintermediation
The vendor cannot do anything to jeopardize the interest of the vendee
Doctrine of equitable conversion
If a landowner is lax and protecting his or her rights, here she may lose them.
Doctrine of laches
Land benefiting from a easement appurtenant.
Dominant tenement
Provides a three-year grace period in which to deserve an exercise mineral rights; the nine titleholder of the mineral rights must file the interest every 20 years.
Dormant minerals act
A wife’s interest in her husband’s real property.
Dower
A broker/sales persons representing both buyer and seller in the same transaction.
Dual agency
Another name for due on sale clause
Alienation clause
I deposit a buyer makes at the time of submitting an offer, to demonstrate the true intent to purchase; also called binder, good-faith deposit, escrow deposit.
Earnest money
A nonpossessory right of use in the land of another.
Easement
A right of use in the joining land of another that moves with the title to the property benefiting from the easement.
Easement appurtenant
Created by the exercise of the governments right of eminent domain.
Easement by condemnation
Created by the express written agreement of the landowners, usually in a deed.
Easement by Grant
Grants excess want to landowner has no access to roads and is landlocked.
Easement by necessity
Loss in value caused by things such as changes and surrounding land use patterns and failure to adhere to the principle of highest and best use; usually incurable.
Economic obsolescence
Personal property growing in the soil, requiring planting and cultivation; annual crops.
Emblements
Laws passed by state legislatures authorizing cities and counties to regulate land-use within their jurisdictions.
Enabling acts
A claim, lean, charge, or liability attached to a binding upon real property.
Encumbrance
A requirement of the national environmental policy act prior to initiating or changing a land-use that may have an adverse effect on the environment.
Environmental impact statement
A federal law that requires filing an environmental impact statement with the EPA prior to changing or initiating a land-use or development.
Environmental policy act
The borrowers right to redeem the title pledged or conveyed in a mortgage or deed of trust after the fall and prior to a foreclosure sale by paying the debt in full, accrued interest, and lenders cost.
Equitable redemption
An interest in real estate such that a court will take notice and protect the owners rights.
Equitable title
A lease in which the rental amount changes in proportion to the lessors cost of ownership and operation of the property.
Escalated lease
A statement any lease permitting the lessor to increase the rent
Escalation clause
The power of government to take title to property left by a person who has died without leaving a valid will (intestate) or qualified heirs.
Escheat
The deposit of funds or documents with a neutral third-party, who is instructed to carry out provisions of an agreement.
Escrow
Continuing to occupy property after lawful authorization has expired; a form of leasehold estate.
Estate at sufferance
A leasehold estate that may be terminated at the desire of either party.
Estate at will
A leasehold estate of definite duration.
Estate for years
A lease hold a state that automatically renews itself for consecutive periods until terminated by notice by either party; also called estate from period to period or periodic tenancy.
Estate from year to year
An estate in simple fee absolute.
Estate in fee
Preventing a person from making a statement contrary to previous statement.
Estoppel
A document executed by mortgagor or mortgagee setting forth the principal amount; executing parties are bound by the amount specified.
Estoppel certificate
Latin for “and others.”
Et al
Latin for “and wife.”
Et ux
A municipal ordinance that has no basis in law. Michigan courts have ruled that this type of ordinance is discriminatory
Exclusionary zoning
A listing given to one broker only exclusive, who is entitled to the commission if the broker or any agent of the listing broker affects a sale, but imposes no commission obligation on the owner who sells the property to a person who was not interested in the property by efforts of the listing broker or any agent of the listing broker.
Exclusive agency listing
A listing given to one broker only, who is entitled to the commission if anyone sells the property during the term of the listing contract.
Exclusive right to sell listing
An agreement that has not been fully performed
Executory contract
A man appointed in a will to see that the terms of the will are carried out.
Executor
A woman appointed in a will to see that the terms of the will are carried out.
Executrix
Purchase of optioned property by the optionee
Exercise of option
An agency relationship created by oral or written agreement between principal and agent
Express agency
A contract created verbally or in writing by both parties
Express contract
Amount of insurance coverage shown on the declaration page
Face amount
A federal prohibition on discrimination in the sale, rental, or financing of housing on the basis of race, color, religion, sex, or national origin.
Fair housing act of 1968
A federal prohibition on discrimination in sale, rental, financing, or appraisal of housing on the basis of race, color, religion, sex, national origin, handicap, or familial status.
Fair housing act of 1988
A law adding to the fair housing act provisions to prevent discrimination based on mental or physical handicap or familial status
Fair housing amendments act of 1988
A price for property agreed upon between buyer and seller and the competitive market with neither party being under undue pressure.
Fair market value
An adult with children under 18, a person who is pregnant, one who has legal custody of a child or who is in the process of obtaining such custody.
Familial status
A short name for the federal national mortgage Association FNMA, a privately owned corporation that purchases FHA, VA, and conventional mortgages.
Fannie Mae
The US agency that regulates federally chartered savings and loans associations.
Federal home loan Bank system
The US agency that ensures mortgage loans to protect lending institutions
Federal housing administration or FHA
Legislation that applies to all residential leases in the sale of 1 to for family residential units concerning the disclosure lead-based paint in the home
Federal lead-based disclosure act
And inheritable estate in land providing the greatest interest of any form of title.
Fee simple absolute
A defeasible fee (title), recognizable by words “as long as.”
Fee Simple determinable
A defeasible fee (title), recognizable by words “but if.”
Fee simple subject to a condition subsequent
A type of land ownership in medieval Europe, whereby only the king could hold absolute title to real property.
Feudal system
A mortgage loan and which payments are insured by the Federal housing administration.
FHA insured loan
A person, such as an agent, placed in a position of trust in relation to the person for whose benefit the relationship is created; essentially the same as a trustee.
Fiduciary
Consummation of a contract to buy or sell real property.
Final settlement
A mortgage that is superior to later recorded mortgages
First mortgage
Personal property that has become real property by having them permanently attached to real property.
Fixture
A lease in which the rental amount does not change during the lease term.
Flat lease
A nickname for Federal Home Loan Mortgage Corporation, FHLMC, a corporation wholly owned by the Federal home loan Bank system that purchases FHA, VA and conventional mortgages.
Freddie Mac
And economic condition in which buyer and seller have ample time to negotiate a beneficial purchase and sale without undue pressure or urgency.
Free-market
A right of title to land.
Freehold estate
A linear foot of property frontage on a street or highway.
Front foot
A mortgage in which the schedule uniform payments will pay off the loan completely over the mortgage term.
Fully amortizing mortgage
Loss of value resulting from things such as faulty design, inadequacies, overadequacy’s, and equipment being out of date.
Functional obsolescence
One with full Authority over one property of the principal, such as a property manager.
General agent
A lien that attaches to all the property of a person within the courts jurisdiction.
General lien
A deed denoting an unlimited guarantee of title
General warranty deed
A nickname for the Government national mortgage Association GNMA, a US government agency that purchases FHA and VA mortgages
Ginnie Mae
Found an unnatural duty and affection. Has no pecuniary value.
Good consideration
Lenders estimate a borrower settlement costs, required by RESPA to be furnished to borrower at the time of loan application.
Good faith estimate
A lease in which the rental amount changes and specific amounts over the lease term
Graduated lease
A combination of the graduated payment mortgage in a variable rate mortgage
Graduated payment adjustable mortgage
A mortgage in which the payments are lower in the earlier years but increase on a scheduled basis until they reach the amortizing level
Graduated payment mortgage
A statutory form of deed and which the warranties are implied from the statute rather than being spelled out in the deed.
Grant deed
One who receives title to real property by deed
Grantee
The statement and a deed containing words of conveyance
Granting clause
One who conveys title to real property by deed
Grantor
A lease in which the lessor pays all costs of operating and maintaining the property and real property taxes.
Gross lease
The amount of rental income that would be received for all units were rented 100% of the time and there were no credit losses.
Growth potential income
A method of estimating the value of an income property
Gross rent multiplier
A lease of unimproved land
Ground lease
Lessie’s payment under a ground lease
Ground rent
Mortgage loan for which the monthly payments increase annually, with the increased amount applied directly to the loans principal, that’s shortening the term of the loan.
Growing equity mortgage
The statement in a deed beginning with the words “to have and to hold” and describing the estate granted
Habendum clause
A variety of dissimilar uses a property; nonhomogenous
Heterogeneity
The use of land that will preserve its utility and yielding net income flow in the form of rent that, when capitalized at the proper rate of interest, represents the highest present value of the land.
Highest and best use
A tenant who remains in possession of the property after the lease terminates
A holdover tenant
A will that is hand written by the testator
Holographic will
A booklet explaining aspects of loan settlement required by RESPA
Home buyers guide
And organization of owners having the responsibility to provide for operation and maintenance of common areas of a condominium or residential subdivision; also called property owners Association.
Homeowners association
An insurance policy protecting against loss caused by structural and other defects in a dwelling
Homeowners warranty policy
The Land and dwelling of a homeowner
Homestead
An exemption of a specified amount of value of a homestead from the claims of creditors; provided by state statute
Homestead exemption
Neighborhoods made up of similar and compatible properties
Homogeneity
Pledging property as security for the payment of a debt without giving up possession
Hypothecating
An offer that does not obligate the offer
Illusory offer
Agency that exists as a result of actions of the parties
Implied agency
A contract created by deduction from the contract of the parties rather than from the direct words of the parties; opposite of an express contract.
Implied contract
Another term for escrow account
Impound account
Land on which structures or roads exist
Improved land
And suspension or pending, possibly occurring at some future time.
Inchoate
The primary method for estimating the value of property is that produce rental income; also called appraisal by capitalization
Income approach
Depreciation that is not physically correctable or not economically practical to correct
Incurable depreciation
Reimbursement or compensation paid to someone for loss already suffered.
Indemnification
A relationship that meets the following criteria:
(1) the broker and licensee must have a written agreement stating that the licensee is not an employee for federal and state or income purposes.
(2) not less than 75% of the licensees income may come from commissions earned through the sale of real estate.
Independent contractor
A lease in which the rental amount changes in proportion to the changes in the consumer price index.
Index lease
The market value of property at the date of the decedents death, for tax purposes
Inheritance basis
A court instruction to discontinue a specific activity
Injunction
The sellers broker makes a false statement to the buyer about the property, in the broker does not know whether the statement is true or false.
Innocent misrepresentation
A transaction in which the seller receives the sale price in more than one Tax year.
Installment sale
A written legal documents such as a contract, note, or mortgage.
Instrument
A loan in which the loan payment is insured by private mortgage insurance to protect the lender.
Insured conventional loan
Federal law regulating the sale across state lines of subdivided land under certain conditions
Interstate land sales full disclosure act
The condition of death without leaving a valid will
Intestate
A joint venture, typically controlled by one or two persons, hoping for return to all investors.
Investment syndicate
Transfer of title to real property as a result of the lien foreclosure sale, adverse possession, filing a petition in bankruptcy, condemnation under power of eminent domain, or, upon the death of the titleholder, to the state if no heirs.
Involuntary alienation
Destruction, theft, seizure, requisition or condemnation of the property
Involuntary conversion
That which cannot be changed or canceled
Irrevocable
A form of coownership that includes the right of survivorship
Joint tenancy
A record of the brokers trust account showing all receipts and disbursements on a day-to-day basis the record is required by Michigan license law.
Journal
A court proceeding to require the property be sold to satisfy mortgage lien
Judicial foreclosure
A mortgage that is subordinate to a prior mortgage
Junior mortgage
Lots of legal rights because of failure to assert them in a timely basis
Laches
A contract of sale and financing instrument where in the seller agrees to convey title when the buyer complete the purchase price installment payments; also called installment land contract, contract for deed, and conditional sales contract.
Land contract
Conveyance of land as a gift for the benefit of the public.
Land-grant
Type of trust and which title to land is held by a trustee for the benefit of others
Land trust
Hidden structural defect that would not be discovered by an ordinary inspection
Latent defect
Lessors interest in the leased property
Leased fee
Nonfreehold estate; of limited duration, providing the right of possession and control but not title.
Leasehold estate
A mortgage in which a leasehold (nonfreehold) estate is pledged to secure payment of the note.
Leasehold mortgage
A policy insuring a lessee against defects in the lessors title
Leasehold policy
And estate created by exercise of the right of dour, curtesy, or statutory substitute.
Legal life estate
Lessee
Tenant
Lessor
Landlord
Imposition of attacks, executing a lien.
Levy
A personal privilege to do a particular act or series of acts on the land of another
License
Selling property without consent of the owner who incurred the deck, resulting in a lean, as ordered by a court or authorized by state law, and title conveyed to purchaser by judicial deed.
Lien foreclosure sale
One whose property is subject to a lien
Lienee
The one holding a lien against another.
Lienor
A freehold estate created for the duration of the life or lives of certain named persons; a noninheritable estate.
Life estate
A form of life estate in which certain persons, called remaindermen, our designated to receive the title upon termination of the life in tenancy.
Life estate in remainder
A form of life estate that goes back to the creator of the estate and feesimple upon termination
Life estate in reversion
In a state in which the duration is measured by the life of someone other than the life tenant.
Life estate pur autre vie
Property of the same nature and character
Like kind property section 1031 exchanges
An organization consisting of one or more general partners and several partners with lesser rolls
Limited partnership
Money to be paid and received as compensation for breach of contract
Liquidated damages
The attribute of an assets being readily convertible to cash
Liquidity
Latin meaning “a lawsuit pending.”
Lis pendens
A contract whereby a property owner employed as a real estate broker to market the property described in the contract
Listing contract
Rights belong to the owner of land that borders a lake, ocean, or sea.
Littorial rights
The relationship between the amount of a mortgage loan and the lenders option of the value of the property pledge to secure payment of the loan.
Loan-to-value ratio
Signifies locus sigilli, a Latin term meaning “place of the seal.”
L.S.
Measure of profit
Margin
The primary approach and estimating the value of vacant land and single-family, owner occupied dwellings. Also called comparison approach.
Market data method
A property is worth in terms of price agreed upon by a willing buyer and seller one neither is under any undue pressure and each is knowledgeable of market conditions at the time.
Market value
A title that is free from reasonable doubt and that a court would require a purchaser to except
Marketable title
The instrument that legally establishes a condominium; also called condominium declaration.
Master deed
Important information that may affect a person’s judgment
Material fact
Another name for mechanics lien
Material man’s lien
A statutory lien available to person supplying labor or materials to the construction of an improvement on land if they are not paid
Mechanics lien
A condition that must exist for creation of a contract
Meeting of the minds
When a subsequent contract covering the same subject matter is drafted
Merger
A system of land description by distances and directions
Metes and bounds
Investigates alleged discrimination and secures the equal protection of
Michigan civil rights commission
An act that details rights of condominium purchasers in Michigan
Michigan condominium act
Protects and forces, by lean, the rights of persons performing labor or providing material or equipment for the improvement of real estate. See construction lien act and recovery fund.
Michigan construction lien act
Prohibit certain practices and trade or commerce and provides for certain remedies
Michigan consumer protection act
Provides that if the lender amends the loan contract and blends the rate for the buyers assuming the loan, the seller still retains liability on the note and the mortgage. It applies to Michigan State chartered lenders only.
Michigan due on sale clause act
Regulates the licensing and registration of person to make, broker, or service 1 to 4 family residential first mortgage loan secured by Michigan property.
Michigan mortgage brokers, lenders, and servicers licensing act
Requires that an owner or any other person engaging in real estate transaction, real estate broker, or real estate sales person shall not, on the basis of disability that is unrelated to the individuals ability to acquire, rent, or maintain property or use by an individual of adaptive devices or aides, engage in a number of discriminatory practices.
Michigan persons with disabilities civil rights act
A series of Michigan statutes that closely regulate how a landlord may handle security deposits received from tenants
Michigan security deposits act
Makes loans at below market interest rates to developers of rental housing, to low and moderate income purchasers of single-family homes, into low and moderate income borrow ours for home improvement.
Michigan State housing development Authority MSHDA
Regulates rental agreements for residential properties
Michigan truth in renting act
Prohibits a real estate licensee from engaging in transaction that could be viewed as a security
Michigan uniform securities act
There are certain types of trade restraints that are so interests to competition that there can be no justification for them
Michigan uniform state antitrust act
Provides that in transactions between private parties or unregulated lenders the maximum allowable interest rate is 11%.
Michigan Usury laws
Defines the persons liable for cleanup as well as the standards and penalties
Michigan’s environmental protection act
An act that regulates the division of land, thereby promoting the health, safety, and general welfare of the public.
Michigan’s land division act
An act that regulates the advertising, promotion, offer, sale or lease of lots, parcels, units of interest in land within real estate subdivisions or subdivided lands of 25 or more lots regardless of size, if marketed with in the state of Michigan.
Michigan’s land sales act
Requirements by the state of Michigan regarding the sale of property located in another state.
Michigan’s out of state land sales
Protects farmers from litigation if they follow established guidelines.
Michigan’s right to farm act
Mandates that the seller complete a disclosure form regarding the condition of the property
Michigan’s seller disclosure act
Mandates that all petroleum products stored underground must be registered
Michigan’s underground storage tank regulation act
Defines and regulates use of Michigan’s wetlands
Michigan’s wetlands protection act
1/10 of a cent
A mill
A non-freehold (leasehold) estate in the area below the surface of the land
Mineral lease
A landowners ability to take minerals from the earth or to sell or lease this right to others
Mineral rights
A written instrument used to pledge a title to real property to secure payment of a promissory note
Mortgage
The transfer of mortgage obligations to purchaser of the mortgaged property
Mortgage assumption
A payment for insurance to protect the lender and or issuer against loss if default occurs
Mortgage insurance premium
The lender and the mortgage loan, who receives a mortgage from the borrower (mortgagor).
Mortgagee
The statement and a mortgage or deed of trust that demonstrates the mortgagors intention to mortgage the property to the mortgagee
Mortgaging clause
The borrower and a mortgage loan who executes and delivers a mortgage to the lender
Mortgagor
More than two properties are exchanged in one transaction
Multiple exchange
And organized method of sharing or pooling listings by member brokers
Multiple listing service
The voluntary agreement of all parties to a contract as evidenced by an offer and acceptance
Mutual assent
A statement of an opinion of value containing the element of judgment as well as the data used in arriving at the value estimate
Narrative report
The largest and most prominent trade organization of real estate licensees
National Association of realtors
Coalition of private, nonprofit fair housing groups that has joined with federal and state government fair housing enforcement agencies to substantially improved fair housing enforcement activities.
National fair housing alliance NFHA
When the loan payment amount is not sufficient to cover interest do, the shortfall added back into principal, causing principle to grow larger after payment is made.
Negative amortization
A right in the land of another prohibiting the servient owner from doing something on the Servient land because it will affect the dominant land.
Negative easement
Legal term describing failure to use the care that a reasonable person would use in like circumstances.
Negligence
Occurs when a sellers broker conceals a defect in the property from the buyer or misrepresents the existence of a defect
Negligent misrepresentation
Gross income less operating expenses; also called net operating income.
Net income
A lease in which the less he pays a fixed amount of rent plus the cost of operation of the property
Net lease
Not a type of listing but a method of establishing the listings brokers commission as all money above as specified net amount to the seller.
Net listing
Utilization of land that does not conform to the use permitted by zoning ordinance for the areas; maybe lawful or unlawful.
Nonconforming use
Leasehold; Estates with a length determined by agreement or statute; establish his possession of land as opposed to ownership and fee.
Non-freehold estate
A formal for closure that does not require court action to conduct a foreclosure sale; also foreclosure under power of sale.
Nonjudicial foreclosure
A person authorized by a state to take oaths and acknowledgments
Notary public
Substitution of a new contract for a prior contract
Novation
One to Whom an obligation is owed
Obligee
One who owes an obligation to another
Obligor
One to whom an offer is made
Offeree
One making an offer
Offeror
A listing given to one or more brokers where in the broker procuring a sale is entitled to the commission but imposes no commission obligation on the owner in the event the owner sells the property to someone who has not interested in the property by one of the listing brokers
Open listing
A mortgage that does not impose a prepayment penalty
Open mortgage
A mortgage that may be refinance without rewriting the mortgage
Open end mortgage
A contract whereby a property owner (optionor) sells a right to purchase his or her property to a prospective buyer (optionee)
Option
A unilateral contract whereby a property owner sells a right to purchase his or her property and an established price to a prospective buyer
Option to purchase
One who receives an option
Optionee
One who gives an option
Optionor
A lot enacted by a local government
Ordinance
A service fee charged by lending institution for making a mortgage loan
Origination fee
A policy ensuring an owner of real property against financial loss resulting from the title defect
Owners policy
Title to real property held in the name of one person only
Ownership in severalty
A mortgage and which personal property as well as real property is pledge to secure payment of the note
Package mortgage
A concept allowing the oral exclamations can support the written words of a contract but not contradict them
Parole evidence rule
Allows certain parcels of property to be removed from the mortgage lien if the loan balance is reduced by specific amount
Partial release clause
A mortgage in which the schedule of uniform payments will not completely satisfiyThe debt over the mortgage term and therefore will require a final payment larger than the uniform payments to completely satisfy the debt; the final payment is called a balloon payment
Partially amortizing mortgage
A mortgage in which two or more lenders share and making the loan. One in which a lender shares in the profit produced by an income property pledged to secure the loan payment in addition to receiving interest and principal payments.
Participation mortgage
A legal proceeding dividing property of co-owners so each will hold title severalty
Partition
A common wall used by two adjoining structures
Party wall
Property defects that could be discovered upon reasonable inspection
Patent defects
A test of soil to determine if it is sufficiently porous for installation of a septic tank
Perc test
A lease in which the rental amount is a combination of a fixed amount plus a percentage of the leasees gross sales.
Percentage lease
A surveyors measurement 16 1/2 feet in length.
Perch
Acronym to noting that a mortgage payment includes principal interest taxes and insurance
PITI payment
A form of cluster zoning providing for both residential and commercial land uses within a zone area.
Planned unit development PUD
Combining two or more parcels of land into one tracks that has more value than the total value of the individual parcels
Plottage
The point at which a metes and bounds description begins and ends
Point of beginning POB
An instrument appointing an attorney in fact; creates a universal agency.
Power of attorney
The introductory information on a deed
Premises cause
Cost the seller pays in advance that were not fully used up such as utility payments are property taxes due, shown as a credit to the seller and a debit to the buyer
Prepaid expenses
A method of acquiring an easement by continuous and uninterrupted use without permission
Prescription
Latin meaning “on the face of it”; a fact presume to be true and less disapproved by contrary evidence.
Prima facie
The interest-rate a lender charges to the most credit where the customers
Prime rate
In the law of agency, one who appoints an agent to represent him or her.
Amount of money on which interest is paid or received.
Principal
North-south line in the rectangular method of property description
Principal meridian
Priority is established for water rights that are based on the date that the water was first put to beneficial use.
Prior appropriation doctrine
Regulations for land-use by individuals or nongovernmental organizations in the formal deed restrictions and restrictive covenants
Private land use control
A form of insurance coverage required in high loan-to-value ratio conventional loans to protect the lender in case the borrower defaults and loan payment
Private mortgage insurance PMI
The procedure for proving a will
Probate
The basis for a direct action that results in successfully completing an objective
Procuring cause
The right to participate in profits of another’s land
Profit or profit a prendre
To put in effort by public announcement; to put into operation
Promulgate
An accurate legal description of land
Property description
A comprehensive checklist pertaining to the condition of the property including its structure and environmental hazards in and around the property
Property disclosure form
A lease in a cooperative apartment
Proprietary lease
Division of certain settlement cost between buyer and seller
Proration
A tax payer who, because of changes in employment or health, cannot meet the ownership and occupancy requirements may exclude the fractional portion of $250,000/$500,000 that equals the fractional portion of two years that the ownership and occupancy requirements were met.
Proration of the universal exclusion
A life estate based on the life of another
Pur autre vie
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price
Purchase money mortgage
A method for estimating replacement or reproduction cost
Quantity survey
One fourth of a section containing 160 acres
Quarter section
Use or possession of property that is undisturbed by an enforceable claim of superior title
Quiet enjoyment
To perfect the claim and obtain a title to the property, the claimant must satisfy the court that he or she has fulfilled the requirements of the adverse possession statute of Michigan
Quiet title action
A deed of release that contains no warranty of title; used to remove a cloud on the title. A deed to relinquish or release a claim to real property.
Quit claim deed
A colorless, odorless, radioactive gas formed by the decomposition of naturally occurring uranium.
Radon gas
An area of land defined by the rectangular survey system of land description
Range
To reaffirm a previous action
Ratify
A formal business trust owned by shareholders making mortgage loans
Real estate investment trust REIT
A federal law requiring activities of lending institutions in making mortgage loans for housing
Real estate settlement procedures act RESPA
A registered trademark of the national Association of REALTORS; it’s use limited to members only
REALTOR
A lease and which changes in rental now are based on changes and property value, as demonstrated by periodically appraisals of the property
Reappraisal lease
Allows the landlord to regain possession if the rent income from a percentage lease does not reach projected levels or if it falls
Recapture clause
A mutual agreement by states to extend licensing privileges to licensees in each state
Reciprocity
Written registration of an owners title in public records for tech again subsequent claimants
Recordation
A type of land description utilizing townships and sections
Rectangular survey system
The refusal lending institutions to make loans for the purchase, construction, or repair of a dwelling because the area in which the dwelling is located this integrated or populated by minorities
Redlining
The owners right to regain possession of real property
Reentry
A percentage of the brokers commission paid to another broker for sending a buyer or seller to him or her
Referral fee
Requirements issued by the federal reserve fund in implementing the truth in lending law, which is part of the federal consumer credit protection act.
Regulation Z
One having future interest in a life estate
Remainderman
Restriction placed on a private owners use of land by nongovernmental entity or individual
Restrictive covenant
Text on the conveyance of title to real property
Revenue stamps
Mortgage allowing elderly home owners to borrow against the equity in their homes to meet living expenses
Reverse annuity mortgage RAM
Return of title to the holder of a future interest, such as a grantor in the life estate not in remainder.
Reversion
A provision stating the owners interest: that possession of property will go back to owner at end of lease.
Reversionary interest
Allows lender to sell mortgage at any time and obtain money invested rather than wait for completion of the loan term
Right of assignment
A statement and a lease or condominium articles of association that provides for a Leisy or an association to have the first opportunity to purchase the property before it is offered to anyone else
Right of first refusal
The right of an owner to receive the title to a co-owners share upon death of the co-owner, as in the case of joint tenancy and tenancy by the entirety
Right of survivorship
A mandatory provision in the Texla providing that text on any game realized in the sale of the principal residence must be postponed if the sale and purchase qualify
Roll over rule
Direct loan program provides financing for real Americans with incomes below 80% of the median income level in the community where they live
Rural housing service RHS
Corporate formation whereby corporate income and expenses flow through to shareholders as if a partnership
S corporation
A transaction whereby an owner sells his or her property to an investor who immediately leases the property to the seller as agreed in the sales contract
Sale and lease back
The amount estimated by an owner that will be realized from the sale of an asset at the end of the useful life of the asset; net salvage value is less the cost of removal
Salvage value
A mortgage that is first in priority after a first mortgage
Second mortgage
A 1 mile Square area of land described by the rectangular survey system, consisting of 640 acres
Section
Possession of a freehold estate in land
Seisin
The form the seller completes to reveal any defects in the property
Sellers disclosure statement
Land encumbered by an easement
Servient tentement
The distance from a front or interior property line to the point where structure can be located
Set back
Ownership by one person
Severalty
A mortgage in which the lenders shares in the appreciation and property value in return for making the loan at a fixed lower rate than the rate in effect at the time the loan is made
Shared appreciation mortgage SAM
A deed given by a court to affect the sale property to satisfy a judgment
Sheriffs deed
Kind of minium unit composed of only vacant land the service improvements or with airspace within which a building is to be constructed
Site condominium
Location of a parcel of land
Situs
Agent with limited authority to act on behalf of the principal, such as created by a listing
Special agent
A love you bye local government against real property for part of the cost of making an improvement to the property, such as street paving, installing water lines, or putting on sidewalks.
Special assessment
A Deed containing a limited warranty of title
Special warranty deed
A court instruction requiring a defaulting party to a contract to buy and sell real property to specifically perform his or her obligations under the contract
Specific performance
Rezoning of a certain property in a zone area to permit a different type of use them the authorized for the rest of the areas; maybe valid or invalid
Spot zoning
A technique used to estimate the total cost of construction, in which the total number of square feet to be constructed is multiplied by a cost per square foot figured to derive total cost
Square-foot method
A law in effect in all states requiring certain contracts to be in writing to be valid
Statute of frauds
If foreclosure proceeding that allows a statutory time. After foreclosure sale during which the borrower may still reading the title
Statutory foreclosure
The borrower is granted the right to pay the debt plus accrued interest and costs in full after the foreclosure sale, and thereby recover the property
Statutory redemption
The violations and fines or penalties, which the department in the licensee have agreed upon.
Stipulation
A proceeding in which a court gives a mortgage are in default a specified time period in which to satisfy the debt and thereby prevent transfer to the lender of the title to the mortgage property
Strict foreclosure
The substitution of the title insurance company in the place of the insured for filing a legal action
Subrogation of rights
The act that reflected the EPA’s experience in administering the complex super fun program during his first years and made several important changes and additions to the program
Super fun amendments and reauthorization act SARA
The right of the surviving co-owner to automatically receive the title of a deceased co-owner immediately without probate
Survivorship
Occurs when the first adverse possessor transfers possession to another person who continues as an adverse possessor
Tacking
Permanent financing arranged to replace a short-term construction loan
Take out loan
Focuses it’s tax breaks on five principal areas: capital gains, expanded IRAs, estate and gift tax is, child tax credits, and an educational incentives
Text pair relief act of 1997
A form of coownership it does not who the right of survivorship
Tenancy in common
A form of coownership limited to husband-and-wife, with the right of survivorship
Tenants by entirely
A mortgage that requires the mortgagor to pay interest only during the mortgage term, with the principal due at the end of the term.
Term mortgage
To have died leaving a valid will
Testate
A man who has died and left a valid will
Testator
A woman who has died and left a valid will
Testatrix
A person or persons employed by a fair housing organization to pose as a buyer or seller or renter of real estate to determine if the licensee your landlord is acting in compliance with the law
Tester
The portion of a deed that contains the grantors and witnesses signatures and acknowledgment
Testimonium clause
Evidence of the right to possess property
Title
An area of land 6 miles x 6 miles as defined by rectangular survey system
Township
Legislation and acted to regulate chemical substance that pose an unreasonable risk of injury to health and the environment
Toxic substances control at TSCA
An item that is installed by a commercial tenant and is removable upon termination of the tenancy
Trade fixture
A tax imposed on the convenience of title to real property by deed
Transfer tax
One who holds title to property for the benefit of another called a beneficiary
Trustee
One who conveys title to a trustee
Trustor
The act of reviewing loan documentation and evaluating borrowers ability and willingness to repay the loan and sufficiency of collateral value of the property
Underwriting
Property that is free of any lien
Unencumbered property
A contract that appears to meet the requirements for validity but not be enforceable in court
Unenforceable contract
A standardized and comprehensive set of commercial laws regulating security interest in personal property
Uniform Commercial Code UCC
Michigan law stating that if the property is being destroyed, is partially destroyed, or is being taken by eminent domain, the buyer may, at the buyers option, declare the transaction null and void.
Uniform vendor and purchasers risk act
An agreement wherein there is a promise in return for a specific action, which together supply the consideration.
Unilateral contract
Time, title, interest, and possession; concurrent ownership’s require at least one unity between co-owners.
Unities of ownership
Technique used in appraising real estate under the cost approach, in which the cost of replacement or reproduction is grouped by stages of construction.
Unit in place method
Agent that has complete authority over any activity of principle; for example power of attorney.
Universal agent
Married homeowners may know exclude from taxation up to $500,000 of the game from the sale of the principal residence; single homeowners are allowed to exclude up to $250,000
Universal exclusion
Charging a rate of interest higher then the rate allowed by law
Usury
A mortgage loan in which the loan payment is guaranteed to the lender by the department of Veterans Affairs
VA guaranteed loan
Anything of value agreed upon by both parties to a contract includes a promise
Valuable consideration
Establishes an opinion of value utilizing an objective approach based on facts related to the property, such as age, square footage, location, cost to replace, and so on
Valuation
The present worth of the future benefits of ownership; a subject of value that is not market value
Value in use
A permit a deviation from specific requirements of the zoning ordinance because of the special hardship to a property owner
Variance
Purchaser
Vendee
Seller
Vendor
Document signed under oath by vendor stating that vendor has not encumbered title to real estate without full disclosure to vendee
Vendors affidavit
The transfer of title freely by the owner
Voluntary alienation
Report usually provided by a local municipality health department to determine the possibility of water and to ascertain that the septic system is running free
Well and septic report
Wording in a deed demonstrating the definite intention to convey a specific title to real property to a named grantee
Words of conveyance
A junior mortgage in an amount exceeding a first mortgage against the property
Wraparound mortgage
Court order preventing any transfer of attached property during litigation
Writ of attachment
