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
