Words I Sorta Know Flashcards
Fannie Mae - FNMA
Federal National Mortgage Association - a privately owned corporation that participates in the secondary market by buying conventional, FHA, and VA loans.
Bundle of rights
legal rights of the real estate title holder. includes the right to possession, control, exclusion, enjoyment, and disposition.
Implied contract
a contract under which the agreement of the parties is demonstrated by their acts and conduct
Unenforceable contract
a contract with all the elements of a valid contract, yet neither party can sue the other to force performance of it. For example, an oral listing agreement.
Client
the person who employs an agent to perform a service for a fee
Listing agent
the broker in a multiple listing situation from whose office a listing agreement is initiated, as opposed to the selling broker, from whose office negotiations leading up to a sale are initiated.
Price fixing
brokers conspiring to set fixed compensation rates
Equal Credit Opportunity Act
a federal law to ensure that funds are available to qualified loan applicants without discrimination based on race, color, religion, sex, national origin, age, marital status, or receipt of public assistance
Negligent misrepresentation
when someone makes a false or grossly negligent statement about an important fact that induces another party to take action.
Condemnation
a judicial or an administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and compensates the owner
Caveat emptor
“let the buyer be aware”
Grantor
the person transferring title to or an interest in real property to a grantee
Due diligence
the process of investigating and verifying facts about a property before making a purchase
Fiduciary duties
a relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent.
Civil Rights Act of 1866
the first and primary law guaranteeing equal rights to all citizens; prohibits all discrimination based on race or color.
Deed restriction
clauses in a deed limiting the future uses of the property
Enforceable contract
any legal contract which carries the force of law behind it
FHA loan
a loan insured by the Federal Housing Administration and made by an approved lender in accordance with FHA regulations
Taxation
the process by which a government or municipal quasi-public body raises monies to fund its operation
Mortgagor
a borrower who conveys property as security for a loan
Competent or capable parties
people who are recognized by law as being able to contract with others; usually those of legal age and sound of mind
Foreclosure
a legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document
General agent
one authorized by the principal to represent the principal in a broad range of matters, for example, a property manager
TREC
Texas Real Estate Commission - a group of people appointed by the governor to set policy in implementing the License Act
ESAC
Education Standards Advisory Committee - reviews curriculum standards, course content requirements and instructor certification requirements for qualifying and continuing education courses and makes recommendations to TREC regarding these topics to ensure license holder education meets the highest educational standards.
IABS
Information About Brokerage Services - a notice that license holders must provide summarizing broker agency positions available
TRELA
Texas Real Estate License Act - the statute that controls the licensing of persons permitted to practice real estate brokerage in TX
DTPA
Deceptive Trade Practices Act - part of the federal Consumer Protection Act originally passed in 1973 and made specifically applicable to real estate in 1975 prohibiting a number of false, misleading, or deceptive acts or practices
Initial review period
the time when parties carefully examine the contract or terms before committing
Continuing education
courses that are prerequisite for license renewal
Intermediary
a broker who is employed to negotiate a transaction between both parties and who for that purpose may be an agent of both parties to the transaction, acting fairly so as not to favor one party over the other
HOA
A homeowner’s association is an organization in a subdivision, planned community, or condominium building that makes and enforces rules for the properties and residents.
Zoning
refers to municipal or local laws and regulations that govern how real property can and cannot be used in certain geographic areas
Gross rent multiplier (GRM)
a figure used as a multiplier of the gross monthly rental income of a property to produce an estimate of the property’s value
Nonhomogeneity
a lack of uniformity; dissimilarity. Because no two parcels of land are exactly alike, real estate is said to be nonhomogeneous; aka heterogeneity
Marginal tax rate
the amount of additional tax paid for every additional dollar earned as income
Exclusive agency listing
employment contract where the seller agrees to pay a broker commission if any agent/broker finds a buyer. But if the owner sells it themselves, the broker gets no commission.
Joint tenancy
concurrent ownership with unities of Time, Title, Interest, and Possession (TTIP). Has right of survivorship, meaning if one joint tenant dies, the surviving join tenants take the remaining interest
Multi-family residential use
an R-3 zone is for Multi-family residential use. also known as Multi dwelling unit (MDU), is a classification of housing where multiple separate housing units for residential inhabitants are contained within one building or several buildings within one complex. Units can be next to each other (side-by-side units), or stacked on top of each other (top and bottom units)
Contingencies
a provision or condition in the purchase of real estate requiring a certain act to be done or an event to happen before the contract becomes binding
Exclusive listing
employment agreement in which a specified agent earns a commission if a property is sold within a specific time frame. the specific agent will generally earn a commission, even if another licensee finds a buyer. If two exclusive listings are signed, the seller may have to pay two commissions
Net listing
employment contract in which seller pays the listing broker all purchase price proceeds over and above a minimum figure required by the seller. For example, Joe wants $100k for his house, if the broker finds a buyer for $120k, he gets a $20k commission. Legal in some states, not recommended in TX.
Life Estate
an interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person
Holographic will
a will that is written, dated, and signed in a testator’s handwriting but is not witnessed
Void contract
a “contract” that has no legal force or effect because it does not meet the essential elements of a contract and therefore is not a contract
Voidable contract
a contract that seems to be valid on the surface but may be rejected or disaffirmed by one or both parties
Canons of Professional Ethics and Conduct
a code of ethics established by TREC and published in its Rules
Comparative Market Analysis (CMA)
a comparison of prices of recently sold homes similar to the subject home in terms of location, style, and amenities. Compiled to assist a seller in determining a listing price
Consumer
an individual, partnership, corporation, or TX government agency that seeks or acquires, by purchase or lease, any goods or services, as defined by the DTPA.
Condominium
an individually owned unit within a complex or building of units. the owner owns the space inside their condo and shares ownership interest in the community property
Metes and bounds description
a legal description of a parcel of land that begins at a well-marked point and follows the boundaries, using direction and distances around the tract back to the place of beginning
PITI
Principle, Interest, Taxes, and Insurance
SAE
Sales agent apprentice education - a requirement for education beyond that needed to obtain a real estate sales agent license; continuing education for the first year of licensure
Severalty
ownership of real property by one person or one legal entity only; also called sole ownership
Statute of limitations
that law pertaining to the period of time within which certain actions must be brought to court
Accidental agency
an unintended agency relationship that is created by actions or words
Point
a unit of measurement used for various loan charges; one point equals 1% of the loan amount
Alienation
the act of transferring property to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession
Tenancy in common
a form of co-ownership by which each owner holds an undivided interest in real property as if the sole owner. Ownership shares need not be equal; and upon the death of an owner, the interest passes to the heirs
Steering
the illegal practice of channeling homeseekers to particular areas, either to maintain homogeneity of an area or to change the character of an area to create speculative situation
Severance
changing an item of real estate to personal property by detaching it from the land; for example, cutting down a tree
FSBO
for sale by owner; a property that is being offered for sale by the owner without the benefit of a real estate broker
Power of attorney
a written instrument authorizing a person, the attorney-in-fact, to act as an agent on behalf of another person to the extent indicated in the instrument
Mortgagee
a lender who conveys property as security for a loan
Customer
one who purchases or sells property without being represented by an agent
pur autrie vie
“for the life of another” - a life estate measured by the life of a person other than the grantee
Special agent
an agent hired to perform a specific duty for a client. The agent’s authority is limited to the specific job for the client. A listing agent hired to sell a client’s home is an example of a special agent.
