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)
