Deck 1 Flashcards
(174 cards)
1
Q
Appurtenance
A
Rights, privileges, and improvements that belong to and transfer with real property but are not a part of the real property (Water rights, mineral rights, etc.)
2
Q
Baseline
A
A survey line (imaginary) running east to west, and used as a reference when mapping
3
Q
Bill of Sale
A
A written agreement used to transfer ownership in personal property
4
Q
Bundle of rights
A
An ownership concept describing all the legal rights that attach to the ownership of real property
5
Q
Chattel Real
A
An item (not physical) of personal property which is connected to real estate, for example, a lease.
6
Q
Condition Precedent
A
A condition which requires something to occur before a transaction becomes absolute and enforceable: for example, a sale that is contingent on the buyer obtaining financing.
7
Q
Condition Subsequent
A
A condition which, if it occurs at some point in the future, can cause a property to revert to the grantor: for example, a requirement in a grant deed that a buyer must never use the property for anything other than a private residence.
8
Q
Doctrine of Correlative User
A
Owners may use only a reasonable amount of the total water supply for beneficial use
9
Q
Emblements
A
Crops produced for sale by a tenant occupying the property.
10
Q
Estate in Fee
A
Fee, Fee simple, or fee simple absolute is a freehold estate owned by inheritance.
11
Q
Possessory Interest
A
A person’s right to occupy the property and not let other people on it.
12
Q
Section
A
A land area of 1 square mile or 640 acres.
13
Q
Township
A
6 by 6 sq mile area containing 36 sections, each one sq mi.
14
Q
Lis Pendens
A
A pending legal issue on a property that prevents transfer of ownership.
15
Q
Ratified
A
Approved
16
Q
Statue of Frauds
A
A law that requires that contracts be in writing and contain certain elements to be enforceable.
17
Q
Unilateral Rescission
A
Legal action taken by a party when the other party has breached the contract.
18
Q
Liquid Damages
A
A specified amount of money set in advance as a penalty for breach of contract.
19
Q
Puffing
A
Exaggerated comments.
20
Q
Commingling
A
Depositing client’s funds into broker’s personal account.
21
Q
Conversion
A
The taking of property belonging to another.
22
Q
Undivided Interest
A
Co-owners with the right to possess and use the whole property.
23
Q
Vested
A
Owned.
24
Q
Homestead
A
Homeowner’s principal residence.
25
Accretion
Build up of soil by natural causes on a property bordering water.
26
Less Than Freehold Estate
A leasehold estate that exists for a definite period of time.
27
Life Estate
An estate that is limited by life of it's owner.
28
Range
A strip of land located every 6 miles east of the meridian.
29
Real Property
Land and anything fixed to it.
30
Riparian Rights
Rights to use natural water that flows past the property. (river)
31
Bill of Sale
Transferring personal property.
32
Power of Attorney
A written document giving a person legal authority to act on behalf of someone else.
33
Attorney in fact
An unbiased person who is authorized by another person to act in their place in legal matters.
34
Recission
Ending a contract.
35
Forbearance
A lender refraining from taking action against a debt that is owed.
36
Unilateral Recission
Legal action taken by one party for breach of contract.
37
Grant Deed
A deed in which the grantor explains that they have not had any legal issues on the property.
38
Sucession
The legal transfer of real property under the law of descent and distribution.
39
Alienate
Transfer of ownership or to sell.
40
Adverse Possession
Acquiring the title to a property by continued possession and payment of taxes.
41
Redlining
Denying financing due to property's location.
42
Blockbusting
Causing people to buy or sell by telling them the value of the home will decline because of the people in the neighborhood.
43
Reversionary Rights
The landlord grants the right to live there but still keeps the right to retake possession of the property after the lease has ended.
44
Estate at Sufferance
Wrongful possession of real estate.
45
Demise
A conveyance of real property for a certain length of time, such as a lease.
46
Steering
Illegal practice of only showing clients homes in one area.
47
Book Value
Initial cost of property + capital improvements -total accrued depreciation.
48
Net Income
The remaining income after operating expenses were subtracted from gross income of a property. AKA net operating income.
49
Assemblage
Putting several smaller properties together under one ownership to increase value.
50
Ad Valorem
To value assessed property.
51
DUST
elements that create value: Demand, Utility, scarcity, transferability.
52
Gross Rent Multiplier (GRM)
When multiplied by monthly rental income = property's market value.
53
Gross Income Multiplier (GIM)
When multiplied by the annual gross income from all sources, not just annual rent = property's market value.
54
Condemnation
AKA eminent domain, right of the gov to take private property for public use, paying fair market value.
55
Variance
Exception granted to zoning regulations.
56
Effective Gross Income
Anticipated income from estimating gross income from a rental property not including vacancy and debt.
57
Novation
Agreeing to change an obligation for a new one over the existing one.
58
Agent
A person who interacts with others for their client to protect them legally in the process of buying a house.
59
Valuable Consideration
Each party in a contract must give up something to make the agreement binding.
60
Agency
A relationship in which the principal party authorizes an agent to act as their representative.
61
Arm's Length Transaction
A transaction where everyone involved represents themselves.
62
Estoppel
A legal thing which prevents people from denying facts and contradicting themselves.
63
Fiduciary
A relationship of trust with someone.
64
Abrogation
A revocation or annulling of a contract by mutual consent of the parties involved in the contract.
65
Undivided Interest
The interest a co-owner has in property which carries with it the right to possess and use the whole property along with other co-owners.
66
Express Contract
The parties involved talk about or write out their terms and intensions.
67
Implied Contract
An agreement shown by acts rather than words.
68
Bilateral Contract
Each party promises to perform some act in exchange for a promise.
69
Unilateral Contract
An agreement where one party pays for the performance of an act by the other party.
70
Executory Contract
An obligation to perform.
71
Partition Action
Court action to divide a property held by co-owners.
72
Severalty
Ownership of real property by one person.
73
Reliction
Land that was covered by water is exposed.
74
Ratification
A previously authorized act performed on behalf of a person, which makes the act valid and legally binding.
75
Subagent
An agent of an agent for a principal.
76
Patent Deed
A deed given to an individual for evidence of transfer of a title. Gov to personal property.
77
Adverse Possession
Acquiring a title to a property by continued possession and payment of taxes.
78
Probate Sale
Court approved sale of property of a deceased person.
79
Net Lease
Tenant pays costs such as taxes, insurance and repairs as well as rent.
80
Graduated Lease
AKA stair step lease. Periodic increases in rent.
81
Percentage Lease
Landlord receives a % of gross sales of a commercial property as part or all of the rental payment.
82
Writ of Possession
A court order for police to remove the tenant and his belongings within 5 days.
83
Estate for Years
A leasehold estate with a definite end date that must be renegotiated to stay. usually for commercial properties.
84
Axial Growth
City growth that occurs outward.
85
Estate at Will
Possession of an estate belonging to another for an indefinite period of time. Can be terminated by the lessor or lessee. Must be given or give 30 day notice.
86
CC&Rs
Restrictions placed on real property that limit the activities of owners.
87
Blind Advertising
Advertising that fails to disclose that the party is a licensed agent.
88
Cost Approach
Appraisal that estimates replacement costs and improvements, deducts estimated depreciation and adds market value of the land.
89
Income Approach
Appraising property based on property's anticipated future income.
90
Reconciliation
AKA correlation. Weighing the re4sults of all 3 appraisal methods to arrive at a final estimate for market value of a property.
91
Comps
Comparable properties.
92
Functional Utility
Usefulness and desirability.
93
Impound Account
A trust account for future funds and recurring costs relating to a property.
94
Quitclaim Deed
Transfers seller's interest to buyer.
95
Warranty Deed
To transfer title to property.
96
Beneficiary Statement
Statement of unpaid balance of loan.
97
Sheriff's Deed
A deed given to the buyer when property is sold through the court.
98
Public Grant
Transfer of title by the gov to private individual.
99
Constructive Notice
Public notice given to the county by recording a document.
100
Marketable Title
Clear sellable title.
101
Good and Indefeasible Title
Title that cannot be made void by a superior claim.
102
Escrow
Closing money and documents for the selling of a home.
103
Escrow Holder
Neutral agent for both buyer and seller.
104
Preliminary Title Report
Title Insurance offer.
105
Title Commitment
A contract to issue title insurance.
106
Guarantee of Title
Assurance of a clear title.
107
Holographic Will
A will written by the person themselves.
108
Executor/ Executrix
Person named in the will to handle the affairs of deceased person.
109
Testator/ Testatrix
A person who has made a will.
110
Intestate
Dying without leaving a will.
111
Devise
A gift of real property by will.
112
Legacy
A gift of personal property by will.
113
Codicil
A change in the will before the maker's death.
114
Vesting
The way the title will be taken.
115
ALTA Policy
American Land Title Association policy of extending title insurance.
116
Abstract of Title
A full summary of everything that has affected the title thus far on a specific parcel of real estate.
117
Closing Disclosure
Settlement statement that must be used for any conventional residential mortgage loans.
118
Security Instrument
Evidence of obligations to pay money such as a mortgage.
119
Equity
The difference between the amount still owed and the market value.
120
Hypothecation
To give real property as security for a debt without giving up possession.
121
Leverage
The use of borrowed money to purchase property.
122
Promissory Note
A written promise to pay a debt.
123
Index
A number used as the basis for adjusting interest rates of ARMs (adjustable rate mortgage)
124
Equity of Redemption
AKA right of redemption, the right of the owner who owes the debt to reclaim the property before the foreclosure.
125
Straight Note
A promissory note where interest payments are made periodically with the principal payment due at the end, or no payments until the end.
126
Partially Amortizing Note
Partial payments on a loan with a large payment at the end.
127
Fully Amortizing Note
Equal monthly payments on a loan that is paid off by the end.
128
Adjustable Rate Mortgage (ARM)
A loan where the interest changes over time based on the housing market.
129
Deed of Trust
Security for a debt owed where the title to a property is given to a third party.
130
Trustor
The borrower in a deed of trust.
131
Beneficiary
The lender in a deed of trust.
132
Power of Sale
The part of a contract where the person named has the power to sell the property if the debt is not paid.
133
Assignment of Rents
An agreement between the property owner and holder of trust deed or mortgage where the holder receives rights to collect rent from tenants of the property.
134
Equitable Title
Interest held by person giving away the property.
135
Reconveyance Deed
When the title to a property from a trustee goes back to the trustor (borrower) upon full payment of the debt.
136
Foreclosure
When property is sold to satisfy debt because someone couldn't pay their mortgage.
137
Trustee's Deed
Deed given to purchaser at trustee's sale.
138
Deficiency Judgement
Judgement against borrower when the security for loan isnt enough.
139
Mortgager
The borrower for a mortgage.
140
Judicial Foreclosure
Foreclosure by court.
141
Mortgagee
The lender of a mortgage.
142
Graduated Payment Adjustable Mortgage
Loan with low initial monthly payments which gradually increase over specified timeframe.
143
Junior or 2nd Lien Loan
Any mortgage or deed of trust after the first one, whose priority is less than 1st lien.
144
Third Party Originator (TPO)
Person who takes mortgage applications but doesnt fund loans.
145
Purchase Money Loan
A trust deed created at time of sale.
146
Hard Money Loan
Paid in cash.
147
Annual Percentage Rate (APR)
Total money charged to total amount financed.
148
Usury
Charging more interest than allowed by law.
149
Margin
a % rate added to determine the full interest rate of an ARM.
150
Open End Loan
A loan where the borrower is given a pre approved limit to how much can be borrowed.
151
Reverse Annuity Loan
Allows elderly Homeowners to borrow against equity in their homes by receiving monthly payments to help meet their living costs.
152
Rollover Mortgage
A loan that allows rewriting of a new loan at termination of the prior loan.
153
Homeowner Equity Loan
Cash loan made against the equity in a borrowers home.
154
Blanket Loan
Loan that is secured by several properties.
155
Closed End Loan
Borrower receives all loan proceeds in one lump some at time of closing. (auto and home loans)
156
Subject to Clause
A buyer takes over existing loan payments but is not liable for the loan.
157
Assumption Clause
Buyer takes over existing loan and agrees to be liable for it.
158
Contract for Deed
Seller gives up possession of the property but hold the title until total purchase price is paid off.
159
Swing Loan
Short term loan
160
Balloon Payment
Final payment that is larger than the previous payments.
161
Acceleration Clause
A part of the contract describing certain events in which the entire loan would be due.
162
Alienation Clause
What allows the lender to call the entire loan due ipon sale of the property.
163
Subordination Clause
When the holder of a trust deed allows a subsequent loan to take priority.
164
Prepayment Clause
Part in a trust deed where it allows the lender to receive a % for paying off the loan early.
165
Release Clause
In blanket loans when it allows the borrower to obtain a partial release of specific parcels of land from the loan.
166
Truth In Lending Act (Regulation Z)
Requires borrowers to be informed about the cost of borrowing money.
167
Equal Credit Opportunity Act
Credit is available to everyone with fairness.
168
Or More Clause
Paying a loan off early without penalty.
169
Principal
Original amount borrowed.
170
PITI
Principal, Interest, Tax, Insurance.
171
Deregulation
Financial institutions are allowed to compete freely for profits in the marketplace.
172
Financing Statement
A written notice by creditor who has extended credit for purchase of real property.
173
Intermediation
Transferring capital from investors to borrowers.
174
Real Estate Investment Trust (REIT)
Investors pooling money to buy real estate.
