Definitions Flashcards
Adverse possession
involuntary transfer of property takes place when a party makes a property claim by taking possession over a period of years and the owner fails to contest the possession.
Contract
A legally binding agreement between 2 or more persons that represent their promise to do or not to do a particular thing. Should be signed, written agreement.
Deed
written, legal instrument that conveys an estate or interest in real property to someone else, assuming it is executed and delivered. (grantor, grantee)
Lease
a contract in which the rights to use and occupy land, space, or structures are transferred by the owner to another for a specified period of time in return for a specified rent.
Earnest money
a good faith deposit made by a purchaser as the consideration of a binding contract. In real property transactions, this deposit is frequently applied to the buyers down payment.
Gross Lease
lessor pays some or all of the operating expenses. When landlord pays most, it’s a modified gross rental lease.
Land Contract
A contract in which a purchaser of real estate agrees to pay a small portion of the purchase price when the contract is signed and additional sums, at intervals and in amounts specified in the contract, until the total purchase price is paid and the seller delivers the deed; used primarily to protect the sellers interest in the unpaid balance because default can be exercised more quickly than it could be under a mortgage. Also called contract for deed or installment sale contract.
Net Lease
tenant pays all the operating expenses.
Option contract
a legal contract, typically purchased for a stated consideration, that permits but does not require the holder of the option to buy, sell, or lease real estate for a stipulated period of time in accordance with specified terms; a unilateral right to exercise a privilege.
Sales contract
Sales contract – a written document signed by a buyer and a seller who agree to the transfer of ownership of real property. Aka agreement of sale or earnest money contract.
Title
the combination of all elements that constitute proof of ownership.
Unilateral
only one of the parties to the contract is legally obligated to perform. An option in real estate is a unilateral contract.
Bilateral contract
each party makes a binding agreement to perform according to the contract. Most real estate contracts are bilateral.
Forbearance
a lenders agreement to postpone foreclosure proceedings, allowing a debtor an opportunity to explore financial alternatives.
Flat rental lease
lease with a specified level of rent that continues throughout the lease term.
