Definitions Flashcards
(221 cards)
1
Q
21E Certificate
A
property free from contamination
2
Q
203(b)
A
FHA financing
3
Q
1031 exchange
A
way to defer capital gains tax by re-investing within 6 months
4
Q
1099-s
A
report real estate sales to IRS
5
Q
accretion
A
increase in property due to wind/water
6
Q
accretion line
A
edge of water (high tide)
7
Q
adverse possession
A
squatters rights
8
Q
aeolian soil
A
deposited by wind (dunes)
9
Q
air rights
A
80-500 ft above real estate
10
Q
alienation clause
A
due on sale clause for lender
11
Q
alluvion
A
increase land on shoreline by deposits or recession of water
12
Q
alluvium
A
clay, silt, sand deposited by running water
13
Q
annexation
A
when property that was personal becomes real property
14
Q
appurtenance
A
a right belonging to and passing along with the property (like right of way)
15
Q
assemblage
A
combining two or more lots
16
Q
avulsion
A
sudden separtion of land from one lot and attachment to another by flood/river change
17
Q
bargain and sale deed
A
certificate of sale; no warranties; ususally foreclosure
18
Q
binder
A
deposit or earnest money
19
Q
blockbusting
A
inducing panic to leave neighborhood
20
Q
boot
A
unreplaced property value or reduced mortgage debt
21
Q
bundle of rights
A
all of rights that come with home ownership: possession, exclusion, control, disposition, enjoyment
22
Q
calling the note
A
first step of foreclosure
23
Q
cash flow
A
profit leftover after debt service and capital expenses paid from NOI
24
Q
cash on cash return
A
% of total investment received as cash flow
25
CERCLA
Comprehensive Environmental Response, compensation, liability act 1980 (superfund act)
26
estoppel certificate
(also called certificate of no defense) confirms if there is debt or lease when property sold
27
chapter 21E
(MA) superfund; creates office of brownfield revitalization
28
chapter 40A
(MA) creates zoning laws/master plan for towns
29
chattel
personal property
30
CFCs
non-toxic chemical (refrigeration)
31
chlordane
from pest treatments; must be disclosed
32
common area load
(commercial prop) % of rentable sq footage over usable sq footage (common areas)
33
comparative-unit method
price per sq foot for new construction
34
Comprehensive Loss Underwriting Exchange (CLUE)
records past consumer claims / homeowner's insurance
35
condemnation
taking property by means of eminent domain
36
conditional sales contract
(usually land) buyer has equitable title until all conditions made/money paid
37
conditional use permit
like a variance but limited/special use
38
constructive eviction
when tenant leaves property bc landlord hasn't fulfilled contract duties
39
constructive notice
public notice of something
40
cost approach
uses construction coasts to assess value of unusual property (church) where comps aren't possible
41
covenant
promise, guarantee or limitation in deed
42
curtesy/dower rights
husband/wife can have property upon spouse's death for thir lifetime
43
datum
point used to measure elevation in metes and bounds survey method
44
debt service
mortgage payments
45
dedication
giving land for public use
46
defeasance clause
clause on mortgage that releases it when last payment made
47
depreciation recapture tax
25% tax for any depreciation value made back at sale
48
devise
transfer real property through will
49
discount rate
rate the Fed lends at for banks
50
doctrine of capture
owner of land has rights to capture any liquid minerals under their land
51
doctrine of estoppel
once you cause someone to act in a certain way based on info given, you can't go back on your word.
52
doctrine of laches
(time limit) you lose your rights if you do not assert them in reasonable time
53
doctrine of prior appropriation
(not colonies) rights to a river based on whoever uses the water first
54
Dodd Frank Act
changed RESPA requirements and processes for more transparency in lending
55
dominant tenement
property owner with right to easement appurtenant
56
Dower's rights
(not in MA) surviving spouse granted life estate for property not willed to them and up to 1/3 interest in place of whatever was left in will
57
DTI
debt to income ratio
58
assumption clause
due on sale clause
59
easement appurtenant
involving two adjoining lots; gives one owner right of way access over other's lot
60
easement in gross
a personal right to use another's land
61
Elements of value
DUST: demand, utility, supply, transferability
62
emblements
crops that require annual or semi-annual harvesting considered personal property
63
entry-only listing
flat-fee listing -- only enters on MLS
64
ECOA
Equal Credit Opportunity Act
65
Equity Right of Redemption
(MA) under Statutory Right of Redemption property owner has 6 months from date of tax foreclosure to regain ownership of property
66
equitable title
future right to obtain legal title
67
Escheat
power of government to take property left without will/heirs
68
Escrow account
Also known as trust acct
69
Exclusive agency
must be in writing with exp date. Seller can find own buyer
70
Exclusive right to sell
must be in writing with exp date. Seller must pay commission
71
Federal Funds Rate
rate for interbank lending
72
Freddie Mac/Fannie Mae
buys loans form lenders for them to be able to offer more mortgages
73
FHA
insures mortgage loans. as low as 3.5%
74
Federal Open Market Committee
buy/sell US debt to/from member banks
75
Federal Reserve Board (The Fed)
establishes/regulates monetary policy
76
Fee simple absolute
fee/feesimple/fee simple indefeasible -- ownership without restrictions
77
fee simple defeasible
ownership dependent on specific condition in deed
78
Fee simple determinable
fee simple defeasible estate where limitation is violated and title automatically lost
79
fee simple subject to condition subsequent
fee simple defeasible estate where limitation is violated and grantor can request forfeiture of title via court action
80
fee simple subject to an executory limitation
fee simple defeasible estate where limitation is violated and property transfers to third party named by grantor
81
Title XI
Appraisers must have valid appraisal license
82
Foreign Investment in Real Property Tax Act
10% of sale price withheld and sent to IRS
83
Four stages of life cycle
growth, stability, decline, revitalization
84
Freehold
Ownership interest in realty
85
Fully amortized loans
also known as direct reduction loans -- completely paid off with last payment
86
Garn St. Germain Act
Due on sale clause cannot be triggered in event of death, divorce, marriage, leasing, devising on property or transfer into family trust
87
General Warranty Deed
grantor accepts liability for past, present and future claims. Includes covenant of warranty forever.
88
Government rectangular survey
public land survey system -- not in original 13 states -- uses meridians and base lines
89
graduated lease
rent increases on an agreed upon schedule. Escalator clause increases or decreases rent
90
graduated loan
lower payments early on in loan cause nagative amortization
91
graduated payment mortgage (GPM)
payments on loan gradually increase with pred. of rising income (doctors)
92
Ground lease
tenant rents land, builds improvements, at end of lease, improvements belong to landlord. up to 99 years. Common for fast food chains
93
Growing equity mortgage (GEM)
extra payments to loan go to principal in order to pay off faster
94
Habendum Clause
seen in life estate deeds -- defines or limits estate being granted
95
holographic
handwritten wills
96
homestead laws
protect homeowners from forced sale of house due to unsecured debts
97
Homeowners Protection Act of 1998
When hoeowner's LTV dips below 78%, PMI will automatically discharge
98
Holdover tenant
squatter
99
hypothecate
pledge something as a secuirty for debt without giving up possession (mortgage)
100
implied easement
implied through sale but not legally created/documented
101
implied warranty of habitability
(MA) automatic warranty on new construction -- 3 yrs
102
impounds
reserves held in escrow by lender (property taxes)
103
inactive licensees
may make referrals, but still need cont ed and member fees
104
installment sales contract
basically a rent to own -- also called contract for deed , land contract, conditional sales contract
105
intestate
no will or defective will left by deceased
106
inverse condemnation
if government takes land and causes depreciation for leighbors, they can claim compensation
107
joint tenancy
has right of survivorship
108
Land and surface rights
extends usually 30' below surface
109
leaseback
frees capital and creates tax relief
110
LEED certification
green building rating system
111
legatee
heirs to PERSONAL property
112
license
personal, revocable permission to enter property (sporting event)
113
Lien theory state
borrower holds legal title to property that is financed
114
life estate
ownership held for life; non-inheritable
115
littoral
shoreline of large body of water
116
lot and block survey method
uses metes and bounds (monuments/benchmarks)
117
ltv
loan to value ratio
118
93A
(MA) consumer protection act. 30-day demand letter.
119
metes
distances
120
MI
mortgage insurance for FHA loans
121
modified gross lease
tenant pays fixed amount in first year (base year) and then more based on owner's operating expenses
122
mortgage interest deduction
can deduct interest up to 750,000 debt
123
municipal lien certificate
required at closing to prove status of payment of property taxes, water, etc
124
Net operating income (NOI)
effective gross income minus operating expenses
125
net lease
tenant pays building expenses in addition to rent. Debt service not part of operating expenses.
126
net listing
illegal commision arrangement with unspecified comission over certain sale amount
127
non-designated agency
common/default rep. Client represented by all agents at brokerage.
128
non-freehold
all uses of property but ownership (rent)
129
non-recourse loan
borrower not personally liable in event of foreclosure
130
novation
cancellation of contract and replaced with new one
131
noncupative will
verbal. not enforceable in most states
132
ONCHA
(squatter) 20+ years, claim easement by prescription or claim ownership of land
133
open mortgage
mortgage matured or overdue and subject to foreclosure
134
open end mortgage
HELOC
135
package mortgage
covers real and personal property
136
parol
oral/verbal
137
partial release clause
used with blanket mortgages
138
participation mortgage
lender participates as an investor in development
139
PCBs
200 chemical compunds not found in nature
140
percentage lease
lease amount based on percentage of gross sales (department store)
141
PITI payment
principle, interest, prop tax, insurance
142
pledged account mortgage
borrower pay to subsidize interest rate on loan to have lower payments during times of high interest rates.
143
plottage value
increased value from assemblage (bundling plots)
144
points
origination fee charged by lenders at closing. 1%=point
145
power of sale clause
Allows lender to sell property if owner defaults on terms
146
letter of comitment
pre-approval letter from mortgage co; non-binding
147
prescription
method of obtaining an easement by adverse use of someone's property
148
principal
the client or person paying you
149
private restriction
like a covenant runs with the land
150
privity of contract
right to sue under a contract
151
privity of estate
legal relationship between two entities with common interest in same property
152
procuring cause
the effort of a broker to produce a ready, willing and able buyer
153
professional liability insurance
errors & omissions ins
154
proprietary lease
what cooperation gives unit owners (coop)
155
puffing
exaggeration made by salesperson; can be cause for 93a claim
156
pur autre vie
life estate not based on grantee's life, but a third-party life.
157
purchase money mortgage (PMM)
seller financing
158
quantity survey method
determines cost of rebuilding property exactly as is using local construction costs
159
quieting title
land court action to determine owner of property
160
quitclaim deed
also known as non-warranty deed; often used for fixing mistakes on deed or in foreclosure
161
Reverse annuity mortgage (RAM)
bank makes payments to borrower against equity; 62+
162
reappraisal lease
an appraiser opines on rent value rather than landlord/tenant
163
Recording/conveyance stamps
(MA) 2.28/500 or 3.24/500 Barnstable
164
redlining
credit discrimination
165
reliction
increase of land due to withdrawal of water
166
rentable sq footage
includes common area
167
REO
real estate owned = bank owned foreclosure property
168
RESPA
real estate settlement procedures act; full disclosure of closing costs
169
reversionary interest
when a grantor or landlord have right to regain possession of property in the future
170
right of first refusal
first dibs; right to match other offers
171
riparian
rights to or along a running body of water
172
riparianism
(MA) used for rivers; prop bordering navigable waterways have rights up to accretion line and properties on non-nav waterways have rights to mid-point of waterway.
173
riverfront area
land between mid-point high mark and 200 ft out (or 25 ft if densely populated)
174
SARA -- superfund amendments and reathorization act
provides for innocent landowner status
175
satisfaction piece
mortgage discharge (recorded evidence of payment of debt)
176
Seisin/seizin
possession of real property with freehold claim
177
separate property state
(MA) married persons may own property separately and in their own name
178
servient tenement
the property owner encumbered by the right of an easement appurtenant
179
severability clause
allows for cancellation of part of clause without cancelling whole contract
180
severalty
ownership by one person (cooperative)
181
severance
property that was real becomes personal
182
severance damage
property owner may receive if government only takes part of land in eminent domain
183
shared appreciation mortgage (SAM)
a loan where an investor makes the down payment for property in exchange for share in equity of property
184
shared equity loan
lender provides financing and pays portion of down payment
185
sheriff's deed
deed used to convey title to property sold to satisfy court judgment
186
simple interest mortgage
non-compounding mortgage; interest calculated daily
187
special warranty deed
also known as limited warranty deed; grantor guarantees they did not cause any issues with title
188
stachybotrys
black mold; must be disclosed
189
statute of frauds
only written RE contracts are enforceable
190
straight line depreciation
method of calculating depreciation which calculates annual loss based on IRS economic life years: 27.5 residential / 39 commercial
191
straight mortgage
interest only mortgages; principle paid on last payment
192
strict foreclosure
foreclosure auction not required bc lender can sue borrower for amount owed in court; if borrower doesn't pay, lender automatically receives title.
193
subject to
a method for taking over a mortgage, but seller is still liable.
194
surety
someone who guarantees and becomes legally responsible for another
195
swing loan
type of bridge loan for people purchasing new home before selling old one
196
take over mortgage
when a buyer takes over the debt of seller at sale
197
taxpayer relief act
shelter from capital gains 250k single, 500k married
198
tax sale
sale of property at public auction to satisfy deliquent taxes
199
tax title
ownership acquired at tax sale
200
tenancy at sufferance
squatter
201
tenancy by the entirety
co-ownership for married couples only
202
tenancy in common
co-owners may have equal or unequal interests. INHERITABLE
203
testator
person leaving will
204
title theory state
a state where bank holds title on property with mortgage; borrower holds equitable title
205
Title V
pass inspection within 2 years of sale (3 if pumped yearly) or 6 mo after sale.
206
torrens system
US system of land registration
207
TRID forms
TILA-RESPA disclosure forms
208
trustee's deeds
deeds executed by trustee to convey real estate to anyone besides trustor
209
UCC -- uniform commercial code
regulates business and financial transactions
210
UFFI
banned in 1979
211
USTs -- underground storage tanks
buried underground by 10% or more; banned in MA under 21 E
212
Uniform settlement statement
used to be HUD-1; lists all cost of RE transaction
213
unimproved property
raw land
214
unit in place method
calculates systems in property for reproduction or replacment
215
URAR
uniform residential appraisal report; required by Fannie and Freddie
216
usable sq footage
does not include common area
217
Utilization pooling
property owner does not have right to capture all liquid minerals under their land, but is entitled to a fraction of them
218
value in use
the value to a particular user (farmer vs. homeowner)
219
adjustable rate mortgage (ARM)
variable interest rate
220
wetland protection act (DEP)
buffer zone of 100ft from wetland; 50 ft for minor changes
221
wraparound mortgage
seller financing that wraps around seller's existing mortgage
