REA_Terms_N_Z Flashcards
(285 cards)
1
Q
Navigable waterways
A
The landowner owns the land to the water’s edge at the high water mark, but none below the water; the Colorado River is the only navigable river in Arizona
2
Q
Negligence
A
When an agent fails to exercise a degree of reasonable caution that would be exercised by a person of ordinary prudence under all existing circumstances in view of probable danger or injury
3
Q
Negligence per se
A
Conduct which may be declared and treated as negligence without any argument or proof as to the particular surrounding circumstances, either because it is in violation of a statute or because it is so palpably opposed to the dictates of common prudence that it can be said without hesitation that no careful person would have been guilty of such conduct
4
Q
Negligent misrepresentation
A
Statement contrary to fact resulting from failure to exercise reasonable care in obtaining or communicating information; the licensee could be held liable
5
Q
Negotiable instrument
A
an instrument signed by a maker or drawer, containing an unconditional promise to pay a certain sum of money, which can be passed freely form one person to another; often a promissory note or bank draft
6
Q
net cash flow
A
The number of dollars remaining each year after collecting rents and paying operating expenses and mortgage payments
7
Q
Net lease
A
A commercial lease wherein the tenant pays a base rent plus maintenance, property taxes, and insurance
8
Q
Net listing
A
listing that provides that the agent may retain as compensation for his or her services all sums received over and above a stated net price to the owner; the Arizona Department of Real Estate discourages the use of this type of listing
9
Q
Nonconforming loan
A
Also known as jumbo loans or high balance loans, can also be sold to the secondary mortgage market, although the purchaser will most likely be a non-government entity
10
Q
Nonconforming use
A
Building or land use that does not conform to the zoning ordinance
11
Q
Nonjudicial foreclosure
A
Foreclosure and sale of property without resorting to court action
12
Q
Non-monetary encumbrance
A
Affects the physical condition or use of property; includes deed restrictions, easements, and encroachments
13
Q
Non-navigable waterways
A
The landowner owns the land beneath the surface of the water to the center of the streambed at the low water mark
14
Q
Nonresidential property
A
Simply real property that is not residential rental property
15
Q
Notice of default
A
a notice that is recorded in the county recorder’s office stating that a trust deed is in default and that the holder has chose to have the property sold
16
Q
Notice of election to forfeit
A
A notice recorded by the seller at the end of the reinstatement period of a breached land contract
17
Q
Notice of intention
A
A notice filed by the subdivider prior to offering subdivided land for sale or lease
18
Q
Notice of reinstatement
A
A notice recorded by the seller if the buyer cures the default during the 20-day period after the filing of the notice of election to forfeit
19
Q
Novation
A
Formal assumption in which a new borrower is substituted for the original maker of the note
20
Q
Nuncupative will
A
An oral will usually done in the last minutes of a person’s life
21
Q
Obedience
A
A requirement that an agent obey all legal instructions given by the principal
22
Q
Offer
A
A proposal to make a contract
23
Q
Offeree
A
A person to whom an offer is made
24
Q
Offeror
A
A person who makes an offer
25
Office of Thrift Supervision
Replaced the Federal Home Loan Bank Board; organization that authorizes institutions to make adjustable mortgage loans
26
Oil or gas lease
A lease that generally requires a flat fee for the exploration for gas and oil and royalty if any is found
27
Open listing
an authorization given by a property owner to a real estate agent in which the agent is given the nonexclusive right to secure a purchaser; open listings may be given to any number of agents without liability to compensate any except the one who first secures a buyer ready, willing, and able to meet the terms of the listing or who secures the acceptance by the seller of a satisfactory offer
28
Open-end mortgage
A mortgage containing a clause that permits the mortgagor or trustor to borrow 3 additional money without rewriting the mortgage or deed of trust
29
Operating agreement
An agreement between members of a limited liability company that is similar to the bylaws and shareholders’ agreement of a corporation or the partnership agreement of a partnership
30
Option clause
A lease clause giving the tenant the option to renew the lease or to purchase the property
31
Option to purchase
An agreement to enter into a contract to purchase at the option of the lessee, and at a specified time during the lease
32
Option to renew
A lease clause that gives the tenant the right to extend the lease for a specified period of time
33
Original title
Title to real estate owned by the country or state
34
Owner’s policy
A title insurance policy designated to protect the fee owner
35
Package mortgage
A security instrument that includes real property and the personal property on the premises
36
Parole evidence rule
In a court of law, a contract must stand on the written word; no oral explanation is acceptable, except to clarify a written ambiguity
37
Part performance
Allows the enforcement of an oral contract covered by the Statute of Frauds where one party to the oral contract has substantially performed
38
Partially amortized loan
A loan that begins with amortized payments but ends with a balloon payment
39
Participation loan
Loan where the lender participates in the profits generated by a commercial property used to secure the debt
40
Partition action
A legal action by which co-owners seek to sever their joint ownership; the physical division of property between co-owners, usually through court action
41
Partnership
An association of two or more persons to unite their property, labor or skill, or any one or combination thereof, in prosecution of some joint business, and to share the profits in certain proportions; an agreement of two or more individuals jointly to undertake a business enterprise
42
Passive income
Income form a business in which the owner does not materially participate
43
Passive loss limitation
A federal income tax provision that prevents an investor from deducting passive losses form earned income
44
Pass-through certificate
A security interest in a pool of mortgages that provides for a monthly “pass-through” of principal and interest payments directly to the certificate hold; guaranteed by Ginnie Mae
45
Patent
The instrument used when an original title is conveyed by a state or federal government to an individual
46
Payee
Lender
47
Payor
Maker of the note
48
Pension and retirement programs
A source for real estate loans
49
Per stirpes
Method of distributing property to heirs whereby the descendant of a deceased heir receives that heir’s inheritance
50
Percentage
A part of a whole expressed in hundredths
51
Percentage lease
A commercial lease in which the tenant pays a percentage of the gross income received by the tenant, in addition to rent
52
Perimeter
The “distance around” the property; i.e., add all four sides, or multiply both dimensions by two and ad the sums
53
Period of reinstatement
90-day period from the notice of default, during which a borrower may reinstate the loan secured by a deed of trust by making up all back payments plus costs and bringing the loan current, but he is not required to pay off the entire loan balance
54
Periodic estates
a leasehold estate that continues indefinitely for successive periods of time, until terminated by proper notice; when the periods are 1 month in duration, it is often called a month-to month lease
55
Personal property
Any property that is not real property
56
Personal residence gain exclusion
A gain exclusion form taxable income form the sale of a personal residence that has been the taxpayer’s primary residence for 2 of the past 5 years
57
Phase One Environmental Analysis
The first phase of an environmental assessment; a review by competent professionals who have expertise in evaluating the presence of hazardous substances and other hazards and who are familiar with the liability implications
58
Physical characteristics of real estate
Three main categories that describe real estate in physical terms; immobility, indestructibility, and non-homogeneity
59
Physical deterioration
The loss of value due to normal wear and tear or to postponed maintenance
60
PITI
Type of payment (principal, interest, taxes and insurance)
61
Planned community
A real estate development that includes real estate owned by an association created for the purpose of managing, maintaining, or improving the property, and in which the owners of units are mandatory members and required to pay association assessments
62
Planned unit development
High-density, single-family structures that utilize the land area to the greatest possible extent
63
Planning & Zoning Commission
The commission of a municipality or count that hears petitions for zoning changes and makes recommendations to the city council or county board of supervisors
64
Plat
Survey that shows the location and boundaries of individual properties, dedicated streets, parks, and so on
65
Plessy v. Ferguson
Infamous ruling, which held that the enforcement of racial segregation of private or public facilities did not violate the U.S. Constitution as long as the separate facilities were equal
66
Plottage
The process of putting several parcels together as one lager parcel to achieve the highest and best use and an increase in value
67
Point
1 percent of the loan amount paid to the ender or the lender’s agent at the time the loan is made
68
Point of beginning
Indicates the place where the surveyor begins to describe the parcel in terms of the distance and direction from the point
69
Police power
Government’s right to enact and enforce laws for the common good
70
Portfolio income
Income that is a return on invested capital, such as interest and dividends
71
Potable water
Water capable of being safely and agreeably used to drink
72
Power of attorney
An instrument authorizing a person to act as the agent of the person granting it
73
Power of sale clause
Clause in a deed of trust that allows the trustee to conduct a foreclosure sale without first going to court
74
Prepayment clause
Enables the borrower to prepay the note prior to its due date without penalty
75
Prescription
method of acquiring an easement by continuous, open, hostile, and notorious use for a period of 10 years without the consent of the owner
76
Price
The amount asked and the amount paid for property; the listing price is the amount asked for property
77
price fixing
Set commission for all real estate brokerages-a violation of the Sherman Anti-Trust Act
78
primary mortgage market
A market in which lenders originate loans and make funs available to borrowers
79
Principal
Someone who engages the services of an agent (also called client)
80
Principal meridian
A survey line running due north and south, as established by the rectangular survey system
81
Principal residence
Not restricted to single-family homes, but may include a house, mobile home, houseboat, co-op, or condominium apartment used as the taxpayer’s main home; the home that a taxpayer lives in most of the time during the tax year
82
Prior appropriation
Water rights doctrine that applies to arid regions of the country, which is often translated to mean “first in time, first in use”
83
Priority of liens
Liens with the highest priority are superior to junior liens; real estate taxes have the highest priority followed by special assessments; priority of other liens is established v y date recorded except for mechanic’s liens
84
Private mortgage insurance (PMI)
Insurance for lenders against mortgage foreclosure losses
85
Probate
A legal process by which a court determines the assets of the estate and who will inherit the property of the deceased person
86
Procuring cause
Direct or proximate cause
87
Profit or profit a prendre
Type of easement; it is a right to remove soil, minerals, fruit, timber, or some product of the land with compensation to the surface owner of the land
88
Progression
Opposite of regression and exists when there is a poorer property among more expensive properties
89
Promissory note
A promise by the maker of the note to pay a specified amount in accordance with specific terms by a certain date
90
Proper fraction
Less than one whole unit-the numerator is smaller than the denominator
91
Property
The rights of ownership; the right to use, possess, enjoy, and dispose of a thing in every legal way and to exclude everyone else from interfering with these rights
92
Property assessment
A site analysis of the site and surrounding properties for indications of environmental hazards
93
Property development
includes subdividers who take raw land, do the initial planning for its best use by subdividing it into lots, and after approval of the plan by the proper authorities, do the initial development of the streets, sewers, sidewalks, and so on
94
Property management
The oversight of the property and the tenants if a rental property by the owner or an agent of the owner
95
Property management agreement
An agreement between the owner of the property and the property manager, which establishes the rights and obligations of the parties
96
Property management trust account
A bank account for holding property management trust funds in accordance with Arizona Revised Statues for such accounts
97
Property manager
Person or company who manages rental property for someone else; property managers may or may not be licensed
98
Proration
Allocating taxes, insurance, rents, and interest at settlement to determine the amount of money to be charged or credited to the buyer or seller
99
Protected class
A class of people who by law are protected from discrimination
100
Public accommodation
A place of public use or operation by government or private entities that must comply with ADA
101
Puffing
Agent making an exaggerated statement of opinion, without intending to deceive, such as, “This site has the most beautiful view in the valley”
102
Punitive damages
To recover amounts over the actual damages suffered as compensation for the breach of the contract
103
Purchase money mortgage
Also known as deed of trust, it refers to any loan, whatever the source, for all or part of the purchase price for the purchase of real property
104
Qualified fee estate
A fee simple estate subject to certain limitations imposed by its grantor
105
Quitclaim deed
a deed to relinquish any interest in property that the grantor may have, but implying no warranties; a deed that transfers only whatever right, title, or interest, if any, the grantor owns, without implying any warranties
106
R factor
A rating system for insulation material; determines the level of insulation provided by a substance
107
Radon
A colorless, odorless, tasteless, radioactive gas that is present in the environment as a by product of the natural decay of uranium in the earth
108
Range lines
A strip of and 6 miles wide, determined by a government survey, running in a north-south direction but measuring in an east-west direction
109
Ratified agency
Created when a seller or buyer accepts the benefits of an agent’s prior and unauthorized actions after the fact
110
Ready, willing, and able
Purchasers who have made up their minds to buy a given parcel of property and are financially able to do so according to the price and terms agreed upon with the seller
111
Real estate
Land and the improvements or tenements attached to it by nature or by man
112
Real Estate Advisory Board
A nine-member board appointed by the governor ho provides the Commissioner what recommendations it deems necessary and beneficial to the public interest
113
Real estate broker
A person licensed to act independently in conducting a real estate brokerage business
114
Real estate brokerage
Engaged in the business of bringing buyers and sellers together for the purpose of completing real estate transactions
115
Real estate entity license
A required Arizona license for real estate brokerages organized as a corporation, limited liability company, or partnership
116
Real Estate Investment Trust (REIT)
A means of pooling investor money by using the trust form of ownership and featuring single taxation of profits. IRS rules require a minimum of 100 investors and distribution of 95 percent of profits to investors annually
117
Real Estate Recovery Fund
A fund held by the Arizona Department of Real Estate, sustained by a portion of license fees, to reimburse persons who have suffered loss through the act of a licensed real estate broker or salesperson
118
Real estate salesperson
A licensed sales person employed by a broker to list, negotiate, sell, or lease property for others
119
Real property
Ownership rights in land and its improvements
120
Real property classifications
The five general classifications used in zoning: residential, commercial, industrial and manufacturing, agricultural and raw land, and special purpose
121
Reasonable accommodation
Any modification or adjustment that will enable a qualified employee or occupant with a disability to enjoy equal opportunity to use a dwelling or perform essential job functions
122
Reasonable care and diligence
A requirement that an agent exhibit competence and expertise, keep clients informed, and take proper care of entrusted property
123
Reasonable modification
Barrier removal and modifications required to ensure equal opportunity for access to individuals with disabilities
124
Reasonable use
Water doctrine that declares that users must show beneficial use of water
125
Receipt for public report
Signed by prospective purchasers of subdivided property, and states that the purchasers have been given a copy of the public report prior to signing any contract
126
Reconciliation
The last step in the appraisal process, whereby the appraiser reconciles the three approaches to value arriving at his or her estimate
127
Recording acts
Law that provides for the placing of documents in the public records
128
Recreational Vehicle Long-Term Rental Space Act
Applies to rental of recreational vehicle rental spaces for more than 6 months
129
Rectangle
Four-sided shape whose sides are at right angles to each other
130
Rectangular survey or government survey
System of land description developed by the federal government
131
Redlining
Mortgage credit discrimination based upon the density of minorities in a geographic area
132
Regression
When there are properties of different values in a neighborhood, the better property is adversely affected by the poorer properties
133
Regulation Z
Regulation pursuant to the Truth-in-Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit
134
Reinstatement period
A right available to anyone under an accelerated promissory note secured by a deed of trust or mortgage on property. If a deed of trust is foreclosed by trustee’s sale, the debtor may have up to 3 months from the recording of the notice of default to pay the amount in arrears plus interest, late fees, and costs, thereby completely curing the default (reinstating) without additional penalty
135
Release
Unintentional or intentional, chronic or sudden, small or major releases of hazardous substances to the environment or people’s exposure to these substances
136
Remainder man
The third person with the remainder interest
137
Rent
The consideration paid under a leasehold estate for the use and possession of real property
138
Rental real estate passive loss allowance
Owner’s deduction of up to $25,000 of loss from rental real estate against earned income if the owner actively participates in the management of the rental property
139
Repair
Keeps the real property in good operating condition. For example, repairs include painting, fixing gutters or floors, fixing leaks in plumbing or roof, plastering, and replacing broken windows
140
Replacement cost
Estimates cost based on using today’s materials and technologies
141
Rescission
Legal remedy of canceling, terminating, or annulling a contract and restoring the parties to their original positions
142
Reservations
Uses that the grantor withholds form the title being conveyed for personal use
143
Residential rental property
A building or structure in which 80 percent or more of the gross rental income is rental income form dwelling units
144
Retroactive liability
1. A property owner can be responsible for actions years earlier than passage of CERCLA regardless of whether the prior actions were standard practices of the time or had received approval 2. \*\*CERCLA-comprehensive Environmental Response, Compensation, and Liability Act
145
Reverse annuity mortgage (RAM)
The lender makes monthly payments to a homeowner who repays in a lump sum upon the home owners death or sale of the home
146
Reversionary rights
The interest a person has in property upon the termination of the preceding estate; the right to retake possession of a leased property at some future time
147
Right of rescission
A borrower’s right to cancel a contract within three business days
148
Rights of others
Private, nongovernmental limitations on the bundle of rights such as deed restrictions
149
Riparian rights
Grant owners of land located along a stream, river, or lake-generally non-navigable waters – rights to the land beneath the surface of the water
150
Risk
The degree or possibility of loss on an investment
151
Roof
The outside covering of the top of a building or structure
152
Rooftop lease
Used to rent the airspace above a piece of real estate
153
Sale and leaseback leases
Used after a person has developed a building and wants his or her working capital available for other developments
154
Sale clause
A clause in residential leases that allows the tenant or landlord to terminate the lease in the event the subject property is sold
155
Sandwich lease
Lease held by a lessee who becomes a lesser by subletting; typically, the sandwich leaseholder is neither the owner nor the user of the property
156
Satisfaction of mortgage
Certificate from the lender stating that the loan has been repaid; it can be recorded to remove the related lien form the property records
157
Savings and loans
A primary source of residential real estate loans
158
Scarcity
An economic characteristic of real estate; shortage of land in a geographical area where there is a great demand for land
159
Secondary mortgage market
Purchasing and selling of existing mortgages and trust deeds
160
Section
A square mile of land, as established by government survey, containing 640 acres
161
Section 1031
A section of the Internal Revenue Code for deferring capital gains taxes by exchanging one like kind property for another
162
Security deposits
Deposited with the landlord solely as security for the tenant’s performance of the terms of the lease, and are usually not taxed when received
163
Senior housing
Housing intended for and solely occupied by persons 62 years of age or older, or at least one person in 80 percent of the households is 55 years or older
164
Servient tenement
Land on which the easement runs
165
Severalty
Taking title as sole owner, either as a natural person or a legal person
166
Sharecropping
a lease between an agricultural land owner and a tenant, whereby the landowner provides the land and may also provide equipment in return for the tenant’s planting, maintaining, and harvesting a crop; the proceeds are then divided (not necessarily equally) between the tenant and the landowner
167
Shared appreciation mortgage (SAM)
Lender participates in the appreciation of the property value and in turn accepts a not with a lower rate of interest
168
Sheathing
A 4 feet by 8 feet plywood or other wood exterior covering placed over exterior studding
169
Sheriff’s sale
A sale ordered by the court in which a sheriff or county official has the legal right to sell a distressed or foreclosed property
170
Sherman Anti-Trust Act
Federal laws that condemn contracts, culmination and conspiracies in restraint of trade and monopolizing, attempts to monopolize, and combinations and conspiracies to monopolize trade
171
Single agency
Practice of representing either the buyer or seller, but never both; if a broker intends to be a single agent; he or she must take special care regarding the subagents within the office
172
situs
Area preference or the people’s choice of a given area
173
Special agent
Authorized to represent the principal in one specific transaction, such as in a listing, but is not given the power to bind the principal
174
Special assessments
Improvements that enhance the value of property, such as curbs, sidewalks, streets, sewers, and streetlights
175
Special use permit
Given by approval o the Planning & Zoning Commission for a property owner to develop a property in the public interest, as long as it does not interfere with the intent of the exiting zoning
176
Special warranty deed
A deed in which the grantor warrants or guarantees the title only against defects arising during his or her ownership of the property and not against defects existing before the time of ownership
177
Specific performance
Contract performance according to the precise terms agreed upon
178
Speculation
A transaction where the profits are subject to chance; to buy or sell with the hope of profiting through the fluctuations in price
179
Spot zoning
Zoning change is requested for an individual piece of property, as opposed to a change for an area
180
Square
A rectangle with equal sides
181
Standard coverage
Used in residential conveyance and is limited to insurance against forged documents of incorrect marital status, documents signed by incompetent parties, unmarketable property due to defect of title, and an improperly delivered deed
182
Standard parallels
Lines that are “1st or 2nd Standard Parallel, North or South,” and so on, according to the distance from the base line
183
Starker case
1979 Supreme Court decision that has had a lasting effect on tax-deferred exchanges
184
State Enabling Act
Laws that allow the admission of a state
185
State Land Department
Body that has been established and given authority over all trust lands and the natural products form these trust lands
186
State Selection Board
Arizona board related to the management of trust lands
187
Statute of Frauds
A state law that provides that certain contracts must be in writing in order to be enforceable in the courts; established in England in 1677 and adopted in full or in part by all 50 states
188
Statutory law
Law created by the enactment of legislation
189
Statutory period of redemption
Period after the sale during which the landowner could redeem the property
190
Steering
Illegal practice of directing certain persons into or out of areas that are or are not integrated
191
Straw person
Individual or entity that briefly holds title to the real estate and then transfers the interest at one time to the group of owners that now includes the new owner
192
Strict liability
CERCLA laws apply regardless of whether intent to pollute or knowledge of the situation was present
193
Stucco
One of the most common materials used because it is flexible and inexpensive
194
Subagent
Person appointed by the broker agent to assist in the performance of the assignment
195
Subchapter S corporation
A corporation that, for federal tax purposes only, is taxed similarly to a partnership; the corporate entity is disregarded for most federal tax purposes, and the shareholders are generally taxed as individual partners
196
Subdividers
take raw land, do the initial planning or its best use by subdividing it into lots, and, after approval of the plan by the proper authorities, do the initial development of the streets, sewers, sidewalks, and so on
197
Subdivision or subdivided lands
improved or unimproved lands divided or proposed to be divided for the purpose of sale or leased, whether immediate or in the future, into six or more lots, parcels, or fractional interests of less than 36 acres
198
Subjective value
Emotional value of a property’s worth to a person, regardless of cost
199
Sublease
A lease from a leasee to another leasee; the new lessee is a sublessee or subtenant
200
Sublessee
The tenant in a sublease, who makes rent payments to the sublessor who in turn pays the lessor according to the original lease
201
Sublessor
The original leasee, who becomes the sublessor in a sublease
202
Subordination clause
The lender will agree to a lesser position of security and allow another person/lender to place a lien in front of the original lenders
203
Subrogation
Substitution of one person in the place of another with reference to a lawful claim, such as when an insurance company pays a claim and then has the right to collect from the party causing the loss
204
Subsequent owner exemption
An exemption form the Notice of Intention requirements may be granted by the Commissioner to a subdivider of lots or parcels within a subdivision for which a public report was previously issued
205
Substitution
Principle of value wherein the maximum value of a property in the marketplace tends to be set by the cost of purchasing and equally desirable substitute property
206
Subsurface rights
The right of the owner o use land below the earth’s surface
207
Summary suspension
An emergency action to suspend a real estate license when the Commissioner determines that the public health safety or welfare requires the emergency action
208
Superfund
Also known as Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), it was created to provide the authority and a source of funding for cleaning up hazardous materials released into the environment
209
Superfund Amendments and Reauthorization Act (SARA)
Contains provisions defining who is liable to pay for the cleanup of contamination caused by past activities
210
Supply and demand
An economic principle related to the desire and ability to acquire land related to the scarcity of land suitable for a desired purpose
211
Surface area formula
The formula for computing square feet or square yards of a rectangle or triangle
212
Surface water
Water that sits or flows above the earth, including lakes, oceans, rivers, and streams
213
“T” formula
Math formula for solving word problems
214
Tack or tacking
Adding successive periods of continuous occupation to qualify for title by adverse possession
215
Tangible assets
Corporeal and visible assets that have a body
216
Taxable income
The amount for federal income tax purposes computed as follows: gross income less deductions for adjusted gross income less itemized or standard deductions less personal exemptions equals taxable income
217
Taxation
The government’s right to levy taxes against real and personal property in order to provide city, county, and state governmental services for the benefit of the people
218
Tax-deferred exchange
transaction in which “like-kind” property is traded; like-kind means exchanging business or income property for other business or income property, or exchanging personal property for personal property
219
Temporary absence
When a designated broker is unable to act within 24 hours
220
Tenancy by the entirely
Type of ownership existing only between husband and wife; not used in Arizona
221
Tenant
One who possesses real estate by any kind of title, either in fee, for life, for years, or at will; a tenant who has the temporary use of real estate that belongs to another
222
Tenant in common
Ownership by two or more persons who hold an undivided interest in real property, without right of survivorship; the interests need not be equal
223
Tenements
Everything of a permanent nature attached to the land
224
Termites
A type of insect that eats wood
225
Testamentary trust
Similar to a living trust, except that it is set up in a will and takes effect upon the maker’s death
226
Tiers
A horizontal row of townships running in an east-west direction, but measuring in a north-south direction
227
“Time is of the essence” clause
The parties will perform within the limits specified; any party not doing so is considered in breach of contract
228
Time-shares
A form of joint ownership of property where numerous owners share title and enjoy use or occupation of the property according to a specific schedule
229
Title
Gives evidence of the quality, right, and interest in real property, which allows a government, individual, individuals, or legal entity to retain possession of the property
230
Title Commitment/Preliminary Title Report
A statement of current condition of title for a parcel of land; obligates the title insurance company to issue a policy of title insurance when curative requirements have been satisfied
231
Title insurance
Insurance policy written by a title company to protect a property owner against loss, if the title is defective or not marketable
232
Topography
Nature of the surface of the land, the characteristics of the land in terms of elevation, slope, and orientation
233
Torrens system
A legal system for the registration of land ownership; the Torrens system verifies ownership of land the status of title, including any encumbrances except tax liens
234
Township
A territorial subdivision that is 6 miles long and 6 miles wide and that contains 36 sections, each 1 mile square
235
Township lines
East-west lines that run parallel to the base line every 6 miles
236
Trade fixtures
Items that are the personal property of a tenant or owner and used to carry on his or her business
237
Transferability
Ability to transfer a good or service to another person
238
Treasurer’s deed
A document that conveys title to property purchased at a tax deed
239
Triangle
A three-sided figure
240
Trust
An entity created to own assets, including real and personal property, for the benefit of a person, persons, or another entity
241
Trust deed
Deed given by a borrower to a trustee to be held pending fulfillment of an obligation, which is usually repayment of a loan to a beneficiary; a deed of trust
242
Trustee
Person who manages the property for the benefit of one or more beneficiaries
243
Trustee
one who holds property in trust for another; the person who holds property in trust for another; in a deed of trust, the person who holds bare legal title in trust
244
Trustee deed
The deed issued by the trustee after the foreclosure and sale of property under a deed of trust
245
Trustor
One who conveys his or her property to a trustee to be held on the behalf of a beneficiary
246
Truth in Lending Act
A federal statute that requires certain disclosures when extending or advertising credit
247
Type 1 Non-irrigation grandfathered rights
Occurs when a farm is converted to non-farming use
248
Type 2 Non-irrigation grandfathered rights
Arose form pre-1980 commercial uses that were not crop related
249
Unadjusted basis
The original cost of the property, if it was purchased
250
Underground storage tanks
Registration is required for all tanks containing regulated substances (all petroleum products) that are not already listed as hazardous “wastes”
251
Unending liability
Liability for a problem on a site does not end with the transfer of property, but extends as long as the problem exists
252
Unenforceable
A contract that is void is not enforceable in a court of law; a valid contract whose enforcement is barred by the statute of limitations or the doctrine of laches
253
Uniform Commercial Code
Code that requires that the sale of personal property with value in excess of $500 be in writing
254
Uniform Standards of Professional Appraisal Practice (USPAP)
Mandatory requirements for certain federally related real estate appraisals
255
Unilateral contract
One-sided contract in which one party makes a promise in order to induce a second party to perform
256
Unimproved lot or parcel
Lot or parcel of a subdivision that is not an improved lot
257
Unit
A portion of a condominium designated for separate ownership or boundaries
258
Universal agent
Someone empowered to perform any act that fan be lawfully authorized to an agent; usually established by a power of attorney
259
Unlicensed activity
A person who acts as a broker or salesperson or who advertises in a manner indicating that he or shi is licensed as a broker or salesperson without actually being licensed
260
Unsubdivided lands
Six or more parcels, each measuring from 36 acres up to 160 acres
261
Urban Lands Act
A 1981 act that enabled the Arizona land trust to capitalize on the significant increase in raw land values that result form planning and zoning
262
Urea formaldehyde foam insulation
Thermal insulation material that is pumped into the spaces between the walls of a building, where it hardens to form a solid layer of insulation
263
Usury
Charging interest at a higher rate than allowed by law
264
Utility
The capacity to satisfy human needs and desires
265
VA loan
Real estate mortgage available to qualified veterans for the purpose of buying or refinancing real estate for personal residential use only
266
Valid
A contract is valid if it will contain all of the essential elements previously discussed; a valid contract is legal, enforceable, and binding on all parties
267
Value
Exchange of present worth for future benefits to the owner of the property
268
Variable lease
A lease that provides that the rent may increase during the term of the lease including an index lease and a graduated lease
269
Vendee
Buyer in a contract for deed (land contract)
270
Vendor
Seller in a contract for deed (land contract)
271
Verification of deposit (VOD)
Confirmation to the lender by the borrower’s bank of the amounts on deposit
272
Void
To have no force or effect; does not exist
273
Voidable
Contract that seems valid and enforceable on the surface, but may be voided by one of the parties
274
Voluntary alienation
The transfer of ownership with the consent of the owner
275
Water Quality Assurance Revolving Fund
Also known as the Arizona “mini-Superfund”; liability, it is similar to CERCLA
276
Water rights
The right to use water on or below or bordering a parcel of land
277
Water table
The natural level at which water will be located, be it above or below the surface of the ground
278
Wetlands
Areas that are inundated or saturated by surface water or groundwater at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions
279
Wood frame construction
Is the most frequent method of construction in Arizona for single family homes
280
Wrap-around mortgage
Purchase money transaction subject to, but still including, encumbrances to which it is subordinate; legal title is actually conveyed and title insurance may also be obtained
281
Writ of attachment
Legal process of seizing the real or personal property of a defendant in a lawsuit and holding it in the custody of the court as security for satisfaction of a judgment
282
Writ of execution
An order directing the proper officer of the court to seize property to satisfy a judgment or carry out any other such judgment or decree
283
Yield
Annual interest income divided by the amount invested in the loan
284
Zoning changes
May be initiated by a property owner or by the local government; requires a petition and formal hearing before the Planning and Zoning Commission
285
Zoning variances
A minor change in zoning for one specific property without changing the character of the zoned area
