Real Estate Principles II Flashcards
(245 cards)
1
Q
abstract of title
A
an abbreviated history of a property, including information on any transfers, grants, wills,
conveyances, liens, and encumbrances
2
Q
acceleration clause
A
a clause in a security instrument (mortgage/deed of trust) that makes the entire loan amount
due immediately upon default
3
Q
acquisition
A
the process of gaining ownership or control of real property or an interest in real property
4
Q
acreage
A
a unit of area measurement used to determine the size of land; 1 acre = 43,560 square feet
5
Q
actual eviction
A
the legal process by which someone is expelled from a property and prevented from re-entry
6
Q
adjustable-rate
mortgage (ARM)
A
a mortgage with an interest rate that can be adjusted based on fluctuations in the cost
of money
7
Q
adverse possession
A
involuntary transfer of title from an owner who does not use or inspect their land for a
number of years to another person who has some claim to the land and takes possession
8
Q
affidavit as to debts
and liens
A
a sworn statement in which the seller assures the title company (and the buyer) that there are
no liens, unpaid bills for repairs or improvements, or undisclosed defects in the title
9
Q
alienation
A
the transfer of title to real estate
10
Q
amortization
A
the process of paying off a debt/mortgage in regular installments based on a fixed
payment schedule
11
Q
amortization
A
the initial payment made when buying something on credit; a down payment is paid directly
by the buyer to the seller
12
Q
appraisal
A
the value of a property, based on factors determined by the opinion of a certified appraiser
13
Q
appraisal report
A
a report from a licensed appraiser that sums up a property’s market value based on
collected data
14
Q
appraisal review
A
an evaluation or audit of a property appraisal; usually initiated by a lending underwriter
15
Q
appraised value
A
an estimation of property’s value as of a specific date, performed by a certified appraiser
16
Q
appreciation
A
the increase in value of a property
17
Q
assessed value
A
the value placed on a property by a governmental unit for use in calculating property taxes
18
Q
balloon payment
A
a payment at the end of a loan period which includes the total outstanding balance of the loan
19
Q
bargain and sale deed
A
a deed without any warranty against encumbrances; only implies that the grantor holds title
and possession of the property
20
Q
blockbusting
A
the illegal act of causing owners to sell their homes by creating fear that members of a
protected class are moving into the area; aka panic peddling
21
Q
bridge loan
A
a short-term loan used to transition from one loan to another; can connect borrower from
construction loan to eventual mortgage loan (or current home to their new home)
22
Q
building codes
A
regulations pertaining to building design, materials, safety, sanitation, and structure
23
Q
capital expenditure
A
funds used by a company to acquire or upgrade physical assets like property, industrial
buildings, or equipment
24
Q
cash flow
A
cash flow
25
chain of title
the entire chronological record of a property’s ownership
26
chronological age
the literal age of a property
27
closing
the final step of executing a real estate transaction in which consideration is paid and
ownership of the property is transferred
28
closing agent
the representative of the title insurance company; usually conducts closing
29
closing costs
fees paid at the closing of a real estate transaction
30
collateralized mortgage
obligations (CMOs)
collateralized debt obligations (CDOs) that are made up of bundles or pools of mortgage-
back securities (MBS) created by government agencies or investment banks and issued as
investment-grade bonds; almost all CMOs are REMICs
30
Closing Disclosure
a form used to itemize services and fees charged to the borrower by the lender when
applying for a real estate loan; aka closing statement
31
commercial banks
a type of depository institution designed to be safe depositories and lenders for a multitude of
commercial banking activities
32
comparable
any property that has sold and is similar enough in features, location, and proximity in time to
inform the value of the subject property
33
comparative market
analysis (CMA)
a report that compares the prices of recently sold or listed homes ("comparables") in order
to estimate the market value of a similar property (the "subject property") located in the
same area
34
competent
having the mental capacity to participate in legal proceedings or transactions, including being
of lawful age to enter into a contract
35
Comprehensive
Environmental
Response Compensation
and Liability Act
(CERCLA)
a federal law that provides broad authority to respond directly to releases or threatened
releases of hazardous substances that may endanger public health or the environment; aka
the Superfund
36
condemnation
the governmental act of seizing private land through exercise of power of eminent domain
37
consideration
something of value exchanged by the parties as evidence of agreement to the terms of
a contract
38
constructive eviction
the termination of a lease in circumstances in which the landlord defaults and acts, or fails to
act, in such a way that the premises become unusable
39
conventional life estate
a type of freehold life estate created by a deed or will that lasts for the duration of the
tenant's life
40
conventional loan
any loan that is neither insured by the government nor guaranteed by the government
41
conveyance
the transfer of real estate by use of a written instrument
42
cost approach
a method of estimating the value of a property by determining how much it would cost to
replace the building or other improvements, minus the cost of depreciation, plus the value of
the land itself
43
covenant of
quiet enjoyment
the right of a tenant to possession and quiet enjoyment of the premises without any
disturbance from the landlord
44
credit union
a not-for-profit, member-owned financial institution that provides many of the same services,
including loans, as a commercial bank at low rates for their members
45
Deceptive Trade Practices
Act (DTPA)
the primary consumer protection law in Texas, designed to prevent service providers from
using false and misleading statements or deceptive practices
46
decimal
a fraction whose denominator is a power of ten and whose numerator is expressed by figures
placed to the right of a decimal point
47
deed
the legal document that transfers real estate title from one party to another
48
deed in trust
a method of delivering a deed into a trust from a trustor to a trustee
49
deed restrictions
a type of land use regulation created by a private party during the conveyance of property
50
defeasible fee estate
a property interest characterized by perpetual ownership on the condition that the property is
used for a certain purpose or under specific conditions; ownership reverts back to the original
owner if these stipulations are violated
51
denominator
the number below the fraction's bottom line or the number of equal parts in total
52
depository institutions
organizations that extend mortgage loans from funds made available from that organization's
consumer savings account desposits
53
depreciation
the reduction in value of a property over time
54
desk review
an appraisal review completed at the lender's desk without carrying out any onsite evaluation
of the property
55
devise
the gift of real property by will
56
devisee
a person who receives real property by will
57
discharge
the termination of an agreement or contract, such as a lease
58
double-net lease
any net lease that requires a tenant to pay a base rent, property taxes, and insurance
59
doctrine of relation back
the principle that something done today will be treated as if it were done earlier; often applies
to actions associated with the escrow process in real estate transactions
59
discount rate
the interest rate district reserve banks charge Federal Reserve member banks for money
borrowed to meet their fund reserve requirements
60
dominant tenement
the parcel of land that benefits from an easement appurtenant by having the right to cross
another owner's adjacent land
61
down payment
the initial payment made when buying something on credit; a down payment is paid directly
by the buyer to the seller
62
earnest money
a deposit made to a seller showing the buyer's good faith in regards to the future
performance of a sales contract
63
easement
an interest in real property that affords a person the right to make limited use of another
person’s real property
64
easement appurtenant
easement that exists when two different parties own adjacent parcels of land and one owner
has the ability to cross the other's land
65
easement by necessity
easement created when an owner sells a portion of their land that cannot be accessed unless
by crossing the seller's remaining land
66
easement by prescription
implied easement granted after the dominant estate has used the property in a hostile,
continuous, and open manner for a statutorily prescribed number of years
67
easement in gross
easement created when an individual or company that does not own the land is allowed to be
on the owner's property for specific purposes
68
economic obsolescence
a loss in value caused by negative forces outside the property which are beyond the control of
the owner (unfavorable changes in the environment or market)
69
effective age
an estimated age that is influenced by the updates and quality of maintenance of the property
70
eminent domain
the power of government to take private property for public use without the consent of the
property's owner; government must pay property owner just compensation
71
Equal Credit Opportunity
Act (ECOA)
a fair lending law that aims to bar discriminatory lending practices
72
equity REIT
a REIT that earns income for its investors through rent collection or the sale of the properties
in their portfolio
73
escheat
the legal doctrine by which the decedent’s property will pass to the state without their
consent if that individual dies without a will, a surviving spouse, lineal descendants, or other
known heirs
74
escrow
a process in which funds and/or financial documents are held by a disinterested third party
on behalf of the other two parties in the real estate transaction until specific conditions
are satisfied
75
estate
the degree, quantity, nature, and extent of one's interest in property
76
estate at will
a tenant's occupancy of a property with the landlord's knowledge and consent, but without a
formal lease agreement
77
estate for years
a leased possession of property for a certain, specific period of time; aka tenancy for years
78
estate for years
a leased possession of property for a certain, specific period of time; aka tenancy for years
79
evidence of title
constructive or actual notice of real property ownership
80
Federal Agriculture
Mortgage Corporation
a government-sponsored enterprise (GSE) with the mission of providing a secondary market
for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility
cooperative loans; aka Farmer Mac
81
Federal Deposit Insurance
Corporation (FDIC)
independent agency that provides deposit insurance to depositors in U.S. banks
82
federal funds rate
the rate a bank charges when lending funds to other banks within the Federal Reserve
System
83
Federal Home Loan
Bank System
a government-sponsored enterprise, composed of 11 regional banks, created to support
mortgage lending and related community investment
84
Federal Home Loan
Mortgage Corporation
(Freddie Mac)
a government-sponsored enterprise created in 1970 to further support the secondary
mortgage market, and specifically, to support smaller thrift banks
85
Federal National
Mortgage Association
(Fannie Mae)
the first government-sponsored enterprise, created in 1938, which buys and securitizes loans;
specializes in buying loans from large, commercial banks
86
Federal Reserve System
centralized United States bank created to conduct monetary policy and stabilize the
U.S. economy
87
fee simple
determinable estate
a defeasible fee estate that will come to an end automatically and immediately upon the
occurrence of a designated event, the time of which is uncertain
88
fee simple estate
maximum ownership of real property that is of indefinite duration, freely transferable, and
freely inheritable; aka fee or fee simple absolute
89
fee simple subject to
condition subsequent
a defeasible fee estate in which a grantor conveys a parcel of real estate subject to a condition
of ownership; the grantor must go to court to assert their right to retake ownership (right
of re-entry)
90
field review
an appraisal review performed by a third-party appraiser who carefully checks the validity of
all the work that the first appraiser did
91
final loan approval
the final evaluation a lender makes prior to extending a mortgage loan; includes a review of
the borrower as well as the property that will serve as collateral
92
fixed-rate loan
a mortgage with equal monthly payments that contribute to both principal and interest until
the entire loan is paid
93
flexible-payment loan
a specific type of adjustable-rate mortgage in which a mortgagor makes lower monthly
payments for the first few years of the loan and larger payments for the remainder of the term
94
foreclosure
the legal process whereby a lender takes control of a property held by a borrower in default
and sells it to recover the lender’s losses
95
fraction
part of a whole, not a whole number
96
freehold estate
an estate in land in which ownership will last for an indeterminate duration
97
functional obsolescence
loss of value because a property’s function or appearance has gone out of style or has been
replaced by a more appealing or effective version
98
general data
with respect to an appraisal, information about the area surrounding the property
99
general warranty deed
deed that provides the greatest protection for the buyer
100
Government National
Mortgage Association
(Ginnie Mae)
a government-owned entity that supports the secondary mortgage market by guaranteeing
mortgage-backed securities (MBSs) insured by the U.S. government
101
government-backed loan
a loan that is insured by the Federal Housing Administration (FHA), guaranteed by the
Veterans Administration (VA), provided by the U.S. Department of Agriculture (USDA), or
provided by special programs created by individual states or local jurisdictions
102
government-sponsored
enterprises
quasi-governmental entities established to enhance the flow of credit or capital to specific
sectors of the American economy
103
graduated lease
a variable lease agreement in which the amount of rent increases periodically at
regular intervals
104
graduated
payment mortgage
a blanket term for a family of loans characterized by low initial payments that increase (or
“graduate”) at set intervals and by set amounts during the term of the loan
105
gross lease
a lease in which the tenant pays a simple, flat rent every month
106
ground lease
the lease of bare, undeveloped land; aka land lease
107
hereditament
any property, whether real or personal, that is capable of being inherited
108
highest and best use
the use of a property that is legal, physically possible, financially viable, and produces the
greatest yield
109
holdover tenant
the tenant in a tenancy at sufferance
110
hybrid REIT
a REIT that combines the income-earning efforts of both the equity and mortgage trust
111
illegal target marketing
advertisement by a housing provider in niche publications that target specific ethnic or
religious groups to the exclusion of the general public
112
improper fractions
a fraction in which the value of the numerator (the number on top) is greater than the
denominator (the number on the bottom)
113
improvement
any non-natural structure built on or affixed to land
114
income approach
a determination of value arrived at by considering how much income the property could
generate when used as rental property
115
index lease
a variable lease agreement that allows for a graduated increase of rent at periodic intervals,
with increases relative to some economic indicator, such as the Consumer Price Inde
116
interest
the percentage of a loan amount that a borrower must pay a lender annually as interest on a
loan amount
117
interest-only loan
a type of balloon payment loan that calls for periodic payments of interest; aka a straight loan
or term loan
118
intestate
the name for conditions in which the owner of a property dies without having left a valid will
119
intestate
the state of someone who dies without a will; their estate will be distributed to surviving heirs
according to the law of descent
120
inverse condemnation
occurs when the government has over-regulated a property so that it can't be fairly used via
restrictions, permitting, etc., that virtually eliminate any use of the property
121
investment
the implementation of money to realize profit or gain, usually with an understanding that
some degree of risk may be involved
122
investment property
a property purchased primarily or exclusively for investment purposes rather than as a place
to live
123
involuntary alienation
transfer of title to property without the owner’s consent, usually carried out by operation
of law
124
joint venture
business arrangement that a partnership will use when joining forces for a single
business objective
125
landlord
the party granting the lease, aka the lessor
126
lease
a contract in which one party conveys property to another for a specific predetermined period
of time, generally in return for periodic payment
127
lease term
the initial rental period from commencement to expiration; the duration of the lease
128
lease-purchase agreement
a lease in which part of a tenant’s rent is applied to the purchase price of the property, and
the title to the property transfers upon full payment of the stated sale price
129
leasehold estate
a type of property interest allowing tenants to occupy and use a property they do not own;
contains a reversionary right
130
legacy/bequest
a gift of personal property
131
legal life estate
a type of freehold life estate created by an act of law
132
legatee
the person receiving a gift of personal property
133
life estate
an interest in real estate that will end upon the death of the life tenant or the pur autre vie life
134
life insurance companies
companies engaged in the business of issuing life insurance and annuity contracts or
noncancellable contracts of health and accident insurance; will often use funds for investment
in a variety of ventures, including commercial real estate
135
limited appraisal
a simpler, abbreviated version of a regular appraisal made by checking out the exterior of the
property only
136
limited liability
company (LLC)
a hybrid type of legal structure that provides the limited liability features of a corporation and
the tax efficiencies and operational flexibility of a partner
137
limited partnership
the limited liability of a limited partner is confined to the extent of their individual investment
in the partnership
138
loan-to-value ratio
the amount of money being loaned compared to the value of the property
139
loss
a financial loss
140
market value
the price for which a property will theoretically sell under typical conditions
141
marketable title
a title that is free from significant encumbrances or defects that might otherwise prevent a
purchaser from enjoying or eventually selling the property
142
mixed number
a number consisting of a whole number and a fraction
143
mortgage
security instrument that creates a mortgage lien on mortgagor's property in exchange for
a loan
144
mortgage bankers
companies or individuals that originate mortgages, using their own or borrowed funds (as
opposed to depositor funds)
145
mortgage brokers
companies or individuals operating as intermediaries to bring together mortgage borrowers
and mortgage lenders; does not use its own funds to originate mortgages
146
mortgage REIT
a REIT that generates income for its investors from the interest earned through origination or
purchase of mortgage loans and mortgage-backed securities (MBS)
147
mortgage-backed
securities
asset-backed securities, where the underlying asset is a single mortgage or a bundle of
mortgages that serve to back the securities
148
net lease
a lease in which the (usually commercial) tenant pays a base rent rate plus property taxes
149
nonconforming loan
a loan that does not fit Fannie Mae or Freddie Mac guidelines
150
normal wear and tear
deterioration that results from the intended use of a dwelling, not including deterioration that
results from negligence, carelessness, accident, or abuse of the premises
151
numerator
the number on top of a fraction's division line or the number of the parts with which you
are working
152
Occupational
Safety and Health
Administration (OSHA)
the government agency charged with the task of ensuring that employers are responsible for
providing safe and healthful workplaces for their employees
153
offer and acceptance
the mutual agreement of all parties to consent to all terms contained within the contract and
to perform according to those terms
154
oil and gas lease
a lease that grants the exclusive right to extract any oil or gas from the ground beneath
a property
155
open market
operations (OMOs)
the movement of cash into or out of the commercial banks through the buying or selling of
government bonds
156
operating budget
a budget created from taking anticipated revenues and expenses and then planning for the
long-term goals of the property owner
157
option money
a payment that the prospective buyer makes to the seller in exchange for the exclusive
option to terminate the sales contract within a specified period of time (known as the "option
period") without penalty; aka option fee
158
part
a portion of the total amount, the numerator (3 of 3⁄4)
159
partnership
made up of general partners with unlimited personal liability for the actions, debts, and
obligations of the partnership
160
percentage
a fraction or ratio with a denominator of 100, usually written as just the numerator and a %
symbol
161
percentage lease
type of (usually commercial) lease in which the tenant pays a base rent amount and a
percentage of their business profits to the landlord
162
periodic estate
has a fixed lease period; the lease is automatically renewed at the end of each lease period
until the landlord or tenant acts to terminate it; aka periodic tenancy
163
physical deterioration
loss of value caused by physical wear and tear over time
164
police power
the government right to regulate and restrict land use in order to protect the public; right
includes the power to enforce zoning and building codes
165
pre-approval
a formal evaluation of a borrower's financial status and creditworthiness that is carried out by
the lender prior to extending a loan
166
predatory lending
the imposition of unfair and abusive loan terms on borrowers
167
prequalification
the process of estimating the maximum loan amount a buyer is likely to be eligible to obtain
and the approximate purchase price they can afford
168
primary mortgage market
the arena in which borrowers and lenders meet up for the purposes of negotiating the loan
terms of a mortgage transaction
169
prime rate
the short-term interest rate charged to a bank’s largest, most creditworthy customers;
strongly influenced by the Fed’s discount rate
170
principal
the amount lent to a borrower to purchase a house
171
principle of anticipation
states that the present value of a property is affected by the anticipated income or utility that
property will give its property owner
172
principle of change
states that the condition of a property, the desirability of its location, and the market in which
it exists can always change
173
principle of conformity
states that values are highest when the houses in a neighborhood look roughly the same
174
principle of contribution
states that the value of each component contributes to the total value
175
principle of progression
states that the value of a subject property can increase when surrounded by properties with a
higher value
176
principle of regression
states that lower-value properties surrounding a subject property can drag down the value of
the subject property
177
principle of substitution
the idea that the value of something is affected by the cost of getting a similar (substitute)
item elsewhere
178
principle of supply
and demand
the basic economic concept that when supply is low and demand is high, prices increase;
while when supply is plentiful and demand is low, prices drop
179
profit
a financial gain
180
promissory note
a negotiable financial instrument that is evidence of a debt and a promise to pay that debt;
aka note
181
property manager
someone who is hired by a property owner to market, maintain, and oversee the day-to-day
operation of a property (usually a rental property)
182
property report
a document that contains all essential information about the property, such as distance over
paved roads to nearby communities, number of homes currently occupied, soil conditions
affecting foundations and septic systems, type of title a buyer will receive, and existence of
liens; under the Interstate Land Sales Full Disclosure Act, developers of 25 or more lots must
provide the prospective purchaser with a property report before they sign the contract
183
pur autre vie
a type of freehold life estate that grants someone ownership of a property for the duration of
another person's life
184
quitclaim deed
deed that provides the grantee with the least protection of any deed, while imposing the least
liability on the grantor
185
ranch
land that has been designated for raising grazing livestock
186
ratio
the quantitative relation between two numbers
187
real estate
investment syndicate
A method of pooling forces and resources of individual investors
188
Real Estate
Mortgage Investment
Conduit (REMIC)
a special purpose vehicle (SPV) that holds commercial and residential mortgages in trust,
assembles said mortgages into pools based on risk, and then issues bonds (securities) on
these pools to sell to investors on the secondary mortgage market
189
Real Estate Owned
(REO) property
bank-owned property that has been through the foreclosure process
190
Real Estate Settlement
Procedures Act (RESPA)
an act designed to protect consumers from predatory lending and educate them about closing
and settlement services
191
real property
land from the surface to the center of the earth and upward into space, all attachments, and
the bundle of legal rights of ownership
192
reconciliation
an appraiser's use of a combination of more than one approach to value
193
recording
the placing of documents about the claims and ownership of real estate in the county clerk’s
office at the courthouse
194
redlining
the illegal act of a lender refusing to issue mortgages in a specific area
195
REIT
a company that owns – and typically operates – income-producing real estate or real estate-
related assets such as office buildings, shopping malls, apartments, hotels, resorts, self-
storage facilities, warehouses, and loans
196
remainder
the interest in an estate that will pass to another party (other than the grantor) at the death of
the person upon whom the life estate is based
197
remainderman
the recipient of the remainder — either the grantor who set up the life estate or a designated
third party
198
remediation
the act of remedying or reversing something, often employed in response to
environmental damage
199
rent roll
a report of all the data about a rental property, including tenant identities, rent rates, lease
terms, and outstanding balances
200
residential rental locator
a person who offers for consideration to locate a unit in an apartment complex for lease to a
prospective tenant
201
resort home
a property that an owner doesn't live in full time but instead uses as a getaway or rental
property, aka vacation home
202
reversion
the portion of an estate that will return to the original grantor when a life estate has ended
203
reversionary interest
the interest in an estate wherein, upon the death of the life estate owner, full ownership
reverts back to the original fee simple owner (grantor)
204
sale and
leaseback agreement
an agreement in which a business owner sells their interest in a property and then leases
it back at the same monthly rate, usually from an investor owner and, in doing so, frees up
capital for other business ventures
205
sales
comparison approach
approach to determining value by comparing the subject property to similar properties
(“comps”) that have sold recently
206
savings associations
refers to organizations that specialize in long-term residential loans; chartered either by the
federal government or by the state in which they are located
207
savings banks
institutions that are organized as mutual companies in which depositor-owners receive profits
as interest or dividends on savings accounts, and the board of directors is made up of leading
local business people
208
secondary
mortgage market
holding warehouse agencies — most with some governmental ties — that purchase those
bundles and reassemble them into packages of loans that they expect to resell to investors
209
secondary
mortgage market
the environment in which mortgage lenders sell home loans they originate to government
agencies or investment bankers
210
servient tenement
describes the parcel of land that must allow an adjacent owner to cross; an easement
appurtenant exists at the expense of this party
211
short sales
selling a property in default for less than the loan amount (with the lender's permission)
212
special purpose vehicle
a limited corporate entity created with a specific objective
213
special warranty deed
a deed in which the grantor warrants only that the property was not encumbered during
the time they held title, except as noted in the deed, and that they have done nothing during
ownership to cloud or damage the title
214
specific data
with respect to an appraisal, the information regarding the property itself
215
square footage
a unit of area measurement used to compare the size of buildings (length x width)
216
statutory estate
estate created as a matter of state law
217
steering
an illegal act of channeling buyers or tenants to certain areas, either to keep the area
demographically the same or to change the demography of the area
218
subject property
the property that is the subject of the comparative market analysis or appraisal
219
sublease
a tenant’s transfer of part of their right of possession in a leased property to another person
for a period of the lease term
220
subprime mortgage
a mortgage with an interest rate higher than prime mortgages due to the higher risk
associated with a less qualified borrower
221
syndication
when two or more individuals pool their financial resources to participate in a transaction they
could not afford to undertake individually
222
tenancy at sufferance
a tenant’s occupancy of a property beyond their lease’s terms and without the landlord’s
consent, aka estate at sufferance
223
tenant
the party to whom the lease is granted, aka the lessee
224
testate
the state of having an existing will at an individual's time of death
225
testator
the party who makes a will
226
Texas Veterans
Land Board
a division of the General Land Office of Texas that administers three programs to assist Texas
veterans in purchasing a principal residence and/or land and in financing home improvements
227
three-day right
of rescission
the three-day right a borrower has in most consumer credit transactions that are covered by
Regulation Z to rescind the transaction by merely notifying the lender
228
title
the actual ownership of a real property that includes the bundle of rights in which a party may
own a legal or equitable interest; not an actual document
229
title defect
anything that can cause a title to be considered invalid or defective in some way
230
title policy
a policy that protects homeowners (and likewise, lenders) from certain financial losses due to
title issues, such as defects, encumbrances, and liens
231
title search
an examination of all public records in the county to determine who has rights in the property
and whether any defects exist in the chain of title
232
Torrens System
a recording system used in some states (not Texas) in which the state holds all records of land
and title ownership, evidenced by a certificate of title
233
total
the "final" or "end result" number; the denominator (4 of 3⁄4)
234
tranches
mortgage-backed securities that are sold to investors at different risk levels and classes
235
triple-net lease
any leasehold that requires a tenant to pay a base rent, property taxes, insurance, and
maintenance expenses
236
usury laws
state laws that limit interest rates
237
variable lease
a leasehold agreement in which the base rent changes
238
variance
permission granted by the government so that property may be used in a manner not allowed
by the current zoning
239
Veterans Land
Loan Program
a program that gives Texas veterans the opportunity to borrow up to $150,000 to purchase
land at competitive interest rates while typically requiring a minimum 5% down payment for
tracts of one acre or more
240
voluntary alienation
the method by which property is transferred from the current owner to another party wither
by sale or gift
241
whole number
any number between zero and infinity that is not a fraction or a negative number
242
wraparound loan
a loan that enables a borrower to obtain additional financing from a second lender without
paying off the first loan; the second lender gives the borrower a new, increased loan at a
higher interest rate and assumes payment of the existing loan
243
zoning
the division of land within a jurisdiction into separate districts within which uses are
permitted, prohibited, or permitted with conditions
