Real Estate vocab (5) Flashcards
(100 cards)
1
Q
Mechanic’s lien
A
an involuntary lien placed against a piece of real estate to recover payment fir work that improved it
2
Q
Meetings of the minds
A
offer and acceptance
3
Q
Metes
A
distances
4
Q
Metes and bounds
A
boundaries of land described using metes and bounds between monuments or benchmarks
5
Q
MI
A
mortgage insurance on FHA loans
6
Q
Mile
A
5,280 feet
7
Q
Mills
A
dollars per $1,00; used to calculate tax rate and millage rate
8
Q
Mineral rights
A
also known as subsurface rights or vertical interests, include solid and liquid mineral rights, typically extend to earth’s core
9
Q
Millage rate
A
varies by town; calculate property taxes; based on mills
10
Q
Mixed use developments
A
properties containing multiple uses, such as a mix of residential and commercial real estate
11
Q
MLS
A
Multiple Listing Service; database for real estate listings
12
Q
Modified gross lease
A
a lease where the tenant pays a fixed amount a rent the first year, known as the base year and then the next year there is an increase based on the landlord’s increase in operating expenses
13
Q
Modular home
A
homes whose components are manufactured in a factory, and are later assembled on site
14
Q
Monument
A
a visible marker, natural or artificial used to establish a land boundary
15
Q
Moratorium
A
action by government temporarily halting public activities such as a “freeze” on apartment construction
16
Q
Mortgage
A
a legal instrument that conveys conditional title to a lender to collateralize a debt
17
Q
Mortgage banker
A
works directly for the bank and can only offer loan products from their bank
18
Q
Mortgage broker
A
someone who brings together borrowers and lenders in exchange for a fee
19
Q
Mortgage commitment
A
a written notice from lender promising a future loan under certain conditions and terms
20
Q
Mortgage commitment
A
a written notice from lender promising a future loan under certain conditions and terms
21
Q
Mortgage covenants
A
everything the borrower promises such as making payments, keeping property insured, etc.
22
Q
Mortgage interest deduction
A
residential homeowners can write off their mortgage interest on mortgage debt up to $750,000 on primary residence
23
Q
Mortgagee
A
the lender
24
Q
Mortgagor
A
the borrower
25
Multi-family
property containing several different units, but it not subdivided
26
Municipal property taxes
major form of revenue for towns/cities
27
Mutual Release Papers
an agreement by which the parties to a contract release each other from their obligations under the contract; also known as a mutual agreement
28
NAR
National Association of REALTORs; a national private trade association with state and local chapters
29
Narrative form
written form or report
30
Negative amortization
when the monthly payments of a loan fail to cover the entirety of the principal and interest due
31
Net income
also known as net operating income (NOI), it is the effective gross income minus operating expanses
32
Net lease
lease where the owner receives rent and tenant also pays building expenses normally paid by owner
33
Net listing
an illegal commission arrangement with an unspecified commission, most commonly arranged so that the agent receives all money over a certain fixed price in a sale
34
Net worth
assets minus liabilities (debts)
35
Nominal consideration
a small amount used as consideration for a contract
ex. property sold for $10
36
Nonconforming use
a legal use that was in existence prior to current zoning, which may continue to exist; "grandfathered in"
37
Non-designated agency
a traditional form of agency where client is represented by all of the agents who represent the broker
38
Non-freehold
type of interest in real estate with possession and use; but not ownership; rental or lease
39
Note
evidence of a debt; also known as a promissory note or a mortgage note
40
Novation
the cancellation of contract and the replacement of it by a new one
41
Nuncupative will
verbal will; not enforceable in most states
42
Obsolescence
a loss of value from outdated design
43
Occupancy Rate
the percentage of full (occupied) units in a rental property
44
Offer
a presentation of terms; a shortened letter version is known as a binder or letter often and serves similar purpose
45
ONCHA
Open, Notorious, Continuous, Hostile, Adverse use of land for 20 years + allows a person to claim an easement by prescription or potentially claim ownership to a piece of land that was not previously there
46
Open listing
any hired broker can sell property for a commission, but if owner finds their own buyer, no commission payable
47
Open mortgage
a mortgage that has matured or is overdue and subject to foreclosure
48
Open end mortgage
a HELOC or line of credit secured by real estate
49
Operating expenses
deductible costs associated with running an investment property; seen on APOD sheets
50
Option
a contract between a property owner (optionor) and a potential buyer or lessee (optionee) to buy or lease the property in the future at pre-agreed terms
51
Ordinance
local municipal laws and rules
52
OSHA
the Occupational Safety and Health Administration; oversee workplace and construction site safety
53
Over improvement
spending too much money improving a property; may not necessarily add value per concept of substitution
54
Overt
openly known
55
Ownership
an interest the excludes others; title
56
Package mortgage
a loan secured by a mortgage on both real and personal property
57
Parol
oral or verbal
58
Partial release clause
used in blanket mortgages; releases a portion of the collateral in exchange for partial payment of loan
59
Participation mortgage
loan where the lender participates as an equity partner in a development project
60
Partition
a legal action to divide co-owned property
ex. lawsuit
61
Party wall
a common shared boundary where all owners are responsible for its upkeep, like a wall or a fence
62
Passive income
income generated by passive activities, such as collecting rents
63
PCBs
Polychlorinated Biphenyls; > 200 chemical compounds not found naturally; were used for flame resistance in electrical equipment and are carcinogenic
64
Percentage lease
a lease contract where the rent is based on a percentage of gross sales, often with a fixed minimum; commonly used for department stores
65
Percolation test
a test that measures soil water absorption and drainage; often used for septic systems
66
Performance
a contract terminates because the obligations have been met, such as when a lease automatically terminates at the end of the lease term
67
Personal property
also known as personality, chattel, or moveable property; anything not attached to the land
68
Physical depreciation
also known as physical deterioration, loss in value resulting from wear and tear, such as a leaky roof; a type of curable depreciation
69
PITI payment
principal, interest, property taxes and homeowners insurance payments
70
Plaintiff
person bringing a lawsuit
71
Planned unit development
a type of high density mixed use development with designated public space components
72
Planning Commission
Governmental body having the responsibility for planning the future development of a jurisdictional area
73
Plat
a plan or map used in a lot and block survey that shows the layout of a subdivision
74
Plat book
the public record of recorded plats
75
Pledged account mortgage
the borrower pays to subsidize the interest rate on their loan for a number of years; in a high interest rate market, this allows buyers to have more affordable mortgage payments
76
Plot plan
a diagram showing the existing or proposed use of a property, including any improvements
77
Plottage value
the increase in value from assemblage; a plottage increment
78
Points
an origination fee charged by lenders at closing; one point is 1% of the loan
79
Point of beginning (P.O.B)
the starting point in a meters and bounds description of property, either from a monument or a reference point on the street; the description begins and ends at the P.O.B
80
Police power
right of government to enact laws, such as building codes and zoning by laws in the public interest
81
Power of attorney
a written instrument authorizing someone to act on someone else's behalf; person given power is an attorney-in-fact
82
Power of sale clause
permits lender to take the property and sell it in the event of a default on the terms of the loan
83
Pre-approval letter
sometimes known as commitment letter or letter of commitment on the exam; states that the buyer has been approved for a certain purchase price based on qualifying criteria such as income, credit history, and assets
84
Predatory lending
unfair, deceptive or abusive lending
85
Prepayment penalty
a penalty for paying a loan before its due date
86
Prescription
a method of obtaining an easement by adverse use of someone else's property
87
Primary mortgage market
the market where loans are made by lenders to borrowers
88
Primary residence
owner-occupied residence where someone will live for at least 2 of 5 years
89
Prima facie
based on the first impression
90
Prime rate
the theoretical lowest interest rate a borrower can receive
91
Principal
the client; the person who is paying you
92
Principles of value
change, anticipation, substitutions, progression, regression, four stage life cycle, balance, conformity, contributions, increasing and decreasing returns, competition, consistent use, highest and best use, and plottage value
93
Private restriction
a covenant, condition, or restriction placed on realty by the grantor at the time of sale that runs with the land
94
Privity of contract
doctrine that permits the right to sue under a contract
95
Privity of estate
legal relationship between two parties with a common interest in the same property
96
Pro forma statement
a projection of future income and expenses
97
97
Probate
legal process by which the deceased's belongings are distributed
97
Procuring cause
the effort of a broker who produced a ready, willing and able buyer
97
Professional liability insurance
also known as errors & omissions insurance; protection against mistakes made by the broker or their subagents, while providing real estate services to their clients
