Vocab 1 - 20 words Flashcards
(20 cards)
Principle of Progression
A valuation principle that says having nicer, more expensive homes nearby can increase the value of a property.
Federal National Mortgage Association (FNMA)
“Fannie Mae” is the popular name for this federally chartered corporation, which creates a secondary market for existing mortgages. FNMA does not loan money directly but rather buys DVA, FHA, and conventional loans
Functional Obsolescence
Loss in value resulting from functional problems caused by age or poor design. For example, a property with a one-car garage in a 4 bedroom house.
Dual Agent
When a real estate licensee works with both buyer and seller.
Subject to
Situation in which the buyer takes title to the property but the existing loan stays in the name of the seller, so the seller is primarily liable for the loan
Material Fact
A fact that substantially affects the consideration or performance or a contract.
Special Warranty Deed
Type of deed affording the grantee protection only for the time the grantor held title.
Bundle of Rights
Rights associated with owning property. Includes right of possession, the right of control, the right of exclusion, the right of enjoyment, and the right of disposition.
Lawful Object
A contract must be legal; If contract has an illegal purpose, the contract is void.
Contract for deed
Also known as a Land contract -
Seller-financed installment sale contract involving no security pledge.
CC&Rs
Covenants, Conditions and Restrictions. Condominium documents that serve as the operational procedures describing the rights and prohibitions of the co-owners in a condominium association
Unenforceable Contract
Contract which cannot be enforced by the court of law. For example, if the terms of the contract are ambiguous, if one party is a voidable contract, if the statue of limitations have expired, or if the contract needs to be in writing.
Balloon loan
Also known as a partially amortized loan, it has a fixed rate of interest over a period of time. At the end of the balloon period, the borrower must refinance or pay off the remaining balance.
Impounds
Account maintained by mortgage company to collect recurring costs such as insurance and tax payments that are necessary for you to keep your home, but are not technically part of the mortgage.
Leasehold Estate
A tenant’s right to occupy real estate during the term of a lease, generally considered to be a personal property interest.
Capitalization Rate
the rate of return a property will produce on the owner’s investment.
Township
The principle unit of the rectangular survey system. A township is a square with six-mile sides and an area of 36 square miles.
Client
When an agency relationship is created that involves a fiduciary duty.
Enforceable Contract
Any Legal contract that carries the legal force behind it.
FHA-insured Loan
A loan that is 100% insured by the FHA and provided by private lenders.
