Vocab 2 - 20 words Flashcards
(20 cards)
FHA
Known as the Federal Housing Administration; it was created by the National Housing ACT in 1934 with the intentions of regulating the rate of interest and terms of mortgages that is insured in order to make home ownership more accessible.
Taxation
Part of the acronym “P.E.T.E”, is defined as a financial charge (or some other type of levy imposed) upon a tax payer by a governmental organization
Mortgagor
Entity (i.e. buyer) giving the promissory note that serves as evidence of the debt. The borrower is known as the mortgagor.
Fee appraiser
Self-employed appraiser who charges a fee for each appraiser he does.
Earnest Money Deposit
Deposit made to a seller representing a buyer’s intention to purchase a home in “good faith”. It can be cash, a promissory note, a postdated check, or any items of value
General Agent
An agent who has the authority to perform any and all acts required for a job or business. When a real estate preforms property management functions for a client, he/she is acting as the general agent.
Special Assessment
A tax or levy customarily imposed against only those specific parcels or real estate that will benefit from a proposed public improvement, such as a street or a sewer.
Trust Deed
Three-party system of securing a promissory note with a trustor, trustee, and beneficiary.
Open listing
unilateral contract in which multiple agents can be employed to find a buyer. If the owner finds a buyer, no commission is paid.
Redlining
Discriminatory practice of mortgage lenders in which they draw “red lines” around the portions of a map or indicate areas or neighborhoods where they don’t want to make loans.
Equitable Title
The beneficial interest of a person whom equity regards as the real owner but the legal right vests with another. For example, a purchaser under a contract for sale has equitable title to the property s/he intended to purchase.
Cost (Replacement) Approach
Appraisal method based on the replacement or reproduction costs of the subject property.
Laches
An equitable doctrine used by the courts to bar a legal claim or prevent the assertion of a right because of undue delay, negligence, or failure to assert the claim or right.
Encroachment
When a neighbor is using land which they do not own - For example, if the owner of a parcel of land built a driveway on his own land that accidentally crossed two feet over onto his neighbor’s land. Can be consider trespass.
Competent or Capable Parties
All parties entering into a contract must be legally fit (having the necessary age, ability, and authority to accomplish any given acts or duties) for the contract to be valid
unilateral contract
An agreement in which one person makes a promise - for example, an open listing
Listing
Employment contract between principal and broker where the broker-is paid by the principal of to ding a buyer. It is the most essential part of a broker-principal relationship. A listing can last any length of time agreed upon by both broker and seller.
Prepayment Clause
Allows a penalty to be enforced if a mortgage is paid off early.
Servient Tenement
The land burdened by the easement
Dominant Tenement
A piece of land that benefits from an easement
