Vocab 3 - 20 Words Flashcards
(20 cards)
Marginal Tax
Percentage of tax applied to your income for each tax bracket in which you qualify. In essence, the percentage taken from your next dollar of taxable income above a predefined income threshold. It is applied to the nearest dollar of taxable earned income.
Value
The current worth of owning a particular property, or what someone would pay for it in a fair transaction. Its original cost has no relevance to its value.
Exclusive Agency Listing
Employment contract where the seller agrees to pay a broker commission if any agent/broker finds a buyer. But if the owner sells the property themselves, the broker gets no commission.
Sherman Anti-trust Act
Federal Law that promotes free market competition in restraint of interstate or foreign trade.
Joint Tenancy
Concurrent ownership with unities of Time, Interest, and Possession (TTIP). Has the right of survivorship, meaning if one joint tenant dies, the surviving joint tenants take the remaining interest.
Grant Deed
A deed that implies two warranties: 1) The grantor has not already given the title to another person; and 2) The estate has no undisclosed encumbrances. It is not necessary to record the deed. Grant deeds are considered officially executed when signed by the grantor.
Subordination Clause
A situation where a party’s claim or interest is ranked below another party’s claim. This allows a mortgage to be added at a later date which will take priority over an existing mortgage.
Multi-family Residential
An R-3 zone is for Multi-family Residential use
Protection Period Clause
Also known as Safety Clause, it protects the listing broker’s commission if the owner sells to the buyer procured by the broker, even after the listing agreement has ended. The name of the potential buyer(s) should be documented in writing at the end of the listing period. This is not a time to find a new buyer.
Interest
Amount charged to the borrower for the privilege of using the lenders money. It is effectively rent on money.
AAA Tenants
Low risk tenants: tenants who are considered most credit worthy
Abandonment
Intentional surrender of property rights: a voluntary release of all claim, title, rights, and possession in a particular piece of property with the intention of never reclaiming it
Abatement
A reduction in taxes or rent charges:
Abatements are frequently given as an incentive to attract businesses and investors.
Qualified Mortgage
Residential, closed-end mortgage issued by a lender that complies with certain requirements. Also known as Ability to Repay.
Absentee Ownership
Owner who resides elsewhere
Abstract of Title
History of chain of title
Acceleration Clause
Loan term that requires immediate repayment of the entire balance. Triggering events may include the sale of property or failure to Make required payments on time.
Acceptance
Agreement to be bound in an offer
Access
Right to pass to and from land
RESPA
Real Estate Settlement Procedures Act (RESPA):
Federal law requiring closing cost disclosures and outlawing kickbacks
