Vocab N-Z Flashcards
(218 cards)
1
Q
A professional trade organization
A
National association of relators (NAR)
2
Q
documents that are legally capable of being transferred from one person to another (stocks, bonds, checks…)
A
Negotiable instruments
3
Q
gross income less operating expenses
A
net income
4
Q
a lease in which the tenant pays the ownership type expenses (taxes, insurance.. etc)
A
Net lease
5
Q
a listing agreement in which the broker agrees to offer the property for sale and promises to get a certain price for the seller, and anything above that amount is the broker’s commission. Illegal in Michigan
A
Net listing
6
Q
an oral will made in front of witnesses
A
Noncupative will
7
Q
a use that does not conform to the present zoning laws but is allowed to continue because the use started before the new zoning
A
Non-conforming use
8
Q
non-ownership interests in real property
A
non-freehold estates
9
Q
a written promise to repay a debt, signed by the borrower, acknowledging the existence of the debt
A
Note
10
Q
Giving information to the public
A
Notice
11
Q
A written notice given by the landlord to his or her tenant requiring that the tenant leave the leased premises
A
Notice to quit
12
Q
Substitution of a new contract or party for an old one by mutual agreement (ie a new mortgage written to take the place of an old one)
A
Novation
13
Q
Invalid and unenforceable
A
Null and Void
14
Q
the person entitled to the performance of a duty, such as the lender
A
Obligee
15
Q
the person who owes a duty such as the borrower
A
Obligor
16
Q
the necessary elements of mutual assent; for example, one party agrees to buy and the other agrees to sell
A
Offer and acceptance
17
Q
a person who receives an offer
A
offeree
18
Q
a person who makes an offer
A
offeror
19
Q
a mortgage which contains a clause that allows the borrower to borrow additional money without rewriting the mortgage, usually back up to the original amount borrowed
A
Open end mortgage
20
Q
a listing in which the broker is paid a commission ONLY if he finds a ready, willing, and able buyer BEFORE the seller or any other brokers do
A
Open listing
21
Q
a mortgage that can be repaid earlier than its maturity date
A
open mortgage
22
Q
an attorney’s opinion as to whether the title is clear and marketable or defective
A
opinion of title
23
Q
the right to purchase property at a stipulated price and terms with a certain period of time
A
option
24
Q
a person who gives an option to someone
A
Optionor
25
a person who has an option to purchase someone's property
optionee
26
finance fee charged by a lender for arranging a mortgage loan
origination fee
27
an improvement that costs more than the extra value it has added to the property
over improvement
28
an association, made up of the owners in a condominium or PUD, that meets to establish rules and to regulate and maintain the upkeep of the common elements
Owners' association
29
a mortgage that is secured by a combination of both real and personal property
package mortgage
30
the illegal practice of making a profit by inducing fear among property owners that an undesirable element (based on illegal discrimination) is moving into the area and will lower property values if they wait to sell
Panic selling
31
oral; unwritten
parol
32
a rule that even though a written contract usually supersedes any conflicting oral agreements that had been made, sometimes statements made orally will be allowed to augment a contract
Parol evidence rule
33
a clause in a mortgage that will release a portion of the secured property from the mortgage. A blanket mortgage, for example, that covers two properties may contain this to release one of the properties from the mortgage after 1/2 of the debt was paid
Partial release clause
34
a mortgage agreement between a borrower and a lender that requires the borrower to give the lender, in addition to interest, a percentage of ownership in the property
Participation Mortgage
35
the legal dividing of jointly owned property among its owners
partition
36
a grant of land from the government
patent
37
per year; each year
per annum
38
a lease in which the amount of rent is based on a percentage of the gross sales made on the leased property
percentage lease
39
a test which determines soil suitability for a septic disposal system
perculation test
40
per day; each day
per diem
41
movable objects; everything that is not real property
personal property (or Chattel)
42
Loss in value due to wear and tear
Physical depreciation (deferred maintenance)
43
4 items in a budget mortgage
PITI (principal, interest, taxes, and insurance)
44
a planning design that utilizes the land better by placing individually owned units very close in one area, which allows large common areas for use by all
Planned unit development (PUD)
45
a book of maps showing the location and boundary lines of individual properties
plat book
46
a card that identifies licensees and must be carried when conducting real estate business
Pocket card
47
the starting point in a metes and bounds legal description
point of beginning
48
the right of a state to enact laws and enforce them for the order, safety, health, and general welfare of the public
Police Power
49
Authorization a person gives to another to act for him
Power-of-attorney
50
a clause in a mortgage, which allows the lender to sell the property in the case of the borrower's default
power-of-sale
51
the beginning part of a deed that states the names of the parties, the agreements and consideration etc
Premise
52
a fee charged by a lender for allowing a borrower to repay his loan before it is due
Prepayment penalty
53
acquiring an easement by continuous use over a statutory period of time
prescriptive easement
54
where loans are made from the lender to the borrower
primary mortgage market
55
a person who employs an agent to act in his behalf
principal
56
the balance owed on a loan
principal balance
57
an insurance program that charges borrowers a fee for the private mortgage insurance company to assure the lender that they will make restitution if the borrower defaults.
Private mortgage insurance
58
a court that handles minors, incompetents, and property distribution when the owner dies
probate court
59
the agent's efforts that bring about the desired results such as when an agent is required to find a ready, willing, and able buyer
procuring cause
60
a written promise to repay a debt
promissory note
61
a person employed by a property owner to collect rents, negotiate leases, maintain the property etc
Property manager
62
a lease that has attributes of ownership in which the tenant is treated like an owner, commonly used in a cooperative
proprietary lease
63
dividing an expense, such as property taxes or insurance, between two people, such as the buyer and seller
prorate or proration
64
taxes that have been paid in advance
prospective taxes
65
a government operated facility where documents are recorded to give notice to the public
public recorder's office
66
a public auction to sell property that is in default of mortgage payments, taxes, etc
public sale
67
exaggerating (ie "this is the prettiest lot in the whole town!")
Puffing
68
for another's life time; a term used in life estate if the life tenant is allowed to possess the property for the duration of someone else's life
Pur Autre Vie
69
a mortgage given by the buyer to the seller to cover all of part of the sales price
purchase money mortgage
70
in conjunction with; as a part of; in accordance with
pursuant to
71
an estate that is subject to certain limitations imposed by a previous owner
Qualified fee estate or defeasible fee
72
on a basis equal to the amount of service rendered (latin)
Quantum Meruit
73
as if; or similar to (latin)
quasi
74
the right of possession and undisturbed use of property
quiet enjoyment
75
a court action to clear clouds on a title and determine the true owner
quiet title suit
76
a deed used to convey to the grantee whatever title the grantor had in the property.. Contains no covenants or warranties nor any implication that the grantor is the actual owner.
quitclaim deed
77
the rate at which an investment is being returned through income produced by that investment.
rate of return
78
ready and qualified to enter into an agreement
Ready, willing, and able
79
land and everything that is so permanently attached that it transfers with the title to the land
Real estate
80
an organization of a group of investors to invest in real estate and is given tax advantages over corporations
Real estate investment trust (REIT)
81
a federal law that requires certain procedures be followed in certain settlements so that buyers and sellers are informed about the settlement costs
Real estate settlement procedures act (RESPA)
82
land and its improvements and the rights therein
real property
83
a person who belongs to the board of ____________, a professional trade organization of real estate agents
Realtor
84
a clause in a percentage lease that allows for the lessor to have the property back if the tenant's gross drops below a set amount
Recapture clause
85
a person appointed by the court to handle the affairs of a person that is in bankruptcy
Receiver
86
the final step in the appraisal process in which the appraiser looks at the different approaches used and arrives at the final indication of value
reconciliation
87
a map of subdivided land that is recorded in the public records
recorded plat (lot and block or subdivision)
88
the process of entering a legal document, such as a deed, into the public record; thereby giving constructive notice
recording
89
the government system of using imaginary intersecting liens to describe and locate land
- Rectangular Survey System
- Governmental Survey
- US public lands survey
90
the right of the mortgagor (borrower) to a redemption period after default so that he or she has time to come up with the money needed to pay the mortgage and keep his or her property
equitable right of redemption
91
the period of time after a borrower defaults on a mortgage that he has to redeem the property by paying the total owed and court costs
redemption period
92
the illegal practice by lenders of refusing to lend money on any property in specific areas of a city
redlining
93
action to correct an error in a previous deed or other document
reformation
94
the governmental officer in charge of the records office
registrar of deeds
95
a federal law requiring lenders to disclose information about actual borrowing expenses to all prospective borrowers so that they can compare terms of different lenders
Regulation Z
96
the person who holds title to the property and will receive possession at the end of a life estate
remainderman
97
a mortgage loan in which the interest rate may increase or decrease within certain limits at specified intervals
renegotiable rate mortgage (RRM)
98
the cost of replacing a building with a similar structure, having the same usefulness, using today's building methods and prices
replacement cost
99
the cost of replacing a building with an exact replica, using today's building methods and prices
Reproduction cost
100
the legal method of canceling or terminating a contract
Rescind (rescission)
101
a clause in a deed that places limitations or restrictions of the property's use
restrictive covenants
102
Taxes that are not paid until the end of the period; paid in arrears. If these taxes are prorated at the closing, they are a debit to the seller and a credit to the buyer
retrospective taxes
103
the rate at which an investment will be returned
return OF investment
104
the rate at which money is being made on an investment
return ON investment
105
a mortgage agreement in which the lender gives the borrower monthly payments until a certain sum is reached, at which time the borrower pays all the money back.
Reverse mortgage (or Reverse annuity mortgage)
106
the landlord's interest in a lease; a right to a future possession, retained by the owner, such as when he leases his property to someone
reversion
107
a withdrawal; termination; cancellation
revocation
108
the right to have the first opportunity to either purchase or lease property
right of first refusal
109
upon the death of one of the owners, his interest passes onto the surviving owners: a characteristic of joint tenancy and tenants by entireties
right of survivorship
110
the rights of owners and property that borders a watercourse, river, or stream to the reasonable use of that water
Riparian rights
111
16.5 feet
ROD
112
something, such as a covenant or easement that passes with the title. Each grantee receives these rights or liabilities when the property is conveyed
"Running with the land"
113
a transaction to raise money for the owner in which he or she sells his or her property to an investor and then leases it back so he or she retains possession and his or her money is not tied up in the property
Sale and leaseback
114
an agreement between buyer and seller agreeing on the price and terms of the sale. The buyer agrees to buy and the seller agrees to sell.
Sales contract/ sales agreement
115
a person licensed to list, negotiate, sell, appraise, or lease real property while employed and supervised by a broker
Salesperson
116
the expected worth of a piece of property at the end of its economic life
salvage value
117
the paying of a mortgage or other lien
satisfaction
118
federally or state-chartered lending institution
savings and loan association (S & L)
119
the purchase and sale of existing mortgages. The lender selling the mortgage to a permanent investor.
Secondary mortgage market
120
a mortgage on a property that already has a first mortgage loan. First mortgage usually takes priority.
Second mortgage/ junior mortgage
121
refers to a one-mile square area used in the rectangular survey system. Contains 640 acres.
Section
122
An economic condition that occurs when there are more buyers available than properties, therefore sellers can demand higher prices
seller's market
123
property on which an easement exists. the owner of this property must allow the easement holder the right to use the easement
Servient estate
124
The owner of the servient estate
Servient tenant
125
a zoning ordinance, which requires all structures to be at least a certain set distance from the property lines
Setback
126
closing; the closing of a real estate transaction. The broker lists the buyer's and seller's credits and charges and handles the exchange of money and documents to complete the transaction.
settlement
127
a lease that provides for agreed upon rent increases at specified times during the lease period
set-up lease
128
ownership by one personal alone. upon his or her death, the property descends to his or her heirs or devisees
estate in severalty
129
a mortgage loan in which the lender, in exchange for a loan with favorable interest rate, participates in the profits, if any, that the borrower makes when he or she eventually sells the property
Shared appreciation mortgage (SAM)
130
a deed given when property is ordered sold by a court in order to satisfy a judgment or mortgage foreclosure
sheriff's deed
131
a public sale of property conducted by a sheriff as ordered by a court to satisfy a judgement
sheriff's sale
132
a charge on real estate levied by a public authority to help fund the cost of public improvements, such as sidewalks, streets etc
special assessment
133
a deed containing only one warranty, that the title is clear of defects arising during the time that he or she has owned the property, but not against defects existing before that time
special warranty deed
134
a legal action brought in special cases to compel a party to carry out the terms of the contract. The basis for this action is when the contract concerns something unique, such as land
specific performance
135
an area 3 feet wide and 3 feet long containing 9 square feet
square yard
136
a "front;" a person who is put up in name only to take part in a transaction
straw man
137
means "as before" for example: if a contract is voided, the parties are to be returned to the _______ _____ meaning a return to their positions before the contract
status quo
138
a law that requires certain contracts to be in writing in order to be enforceable. One exception is an oral lease for a year or less.
Statute of frauds
139
estates that are created by law (ie dower or curtesy)
statutory estates
140
the right that a buyer has after a foreclosure to repay his defaulted loan and redeem his property
statutory redemption
141
the illegal practice of discrimination by directing minorities to or away from certain neighborhoods
steering
142
a method of computing depreciation for tax purposes in which the depreciation is evenly spread over the economic life so that the amount of depreciation is the same each year
straight line depreciation
143
dividing a large parcel of land into smaller parcels
subdividing
144
the property that is being appraised
subject property
145
a purchaser taking title to the property but not assuming responsibility of an existing loan
subject to an existing loan
146
a lease given by a lessee to a sublessee
sublease
147
the person who receives a sublease
sublessee
148
the lessee who gives a sublease to someone
sublessor
149
a clause in a mortgage (or other lien) that would allow a junior mortgage (or other lien) to take priority
subordination clause
150
an appraisal principle that the maximum value of a property tends to be set by the cost of similar property
principle of substitution
151
having the legal ability and capacity to sign contracts etc
sui juris
152
the process of locating and measuring a parcel of land
survey
153
a group of investors pooling their money to invest in real estate
syndication
154
the adding of successive periods of continuous use of real property by different adverse possessors in order to total the amount of years necessary to claim adverse possession
tacking on
155
a deed issued when property is sold to pay delinquent taxes
tax deed
156
a method of deferring capital gains taxes by exchanging one qualified property for another qualified property
tax free exchange
157
a sale of land for unpaid taxes
tax sale
158
the unlawful holding over by a tenant whose lease has terminated
tenancy at sufferance
159
a type of lease in which there is no fixed term and continues until either the landlord or tenant terminates it
tenancy at will
160
an ownership estate held by a husband and wife, where upon one spouse's death, the survivor becomes the sole owner of the property
tenancy by the entirety
161
estate created when two or more people own property at the same time. upon the death of one owner, his or her share descends to his or her heirs or devisees
tenancy in common
162
one who has the temporary possession of real property owned by another
tenant
163
the borrower only pays interest during the term of the loan until the expiration of the term, when the entire principal is paid
term loan
164
to die leaving a will
testate
165
a person who has made a will
testator
166
a clause used in some contracts which requires that performance of the contract be completed before a certain set of time
time is of the essence
167
a method of ownership that permits multiple ownership of real property. each of the owners is given the right to use the property during a certain specified time, often a week or two week period each year.
timesharing
168
legally recognized evidence of ownership
title
169
one which often prepares abstracts and provides title insurance
title company
170
insurance that protects agains loss or damage due to defects in the title
title insurance
171
the process of checking the public records to establish the current owner
title search
172
states that give the mortgage lender title to the property until the mortgage is paid
title theory states
173
a system of registering title to land with the government
torrens system
174
a civil wrong
tort
175
a six mile by six mile area in the rectangular survey, which contains 36 sections
township
176
personal property items installed and used by a tenant in his business which have been attached to the real property. these items remain personal property and may be removed by the tenant
trade fixtures
177
a tax charged to the seller of real estate. in michigan this charge is 4.30 per $500
transfer tax
178
an irregular shaped area, which has 4 sides, but only 2 are parallel.
trapezoid
179
TRID
Truth in lending act, RESPA, Integrated, Disclosure
180
a third party who holds title of property for another person in a deed of trust
trustee
181
the borrower in a deed of trust
trustor
182
an act that requires the borrower be informed of the true amount he will pay for credit. this also enables borrowers to compare the amounts charged by different lenders
truth in lending act (TIL)
183
occurs when an agent does not reveal the identity of his principal
undisclosed principal
184
the interest that co-owners have which is not separable
undivided interests
185
an act that regulates transactions in which personal property is included in the sale, such as bulk transfers
uniform commercial code (UCC)
186
a contract in which one party promises to the other party to do something to induce the second party to do something. the second party is not bound to perform, but if he or she does, the first party is obligated to keep the promise
unilateral contract
187
in order to create joint tenancy, these 4 must be present: time, title, interest, and possession. They are called the _______
Unities of joint tenancy
188
a requirement in joint tenancy and tenants by the entirety in which each of the owners holds exactly the same size interest
unity of interest
189
the legal premise that husband and wife is an indivisible legal unit
unity of person
190
a requirement in joint tenancy and tenants by the entirety in which all of the owners share the same undivided possession of the whole property
unity of possession
191
a requirement in joint tenancy and tenants by the entirety in which each owner must acquire his or her ownership at the same moment
unity of time
192
a requirement in joint tenancy and tenants by the entirety in which all of the owners must have received title through the same conveyance, such as the same deed
unity of title
193
an agency wherein the agent is empowered to handle ALL of his principal's affairs
Universal agency
194
home loan programs that provide loans in rural areas for modest housing to households at or below 80% of the adjusted median income. Offered through the US department of agriculture
USDA rural development
195
the act of charging a rate of interest above the limit set by the law
usury
196
the usefulness of real property
utility
197
the value to an owner/user
utility value
198
the estimated percentage of vacancies in a rental project.
vacancy rate
199
a mortgage loan made to a qualified veteran by a lender and guaranteed by the Veteran's administration in order to limit the lender's risk of loss due to default.
VA guaranteed mortgage
200
a binding agreement that contains all of the essential elements to make it enforceable in a court of law
valid contract
201
appraising; estimating value
valuation
202
the power of a good or service to command other goods or services
value
203
a mortgage in which the interest rate charged by the lender may go up or down according to the current interest rates
Variable rate mortgage (VRM)
204
permission from zoning authorities to a property owner who is unfairly burdened by a zoning law allowing an exception to the zoning
variance
205
a buyer; the buyer under a land contract
vendee
206
a seller; the seller under a land contract
vendor
207
an agreement that is capable of being void. one that could be voided. IE a contract with a minor
Voidable contract
208
a contract which is entirely null; not binding on either party
void contract
209
the voluntary transfer of property ownership, usually by deed
voluntary alienation
210
a release of lien
waiver of lien
211
a financing term that describes the process of loan bankers packaging a number of mortgage loans and selling these packages in the secondary mortgage market
warehousing
212
a deed in which the grantor makes certain promises to guarantee the quality of title
warranty deed
213
abusive or destructive use of property
waste
214
the grantor's statement in a deed in which he or she states that he or she is making a grant to the grantee
words of conveyance
215
a mortgage that encompasses any existing mortgages
wraparound mortgage
216
when an individual cannot write his or her name, he or she may place this letter on the document. A witness must then write the person's name along side of it and sign it as the witness.
X
217
the return on an investment; profit
yield
218
governmental regulations of land use. land use controlled by local government under police power of state
zoning
