MA Real estate

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Prittyrick
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228526
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MA Real estate
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2013-08-08 16:30:56
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Real estate vocab
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MA Sales Person Test Prep
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  1. Accretion
    Addition of land of land due to actions of  a body of water.
  2. Riperian Rights
    The right to use water adjacent to ones property such as a river or stream.
  3. The doctrine of Prior Appropriation
    Grants water rights to divert a specific amount of water from a specific source to irrigate a specific piece of property.

    "First in time, is first in right"

    Those rights are then assigned a priorty based on when the right was first used or applied for.
  4. Littoral land
    includes land that is situated next to a lake, ocean or sea.  Littoral land is a fancy term for lakefront or oceanfront property
  5. Community property
    In a community property jurisdiction, most property acquired during the marriage (except for gifts or inheritances)—the community, or communio bonorum—is owned jointly by both spouses and is divided upon divorce, annulment or death
  6. Tenancy in Common
    regarded by the law as owning separate and distinct shares of the same property. By default, all co-owners own equal shares, but their interests may differ in size.
  7. Tenancy by the entirety
     type of concurrent estate formerly available only to "married couples", where ownership of property is treated as though the couple were a single legal person.
  8. Chattel
    Personal Properties
  9. Emblements (Fructus Industriales)
    annual crops produced by cultivation legally belonging to the tenant with the implied right for its harvest, and are treated as the tenant's property
  10. Leasehold Estate
    an ownership of a "temporary" right to hold land or property in which a lessee or a tenant holds rights of real property by some form of title from a lessor or landlord.
  11. Fee Simple Estate
    a form of freehold ownership. It is the way that real estate is owned in common law countries, and is the highest ownership interest possible that can be had in real property
  12. Life Estate
    ownership of land for the duration of a person's life. In legal terms it is an estate in real property that ends at death when there is a "reversion" to the original owner. The owner of a life estate is called a "life tenant".
  13. Defeasible Estate
    created when a grantor transfers land conditionally. Upon the happening of the event or condition stated by the grantor, the transfer may be void or at least subject to annulment.
  14. Avulsion
    refers to the loss of land as a result of its being washed away by water (like a river or body of water or flash flood)
  15. Succession
     or inheritance, in law, is the passage of an individual's property to one or more dependants
  16. Littoral rights
    refers to rights concerning properties that abut an ocean, sea or lake, rather than a river or stream (riparian). Littoral rights are usually concerned with the use and enjoyment of the shore
  17. Heriditament
    Any inheritable property
  18. Easement Appurtenant
    Allows the holder of one property to benefit from another's. " Transferable" and "Permanent feature of the property"
  19. Servient tenement
    a property burdened by easment of a neighbor's dominant property.
  20. Easement in Gross
    An agreement between two parties for use of property. "Non transferable"
  21. Testate
    One who dies leaving a valid will
  22. Allodial ownership
    Modern form of ownwership often contrasted with "feudal"
  23. Feudal ownership
    When land is held on the condition of rent or service due to the government. ex: "Army Barricks"
  24. Equitable Lein
    Lein derived from the owner profiting from another person without compensating.
  25. Voluntary Lein
    When you enter a mortage or loan
  26. General Lein
    Grants a creditor the right to file a claim against all of the debtor's assets, not just a particular property.
  27. Statutory lein
    Is one that arises out of specific law (otherwise known as statutes)
  28. Eminant Domain
    Is the power of the state to seize private property. But have to determine fair compensation to the owner.
  29. encumbrance
    One that encumbers; a burden or impediment. 2. Law A lien or claim on property.
  30. Deed
    An instrument, by which ownership of a property, used to transfer from one person to another.
  31. Title
    Evidence of ownership of a property.
  32. Abstract of title
    A written summory that traces every change of ownership and claim against a property.
  33. Exclusive Agency
    Allows owner to appoint an exclusive agent to sell his property but retain the right to sell the property himself.
  34. Open listing
    Means that if the owner or any other broker or salesperson produces the buyer, the broker will lose his or her commission. Anyone who sells the home will recieve the commision.
  35. Exclusive Right to sell
    The broker will recieve full commission regardless of whoever sells property even if its the owner.
  36. Redlining
    Denying loans or charging more based on race
  37. Steering
    Directing minorities to areas populated of the same race or religion.
  38. Blockbusting
    trying to generate panic selling in a neighborhood dominated by one race or ethnic group by representing thta another group is about to start moving in.
  39. Statue of Frauds
    requirement that contracts be memorialized in a signed writing with sufficient content to evidence the contract
  40. Commercial Property CAP RATE Formulas
    1.) Income / Cap Rate = Value

    2.) Income / Value = Rate

    3.) Value * Cap Rate = Income
  41. Rebtal Property GRM - Gross Rent Multiplier
    •                    Sold                 Rent/m       GRM
    • Prop A       400k      /       4           =    100

    Prop B       350K     /        3,200     =    109

    My Prop        ?       /         3,700     =   105

    How much can i sell my property for?
  42. Tax rate per thousand
    tax levy ÷ total of all taxable assessments
  43. 'Purchase-Money Mortgage'
    The seller finances for the buyer
  44. 'Wraparound Mortgage'
    Merging a new and existing loan. Payment is made on both mortagages to the wraparound mortgagee, who then forwards the payments to the appropriate mortgages.
  45. closed mortgage
    Loan agreement that does not allow a mortgagor (borrower) to repay the loan before its maturity date.
  46. Blanket Mortgage
    Contractor is given funds to purchase several lots of land. Contracter can sell a land parcel while maintaiing the mortagage on the rest of the property.
  47. Demand mortgage
    Allows lender to require payment whenever it wants to
  48. Package Mortgage
    Personal property and real estate are used as collateral
  49.  The clean air act
    Signed in to law in 1970
  50. The clean water act
    passed in 1972. Aimed at controlling water pollution
  51. National enviromental policy act
    Created after 1969 Santa Barbara oil spill
  52. Comprehensive Enviromental Response Comprehensive and Liability Act (CERCLA)
    Created in 1980. Designed to be a "superfund" that supplies resource to hazardous wastes sites, such as oil spill or spilled contaminants.
  53. The Endangered Species Act
    Created in 1973.
  54. Safe drinking water act
    Created in 1974
  55. The toxic Substance control act
    Passed in 1976
  56. what does (UST) stand for ?
    Underground Storage Tank
  57. What year did they stop building homes with Espestis?
    1978
  58. Residential Lead-Based paint Hazard Reduction Act
    Passed in 1992
  59. Truth in lending Act (Regulation Z)
    Enacted in 1968. (Requires debt lenders to disclose all the specifics of a given loan.)
  60. Fiduciary duties
    (O.L.D.C.A.R.)

    • -Obedience
    • -Loyality
    • -Disclosure
    • -Confidentiality
    • -Accountabilty
    • -Reasonable care
  61. Revocation
    Agency contract has been terminated and there is no remedying the agreement
  62. Rescission
    Agency contract has been violated and can be remdied by the broker
  63. Sherman Anti-Trust act
    Prohibits many business practices that could unfairly restrict marketplace free compitition.

    ex: No price fixing
  64. (RESPA) Real Estate Settlement and Procedures Act
    Protects buyers from closing cost fees not agreed upon
  65. Federal Civil Rights Act
    Created in 1866. Regarding individual home sellers and real estate agencies, they are not allowed to racially discriminate agaist anyone when it comes selling  or leasing
  66. Federal fair Housing Act (Title 8)
    Passed in 1968. protects dicrimination of individuals based on sex, race, color, religion, national origin, handicap famly status 
  67. Subrogation
    assuming the legal rights of a person for whom expenses or a debt has been paid. Typically, an insurance company which pays its insured client for injuries and losses then sues the party which the injured person contends caused the damages to him/her. Example: Fred Farmer negligently builds a bonfire which gets out of control and starts a grass fire which spreads to Ned Neighbor's barn. Good Hands Insurance Co. has insured the barn, pays Neighbor his estimated cost of reconstruction of the barn, and then sues Farmer for that amount.
  68. Chain of title vs. Absract of title
    -Chain of title - A list of successive owners of a parcel of land, beginning from the government, or original owner, to the person who currently owns the land.

    -Abrtact of title is history of all public records and transactions of a property. - briefly summarizes the various activities affecting ownership of a parcel of land.
  69. Straight Loans (aka Term Loans)
    Essentailly divides the loan into two amounts, to be paid off separatley. Borrower makes periodic payments of interest only, followed by the payments of the principal in full at the end of the term.

    Genrally used for home improvements and second mortgages
  70. Interest-Only Mortgage
    Requires the payment of interest only for a stated period of time with the principal balance due at the end of the term.
  71. Balloon Payment
    A mortgage which does not fully amortize over the term of the note, thus leaving a balance due at maturity. The final payment is called a balloon payment because of its large size. Balloon payment mortgages are more common in commercial real estate than in residential real estate.
  72. Amortized Loans
    The word amortize literaly means to kill off slowly, over time.

    Loans that are paid off slowly, over time, in equal amounts
  73. Growing Equity Mortage (GEM) 
    (aka Rapid-Payoff Loan) - allows payments start small and increase gradually over time.
  74. Reverse-Annuity Mortgage (RAM)
    Payments are made by the lender to the borrower. An arrangement in which a homeowner borrows against the equity in his/her home and receives regular monthly tax-free payments from the lender. also called reverse mortgage or home equity conversion mortgage.
  75. Adjustable-Rate Mortgages
    Loan starts off at one rate then fluctuates up or down during the loan term, based on some objective economic indicator.
  76. Private mortgage insurance (PMI)
    The buyer purchases a insurance policy that provides the lender with funds in the event that the lendee defaults on the loan.

    (Required when less then 20% is put down)
  77. Topography
    The surface configurations on an area (i.e. Hills, Valleys, etc.)
  78. Graduate Payment loan
    often referred to as GPM, is a mortgage with low initial monthly payments which gradually increase over a specified time frame. These plans are mostly geared towards young men and women who cannot afford large payments now, but can realistically expect to do better financially in the future. ***(It is a form of negative amortization loan)
  79. Assumed loan
    Instead of a buyer taking out thier own loan, they assume responsibility for continuing to pay seller's outstanding loan.
  80. Open-end Mortgage
    A mortgage loan that provides for future borrowing to the original loan.

    The borrower may re-borrow the principal amount after a certain period of time.
  81. a POINT on a mortgage is  
    1% of the loan amount
  82. Estoppel Certificate
    written confirmation that the borrower signs stating that the mortgage amount is correct.

    - Commonly associated with the Secondary Market
  83. Subrogation
    the legal substitution of one individual for another individual, with all rights passing onto the new party.
  84. Subordinate
    A lessor priority. As in a subordinate mortgage that would be paid off only if the first mortgage was satisfied in a foreclosure.
  85. Aknowlegment is?
    A person stating , I am the person who is supposed to be signing. A person accepting responsibilty
  86. Sherriffs Deed
    a deed issued to the buyer of property that was sold under court order to pay off a debt
  87. Alienation
    Transfer of ownership of property to a person/company by another person/company
  88. Adverse possesion
    Adverse possession is a way of acquiring title to real property by physically occupying it for a long period of time. Usually 20 years.

    - A form of involuntary alienation.
  89. Metes are decription by:
    Feet, inches and rods
  90. General Warranty Deed
    Offers most protection to Grantee. Least protection to Grantor
  91. Annexation
    When personal property becomes real property.

    Ex: Buy a sink. A plumber installs the sink. It now becomes real property.
  92. Quit Claim Deed
    Offers least protection to Grantee. most protection to Grantor.
  93. Special Warranty Deed
    Gives 2 warranties:

    • 1.) Grantor owned the property
    • 2.) While Grantor owned property, there were no encumbrances.
  94. MA Stamp Tax Rate
    $4.56 / $1000
  95. Constructive Notice
    Recording of documents into the public records
  96. Severance
    When real property becomes personal property.

    Ex: Owner permantly removes a tree to take.
  97. Statue of Frauds
    -An expressed contract.

    -Refers to the requirement that certain kinds of contracts be memorialized in a signed writing with sufficient content to evidence the contract.
  98. Appertenance
    An attachment to land or edficies that now conveys with the property

    Pool, Shed, Garage
  99. Habendum Clause
    "To have and to hold"

    - Habendum in a deed defines the ownership being transferred.
  100. Obsolescence
    A decrease in worth beacause of outdated design of contruction, Such as a home without a dishwasher or cable hookup
  101. External Obsolescence
    a reduction in worth of a specific home improvement because of something seperate from the property that decreases the worth of the home.

    • Ex:
    • - Nice home in bad nieghborhood. 

    -Trash from neighbor's home can decreas the value in your home
  102. Variance
    To use real property inconsistently with current zoning. An owner would have to apply for variance.
  103. Actual Eviction
    When tenant Breaches contract
  104. Contructive Eviction
    When Landlord Breaches
  105. Defeasance clause
    Requires lendor to grant clear cloud of title when loan is paid off.
  106. Title V
    Septic tanks
  107. 21E
    Hazardous Soil, water
  108. Appraisal
    Unbaised opinion of market value by a licensed professional
  109. Hypothecation
    - Securing porperty as collateral for a loan

    -To pledge (property) as security or collateral for a debt without transfer of title 

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