real estate 3

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  1. A conditional transfer or pledge of real estate as security for the
    payment of a debt. Also, the document creating a mortgage lien.
  2. Mortgage loan companies that originate, service and sell loans to investors.
    mortgage banker
  3. An agent of a lender who brings the lender and borrower together. The broker receives a fee for this service.
    mortgage broker
  4. A lender in a mortgage loan transaction
  5. A lien or charge on the property of a mortgagor that secures the underlying debt obligations.
    Mortgage Lien
  6. A borrower in a mortgage loan transaction.
  7. A marketing organization composed of member brokers who agree to share
    their listing agreements with one another in the hope of procuring
    ready, willing and able buyers for their properties more quickly than
    they could on their own. Most multiple-listing services accept
    exclusive-right-to-sell or exclusive agency listings from their member
    Multiple Listing Service (MLS)
  8. A written promise or order to pay a specific sum of money that may be
    transferred by endorsement or delivery. The transferee then has the
    original payee's right to payment.
    Negotiable Instrument
  9. A lease requiring the tenant to pay not only rent but also costs
    incurred in maintaining the property, including taxes, insurance,
    utilities and repairs.
    net lease
  10. A listing based on the net price the seller will receive if the property
    is sold. Under a net listing the broker can offer the property for sale
    at the highest price obtainable to increase the commission. This type
    of listing is illegal in many states.
    net listing
  11. The income projected for an income-producing property after deducting losses for vacancy and collection and operating expenses.
    Net Operating Income (NOI)
  12. A use of property that is permitted to continue after a zoning ordinance prohibiting it has been established for the area.
    Nonconforming Use
  13. A lack of uniformity; dissimilarity. Because no two parcels of land
    are exactly alike, real estate is said to be non-homogeneous.
  14. Substituting a new obligation for an old one or substituting new parties to an existing obligation.
  15. The loss of value due to factors that are outmoded or less useful. It may be functional or economic.
  16. A permit issued by the appropriate local governing body to establish
    that the property is suitable for habitation by meeting certain safety
    and health standards.
    Occupancy Permit
  17. Two essential components of a valid contract; a "meeting of the minds."
    Offer and Acceptance
  18. A mortgage loan that is expandable by increments up to a maximum dollar
    amount, the full loan being secured by the same original mortgage.
    open end loan
  19. A listing contract under which the broker's commission is contingent on
    the broker's producing a ready, willing and able buyer before the
    property is sold by the seller or another broker.
    open listing
  20. An agreement to keep open for a set period an offer to sell or purchase property.
  21. A form of implied agency relationship created by the actions of the
    parties involved rather than by written agreement or document.
    Ostensible Agency
  22. A real estate loan used to finance the purchase of both real property
    and personal property, such as in the purchase of a new home that
    includes carpeting, window coverings and major appliances.
    Package Loan
  23. A rule of evidence providing that a written agreement is the final
    expression of the agreement of the parties, not to be varied or
    contradicted by prior or contemporaneous oral or written negotiations.
    Parol Evidence Rule
  24. A mortgage loan wherein the lender has a partial equity interest in the
    property or receives a portion of the income from the property.
    Participation Mortgage
  25. The division of covenants' interests in real property when the parties
    do not all voluntarily agree to terminate the co-ownership; takes place
    through court procedures.
  26. An association of two or more individuals who carry on a continuing
    business for profit as co-owners. Under the law it is
    regarded as a group of individuals rather than as a single entity. it is a typical form of joint venture in which each
    general partner shares in the administration, profits and losses of the
    operation. A limited partnership is a business arrangement whereby the
    operation is administered by one or more general partners and funded, by
    and large, by limited or silent partners, who are by law responsible
    for losses only to the extent of their investments.
  27. A wall that is located on or at a boundary line between two adjoining
    parcels of land and is used or is intended to be used by the owners of
    both properties.
    party wall
  28. A lease, commonly used for commercial property, whose rental is based on
    the tenant's gross sales at the premises; it usually stipulates a base
    monthly rental plus a percentage of any gross sales above a certain
    Percentage Lease
  29. A test of the soil to determine if it will absorb and drain water adequately to use a septic system for sewage disposal.
    Percolation Test
  30. Items, called chattels, that do not fit into the definition of real property; movable objects.
    personal property
  31. A reduction in a property's value resulting from a decline in physical
    condition; can be caused by action of the elements or by ordinary wear
    and tear.
    Physical Deterioration
  32. A planned combination of diverse land uses, such as housing, recreation
    and shopping, in one contained development or subdivision.
    Planned Unit Development (PUD)
  33. A map of a town, section or subdivision indicating the location and boundaries of individual properties.
    Plat map or Subdivision Plat
  34. The increase in value or utility resulting from the consolidation (assemblage) of two or more adjacent lots into one larger lot.
  35. In a metes-and-bounds legal description, the starting point of the
    survey, situated in one corner of the parcel; all metes-and- bounds
    descriptions must follow the boundaries of the parcel back to the point
    of beginning.
    Point of Beginning (POB)
  36. The government's right to impose laws, statutes and ordinances,
    including zoning ordinances and building codes, to protect the public
    health, safety and welfare.
    police power
  37. A written instrument authorizing a person, the attorney-in-fact, to act
    as agent for another person to the extent indicated in the instrument.
    power of attorney
  38. On a closing statement, items that have been paid in advance by the
    seller, such as insurance premiums and some real estate taxes, for which
    he or she must be reimbursed by the buyer.
    prepaid items
  39. A charge imposed on a borrower who pays off the loan principal early.
    This penalty compensates the lender for interest and other charges that
    would otherwise be lost.
    Prepayment Penalty
  40. The mortgage market in which loans are originated and consisting of
    lenders such as commercial banks, savings and loan associations and
    mutual savings banks.
    Primary Mortgage Market
  41. 1) A sum loaned or employed as a fund or an investment, as distinguished
    from its income or profits. (2) The original amount (as in a loan) of
    the total due and payable at a certain date. (3) A main party to a
    transaction--the person for whom the agent works.
  42. The order of position or time. The priority of liens is generally
    determined by the chronological order in which the lien documents are
    recorded; tax liens, however, have priority even over previously
    recorded liens.
  43. Insurance provided by private carrier that protects a lender against a loss in the event of a foreclosure and deficiency.
    Private Mortgage Insurance (PMI)
  44. A legal process by which a court determines who will inherit a decedent's property and what the estate's assets are.
  45. The effort that brings about the desired result. Under an open listing
    the broker who is the cause of the sale receives the
    Procuring Cause
  46. A financing instrument that states the terms of the underlying
    obligation, is signed by its maker and is negotiable (transferable to a
    third party).
    Promissory Note
  47. Someone who manages real estate for another person for compensation.
    Duties include collecting rents, maintaining the property and keeping up
    all accounting.
    Property Manager
  48. A lease given by the corporation that owns a cooperative apartment
    building to the shareholder for the shareholder's right as a tenant to
    an individual apartment.
    Proprietary Lease
  49. Expenses, either prepaid or paid in arrears, that are divided or distributed between buyer and seller at the closing.
  50. Any group of people designated as such by the Department of Housing and
    Urban Development (HUD) in consideration of federal and state civil
    rights legislation. Currently includes ethnic minorities, women,
    religious groups, the handicapped and others
    protected class
  51. Exaggerated or superlative comments or opinions.
  52. A life estate pur autre vie is a life estate that is measured by the life of a person other than the grantee.
    Pur Autre Vie – “For the Life of Another”
  53. A note secured by a mortgage or deed of trust given by a buyer, as
    borrower, to a seller, as lender, as part of the purchase price of the
    real estate.
    Purchase Money Mortgage (PMM)
  54. The appraisal method of estimating building costs by calculating the
    cost of all of the physical components in the improvements, adding the
    cost to assemble them and then including the indirect costs associated
    with such construction.
    Quantity-Survey Method
  55. Court action to remove a cloud on the title.
    quiet title
  56. A conveyance by which the grantor transfers whatever interest he or she
    has in the real estate, without warranties or obligations.
    Quitclaim Deed:
  57. The limit on the amount the interest rate can be increased at each
    adjustment period in an adjustable-rate loan. The cap may also set the
    maximum interest rate that can be charged during the life of the loan.
    Rate Cap
  58. One who is prepared to buy property on the seller's terms and is ready to take positive steps to consummate the transaction.
    Ready, Willing, and Able Buyer
  59. A portion of the earth's surface extending downward to the center of the
    earth and upward infinitely into space, including all things
    permanently attached to it, whether naturally or artificially.
    Real Estate Land
  60. Trust ownership of real estate by a group of individuals who purchase
    certificates of ownership in the trust, which in turn invests the money
    in real property and distributes the profits back to the investors free
    of corporate income tax.
    Real Estate Investment Trust (REIT)
  61. The federal law that requires certain disclosures to consumers about
    mortgage loan settlements. The law also prohibits the payment or receipt
    of kickbacks and certain kinds of referral fees.
    Real Estate Settlement Procedures Act (RESPA)
  62. The interests, benefits and rights inherent in real estate ownership.
    real property
  63. The final step in the appraisal process, in which the appraiser combines
    the estimates of value received from the sales comparison, cost and
    income approaches to arrive at a final estimate of market value for the
    subject property.
  64. A deed used by a trustee under a deed of trust to return title to the trustor.
    Reconveyance Deed
  65. The act of entering or recording documents affecting or conveying
    interests in real estate in the recorder's office established in each
    county. Until it is recorded, a deed or mortgage ordinarily is not
    effective against subsequent purchasers or mortgagees.
  66. A system established in 1785 by the federal government, providing for
    surveying and describing land by reference to principal meridians and
    base lines.
    Rectangular (Government) Survey System
  67. The right of a defaulted property owner to recover his or her property by curing the default.
  68. A period of time established by state law during which a property owner
    has the right to redeem his or her real estate from a foreclosure or tax
    sale by paying the sales price, interest and costs. Many states do not
    have mortgage redemption laws.
    Redemption Period
  69. The illegal practice of a lending institution denying loans or restricting their number for certain areas of a community.
  70. The document signed by a lender indicating the amount required to pay a
    loan balance in full and satisfy the debt; used in the settlement
    process to protect both the seller's and the buyer's interests.
    Reduction Certificate (Payoff Statement
  71. Implements the Truth-in-Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit.
    Regulation Z
  72. A document, also known as a deed of reconveyance, that transfers all
    rights given a trustee under a deed of trust loan back to the grantor
    after the loan has been fully repaid.
    Release Deed
  73. The remnant of an estate that has been conveyed to take effect and be
    enjoyed after the termination of a prior estate, such as when an owner
    conveys a life estate to one party and the remainder to another.
    Remainder Interest
  74. A fixed, periodic payment made by a tenant of a property to the owner
    for possession and use, usually by prior agreement of the parties.
  75. A statement of proposed rental rates, determined by the owner or the
    property manager or both, based on a building's estimated expenses,
    market supply and demand and the owner's long-range goals for the
    Rent Schedule
  76. The construction cost at current prices of a property that is not
    necessarily an exact duplicate of the subject property but serves the
    same purpose or function as the original.
    replacement cost
  77. The construction cost at current prices of an exact duplicate of the subject property.
    Reproduction Cost:
  78. A clause in a deed that limits the way the real estate ownership may be used.
    Restrictive Covenants
  79. A loan under which the homeowner receives monthly payments based on his
    or her accumulated equity rather than a lump sum. The loan must be
    repaid at a prearranged date or upon the death of the owner or the sale
    of the property.
    Reverse-Annuity Mortgage (RAM)
  80. The remnant of an estate that the grantor holds after granting a life estate to another person.
    Reversionary Interest
  81. The return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease.
    Reversionary Right
  82. Clause in a lease which gives the lessee (tenant) the right to purchase
    the rented property if during the term of the lease the lessor
    (landlord) receives an offer to purchase from a buyer. Usually the
    lessee must purchase on the terms and conditions of the buyer's offer.
    Right of First Refusal
  83. The right given by one landowner to another to pass over the land,
    construct a roadway or use as a pathway, without actually transferring
  84. An owner's rights in land that borders on or includes a stream, river or
    lake. These rights include access to and use of the water.
    Riparian Rights
  85. A transaction in which an owner sells his or her improved property and,
    as part of the same transaction, signs a long-term lease to remain in
    possession of the premises.
    sale and leaseback
  86. The process of estimating the value of a property by examining and comparing actual sales of comparable properties.
    Sales Comparison Approach
  87. A person who performs real estate activities while employed by or associated with a licensed real estate broker.
  88. A document acknowledging the payment of a mortgage debt.
    Satisfaction of Mortgage
  89. A market for the purchase and sale of existing mortgages, designed to
    provide greater liquidity for mortgages; also called the secondary money
    market. Mortgages are first originated in the primary mortgage market.
    Secondary Mortgage Market
  90. A portion of township under the rectangular (government) survey system. A
    township is divided into 36 sections, numbered one through 36. A
    section is a square with mile-long sides and an area of one square mile,
    or 640 acres.
  91. A payment by a tenant, held by the landlord during the lease term and
    kept (wholly or partially) on default or destruction of the premises by
    the tenant.
    Security Deposit
  92. Land on which an easement exists in favor of an adjacent property (called a dominant estate); also called a _______ estate.
    Servient Tenement
  93. The amount of space local zoning regulations require between a lot line and a building line.
  94. Ownership of real property by one person only, also called sole ownership.
  95. Changing an item of real estate to personal property by detaching it from the land; for example, cutting down a tree.
  96. A mortgage loan in which the lender, in exchange for a loan with a
    favorable interest rate, participates in the profits (if any) the
    borrower receives when the property is eventually sold.
    Shared-Appreciation Mortgage (SAM)
  97. The personal preference of people for one area over another, not necessarily based on objective facts and knowledge
  98. One who is authorized by a principal to perform a single act or
    transaction; a real estate broker is usually a special agent authorized
    to find a ready, willing and able buyer for a particular property.
    special agent
  99. A tax or levy customarily imposed against only those specific parcels of
    real estate that will benefit from a proposed public improvement like a
    street or sewer.
    Special Assessment
  100. A deed in which the grantor warrants, or guarantees, the title only
    against defects arising during the period of his or her tenure and
    ownership of the property and not against defects existing before that
    time, generally using the language, "by, through or under the grantor
    but not otherwise."
    Special Warranty Deed
  101. A lien affecting or attaching only to a certain, specific parcel of land or piece of property.
    Specific Lien
  102. : A legal action to compel a party to carry out the terms of a contract.
    Specific Performance
  103. The appraisal method of estimating building costs by multiplying the
    number of square feet in the improvements being appraised by the cost
    per square foot for recently constructed similar improvements.
    Square Foot Method
  104. That part of a state law that requires certain instruments, such as
    deeds, real estate sales contracts and certain leases, to be in writing
    to be legally enforceable.
    statute of frauds
  105. That law pertaining to the period of time within which certain actions must be brought to court.
    Statute of Limitations
  106. A lien imposed on property by statute, a tax lien, for example--in
    contrast to an equitable lien, which arises out of common law.
    Statutory Lien
  107. The right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and charges.
    Statutory Redemption
  108. The illegal practice of channeling home seekers to particular areas,
    either to maintain the homogeneity of an area or to change the character
    of an area, which limits their choices of where they can live.
  109. A loan in which only interest is paid during the term of the loan, with
    the entrie principal amount due with the final interest payment.
    Straight (Term) Loan
  110. One who is employed by a person already acting as an agent. Typically a
    reference to a salesperson licensed under a broker (agent) who is
    employed under the terms of a listing agreement.
  111. One who buys undeveloped land, divides it into smaller, usable lots and sells the lots to potential users.
  112. A tract of land divided by the owner, known as the subdivider, into
    blocks, building lots and streets according to a recorded subdivision
    plat, which must comply with local ordinances and regulations.
  113. Municipal ordinances that establish requirements for sub- divisions and development.
    Subdivision and Development Ordinances
  114. The leasing of premises by a lessee to a third party for part of the lessee's remaining term. See also assignment.
  115. Relegation to a lesser position, usually in respect to a right or security.
  116. A written agreement between holders of liens on a property that changes
    the priority of mortgage, judgment and other liens under certain
    Subordination Agreement
  117. The substitution of one creditor for another, with the substituted
    person succeeding to the legal rights and claims of the original
    claimant. it is used by title insurers to acquire from the
    injured party rights to sue in order to re- cover any claims they have
  118. An appraisal principle that states that the maximum value of a property
    tends to be set by the cost of purchasing an equally desirable and
    valuable substitute property, assuming that no costly delay is
    encountered in making the it.
  119. A court suit initiated by a landlord to evict a tenant from leased
    premises after the tenant has breached one of the terms of the lease or
    has held possession of the property after the lease's expiration.
    Suit for Possession
  120. A court action intended to establish or settle the title to a particular
    property, especially when there is a cloud on the title.
    Suit to Quiet Title
  121. A pictorial depiction of land and the improvements on it and shows
    boundary lines with measurements and bearings, buildings, easements,
  122. To levy an assessment against, usually by government powers. Unpaid
    taxes usually form a special lien on property owned by the taxpayer,
    ahead of registered mortgages.
  123. The instrument of conveyance when a property is sold by a government body to pay for arrears of taxes.
    tax deed
  124. A claim registered against a property by a government authority for non-payment of assessed taxes.
    Tax Lien
  125. Sale of property by a government body for non-payment of taxes, either by tender or auction.
    Tax Sale
  126. Ownership of property in which several owners each own a stated portion
    of the property (a percentage). Each owner may deal with her portion of
    the property as she wishes (giving it away, mortgaging it, bequeathing
    it, etc.) and, upon her death, her share becomes part of her estate.
    Tenancy in Common
  127. To die leaving a valid will: opposite meaning is to die intestate.
  128. The person who makes a will.
  129. A standard statement in a contract which ensures that all dates and
    times of day noted in the contract are important and cannot be ignored
    by any of the parties without the consent of the others except in breach
    of the contract.
    Time is of the Essence
  130. A form of joint ownership of property where numerous owners share title
    and enjoy use or occupation of the property according to a specific
  131. The legal term for one's ownership interest in land.
  132. A form of insurance contract which guarantees to indemnify an owner or
    mortgagee of property for damages suffered as a result of undiscovered
    title defects which arise later
    Title Insurance
  133. The act of examining in detail the public records relating to ownership
    of a parcel of land to ensure that the current owner has clear title,
    free of any liens, claims, mortgage or competing and adverse interests.
    Usually performed by a lawyer, qualified title searcher, or title
    insurance company on behalf of a proposed purchaser or mortgagee.
    Title Search
  134. An instrument of conveyance of title to property wherein the transferee
    will be holding the title to the property on behalf on another person
    Trust Deed
  135. A person who holds title to property on behalf of another.
  136. An agreement to exchange payment for services, where payment becomes due
    only once the service has been successfully performed. A listing
    agreement for the sale of real property may be it
    Unilateral Contract
  137. The illegal act of charging extremely high interest rates on a loan.
  138. Legally binding; authorized
    Valid Contract
  139. An indulgence granted by a local zoning commission or authority to allow a non-conforming use of a property to continue.
  140. A contract that may be treated as legally unenforceable at the option of
    a party (usually the injured party) but remains enforceable until that
    party exercises her option.
    Voidable Contract
  141. Transfer of title to an asset with the consent of the owner.
    Voluntary Alienation
  142. A claim that is recorded/registered with the consent of the owner.
    Voluntary Lien:
  143. Allowing or causing a property to suffer damage or
    undue wear and tear to the detriment of another person who has an
    interest in or claim to the property.
  144. A written statement of a person's wishes for the disposition of that person's estate after their death.
  145. A secondary financing option in which new
    money borrowed is blended with money already owed and registered on
    title to the property. A second mortgage is registered as security for
    the new money but the old mortgage remains in existence and the rate of
    interest is a blend of the rate chargeable on the old mortgage and the
    rate chargeable on the newly borrowed money.
    Wraparound Loan
  146. A set of rules passed by local
    government which regulates the use of property according to its location
    within the municipality, placement of structures on the property,
    maximum floor area, minimum lot area, minimum floor-to-lot area ratios,
    Zoning Ordinance
  147. An item of personal property that has been converted to real property by being permanently affixed to the realty.
Card Set:
real estate 3
2014-11-19 16:50:49
real estate

real estate 3
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