GA Real Estate 5 Glossary

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sandleman
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GA Real Estate 5 Glossary
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2010-02-23 13:57:51
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GA Real Estate 5 Glossary
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  1. One authorized to transact all of the principal's affairs within the context of a broad commercial or other kind of endeavor. Property manager.
    General Agent
  2. A lien that attaches to all property owned by an individual. Real and personal.
    General Lien
  3. Contains covenants in which the grantor formally guarantees that good and marketable title is being conveyed. Highest deed - 5 covenants.
    General Warranty Deed
  4. Commonly known as "Ginnie Mae," this agency of HUD operates in the secondary mortgage market. It is involved with special government financing programs.
    Government National Mortgage Association (GNMA):
  5. This lease provides for periodic step increases in the rental payments
    Graduated Lease Provisions
  6. A financing technique for residential real estate in which monthly payments start at a lower rate and increase periodically over the life of the mortgage; FHA 245.
    Graduated Payment Mortgage (GPM)
  7. Purchaser or donee receiving title to property.
    Grantee
  8. Owner making conveyance of title or interest in property.
    Grantor
  9. The actual income received from property before the deduction for any expenses
    Gross Income
  10. A method of appraising income-producing property based on a multiple of the annual gross income; also called a gross rent multiplier.
    Gross Income Multiplier (GIM):
  11. A method of appraising single family or duplexes based on the monthly gross income.
    Gross Rent Multiplier (GRM):
  12. That part of a deed beginning with the words, "To have and to hold", followed by the granting clause and reaffirming the extent of ownership that the grantor is transferring. The habendum clause defines or limits the extent of ownership in the estate granted as, for example, a fee simple, life estata or easement: "To have and to hold unto said Sally Smith, grantee, a life estate in the following property"
    Habendum clause
  13. The legal use of a parcel of land, which when capitalized, will generate the greatest net present value of income. The first thing an appraiser should determine.
    Highest and Best Use
  14. An agency of the federal government which oversees many federal housing programs
    Housing and Urban Development (HUD)
  15. process of pledging something (house) as security, but retaining possession of it.
    Hypothecate
  16. Incapable of being moved; fixed in location, such as land.
    Immobility
  17. contract formed through the acts or conduct of the parties. involved.(Ostensible)
    Implied Contract
  18. A traditional means of appraising property based on the assumption that value is equal to the present worth of future rights to income.
    Income Approach
  19. This economic principle states that the addition of more factors of production will add higher amounts to new income up to a certain point, which is the point where the maximum value of the asset has been reached; any further addition of factors of production will do nothing to increase the value.
    Increasing and Decreasing Returns
  20. Elements of a structure which are neither physically possible nor economically feasible to correct.
    Incurable Depreciation
  21. The rental is tied to some commonly agreed to price index such as the Consumer Price Index or the Wholesale Price Index.
    Index Lease
  22. 1) the sum paid for the use of money (2) the degree of rights in the ownership of land.
    Interest
  23. Dying without a will.
    Intestate
  24. A form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivorship. Must have equal shares, right to partition
    Joint Tenancy
  25. The charge upon the land of a debtor, resulting from the decree of a court, entered in the judgment docket. Lawsuit
    Judgment Lien
  26. An encumbrance, second in priority, to a previously recorded lien or to a lien to which the encumbrance has been subordinated.
    Junior Lien
  27. The seller accepts a down payment on a parcel of land but title to the property does not pass until the last principal payment has been received. This is referred to as an installment sales contract or a contract for a deed.
    Land Contract
  28. A defect which cannot be discovered by ordinary inspection.
    Latent Defect
  29. The interest that the tenant has created by a lease.
    Leasehold
  30. A written description of a parcel of land which locates it precisely and will hold up in court. (Does not include address.)
    Legal Description
  31. Estates in possession generally referred to as leaseholds. Considered to exist for a definite period of time, or successive periods, of time until terminated by notice; also know as non-freehold estates.
    Less than Freehold Estate
  32. Tenant.
    Lessee
  33. Landlord.
    Lessor
  34. Using borrowed capital to finance the purchase of real estate or other assets. (No money down)
    Leverage
  35. A personal privilege to go upon the land of another; not considered an interest in land. Permission only to use.
    License
  36. A legally recognized right to enforce a claim or charge on the property of another for payment of some debt, duty or obligation.
    Lien
  37. The mortgage merely creates a lien right on the mortgagee with the mortgagor retaining the title.
    Lien Theory State
  38. An interest which only lasts for the term of a life, or lives, of one or more persons. Death terminates
    Life Estate
  39. A life estate in one person with another person serving as the measuring life.
    Life Estate Pur Autre Vie
  40. The holder of a life estate.
    Life Tenant
  41. An entity with one or more general partners and one or more passive investors, called limited partners
    Limited Partnership
  42. An agreed-to sum, which will be paid if the contract is breached.
    Liquidated Damages
  43. A notice filed for he purpose of serving constructive notice that title, or some matter involving particular real property, is in litigation.
    Lis Pendens
  44. An employment agreement between an owner and broker defining the duties and rights of both parties. (Unilateral contract)
    Listing Contract
  45. The relationship between the amount borrowed and the appraised value of the property. (Purchase price 100,000-Loan 80,000-LTV 80%)
    Loan-to-Value Ratio
  46. A method of land description frequently used after land has been subdivided into building lots; also referred to as the recorded plat method. (Must have a plat map to find the property)
    Lot and Block
  47. The duty owed by an agent, to avoid conflicts of interest or any activity which is detrimental to a principal.
    Loyalty
  48. An employment contract between the owner of real estate and a property management firm that agrees to oversee the management of the property
    Management Agreement
  49. economic function of bringing buyers and sellers together through the price mechanism.
    Market
  50. A means of estimating value by comparing similar properties. Used when there is an active market and where comparables can be identified. Also called comparable sales approach.
    Market Data Approach
  51. The price at which a willing buyer and a willing seller will agree upon, where neither is under any undue pressure, and both are negotiating at arms length with complete knowledge of the market.
    Market Value
  52. One which is free from reasonable doubts or objections, and which the courts would compel a purchaser to accept under the terms of a sales contract.
    Marketable Title
  53. A program for the future development of a community which serves as the guideline for capital expenditures.
    Master Plan
  54. A method of land description which involves identifying distances and directions and makes use of both the physical boundaries and measurements of the land.
    Metes and Bounds
  55. A mill is equal to one-tenth of one cent and is used to state the property tax rate. (.001)
    Mill
  56. A tax rate stated in tenths of a cent. For example, a millage rate of 150 mills on property assessed at $100,000 would result in a property tax of$1,500 ($100,000 x .150).
    Millage Rate
  57. An infant; one who has not attained majority in a state and does not have legal capacity to be bound by most contracts. (Voidable contracts)
    Minor
  58. An innocent or negligent mis-statement of a material fact, detrimentally relied upon by the other party.
    Misrepresentation
  59. A lease which has a term of one month but renewable for successive months at the option of both parties.
    Month-to-Month Tenancy
  60. Physical evidence of a point- of- beginning established by surveyors for use in locating parcels of land.
    Monument
  61. A legal document used to secure the performance of an obligation, in which the borrower or mortgagor agrees to pledge property to secure the debt represented by the promissory note. (A contract).
    Mortgage
  62. The broker agrees to sell the property in order to achieve a net price to the owner, and anything which is received above the net price is the broker's commission. A net listing is prohibited by the licensing law in many states.
    Net Listing
  63. A pre-existing use of land which does not conform to the zoning ordinance but which may legally remain.
    Nonconforming Use
  64. A signed instrument acknowledging the existence of a debt and the promise to pay.
    Note
  65. Occurs when the person in a contract, to whom the duty was owed, expressly agrees to substitute the delegate, or new obligor, for a consideration, and agrees to discharge the old obligor from the obligations under the contract. For example, loan assumptions
    Novation
  66. Invalid and unenforceable.
    Null and Void
  67. A loss in value due to reduced desirability and usefulness of a structure because its design and construction have become obsolete. A loss due to a structure’s becoming old fashion, not in keeping with today’s standards or needs, with consequential loss of income
    Obsolescence
  68. The necessary elements of mutual assent; for example, an agreement of one party to buy and another party to sell.
    Offer and Acceptance
  69. An agreement between an owner and many brokers. If a broker produces a ready willing, and able buyer, a commission is due. However, the owner still has the right to sell his/her property and is not obligated to pay a commission to anyone.
    Open Listing
  70. A loan containing a clause which allows the mortgagor to borrow additional money without rewriting the mortgage.
    Open-end Mortgage
  71. A right which is given for consideration to a party (optionee) by a property owner (optionor) to purchase or lease property within a specified time, at a specified price and terms. An option is irrevocable by the optionee and will not be extinguished by death or insanity of either party
    Option
  72. The holder of the option. Buyer
    Optionee
  73. The seller of the option.
    Optionor
  74. A statute enacted by the legislative branch of a local government
    Ordinance
  75. A policy insuring the owner of real estate against certain defects of title
    Owner's Title Policy
  76. Individual ownership.
    Ownership in Severalty

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