A mortgage, used in the purchase of new residential property which, in addition to real property, covers certain personal property items and equipment. (Washer, dryer, drapes, refrigerator, stove)
A rule of evidence designed to achieve a degree of certainty in a transaction and to prevent fraudulent and perjured claims. Although the word parol means oral, in this context, it refers to evidence that is extrinsic to, or outside and separate from, the writing. (Must be in writing to be enforceable in court)
Parol Evidence Rule
A part of a mortgage, which provides for the release of part of the property (used as security in the loan) upon payment of a certain amount of the mortgage. Blanket mortgage.
Partial Release Clause
A method of loan repayment in which the balance of the outstanding loan is not zero at maturity, and thus a balloon payment is due at that time.
Partially Amortized Mortgage
An agreement between a mortgagee and a mortgagor which provides the lender with a certain percentage of ownership in the project once the lender makes the loan
The dividing of real estate held by two or more people which results in each of the parties holding individual or severalty ownership. (Tenants in common and joint tenants)
The lessor receives a percentage of the gross sales or net profits as the rental payment for the lease of the property.
A lease, which has the original terms automatically renewed for successive periods, until proper notice to terminate is given by either the landlord or tenant. Month to month rental.
Movables, which are not annexed to or part of, the land; also referred to as chattels.
The loss in value due to wear and tear of the structure.
An abbreviation which means "Principal, Interest, Taxes and Insurance." In residential financing, it is common for the monthly mortgage to include these four payments.
A type of exception, or special use, permitted under many modern zoning ordinances, allowing a mixture of different land uses or densities.
Planned Unit Development (PUD)
A map showing the division of land into lots and blocks.
Occurs when two or more sites are combined, with the result that the value of the assembled site is worth more than the value of the sum of each of the individual sites.
The inherent power of the state to regulate in order to promote public health, safety, morality or welfare. For example, zoning and building codes.
The physical control of real property
The right retained when a fee simple determinable is granted.
Possibility of Reverter
A means of acquiring title to property through open and continuous use.
An easement obtained by the open, notorious, hostile and continuous use of the property belonging to someone else for a statutory period of time.(POACH)
1) one who employs an agent, (2) money or capital.
The process of proving a will before a duly authorized court or person.
The actions by a broker which result in the owner being able to make a sale.
The primary legal financing obligation in which the borrower promises to pay back a sum of money borrowed. (A contract)
Dividing property taxes, hazard insurance and other expenses or income between the buyer and seller, as of date of settlement.
To exaggerate - for example, to refer to a house as having "the most gorgeous view in the city."
A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.
Purchase Money Mortgage
The right of an owner or lessee legally in possession of property, to uninterrupted use of the property without interference from the former owner, lessor or any third party claiming superior title
A court action to remove a cloud on the title.
Only conveys what present interest a person may have in a particular property but makes no representations or warranties of title.
Someone fully qualified to enter into a transaction
Ready, Willing and Able
Land and all man-made improvements both on and to the land, plus all tangible interest in the real property. Surface, subsurface and air rights.
The state regulatory body whose duty it is to carry out the real estate license laws in a particular state.
Real Estate Commission
A method of pooling investment money using the trust form of ownership if certain tax requirements are met. One advantage of the REIT is the avoidance of corporate tax (thus no double taxation) + many more
Real Estate Investment Trust (REIT)
The mechanism by which rights and interests in real estate are sold, prices set, supply adjusted to demand, space allocated among competing alternate uses, and land-use patterns set.
Real Estate Market
A law which covers most mortgage loans made for one to four-unit residential property. It requires the lender to provide the loan applicant with pertinent information so that the borrower can make informed decisions as to which lender will be used to finance the purchase.
Real Estate Settlement Procedures Act (RESPA)
Refers to land and improvements both on and to the land, and also to the physical aspects of real estate, including surface, air and subsurface rights plus, bundle of rights.
A registered trademark of the NATIONAL ASSOCIATION OF REALTORS. It is used by brokers and salespersons who hold active membership in the association.
A court-appointed person who is charged with preserving a property, collecting rents and doing anything necessary to maintain the property's condition.
The recognition that states give whereby a licensee of one state can be involved in real estate transactions in other states.
method of land description used in about 30 states based on imaginary lines of longitude (meridians) and latitude (base lines); also referred to as the US government survey system.
The right of a mortgagor (borrower) to make good on the default within a specified time and receive the property back.
The practice of some lending institutions that restricts the number of loans or the loan-to-value ratio in certain areas of a community, i.e., it is illegal for a lending institution to require a higher down payment because the home the borrower is buying is located in a racially mixed area.
Regulation Z requires disclosure of all costs of financing the purchase of owner occupied residential purchases of one to four units. It also requires disclosure of the annual percentage rate of the loan. Implementation of Regulation Z is over seen by the Federal Reserve Board.
The person who has a future interest in a life estate once the present estate terminates.
A renegotiated loan where the maturity is fixed (for example, 30 years) but the interest rate, and hence the monthly payment, is renegotiated periodically (for example, every 3 or 5 years.)
Renegotiable Rate Mortgage
The cost of exactly duplicating a structure using the same material and design.
Repealing a contract either by mutual consent of the parties to the contract or by one party when the other party is in breach of the contract.
An employee of the property management firm and its representative on the premises.
A clause in a deed which restricts use of property for a specified time.
A future interest in the grantor, which occurs whenever the owner of real estate conveys an estate of lesser duration than the owner has.