Study sets, textbooks, questions
Upgrade to remove ads
First Section of Crammer Vocab to Know
Terms in this set (297)
Usually refers to decrease in assessed value of ad valorem tax.
Abstract of Title
A summary in chronological order of the essential provision of every recorded document pertaining to a particular parcel of land, e.g., liens, encumbrances, chain of title, transfers. An _____ does not disclose encroachments, forgeries, and the like and does not, therefore, guarantee clear title.
A general term including any method of depreciation that is greater than straight-line depreciation.
A provision of a promissory note or mortgage where, upon the happening of a certain event, e.g., default in payment, the entire amount of the unpaid loan balances becomes due.
The addition of soil (known as alluvium) to the property by the gradual operation of natural causes (common where properties have frontage on oceans or rivers). This added land becomes the property of the owner on those whose land it is deposited.
A written declaration by a person executing an instrument, given before an officer authorized to give an oath (usually a notary public), stating that the execution is of his own volition. E.G., grantor of a deed.
A measure of land which is 43,560 sq. ft
Things you know because of your own sense: eyes, ears, etc. You have actually seen someone living on the property. If you are buying the property, you need to find out why the occupants are living there.
Adjustable Rate Mortgage (ARM)
A type of financing available for real estate mortgages on property through which the Annual Percentage Rate charged will differ from year to year according to terms specified by the lender and authorized by the Federal Reserve banking system.
Ad Valorem Tax
Latin, "according to valuation"
A tax to be paid based upon a value set by the authorities, e.g., real property tax
The open, notorious, hostile and uninterrupted possession of the property of another under a claim or color of title of 21 years after which time the adverse possessor may obtain title to the property
Affidavit of Title
A sworn statement that title is good
A relationship between one person (principal) and another (agent) where the agent is given the right to act on behalf o the principal in business dealings. Agency creates a fiduciary duty on the part of the agent to act in good faith and loyalty toward the principal
The disclosure of the relationship in which one party (agent) acts for or represents another (principal) under the authority of the latter.
One who acts, or has the power to act, for another
An english term referring to transfer of property from one person to another.
A clause used in a mortgage allowing the lender to call for the full payment of the mortgage (foreclosure) because the owner transferred ownership of the property. This is a type of acceleration clause because it accelerates the time when the entire loan amount is due. Very often referred to as a "Due-on-Sale" clause.
Features both tangible and intangible, that enhance the desirability of real estate. For example, a marble fireplace, desirable location, soaking tub, historically of the location, preferred floor plan, or anything with sentimental value to the buyer may be considered an amenity.
Payment of debt in regular, periodic installments of principal and interest (as opposed to interest-only payments.)
A loan that is paid back in regular installment amounts of principal and interest over a specific period of time.
Annual Net Operating Income (NOI)
Net income is income from a property after operating expenses have been deducted, but before taxes and debt service are counted.
Net Income = Gross Income - Operating Expenses. This is a capitalization method that derives a value indication by using annual net income.
A defensible opinion or estimate of value of real property as of a certain date.
An increase in the value of property due either to a positive improvement in the area or the elimination of negative factors. Commonly, and incorrectly, used to describe an increase in value through inflation.
'Runs with the Land'. A right or privilege associated with the property, but not to be attached to it. EX: parking spaces, easements, water rights... it transfers to a new owner when property is sold
The method by which disputes between Realtor brokers may be resolved. Disputes are heard by the arbitration committee of the local board of realtors (e.g., commission dispute)
The value of real property fixed for purposes of computing taxes.
Assessed value x tax rate = real estate tax
A valuation placed upon real property as a basis to set the amount of tax to be levied. Also, the levy or rate to be paid to the governments for services provided or constructed by it, e.g., curbs, sewers, sidewalks.
Transfer of any property, real or personal or any rights therein to another. In real estate, it does not release the trasnferor from the obligations stated in the contract.
An obligation and promise to be personally liable for conditions in a contract.
Assumption of Mortgage
An agreement by a buyer to assume the liability under an existing note secured by a mortgage. The lender usually must approve the new debtor (the buyer) in order to release the existing debtor (usually the seller) from liability.
The seizing of property by court order usually, to furnish security for a debt or judgement
A personal specifically designated in an instrument, e.g., power of attorney, to do something legally for another in his stead. A _____ has a fiduciary relationship with his principal. A ___ need not be an attorney at law.
Balloon Payment (Balloon Note)
A partly amortized note where part of the principal is reduced by the time the final payment is due. Thus, lump sum payment of the principal is due at the end of the loan. Very often called "A partially amortized mortgage."
Those by which the parties expressly enter into mutual engagements e.g., real estate sales contract. Each party promises to perform some act
Bill of Sale
An instrument in writing that transfers ownership of tangible personal property (e.g., furniture)
A single mortgage loan where two or more different parcels of property are offered as security of the loan.
An illegal act whereby owners are encourage to sell their properties because minorities are moving into their neighborhood.
The bringing together of persons desiring to make transactions in real estate.
A parcel of land that separates two other parcels, e.g., a parcel between a residential and a commercial strip of land.
Bundle of Rights
Legal rights conferred to owners of real property, including rights to mortgage, sell, make improvements, enjoyment, lease, and use property.
Government regulations specifying minimum construction and building standards to safeguard the health, safety, and welfare of the public.
They are a valid exercise of the government's police power and can restrict an owner's use and enjoyment of his property.
A method of determining the present value of income property by discounting the annual net in come by a commonly used rate of return.
Income/Rate = Value (IRV)
The percentage (acceptable to an average buyer) used to determine the value of income property through capitalization
In investment property, the actual cash the investor will receive after deduction of operating expenses and debt service (loan payments) from the gross income.
Latin, "let the buyer beware." The buyer must examine the goods or property and buyer at his or her own risk.
Certificate of no defense
A legal instrument used by a mortgagee to stop the mortgage on a certain date where the mortgagor agrees that the mortgage balance is correct, after which date the mortgagee has no defense.
Certificate of Sale
A certificate issued to a buyer at a judicial sale (foreclosure action) that entitles the buyer to a deed upon confirmation of the sale by the court if the land is not redeemed during the redemption period.
Certificate of Title
Also known in some states as an "opinion letter" by a lawyer who has examined an abstract, giving an opinion stating that title is vested in a particular individual.
Chain of Title
Successive conveyances affecting a particular parcel of land, arrange consecutively, from the government or original source of title down to the present holder.
Personal property that is tangible. Good or other items of property, movable or immovable which are not real property, e.g., showcase firmly attached in a store. With rented property, such as a store, ______ are personal property of the renter and as such are also considered trade fixtures that may be removed when the lease expires. (Personal property remains as ____ unless annexed to the real property in such a way so that the items becomes personal property; e.g., a fence.
A mortgage deed that creates a lien on personal property.
Cloud on Title
A valid encumbrance (e.g., a mortgage or judgement, affecting title to realty
Commercial Broker Lien Law
A broker in a commercial transaction has an automatic lien against a property that's the subject of a contract, for the contracted commission amount, when the contract is fulfilled and the broker files a lien affidavit in the recorder's office in the county where the property is located. (Residential real estate brokers must sue in court to enforce a commission payment.)
To mix funds held in trust with other funds. For example: A broker mixes deposits with his funds by putting the deposits in his general account.
The broker's professional fee. Usually a percentage of sales price. The fee is an amount agreed upon between the principal and the broker. It is NOT set by the law or organizations such as Board of Realtors.
The area owned together by all the owners of a condominium project. A condominium owner will own their own particular unit in fee simple and the common area jointly with the other owners. The common area usually has liability insurance paid by the Condominium Owners Association.
Property accumulated by husband and wife by the efforts of either during their marriage. Community property laws provide that each spouse has an equal interest in property so acquired. Community property is not recognized in all states.
A judicial or administrative procedure to exercise the right of eminent domain to take private property for public use and justly compensate the owner.
The system of ownership in fee simple title to designated areas of air space plus a percentage of ownership of common elements in real property. The air space consists of the area between the walls, floor and ceiling area.
Something of value given to another to compensate them for entering into a contract. Consideration may be money, personal service or forbearance from performing an act. An example of "good" consideration would be money, real estate, etc.
Interim financing used during construction of a building followed by long-term financing called a "takeout loan." Loan proceeds are made in installment payments as completion of the improvement occurs.
Notice given by publication in a newspaper, recording, or other method.
There need not be actual notice by such publication.
An agreement that the law will enforce. The elements of this are mutual assent (offer and acceptance), consideration, competent parties, legal subject matter and sometimes that the contract be in writing if required by the state of frauds.
contract for deed
A real estate installment sales contract commonly referred to as a land contract.
A loan that is not guaranteed or insured by a government agency.
Transfer of title to land. Includes most instruments by which an interest in real estate is created, mortgages or assigned.
Conveyance Tax (Transfer Tax or Conveyance Fee)
A state tax imposed on the transfer of conveyance of realty or any realty interest by means of a deed, lease, sublease, assignment, contract for deed or similar instrument)
The right to occupy property is obtained through a proprietary lease by purchase stock in corporation that owns the property. Owner has interest in the entire building.
A method of appraisal based based on replacement cost minus depreciation plus land value.
A new and contrary offer made as a reply to an offer received from another. The ____ terminates the original offer received from another. A ____ is a "change"
Covenant of Seisin
A promise or agreement of possession under a legal right. One of the five warranties in a general warranty deed.
The express promises of two or more parties in writing, the breach of which would entitle a person to damages.
The fractional interest of husband in the estate of his wife at the time of her death. This term is not used in all states.
The amount of money owing on a note or a promise to pay.
The amount of money paid in regular intervals to reduce down the balance owed on a debt. The payment normally has to do with an amortized loan. Thus, it covers principal and interest.
Transferring of real property by a private owner to a public agency (usually occurs from a builder to a city for construction of new streets in a subdividion
A written instrument transferring the the grantor's ownership. of or interest in real property, if any. (e.g., warranty deed, quitclaim deed
Deed in Lieu of Foreclosure
When the deed to a property is given by a borrower to the lender to satisfy the debt and avoid foreclosure.
Deed of Reconveyance
An instrument used to transfer title from a trustee to the equitable owner of real estate when title is held as collateral security for a debt, most commonly used upon payment in full of a deed of trust.
Limitations upon the use of property contained in the deed as a means of controlling the quality or character of a subdivision or specific piece of property.
Deed of Trust
An instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor) in favor of the lender (beneficiary) and reconveyed upon payment in full. (NOT used in all states, but still may appear on the test.)
A clause used to defeat or cancel a certain right upon the happening of specific event (e.g., upon final payment, words of grant in a mortgage are void and the mortgage is thereby cancelled and title is re-vested to mortgagor.)
A _____ is often used in mortgages in title theory states whereby the mortgagee agrees to deed property to the mortgagor after all terms of the contract have been performed satisfactorily.
A ____ also may be used to give a borrower the right to redeem real estate after default on a note, by paying the full amount due, plus fees and court costs.
The mortgage debt that remains due and payable by the borrower after a sheriff's sale of property. The judgement is actually for the full amount of the unpaid mortgage debt, but the foreclosure sale proceeds are deducted from the amount due.
Act of transferring ownership in real property by documents recognized by law. Grantor delivers a deed to the grantee with the intention of giving up all rights to the property.
1. The decrease in value to real property improvements caused by deterioration or obsolescence;
2. a loss in value as an accounting procedure for use as a tax deduction for income tax purposes. Investors use this as a tax shelter.
Direct Complaint Procedures
Administrative process where civil rights complaints are heard immediately by the Real Estate Commission, instead of using a hearing examiner.
The document commonly referred to under the truth and lending laws (Regulation Z) required to be given to a loan applicant to disclose all of the terms of his loan.
Note that other documents also may be referred to as disclosure statements e.g., Agency Disclosure statement or "Lead based paint disclosure statement"
An added loan fee charged by a lender to make the yield on a lower-than-market-interest rate loan competitive with higher-interest conventional loans
Treating persons differently.
The movement of money out of savings accounts into higher yield investments such as corporate and government instruments.
In some states, a life estate that is one-third estate in real property which the spouse is entitled to claim upon the death of the other spouse on land which the late spouse sold during their marriage.
Representing both parties to a transaction
Earnest Money Deposit
Money given by a buyer upon signing a sale contract showing the buyer's intention to carry out the terms of the sales contract. Earnest Money is and inducement and a show of good faith but it is NOT necessary for a valid contract to exist.
A right acquired by one party to use the land of another party for a special purpose.
The right acquired by the owner of one parcel of land to use another's adjacent land for a specific purpose. There must be two tracts of land; one becomes the dominant tenement (it benefits from the easement), and the other becomes the servient tenement.
Easement by Implication
An easement created by operation of law (not express grant or reservation) when land is divided, if there is a long-standing, apparent use that is reasonably necessary for enjoyment of the dominant tenement. Also called an implied easement.
Easement by Necessity
An easement given to a landlocked owner by the court system to provide a way of ingress and egress for the landlocked land.
Remember: Ingress vs. Egress and also landlocked land example
Easement by Prescription
A means of acquiring title by long-continued use.
Easement in gross
An easement created by law for the good of the public, i.e., utility easement
Remember there is no dominant tenement in this.
A loss of value due to a change in external factors of a piece of real property, e.g., a steel mill is being built next to your home.
Farm crops. Tenant farmers' crops may be removed if owner sells the land.
The power or right of governmental bodies to take private real estate for public use upon payment of an equitable compensation.
The unauthorized intrusion of a fixture or real property improvement onto the property of another, e.g., roof of a building that extends over the property line into a neighbor's property
Any claim, lien, charge or liability that affects or limits the fee simple title to real property, i.e., easement, liens, etc.
Any interest in real property other than legal title, that a court will enforce and protect, e.g., the interest held by a vendee under a land contract, a lease, an easement, etc.
Amount of an owner's interest in a parcel of real estate which is the fair market value of the real estate in excess of the mortgaged indebtedness.
Mortgage or lease clause allowing a holder to vary the interest rate.
Where real property passes to the state when the owner of such property dies without a will and with no heirs.
The process by which money or legal documents are deposited with a third, disinterested party for future delivery so that several acts can occur at the same time and so that all parties to a transaction will have their interests protected.
Estate for Years
An estate or interest in land for a definite number of years, months, etc. or expiring on a certain date.
A statement that prevents its issuer from later asserting different facts. An estoppel certificate is required when a mortgage is sold by the mortgagee. Estoppel is the legal action to seek this.
A court action where a tenant loses possession of a leased premises by act of a landlord because of a wrongful act by the tenant.
Exclusive Agency Listing
A listing agreement where the broker is given the exclusive right to sell property but reserves to the owner the right to sell the property himself without payment of any commission.
Exclusive Right-To-Sell Listing
A listing agreement where the broker is entitled to collect a sales commission regardless of who sells the property including the owner of the property himself.
A contract that has been performed by the parties. In the vernacular, people use "_______" to mean "signed" but this is not the legal definition.
A person appointed by a person in his will to carry out the terms of the will and to dispose of his property pursuant to the will provisions. Executors are exempt from real estate licensing laws.
A valid contract which has not been fully performed. Most real estate contracts are good examples of this.
Federal Housing Administration, an agency of the federal government created in 1934 to improve housing standards, provide a home financing system to insure home mortgages and credit and stabilize the mortgage market.
Loans insured by an agency of the federal government.
FNMA (Fannie Mae)
Federal National Mortgage Association, an association created under Title III of the National Housing Act to buy Title V loans to keep the market sound. Part of the secondary market (along with Freddie Mac & Ginnie Mae) that purchases first mortgages.
Pertaining to real estate:
inaccurate advertising of the terms of a loan, under Regulation Z (Truth in lending federal statute) the intent of which is to protect residential mortgages.
Federal Fair Housing Law
Title VIII of the Civil Rights Act of 1968 that declared a national policy of providing fair housing in the United States. The law makes it illegal to discriminate in the sale or rental of housing based upon race, color, sex, religion, national origin, handicap, or familial status.
Fee Simple Estate
An estate where the owner has the highest possible estate: absolute control of a parcel of real estate. Also called a fee or fee simple absolute.
A relationship of trust and confidence between a principal and an agent.
these duties owed by an agent acting as a fiduciary are (Accold:)
1. Duty of Accounting
2. Duty of Confidentiality
3. Duty of Care (Reasonable Care and Skill)
4. Duty of Obedience
5. Duty of Loyalty
6. Duty of Disclosure
A commonly used term to describe legal documents, such as mortgages and notes, which are used for borrowing money in real estate.
Personal property attached to the land or improvements that cannot be removed without agreement since they attach to and become real property (e.g., mailbox, chandelier)
A legal process by which property serving as security for an obligation is sold when a default occurs. The debtor can be the successful bidder and be awarded the title.
An intentional perversion of the truth for the purpose of inducing another in reliance upon it to part with something of value belonging to him or to surrender a legal right. The elements of this are:
a. intentional misstatement of fact
b. the misstatement of fact must be material
c. the defrauded party must have been entitle to rely on the statement
An estate in fee or for life. A freeholder is an owner of land.
A loss of value due to a decrease in the design usefulness of the property.
ex: having to walk through one bedroom to get to another bedroom, an only bath on the first floor with the bedroom on the second
A type of principal agent relationship where the agent is empowered to represent the principal in a narrow area of activities.
A general agent has the legal right to bind the principal in any contract within the scope of her responsibility
e.g., a property manager
The right of a creditor to claim all of the debtor's property, both real and personal, seized and sold at public auction, e.g., judgements and IRS taxes.
A partnership in which each member has an equal right to manage the business and share in the profits, as well as an equal responsibility for debts.
General Warranty Deed
A deed that includes five warranties, two of which are 1. Grantor (seller) warrants he has the right and tittle to convey to the new buyer;
2. Grantor warrants that all previous owners in the chain of title has the right to convey.
A document conveying or transferring real property.
One to whom a grant is made, generally the buyer.
A person who conveys his or her interest in real property, generally the seller
A lease of property where the lessee pays a fixed rent and the lessor pays taxes, insurance and other charges incident to ownership
Gross Monthly Rent Multiplier
The results obtained by dividing the value by the Gross Annual Income, or the Sales price divided by Gross Rents.
Gross Rent Multiplier (GRM)
A method of determining the value of income producing residential properties
Gross Rent x Multiplier = Sales Price
Clause induced after granting clause in many deeds (begins "to have and to hold"), describing the type of estate granted.
Highest and Best Use
An expression describing the use of land that, at the time the property is appraised results in the highest net income attributable to the land. These can be the only one highest and best use at one time.
A person's land used as their residence that is usually exempt from attachment by creditors to a statutorily preset amount.
i.e., in some states, one can exempt up to $5000 per owner from attachment by unsecured creditors upon foreclosure.
Homestead Exemption Law
A real estate tax reduction on a homestead owned by a person 65 years of age or older or permanently disabled.
Department of housing and urban development, a cabinet department of the federal government that administers fair housing laws, and administers FHA programs, e.g., RESPA
Some agency relationships can be _____ because of the circumstances surrounding a relationship. _____ agencies do not normally occur in real estate transactions.
A guaranty where the law derives it by implication or inference from the nature of the transaction or the relative situation or circumstance of the parties.
Incomplete such as an interest in the real property during the spouses life as in dower rights
A person retained by another to accomplish a particular result by. methods completely up to the independent contractor, e.g., real estate salesperson.
Ingress and Egress
Entering and exiting; usually refers to road or other means of access to a place of property. An easement for this is one that gives the dominant tenant access to the dominant tenement.
A person who dies without making a will, thus his estate is passed on by the laws of descent and distribution
An interest held by two or more persons in property where each person holds an equal share of interest in the undivided whole and shares equal liability for payment. If one joint tenant dies, his interest automatically passes to the surviving joint tenants by the right of survivorship. Acronym for this:
A recorded claim against another for a wrongful act ordered by a court. Result of this can be forced public sale of realty.
A method of selling real estate by which the purchaser takes possession and pays for property in regular installments, while the seller retains legal title until the property is paid for in full. Also known as an installment contract or contract for deed.
Law of Descent and Distribution
A system whereby title to property passes by operation of law to the heirs of one who dies owning property without a will.
A written contract between the owner, lessor of property and a tenant, lessee, where the possession of land and/or building is granted by the owner to the tenant for a specified period of time for a specified amount of rent.
The interest of a lessee to use and enjoy real estate for a specified period of time and upon certain conditions, e.g., the payment of rent. The four typically leasehold estates are estate for years, periodic tenancy, tenancy at will, and tenancy at sufferance.
A permission, either express or implied, that can be revoked at any time and cannot be assigned e.g., permission to hunt on someone else's land?
A claim against title that one party has upon the property of another as security for payment of a debt or obligation e.g., mortgage
Lien Theory State
A state in which real estate mortgages are regarded as a lien; title remains with the mortgagor absent default; and foreclosure proceedings can be commenced upon default.
An interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons.
An asset, either cash, stocks or bonds, that can be quickly (within 24-48 hour period) converted to cash
The cash position of an individual or business measured by cash on hand or securities that can be quickly converted to cash
Limited Common Element
That portion in a condominium project owned by all the owners but can only be used by one of the owners, i.e., a designated parking space, the manager's apartment, the balcony off of a particular unit.
A partnership made up of one or more general partners and one or more limited partners
A noticed filed in the public records for the purpose of serving constructive notice that title or some matter involving a particular parcel of real property is in litigation. Any person who acquires property under a notice of this will take it subject to any adverse judgement that may result.
A contract whereby a real estate broker has the right to sell someone's property. It must have a definite beginning and ending date on the contract, e.g., June 1, 2005 to October 30, 2005. A copy must be given to the client upon signing.
Loan Origination Fee
A one-time set up fee charged by the lender.
A method of describing real property that identifies a parcel of land by reference to lot and block numbers within a subdivision, as specified on a recorded subdivision plat, must include county and state.
Latin, "we command." A writ issued by a court ordering someone to do something or refrain from doing something.
Market Data Comparison Approach to Valuation
A method of appraising property where factors considered are neighborhood economic standards, cost of comparable properties, and demand.
The price that a piece of real estate actually sold for. Commonly used interchangeably with market value, but not truly the same.
The theoretical price that a piece of real estate is most likely to bring in a typical transaction. The highest price a willing buyer pay and a willing seller would accept, both being fully informed, with the property being exposed for a reasonable period of time.
This may be different from the market price a property can actually be sold for at a given time.
May be different from market price at a given point in time.
A title to real estate that is reasonably free of defects and encumbrances so there is no reasonable doubt as to its validity or reasonable apprehension of danger or litigation with respect to it, and the owners are insured peaceful enjoyment.
A statutory lien to secure priority of payment for the value of work performed and material provided for improvements to land. It attaches to the land its improvements
Metes and Bounds
Description of land by boundary lines, terminal points and angles. The description must begin and end at the same point, POB - Point of Beginning
Equal to one-tenth of a cent. Used in expressing tax rates. For example, ten mills would be the same as $10 per thousand dollars of value. 1 mill - 0.0001 = 1/100th of $1.00
A statement or conduct by a person that represents to another a fact that is not true. A seller, broker or builder may have a duty to disclose certain defects in property to a buyer or tenant.
Failure to disclose is also this.
The ___ may be deliberate, negligent or innocent.
Depending on the facts and extent of this, there may be a suit for damages, recession of contract or punitive action against the broker.
An entity that provides its own funds for mortgage financing.
The lender who receives and holds a mortgage as security for a debt
The document, promising to pay back money according to specific terms. The note may not be recorded, but the mortgage deed is recorded. The note is the promise to pay; the mortgage deed is the security for that promise.
One who gives a mortgage on his property to secure a loan or assure performance of an obligation; a borrower.
A method of marketing real estate whereby other brokers in an organization are permitted to show and sell property listed with another broker.
Multiple Listing Service (MLS)
A service provided by a local board of REALTORS that puts homes for sale into a listing book where all members can show the property.
Also known as alternative MLS
A lease agreement that requires lessee (tenant) to pay taxes, insurance, repairs, operating expenses and other costs of property.
A listing contract where the seller receives a sum he specifies from the full proceeds or the sale. The broker receives the amount remaining as her commission.
The use of a structure that, while once lawful, no longer complies with zoning limitations.
An executed document acknowledging debt by the persons singing it. In real estate, a mortgage deed is usually executed at the same time as security for the note.
Substituting a new obligation for an old one or substituting a new contract for an existing contract, thus relieving the originally obligor from any further liabilities
A loss of value due to a decrease in usefulness of property caused by decay, changes in technology, people's behavior patterns and tastes or environmental changes
e.g., economic (external) obsolescence, functional obsolescense
A mortgage that serves the dual purpose of being security for both the original loan and other future loans. Most mortgages are open-ended today.
The prevention or elimination of discrimination in housing based upon race, sex, color, religion, national origin, handicap, or familial status.
A listing agreement where one or more brokers are permitted to show a listed property. Only the broker who sells the property is entitled to a commission.
Agreement for which payment is made granting the exclusive right to buy or lease property at a given price within a stated period of time. A unilateral contract.
Paid in Arrears
Payment made after it is due. Interest is said to be paid in arrears since it is paid the day of payment rather than in advance, as is rent. Property taxes are also usually paid in arrears.
Parole Evidence Rule
A rule of law that limits the terms of a contract to those that are written within it. No oral evidence is permitted at the time of trial concerning terms not in the written agreement.
The part performance doctrine states that if one of the parties substantially performs his part of the agreement, then the other party may not avoid the contract just because it was not in writing.
Pattern and Practice Suit
A lawsuit in which unlawful discrimination is sought to be proven by evidence of patterns of racial discrimination and the practices of individuals charged with violations. Suits are investigated by the Justice Department.
The person to whom a debt instrument (e.g., check or promissory note) is made payable to
The payment in full of an existing loan or other lien
The sender of the payment
Latin, "by heads" One who inherits property under a will, or pursuant to law, does so as an individual, as opposed to inheriting a divided share as one of several representatives of one in whose stead they take
Latin, "by lineage" a distribution under a will, or pursuant to law, where children share what their deceased parent would have inherited if the parent had lived.
A lease where the tenant's rent is based upon the monthly or yearly gross receipts made on the premises e.g., retail lease
A leasehold interest that continues from period to period e.g., month to month, year to year
Property that is not real property but is tangible and moveable; personal chattels, e.g., clothes, furniture, portable dishwashers, microwave ovens, light bulbs
a map recorded at the county recorder's office showing how a parcel of land is. divided into lots
A map used to show a new subdivision
A term for a percentage of the loan amount that the lender charges as a fee for making the loan, lowering the interest rate or other reason.
One ____ is equal to one percent of the principal loan amount
Right of the government to pass legislation protecting the safety and welfare of the public
Power of Attorney
A legal instrument giving a person the authority to act for another, as attorney in fact not necessarily attorney at law
An easement created by statute or court action because someone used another's property openly and continuously over a period of time. Thus, even though not a written easement, one was created. Do not confuse with adverse possession.
Two or more brokers agreeing to set commission rates.
This is illegal and is in violation of the Sherman Antitrust ACt
1. The person who gives authority to an agent or attorney, thereby creating a fiduciary relationship
2. The amount of debt, excluding interest due
The effort that brings about the desired result
An unbroken chain of events that results int he sale of property. Under an open listing, the broker who is the procuring cause of the sale receives the commission.
The division of ongoing expenses and income items between the buyer and seller proportionately to the time of use, or the date of closing.
Exaggerated or superlative comments or opinions: e.g. "This house has the best view in town!"
Purchase Money mortgage
A deed that grants ant interest in property which the grantor may have.
The grantee takes the property "as is" because the deed contains the operative words "release, remiss or forever quite" and does not warrant title or possession.
Used to release dower or clear clouds on title
I will quit claiming all interest in the property if i have any
Quiet Title ACtion
Action by a court to remove a cloud or claim that has been placed on title to property.
Real Estate Recovery Special Account
Established in lieu of a security bond covering each licensee. In Ohio, the maximum amount an injured claimant may recover is $40,000 per licensee involved in a transaction.
The land and anything permanently attached, usch a building fences, and fixtures including wall-to-wall carpeting, dishwasher sump pump
A trade name for a member of the National Association of REALTORS and its state and local affiliates. All brokers and salespersons are not REALTORS any more than all copiers are Xerox.
The return of monies invested in property through reduction of the loan amount and/or depreciation that is allowed for one year.
Filing or entering a legal instrument into the county recorders office which causes it to become a public record giving constructive notice of its existence to the world
Federal government system of accurate land survey and description using base lines and principal meridians. There are 36 Sections in a township.
Redemption right of
The right of a landowner to reclaim property after foreclosure.
Redemption, equitable right of
a right of a borrower who has defaulted on a mortgage note to redeem his title by paying entire debt before the foreclosure sale
A certificate used to reclaim a piece of real estate by paying off the debt owed on the property along with any court fees. This procedure is done after a foreclosure sale has been conducted and during the redemption period.
Redemption statutory right of
a right of borrower who has defaulted on a mortgage note to redeem his title by paying entire debt after the foreclosure sale. Statutory period can be as long as 1 year. Not used in all states.
REITs (Real Estate Investment Trusts)
Joint ventures, usually in the form of a limited partnership, through which real estate is purchased. A person must have a securities license to sell REITS. REITs avoid double taxation as they are taxed to the beneficiary.
RESPA (Real Estate Settlement Procedures Act)
A federal statute requiring disclosure of certain costs and prohibits certain acts in the sale of residential (one- to four-family) improved property which is to be financed by a federally insured lender.
The illegal process of a lender denying loans in certain areas of a community because of race, color, creed, etc. An analogous situation exists whenever insurance companies refuse to sell insurance to someone for reasons based on race.
Any decision made that is not based on buyer's qualifications
The implementing provision of the Consumer Sales Practice Act enacted in 1969, which requires disclosure of the cost of credit and various terms available for credit to borrowers and consumers seeking credit.
The discharge or relinquishment of a right, claim or privilege
Release of Mortgage
A document signed (and usually recorded) by the lending institution when a mortgage has been satisfied in full.
An interest in land whereby a person receives an interest in real estate upon the death of another, e.g., dad conveys a life estate to son "A" and states that upon the son's death, the estate will go to daughter "B" Daughter "B" has received a remainder
The one entitled to the remainder
The annulment of a contract so that the parties to it are put in a position as though the contract never existed, i.e., earnest money is returned to buyer
The interest in a life estate that reverts to a grantor or a grantors heirs if no remainder man is named.
Right of Survivorship
The characteristic of a joint tenancy by which the surviving joint tenant (owner) automatically takes all rights, title, and interest of the deceased joint tenant.
Sale and Leaseback
A method for a seller to free capital for his business expansion by selling his property to a buyer who has agreed to lease it back to him.
A measure of land equal to one square mile, 640 acres 1/36th of a township
Securities and Exchange Commission
Federal agency that regulates the sale of interstate real estate securities
The taking of custody of one's personal or real property to compel compliance with a court order.
A term used in local zoning ordinances that represents the distance between lot lines and improvements
The individual, normally working for the title company, who closes real estate loans. The settlement agent is required by FHA guidelines to sign the closing documents along with the seller and the buyer.
Property held by one person or entity (corporation) also called sole ownership
sherman antitrust act
name of the federal antitrust law that makes it illegal for brokers to set uniform commission rates (price fixing) and prohibits other acts of collusion
place where something exists the personal preference of persons for one area over another, not necessarily based on objective facts of knowledge. Refers to economic attributes (value, area of preference, etc.) that location gives to a particular parcel of land
A special agency authorizes the agent to represent the principal in a specific activity or transaction, e.g., a real estate broker acting as an agent for a seller.
Special Warranty Deed
a deed by which the grantor promises to defend the title against only those claims and demands of the grantor and those claiming through the grantor
A lien affecting or attaching only to a certain specific parcel of land or piece of property e.g., mortgage, mechanic's lien, and ad valorem taxes
A legal action available to buyer to compel the performance of the terms of an agreement, such as the sale of a home
Statute of Frauds
A law requiring that certain instruments be in writing to be enforceable e.g., deed, lease, option but not a listing agreement. A listing agreement must be in writing according to other statutes
The illegal practice of trying to influence a buyer's choice of housing by racial, religious, ethnic, national origin, ancestry factors, etc.
This includes showing only certain neighborhoods, "slanting" property descriptions, and downgrading non-integrated neighborhoods in an effort to influence minority buyers. This may include a sales associate ______ prospective clients to a broker or sales associates of their race, color, or national origin.
Straight Line Amortized Loan
A loan where each payment is different, consisting of a fixed amount plus interest on the remaining balance.
straight line depreciation
A method of replacing the capital investment of income property, by reducing the value of the property by a set amount annually from the income, over the economic life of the property.
An agent of an agent; a person that an agent has delegated authority to, so that the subagent can assist in carrying out the principals orders.
A written agreement between holders of liens on a property that changes the priority of mortgage, judgment, and other liens under certain circumstances.
The substitution of one creditor for another, with the substituted person succeeding to the legal rights and claims of the original claimant. Subrogation is used by title insurers to acquire from the injured party rights to sue in order to recover any claims they have paid.
the transfer of real property by will or the law of descent and distribution as compared to transfer by a grant of the deed or any other form of purchase or transfer
the procedure that determines the shape area and position of a parcel of land by location its boundaries and by which a buyer may be sure a property has no encroachment
One of the four powers of the government used as a means to collect revenue and implement policies. The power of government to tax, among others things, real property.
Tenancy by the entirety
Joint tenancy with right of survivorship between a husband and wife.
Tenancy at Sufferance
The interest in a property held by a holdover tenant who is not paying rent
tenants in common
the interest held by two or more persons in property who hold an undivided interest and who interests need not be equal. Theres no right of survivorship between tenants in common
A loan whereby interest only is paid in each installment and, at the end of the loan period, the principal is due in full.
One who makes a will; one who dies leaving a will.
time is of the essence
Legal phrase meaning that the amount of time stated in a contract must be strictly adhered to in order not to breach the contract. The parties specifically contemplate a punctual performance and precise time for completion of the contract.
An undivided interest in real estate for a period of time. A relatively new type of ownership of real estate used in resort areas. Purchasers buy the use of a property for a certain period of time in each year. Expenses are shared equally among the owners.
evidence of legal ownership in real estate
it is a concept, not a document
a contract whereby a title insurance company indemnifies the owner that title is free of defects and hidden risks such as forgeries.
this does not guarantee you will not lose ownership, only that you would be compensated under terms of policy
a legal system of land registration using signature cards to verify land ownership and determine title status, instead of being recorded
Items of personal property that are annexed to leased property and are necessary to a trade or business and which are removable by the tenant prior to expiration of the lease.
A non-interest bearing bank account, separate from a real estate broker's personal and business accounts, used to segregate trust funds from the broker's own funds.
An instrument that conveys title to a trustee who holds it.
A deed executed by a trustee conveying land held in a trust.
truth in lending
A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges.
a contract (e.g., open listing, option) under which one party makes an express promise or undertakes performance without receiving in return any ex-press
in appraisal for sale purposes, the true economic value of a building in terms of years of use to the owner
for tax purposes the life set for depreciation.
at any time during that period, a new life could begin for a new owner.
charging an illegal rate or amount of interest on a loan
in ohio, the max allowable rate in 8% above the federal discount rate.
ohio ___ laws does not regulate all government affected mortgage corporates
non-exempted loans have a ceiling of 3% above the federal reserve discount rate
A mortgage loan secured through an approved lending institution and guaranteed by the Veteran's Administration.
binding and enforceable contract; one party can legally force the other party to perform
variable rate mortgage
allows lender to increase or decrease the interest rate within paramaters set down in mortgage notes
a change in part of a zoning requirement without actually changing the zoning.
a purchaser in a land contract; the purchaser or real estate
the seller in a land contract; the seller of real estate
a contract lacking the essential elements necessary for formation a contract of no legal force and effect
e.g. a contract for an illegal purpose
a contract that can be terminated even though it appears valid; e.g., a contract with a minor can be rescinded by the minor
A deed in which the grantor fully warrants a good clear title to the property; a deed that contains covenants of title.
improper use of property, which hurts its value by a possessor who holds less than fee ownership such as life tenant, tenant, etc.
Words of Conveyance
A deed clause stating a grantor's intent to transfer an interest in real property. Also called GRANTING CLAUSE
A form of junior mortgage that may be used when it is not feasible to retire the first mortgage, land contract, or lease-purchase agreement. Title to the real estate does not pass until subsequent payments occur.
writ of execution
a court order directing an official to sell property to satisfy a judgement against the owner of the property
rate of return on an investment, generally shown as a percentage. the yearly income divided by the value of the building equals the percentage of return. IRV-INCOME, RATE, VALUE
the regulation over the use of land within a specific municipality
Sets found in the same folder
Ohio Real Estate Law
Hondros Learning | Ohio Real Estate | Principles &…
Real Estate Law - Module 7
Real Estate Finance
Other sets by this creator
Law Final Exam
Ch. 15 Valuation Fundamentals
Ch. 13 - Financing Principles
MKT 330 exam 2 set 2
Other Quizlet sets
RN Nursing Care of Children Practice 2019 A ATI
Humanities China MY1
CARE OF THE PATIENT WITH AN INTEGUMENTAR…