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SC real estate salesperson course glossary

Terms in this set (228)

Abstract of title

a summary of digest of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title

acceleration clause

a condition in a real estate finance instrument giving the lender the power to declare all sums owing the lender immediately due and payable upon the happening of an event, such as sale of the property, or a delinquency in the repayment of the note

the act of agreeing or consenting to the terms of an offer thereby establishing the meeting of the minds that is an essential element of a contract

an addition to property through the efforts of man or by natural forces

accession by natural forces

a formal declaration made before an authorized person, e.g, a notary public, by a person who has executed an instrument stating that the execution was his or her free act

actual eviction

the removal of a tenant by the landlord because the tenant breached a condition of a lease or another rental contract

express or implied knowledge of a fact

additional pages of material That are added to and become part of a contract

adverse possession

a method of acquiring title to real property through possession of the property for a statutory period under certain conditions by a person other than the owner of record

the relationship between principal and the principals agent, which arises out of a contract either expressed or implied, written or oral, wherein the agent is employed by the principal to do certain acts dealing with a third party

the rights in real property to the reasonable use of the air space above the surface of the land

alienation clause

a clause in a contract giving the lender certain rights in the event of a sale or other transfer of a mortgaged property

the gradual increase of the earth on a shore of an ocean or bank of a stream resulting from the action of water

the liquidation of a financial obligation on an installment basis

a loan to be repaid, interest and principal, by a series of regular payments that are equal or nearly equal, without any special balloon payment prior to maturity

a unit measure of electricity

an estimate of the value of property resulting from an analysis of facts about the property

a naturally occurring mineral fiber sometimes found in older homes. it is hazardous to health when a possibility exists of exposure to inhale fibers. homeowners should be alert for friable asbestos and always seek professional advice in dealing with it

a chronic lung disease caused by inhaling asbestos fibers

a valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property

the transfer to another of any property in possession or in action, or of any estate or right therein. a transfer by a person of that persons rights under a contract

a sudden and perceptible loss of land by the action of water as by a sudden change in the course of a river

bargain and sale deed

any deed that recited a consideration and purports to convey the real estate; a bargain and sale deed with a convenient against the grantors act is one in which the grantor warrants that grantor has done nothing to harm or cloys the title

base and meridian

imaginary lines used by surveyors to find and describe the location of private or public lands, in govt surveys a base line runs due east and west, meridians run due north and south, and are used to establish township boundaries

the lender on the security of a note and deed of trust

bilateral contract

a contract in which each party promises to do something

blanket mortgage

a type of loan used to fund the purchase of more than on piece of real property. a blanket mortgage is often used for subdivision financing

the practice on the part of unscrupulous speculators or real estate agents of including panic selling of homes at prices below market value, especially by exploiting the prejudices of property owners in the neighborhoods in which the racial make-up is changing or appears to be on the verge of changing

bundle of rights

all of the legal rights incident to ownership of property including rights of use, possession, encumbering and disposition

obtaining a lower interest rate by paying additional points to the lender

capitalization rate

net operating income/ purchase price

a history of conveyances and encumbrances affecting the title from the time the original patent was granted, or as far back as records are available, used to determine how title came to be vesting in current owner

goods or every species of property movable or immovable which are not real property. personal property

a claim, encumbrance or condition which impairs the title to real property until disproved or eliminated as for example through a quitclaim deed or quiet title legal action

The mixing of personal funds with client or third-party funds held in trust.

the act of taking private property for public use by a political subdivision upon payment to owner of just compensation

An estate in real property wherein there is an undivided interest in common in a portion of real property coupled with a separate interest in space called a unit, the boundaries of which are described on a recorded final map, parcel map or condominium plan. The areas within the boundaries may be filled with air, earth, or water or any combination and need not be attached to land except by easements for access and support.

anything given or promised by a party to induce another to enter into a contract
money or personal services

construction loan

a loan secured by real estate which is for the purpose of funding the construction of improvements or buildings upon the property

conventional loan

a mortgage securing lon made by investors without governmental underwriting, i.e., which is not FHA insured or VA guaranteed. this type of loan is customarily made by a bank or savings and loan association

the unlawful appropriation of another property, as in the conversion of trust funds

an apartment building, owned by a corporation and in which tenancy In an apartment unit is obtained by purchase of shared of stock of the corporation and where the owner of such shares is entitled to occupy a specific apartment in the building

an entity established and treated by law as an individual or unit with rights and liabilities or Both, distinct and apart from those of the persons composing it. a corporation is a creature of having certain powers and duties of a natural person. being created by law, it may continue for any length of time the law prescribes

Covenants, Conditions, and Restrictions (CC&Rs)

The basic rules establishing the rights and
obligations of owners of real property within a subdivision or other tract of land in relation to other owners
within the same subdivision or tract and in relation to an association of owners organized for the purpose
of operating and maintaining property commonly owned by the individual owners.

a written instrument which when properly executed and delivered conveys title to real property from one person (grantor) to another (grantee)

deed in lieu of foreclosure

a deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender

deed restrictions

limitations in the deed to a property that dictate certain uses that may or may not be made of the property

defeasance clause

the clause in a mortgage that gives the mortgagor the right to redeem the mortgagors property upon the payment of the mortgagors obligations to the mortgagee

deficiency judgment

a judgement given by a court when the value of security pledged for a loan is insufficient to pay off the debt of the defaulting borrower

a gift or disposal of real property by last will and testament

one who receives a gift of real property by will

one who disposes of real property by will

discount points

the amount of money the borrower or seller must pay the lender to get a mortgage at a state interest rate

a parcel of real property that has an easement over another piece of property (the servant estate)

a right, privilege or interest limited to a specific purpose which one party has in the land of another

easement appurtenant

an easement that benefits the dominant estate and "runs with the land" in other words, an easement appurtenant generally transfers automatically when the dominant estate is transferred

easement by condemnation

an easement created by the government or government agency that has exercised its right under eminent domain

easement by grant

the creation of an easement by one party expressly transferring the easement to another party

easement by implication

an easement that is not created by express statements between the parties; by the parties

easement by necessity

parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the loan with access

easement by prescription

implied easements granted after the dominant estate has used the property in a hostile, continuous, and open manner for a statutorily prescribed number or years

easement in gross

An easement that benefits an individual or a legal entity, rather than a dominant estate.

an unlawful intrusion onto another adjacent property by improvements to real property, e.g., a swimming pool built across a property line

anything which affects or limits the fee simple title to or value of property, e.g., mortgages or easements

a lien on property imposed by a court in order to achieve fairness, particularly when someone has possession of property which he/she holds for another

the wearing away of land by the act of water, wind, or glacial ice

the reverting of property to the state when heirs capable of inheriting are lacking

estate at sufferance

an estate arising when the tenant wrongfully holds over after the expiration of the term. the landlord has the choice of evicting the tenant as a trespasser or accepting such tenant for a similar term and under the condition of the tenants previous holding. also called tenancy at sufferance

the occupation of lands and tenements by a tenant for an indefinite period, terminable by one or Both parties

estate for years

an interest in lands by virtue of a contract for a contract

exclusive listing agency

a listing agreement employment a broker as the sole agent of the seller of real property under the terms of which the broker is entitled to a commission if the property is sold through any other broker, but not if a sale is negotiated by the owner without the services of an agent

exclusive right to sell

a listing agreement employing a broker to act as agent for the seller of real property under the terms of which the broker is entitled to a commission if the property is sold during the duration of the listing through another broker or by the owner without the services of an agent

excuted contract

a contract in which Both parties have completely performed their contractual obligations

executory contract

a contract in which one or both parties have not yet completed performance of their obligations

an agency relationship created by oral or written agreement between principal and the agent

express contract

a contract that has been put into words, either spoken or written

federal home loan mortgage corporation (FHLMC) (Freddie Mac)

an independent stock company which created a secondary market in the conventional residential loans and in FHA and VA loans by purchasing mortgages

Federal national mortgage association (FNMA) Fannie Mae

a New York stock exchange company. it is a public company that operates under a federal charter and is the nations largest source of financing for home mortgages. Fannie Mae does not lend money directly to consumers, but instead works to endure that mortgage funds are available and affordable, by purchasing mortgage loans from institutions that lend directly to consumers

federal reserve system

the federal banking system of the United States under the control of central board of governors (federal reserve boar) involving a central bank in each twelve geographical districts with broad powers in controlling credit and the amount of money in circulation

fee simple absolute

an inheritable estate in land providing the greatest interest of any form of title

fee simple determinable

an estate that will end automatically when the stated event or condition occurs. the interest will revert to the grantor or the heirs of the grantor

fee simple estate

the greatest interest that one can have in real property. an estate that is unqualified, of indefinite duration, freely transferable and inheritable

FHA insured loan

a mortgage loan in which payments are insured but the federal housing administration

appurtenances attached to the land or improvements, which usually cannot be removed without agreement as they become real property; examples - plumbing fixtures, store fixtures built into the property

an agent with full authority over one property of the principal, such as a property manager

a lien on all the property of a debtor

Government national mortgage association GINNIE MAE

a government owner corporation within the us department of housing and urban development that garuntees securities backed by mortgages that are insured or guaranteed by other govt agencies.

government survey

a method of specifying the location of parcel of land using prime meridians, base lines, standard parallel, guide meridians, townships and section

graduated lease

a lease which provides for a varying rental rate, ofeten based upon a future determination; sometimes rent is based upon the result of periodic appraisals; used largely in long term leases

a technical legal term in a deed of conveyance bestowing an interest in real property to another. the words ;convey' and ;transfer' have the same effect.

a limited warranty deed using the word 'grant' or like words that assures a grantee that the grantor has not already conveyed the land to another and that the estate is free from encumbrances placed by the grantor

a person to whom a grant is made

a person who transfers his or her interest in property to another by grant

a lease in which the lessor pays all costs of operating and maintaining the property and real estate taxes

an agreement for the use of land only, sometimes secured by improvements placed on the land by the user

an agreement between members of a trade to exclude other members from fair participation in the trade

habendem clause

the 'to have and to hold' clause which may be found in a deed

highest and best use

an appraisal phrase meaning that use which t the time of an appraisal is most likely to produce the greatest net return to the land and/ or buildings over a given period of time; that use will produce the greatest amount of profit. this is the starting point for an appraisal

agency that exists as a result of actions of the parties

implied contract

an agreement that has not been put into words, but is implied by the actions of the parties

income (capitalization) approach

an appraisal method applied to income producing properties, which involves a three-step process. first, the appraiser must fin the net annual income. second, an appropriate capitlization rate or 'present worth' factor muse be set. finally the appraiser must capitalize the income by diving the net income by the cap rate

the value of an asset or asset group that is covered by an insurance policy; can be estimated by deducting cost of non-insurable items (e.g. land value) from market value

interest only loan

a straight, non amortizing loan In which the lender receives only interest during the term of the loan and principal is repaid in a lump sum at maturity

a person who dies having made no will, or one which is defective in form, is said to have died instesta, in which case the estate descends to the heirs at law or next of kin

investment value

the specific value of an investment to a particular investor or class of investors based on individual investment requirements; distinguished from market value, which is impersonal and detached

involuntary alienation

the transfer of title to real property as a result of a lien foreclosure sale, adverse possession, the filing of a petition in bankruptcy or condemnation under power of eminent domain or upon the death of the title holder, to the state when there are no heirs

involuntary lien

a lien imposed against a property without consent of an owner

undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship I.e., the right ti share equally with other surviving joint tenants in the interest of a deceased joint tenant

a legal claim on all of the property of.a judgment debtor which enables the judgement creditor to have the property sold for payment of the amount of the judgment

junior mortgage

a mortgage recorded subsequently to another mortgage on the same property or made subordinate by agreement to a later recorded mortgage

the materials of the earth, whatever may be the ingredients of which it is composed, whether soil, rock, or other substance, and include free or unoccupied space for an indefitnet distance upwards as well as downwards

a legal agreement where a trustee is appointed to maintain ownership of a piece of real property for the benefit of another party

leasehold estate

a tenants right to occupy real estate during the term of the lease. this is a personal property interest

legal description

a land description recognized by law; a description by which property can be definitely located by reference to government surveys or approved recorded maps

one who contracts to rent, occupy, and. use property under a lease agreement; a tenant

an owner who enters into a lease agreement with a tenant; a landlord

letter of intent (LOI)

generally an agreement to agree. it outlines the terms between parties who have not formalized an agreement into a contract. LOIs are generally not binding and unenforceable

a form of encumbrance which usually makes specific property scrutiny for the payment of a debt or discharge of an obligation

an estate or interest in real property, which is held for the duration of the life of some certain person
it may be limited by the life of the person holding it or by the life of some other person

the owner of a life estate

littoral rights

the right of a property owner who's land borders on a body of water, such as a lake ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on

an agreemnent where the trustee holds the legal possession of an asset that belongs to another person, the beneficiary, and it is created while the person is alive

loan to value ratio

the percentage of a properties value that a lender can or may loan to a borrower

a legal description of land used for plotted properties, stating the number, lot and block in a particular sub division

the area in square feet of a zoning lot

the portion of a zoning lot which, when viewed from avocet is covered by a building

marketable title

title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept

a long term planning document. it establishes the framework and key elements of a site reflecting a clear vision created and adopted in an open process. it synthesizes civic goals and the publics aspirations for a project, gives them form and organization, and defines a realistic plan for implementation, including subsequent approvals by public agencies

metes and bounds

a term used in describing the boundary lines of land, setting forth all the boundary lines together with their terminal points and angles. metes (length or measurements) and bounds (boundaries) description is offend used when a great deal of accuracy is required

a landowners right to receive a portion of the profits of any minerals that are extracted from the land

mortgage banker

a person whose principal business is the originating financing, closing, selling and servicing of loans secured by real property for institutional lenders on a contractual basis

Mortgage broker

a broker who arranges a mortgage loan between a lender and a borrower for a fee

mortgage insurance premiums

the amount paid by a mortgagor for mortgage insurance on and FHA- insured loan

one to whom a mortgagor gives a mortgage to secure a loan or performance of an obligation; a lender or creditor

one who gives a mortgage on his or her property to secure a loan or assure performance of an obligation; a borrower

a lease requiring a lessee to pay charges against the property such as taxes, insurance and maintenance costs in addition to rental payments

a listing which provides that the agent may retain as compensation for agents services all sums received over and above a net price to the owner

the substitution or exchange of a new obligation or contract for an old one y the mutual agreement of the parties

an authorization given by a property owner to a real estate agent wherein said agent is given the nonexclusive right to secure a purchase; open listings may be given to any number of agents without liability to compensate any except the one who first secured a buyer ready, willing and able to meet the terms of the listing, or secures the acceptance by the seller of a satisfactory offer

opinion of title

AN ATTORNEYS WRITTEN EVALUATION OF the condition of the title to a parcel of land after examination of the sbstract title

package mortgage

a method of financing in which the loan that finances the purchase of a home also finances the purchase of personal items such as a washer and dryer, stove and other specified appliances ,

a division of real or personal property or the process therefrom among co owners

an arrangement in which two or more individuals share the profits and liabilities of a business venture

percentage lease

lease ont he property, the rental for which is determined y the amount of business does by the lessee; usually a percentage of gross receipts from the business which provisions for a minimum rent

periodic estate

an interest In land where there is no definite termination date but the rental period is fixed at a certain sum per week, month or year. also called an estate from period to period

a step above pre qualification an evaluation of a potential borrower by a lender that determines whether the borrower qualifies for a loan from the lender, or the maximum amount that the lender would be willing to lend

pre qualification

a process whereby a loan officer takes information from a. borrower and makes an tentative assessment of how much the lending institution is willing to lend them

pre payment penalty

the charge payable to a lender by a borrower under th terms of the loan agreement if the borrower pays off the outstanding principal balance of the loan prior to its maturity q

the employer of an agent, such as the buyer or seller

priority of lien

the order in which liens are given legal precedence or preference

private mortgage insurance (PMI)

mortgage guaranty insurance available to conventional lenders on the first, high risk portion of a loan

the official proving of a will, the legal process wherein the estate of a decendent is administered

promissory note

following a loan commitment form the lender, the borrower signs a note, promising to repay the loan under stipulated terms. the promissory note establishes personal liability for its payment. the evidence of the debt

property insurance

provides protection against most risks to property, such as fire, theft and some weather damage

adjustments of interest, taxes and insurance, etc. on a pro rata basis as of the closing or agreed upon date

a deed to relinquish any interest in property which the grantor may have, without any warranty of title or interest

a colorless, odorless gas that is emitted from soil, rocks and water as a result of radioactive decay in certain areas of the country

land plus anything permeantly attaches to land

real esatte settlement procedures act RESPA

a federal law requiring the disclosure to borrowers of settlement (closing) procedures and costs by means of a pamphlet and forms prescribed by the united state department of housing and urban development

real estate syndicate

an organization of investors usuallyy in the form of a limited partnership who have joined together for the purpose of pooling capital for the acquisitions of real property interests

land, things affixed to land, appurtenances, plus the bundle of rights

the final stage in the appraisal process where the appraiser reviews the date and estimates the subject property value

the process of placing a document on file with a designated public official for a public notice. the public official is usually a county officer known as the county recorder who designates the fact that a document has been presented for recording by placing a recording stamp upon it indicating the time of day and ate when it was officially placed on file. documents filed with the recorder are considered to be placed on open notice to the general public of that county

buying back ones property after a judicial sale

an illegal lending policy of denying real estate loans on properties in older, chanding urban areas, usually with large minority populations, because of alleged higher lending risks without due consideration being given by the lending institution to the credit worthiness of the individual loan applicant

an estate which takes effect after the termination of the prior estate, such as a life estate. a future possessory interest in real estate

a person who inherits or is entitled to inherit property upon the termination of the estate of the former owner

the cancellation of a contract and restoration fo the parties to the same position they held before the contract was enteredd into

revisionary interests

the interest which a person has in lands or other property, upon the termination of the preceding estate. a future interest

right of survivorship

the right of surviving tenant or tenants to succeed to the entire interstate's of the deceased tenant; the distinguishing feature of a joint tenancy

riparian rights

the right of a landowner whose land borders on a stream or watercourse to use and enjoy the water which is adjacent to or flows over the owners land provided such use does not injure other riparian

a measure of the ability of insulation to slow the transfer of heat or cold
the higher the r value the greater the insulation power

sales comparison approach

a valuation method which compares a subject property characteristics with those of comparable properties which have recently sold in similar transactions

secondary mortgages market

the market where lenders sell their loans to the large secondary marketing agencies (FNMA,FHLMC, and GNMA)

section of land is established by government survey, contains 640 acres and is one mile square

servant tenement

a parcel of real property that is encumbered by an easement of a dominant estate

severalty ownership

real property that is owned by only one person sole ownership

panels that cover the exterior wall. typically Made of plywood or exterior grade gypsum board

sherman anti trust act

federal legislation including imposition of civil and punitive damages for antitrust activities

a sellers attempt to sell the real estate whereby the liens are greater than the value of the property

an agent who works for only the buyer or the seller

an agent with limited authority to act on behalf of the principal, such as created by a listing contract

special warranty deed

a deed in which the grantor warrants or guarantees the title only against defects arising during the grantors ownership of the property and not against defat existing before the time of the grantors ownership

a lien that attaches to one specific property only

specific performance

an action to compel performance of an agreement, e.g., sale of lans as al an=alternative to damages or recession

a document provided by architects that describe the quality of construction

statue of frauds

a state law, based on an old English statue, requiring certain contracts to be in writing and signed before they will be enforceable at law,
contracts for sale of real property, contracts that are not performed within one year

statute of limitations

a statue prescribing a period of limitations for the bringing of certain kinds of legal actions

a charge or claim upon property that arises by virtue of specific statutes that address the relationship between the property owner and the party given the ability to place the lien

the practice in which real estate brokers guide prospective home buyers towards or away from certain neighborhood based on their race

straight line depreciation

a method of depreciation under which improvements are depreciated at a constant rate throughout the estimated useful life of the improvement

a note in which a borrower repays the principal in a limp sum at the maturity while interest is paid in installments or at maturity

a person upon whom the powers of an agent have been conferred, not by the principal, but by and agent as authorized bu the agents principal

subdivision regualtions

the control of the division of a tract of land into individual lots by requiring development according to a specific standards and procedures adopted by local ordinances

the make subject to, or junior or inferior to

subordination agreement

an agreement t by the holder of an encumbrance against real property to permit that claim to take an inferior position to there encumbrances against the property

the process by which. parcel of land is measured and it area is ascertained; also the blueprint showing the measurements boundaries and area

tax deferred exchange

the trade or exchange of one real property for another without the need to pay income taxes on the gain at the time of the trade

a lien imposed by law upon a property to secure the payment of taxes

tenancy by entireties

under certain state laws, ownership of property acquired by a husband and wife during marriage, which property is jointly and equal owned. upon death of one spans it becomes the property of the survivor

tenancy in common

co owners of property by tow or more persons who each hold and undivided interest, without right of survivorship; interest need not to be equal

testamentary trust

a trust which arises upon the death of the testator and which is specified in his or her will

having made a valid will before one dies

one who makes a will

volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/ customers

tie in arrangement

a contract where a transaction depends upon another

a form of subdivision of real property into rights to the recurrent, exclusive use or occupancy of a lot, parcel, unit or segment of real property on an annual or some other periodic basis for a specified period of time

title insurance

insurance to protect a real property owner or lender up to a specified amount against certain types loses
defective or unmarketable titles

in the survey of public lands of the us, a. territorial subdivision six miles long, six miles wide and contains 36 sections, each one mile square located between two range lines and two township lines

articles of personal property annexes by a business tenant to real property which are necessary to the carrying on of a trade and are removable by the tenant

the ability to transfer ownership of property from one person to another

a legal relationship under which title to property is transferred to a person known as a trustee

the third party under a deed of trust; a person who holds title to property for the benefit of another called a beneficiary

one who borrows money from a. trust deed lender, then deeds the real property securing the loan to a trustee to be held as security until the truster has performed the obligation to the lender under terms of a deed trust; a person who coneys title to a trustee

an individual at a lending institution who determines credit worthiness in order to qualify an applicant for a loan

the criteria with which a lender determines the credit worthiness in order to qualify them for the loan

uniform commercial code

establishes a united and comprehensive method for regulation of security transactions in personal property, superseding the existing statutes on chattel mortgages, conditional sales, trust receipts, assignment of accounts receivable and others in this field

unilateral contract

a contract in which one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it; the contract is formed only if the other party doe perform the requested act

universal agent

the agent who has complete authority over any activity of the principal; for example, power of attorney

on a loan, claiming a rate of interest greater than that permitted by law

the ability to give satisfaction and or excite desire for possession

having force or binding force, legally sufficient and authorized by law

the authorization to improve or develop a particular property in a manner not authorized by zoning

to have no force or effect; which is unenforceable

that which is capable of being adjudged void, but is not void unless action is taken to make it so

voluntary alienation

transfer of title to an asset with the consent of the owner

a deed used to convey real property which contains warranties of title and quiet possession and the grantor thus agrees to defend the premisses against the lawful claims of third persons

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