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112 Cards in this Set
- Front
- Back
interest |
money paid for using someone else's money |
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principal |
the amount of money on which interest is either paid or received |
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arrear |
monthly payment due on the first of the month includes interest for using the money during the previous month |
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PITI |
principal, interest, taxes and insurance |
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amortization |
gradual reduction of a mortgage loan amount from the original amount of the loan to a zero balance through periodic payments |
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equity |
difference between the market value of property and what is owned on it |
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usury |
interest charged in excess of the legal limit that is set by law |
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mortgage note |
IOU or promissory note that is backed by a mortgage or a deed of trust pledging the property as collateral for the loan |
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acceleration clause |
provides the lender with the option of calling the entire loan due and payable at once if the buyer defaults or breaks the contract in any way |
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prepayment penalty clause |
penalty in the event that a mortgage is paid off faster than at the amortization rate stipulated |
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alienation clause/due-on-sale clause |
prevents a future purchaser from assuming the loan without the lender's persmission |
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title theory |
disinterested third party actually holds legal title to the property insecurity for the loan -- through deed of trust |
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foreclosure |
liquidation of title to the real property pledged to recover funds to pay off the debt |
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deed in lieu of foreclosuer |
borrower conveys the title to the property to the lender to avoid foreclosure (must be accepted by lender) |
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deficiency judgment |
a court order stating that borrower still owes money |
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conventional loan |
no participation by an agency of the federal government |
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PMI (private mortgage insurance) |
insures repayment of the top portion of the loan to the lender -- necessary in the event the borrower defaults -- typically a loan exceeding 80 percent |
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FHA Loan (Federal Housing Administration) |
protects lenders against financial loss -- loan-to-value ratio is high |
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FHA Loan Qualifications |
monthly housing expenses cannot exceed 29% of gross income |
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VA Loan |
Given through Dept. of Veterans Affairs; can be a 100% loan (no down-payment) |
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escrow account |
also called impound account; borrower must pay an impound into this acct each month to accumulate money to pay the annual real property tax bill and the annual homeowner's insurance policy premium |
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adjustable rate mortgage (ARM) |
type of mortgage loan in which the lender has the right to alter/adjust the interest rate |
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graduated payment mortgage (GPM) |
monthly payments are lower in the early years of the loan term |
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buydown loan |
allows for either a temporary or permament buydown of the interest rate |
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blanket mortgage |
two or more parcels of real estate are pledged as security for payment of a mortgage debt |
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package mortage |
personal property in addition to real property -- frequently used in sale of furnished condos or resort properties; can include all furnishings in a unit |
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reverse mortgage |
homeowner does not pay the lender but receives income payments from the lender |
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real estate/real property |
land and everything that is permanently attached to land |
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personal property |
chattel or personalty; not permanently attached to the land
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physical characteristics |
immobility, indestructibility, uniqueness (nonhomogeneity) |
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economic characteristics of land |
scarcity, permanence of investment, location (situs) |
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situs |
location |
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free market |
one in which the buyer and seller negotiate a purchase and sale without undue pressure, urgency, or outside influence |
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tenements |
all things that are included in the definition of land and include both corporeal and incorporeal rights in land |
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bundle of rights |
right to possession of the property; the right of quiet enjoyment; the right to dispose of the property by gift, by sale or by will; right to control the use of property within the limits of the law |
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fructus industriales/emblements |
crops that require planning and cultivation |
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appurtenance |
any right or privilege that is said to run with the land -- examples: air rights, subsurface rights, riparian rights |
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subsurface rights |
interest in real property that allows the owner to take minerals from the earth (mineral lease -- permits the use of land for mineral exploration and mining operations) |
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air rights |
ownership of and the rights to the area above the surface of the earth |
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riparian rights |
rights of an owner of property bordering a flowing body of water - navigable: to the banks - non-navigable -- to the center |
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littoral rights |
rights of landowners whose property borders an ocean or a lake |
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lateral support |
the right of land to be supported in its natural state by adjacent land |
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subjacent support |
right to have one's land supported from below |
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fixture |
an item of personal property that is attached to the land or a permanent improvement |
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total circumstance test |
IRMA |
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IRMA |
intention, relation to the attacher, method, adaptation |
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trade fixtures |
personal property that are used in the course of a business operating in a leased property |
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agricultural fixtures |
additions/fixtures become a part of the property |
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eminent domain |
government's power to take private property for public use by paying the owner fair and just compensation |
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time sharing |
any right to occupy a property for five or more separated time periods over a span of five or more years |
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Planned Univ Devlopment (PUD) |
a small community that includes some form of cluster housing as well as recreational areas and supporting commercial activities, such as shops |
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lien |
a claim or a charge against the property that can result from a contractual agreement or from the operation of law |
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mechanic's lien |
filed by anyone who provides labor or material to a property or property improvement -- they would file because they weren't paid; must be within 120 days of the last day of labor |
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easment |
a nonpossessory right or interest in land owned by another |
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appurtenance |
something that has been added to something else and, as a result, becomes an inherent part of that to which it has been added |
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appurtenant easement |
runs with the land |
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easement in gross |
not dependent upon ownership of an adjoining property; no dominant tenement; could be a person or a corporation for life |
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adverse possession |
a method of acquiring title to real property by conforming to statutory requirement; involuntary alienation of title |
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O.C.E.A.N. |
Open, Continuous, Exclusive, Actual, Notorious |
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encroachment |
trespass on the land of another as a result of an intrusion or invasion by some structure or other object |
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ad valorem |
at assessed value |
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Fair Housing Act of 1968 |
prohibits discrimination based on race, color, religion, or national origin |
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Federal Fair Housing Amendments Act of 1988 |
added handicap and familial status as prohibited classes |
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government rectangular survey system |
survey system as land description but not in NC or other 13 cologies |
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township |
square -- 6x6 miles; 36 square miles in area |
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section |
1 square mile |
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plat |
property map |
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testate |
someone dies with a valid will |
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intestate |
someone dies without a valid will |
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deed |
written instrument that transfers an interest in real property when delivered to and voluntarily accepted by the grantee |
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lien foreclosure sale |
conducted without the consent of the property owner who incurred the debt that resulted in a lien |
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judicial deed |
executed by the official autorized by the court to conduct the sale and transfer the title |
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adverse posession |
method of acquiring title to real property by conforming to statutory requirement (O.C.E.A.N) |
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color of title |
a document that appears to give him or title to the property but actually does not |
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escheat |
occurs when no one is eligible to receive the property of the intestate |
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eminent domain |
the right to take property |
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condemnation |
the act of actually taking the property |
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essential elements of a deed: |
- writing - competent grantor - legal description - words of conveyance - execution (signed) - delivery and acceptance |
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words of conveyance |
words demonstrating that it is the grantor's intention to transfer the title to the named grantee |
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types of deeds |
General Warranty Special Warrant Quitclaim Deed |
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special warranty deed |
warranty is limited to claims that happened during period that grantor owned |
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quitclaim deed |
contains no warranties whatsoever but is a deed of release |
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cloud on a title |
possible claim against a title |
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excise tax |
based on the consideration received by the seller in the sale of the real property by deed |
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title examination |
determines the quality of the title; only attorney can give legal opinion |
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title insurance |
an indemnity contract that protects the purchaser or mortgagee against loss resulting from a defect in title that is covered in the policy and is in existence when the policy becomes effective; $2 per every thousand |
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Conner Act |
provides that certain real estate documents are not valid against third parties until recorded, therefore creating the need of protection ex. race to the courthouse |
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freehold estate |
an interest in land of at least a lifetime and is therefore generally identified with the concept of title or ownership - estates of inheritance and estates not of inheritance |
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fee simple absolute |
provides the greatest form of ownership available in real property - rights of ownership and use during his lifetime, and then ownership will convey to heirs |
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fee simple determinable |
defeasible or qualified fee estate has certain stipulations; i.e. a property must be used for a college |
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fee simple subject to a condition subsequent |
title will continue so long as the property is not used for a restricted purpose |
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pur autre vie |
for the life of another; measuring life is someone other than the grantee |
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life estate |
noninheritable; available only for the grantee's lifetime |
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alienation |
transfer his or her title to another person or pledge the title as security for a debt |
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ownership in severalty |
title to real property is held in the name of only one person |
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joint/concurrent ownership |
simultaneous ownership of real property by two or more people |
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tenancy in common |
two or more persons holding title to a property at the same time, with no right of survivorship; i.e. upon death of a tenant, deceased's share goes to heirs |
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joint tenancy |
same interest, title at the same time, same degree; rights of survivorship (but not in NC) -- meaning that the surviving partners would automatically take over the share of a deceased partner |
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tenancy by the entirety |
limited to husband and wife; must be a legal marriage at the time that the husband and wife receive title to property |
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condominiums |
ownership includes airspace of individual unit, as well as co-ownership in the common areas of the condos |
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NC Condominium Act |
set specific requirements on offering for sale or resale a condominium created on or after October 1 |
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cooperative |
ownership of shares of stock in a corporation that owns a building containing cooperative apartments |
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time sharing |
any right to occupy a property for five or more separated time periods over a span of five or more years |
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PUD/planned unit development |
a small community that includes some form of cluster housing as well as recreational areas and supporting commercial activities like retail shops |
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encumbrance |
anything that diminishes the bundle or rights of real property |
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public land use controls |
government regulation of land use through zoning laws, building codes, subdivision ordinances, and environmental protection laws |
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zoning ordinance |
zoning map text of ordinance |
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nonconforming use |
when the use of property in a zoned area is different from that specified by the zoning code for that area (when land was being used for something prior to zoning or rezoning) |
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illegal use |
violation of a present zoning code/ordinance |
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zoning amendment |
an actual change in the zoning code itself |
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variance |
permitted deviation from specific requirements of the exisiting zoning ordinance |
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overlay district |
zoning device that superimposes one zoning area over another |