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66 Cards in this Set
- Front
- Back
Percentage Rent |
All or part of the rental is based on the gross receipts of the tenants business estate |
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Estate for years |
A lease with a definite begging and ending date lease |
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Lease |
The instrument used to create the leasehold estate |
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Graduated Lease |
A lease in which payments begins at a lower, fixed rate but gradually increase as the lease matures |
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Net lease |
A lease in which the tenant pays rent plus expenses to pay for taxes, insurance, repairs and utilities |
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Leasehold estate |
Gives the tenant possession without ownership Therefore, it is a non-freehold estate |
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Periodic Tenancy |
A lease that renews itself automatically for like periods. Month-to-month is a typical example |
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Tenancy at sufferance |
When the holdover tenant (one who’s lease has ended and refuses to leave) is occupying the leased property against the owners will |
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Tenancy at will |
A leasehold in which a tenant occupies real estate with the permission of the owner for an uncertain or unspecified length of time . |
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Gross lease |
A lease of property where the landlord pays charges regularly incurred in owners such as taxes, insurance l, utilities and repairs. The tenant only pays rent |
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Gross lease |
A lease of property where the landlord pays charges regularly incurred in owners such as taxes, insurance l, utilities and repairs. The tenant only pays rent |
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Lease Option |
Allows the tenant to buy the property at a present price and terms for a given period This can also be called a lease with an option to buy |
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Sale and leaseback |
One party sells the property then leases it back, usually for a long-term lease, freeing up capital for the investor-seller |
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Cash flow report |
A list of all cash that was received and all expenses paid out during a reporting period |
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Preventive maintenance |
Servicing a property and it’s equipment in order to prevent mechanical failure and keep property values high |
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Operating statement |
Compared each category of income and expense to a prior period’s report so that trends can be identified |
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Management agreement |
The property manager’s employment contract with the owner |
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Deferred Maintenance |
Deterioration of a property due to delayed maintenance |
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Property manager |
Hired by a investor to handle their property. They are either a employee or general agent to the owner |
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Commingling |
The act of mixing a client’s funds with a brokers business or personal funds |
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Trust account |
Contain the funds of numerous clients and properties as long as the broker properly accounts for them |
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Title |
Evidence of an individual’s right to possess land |
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Deed |
Document that conveys an interest in real estate from one party to another |
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Patent |
Transfers ownership from the government to a individual |
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Will |
A written expression of an individual’s desire of how his/her property will be distributed after death |
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Partition |
Divides property between joint tenants |
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Clear or Good Title |
Title that can be transferred to another |
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Clear or Good Title |
Title that can be transferred to another |
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Marketable title |
Title that a reasonable buyer would accept as clear |
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Equitable title |
An interest created by a legal document, such as that held by a buyer with a signed sales contract, who has not yet gone to closing. The buyer has an equitable estate or equitable title |
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Torrents system |
A property owner obtains a certificate like an automobile title that is recorded in the public records Texas does not use this system |
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Chain of title |
The history or list of all recorded owners back to the sovereignty of the soil meaning all owners since the title of the property was first transferred from the government to an individual |
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Cloud on the title |
Created when there is a break (any claim or encumbrance) A property under this cloud cannot be conveyed until the cloud is removed |
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Title commitment |
A statement of the condition of the title at a moment of time. It obligates the title company to issue a policy of insurance after any curative requirements have been met |
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Alienation |
Any change in the ownership of real property Can be voluntary or involuntary |
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Devise |
Real property conveyed by will |
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Interstate succession |
Occurs when an individual dies, leaving to valid will aka dies intestate and their property will be disposed under the provisions of the Texas Statute of Descent and Distribution |
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Descent |
Someone who receives property through the Texas Statute of Descent and Distribution after a family member dies intestate |
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Probate |
The formal judicial proceeding to prove or confirm the validity of a will to collect the assets of the decedents estate, to pay the debts and taxes and to determine the persons whom the remainder of the estate is to pass |
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Constructive notice |
The legal concept that a person received notice of a document or event even though the actual notice was not delivered directly to him or her |
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Assemblage or Plottage |
The combination of two or more properties into one. The action of combining the properties is usually called assemblage while the increased usability and value are referred to as plottage |
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Acknowledgement |
A statement made to a notary or one authorized to take oaths, that one’s signature was freely given |
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Escrow Agent |
Responsible for ensuring the closing follows the terms agreed to by the parties in the sales contract |
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Earnest money |
Usually 1-3% of the sales price of a property |
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Property inspection |
Provides the client with information regarding the general condition of the property |
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Title insurance policy |
Compensates or reimburses against losses sustained as a result of defects in the title |
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Closing Disclosure |
Firm that replaced the HUD-1 settlement statement |
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Loan Estimate |
Replaced the Food Faith Estimate, which had been in use since January of 2010 The Loan Estimate form combines elements of the Good Faith Estimate and the initial truth in lending disclosure into one-to-read disclosure form |
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RESPA |
Under RESPA rules, residential closings must be performed using the Closing Disclosure |
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Survey |
The survey is used to determine whether or not the information in the sales contract concerning the property’s boundaries is accurate |
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Appraisal |
Performed to ensure that the home is worth the loan amount being requested |
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Title commitment |
Divided into sections called “schedules” and must be delivered by the title company within 20 days or it’s receipt of the contract |
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Whole number |
Any number without a fraction |
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Whole number |
Any number without a fraction |
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Fraction |
A numerical quantity expressed as a numerator being divided by a denominator |
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Whole number |
Any number without a fraction |
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Mixed Number |
A whole number coupled with a fraction |
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Percentage |
A numerical expression that includes a percentage sign with 100 assumed as the denominator |
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Point |
1% of the loan amount |
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Prorations |
When calculating, use a 365-day year, unless stated otherwise |
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Volume |
Multiply the length x width x height The answer will be in cubic units (feet or cubic yards) |
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Area |
Of a rectangle or square-shaped space is equal to its height x width and is reflected in square units |
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Amortization |
The process of repaying a loan over a period of time in regular installments |
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Interest |
Is money paid at a particular rate for the use of money loaned to a person or entity |
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Profit |
Is equal to net revenue minus net costs |
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Commission |
Is a % of the sale price |