Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
133 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
'Or more' clause |
A clause in a promissory note that allows a borrower to pay it off early with no penalty. 'Subject |
|
|
|
'Subject-to' clause |
A buyer takes over the existing loan payments but assumes no personal liability for the loan. A.L.T.A |
|
|
|
A.L.T.A. |
American land title association |
|
|
|
A.L.T.A. Owner's Policy |
American Land Title Association policy of extended title insurance policy can be purchased by lender or buyer. |
|
|
|
A.L.T.A. Policy |
A.L.T.A. POLICY: American Land Title Association policy of extended title insurance policy can be purchased by lender or buyer. |
|
|
|
Abstract of title |
A full summary of all consecutive grants and wills records and judicial proceedings affect title to a specific parcel of real estate. |
|
|
|
Abstractor |
A person who, historically, searches out anything affecting the title to real property and summarizes the information in the findings. |
|
|
|
Acceleration Clause |
A clause in a loan document describing certain events that would cause the entire loan to be due. in the event the property described herein or any part hereof or any interest therein is sold conveyed alienato assigned or otherwise transferred by the maker or by the operation of law or otherwise all obligations secured by this instrument irrespective of the maturity dates expressed therein at the option of the payee thereof and without demand or notice shall immediately become due and payable. This phrase must be placed on note and trust deed and incorporated into instructions. |
|
|
|
Acceptance |
An unqualified agreement to the terms of an offer |
|
|
|
Access to property |
Seller will provide reasonable access to the property to buyer inspectors representing buyer to representatives of lending institutions for appraisal purposes or for any other purpose relating to the sale. |
|
|
|
Accession |
The acquisition of title to additional land or to improvements as a result of annexing fixtures or as a result of natural causes such as alluvial deposits along the banks of streams by accretion |
|
|
|
Accommodation recording |
I hand you herewith executed by-to which you are authorized to use in connection with the subject escrow. It is agreed that shall assume no responsibility in connection with recording of said- on my behalf as an accommodation to the undersigned. Affix $ documentary transfer tax (if a Deed) as total consideration is $-. Charge $-for transfer tax if applicable and for recordation of document. |
|
|
|
AMO |
Accredited Management Organization-A property management designation offered by the Institute of Real Estate Management (IREM) to property management companies that meet prescribed high standards |
|
|
|
ARM |
Accredited Residential Manager- a property management designation offered by the Institute of Real Estate Management (IREM) |
|
|
|
Accretion |
A buildup of soil by natural causes on property bordering a river, lake or ocean |
|
|
|
Accrued |
Accumulated over time |
|
|
|
Accrued depreciation |
The difference between the cost to replace the property and property's current appraised value |
|
|
|
Acknowledgment |
A formal declaration to a public official |
|
|
|
Action |
A lawsuit brought to court |
|
|
|
Action |
A lawsuit brought to court |
|
|
|
Actual age |
The real age of a building |
|
|
|
Actual depreciation |
That depreciation occurring as a result of physical, functional or economic forces, causing loss in value to a building |
|
|
|
Actual notice |
Notice given by possession of property |
|
|
|
Ad Valorem |
A Latin prefix meaning 'according to value.' Local governments levy real property tax based on the assessed value; property taxes are known as ad valorem taxes |
|
|
|
Agreement of sale |
A contract for the sale of real property where the seller gives up possession but retains the title until the purchase price is paid in full |
|
|
|
Agriculture land |
Land used for farming purposes including growing crops and raising livestock |
|
|
|
AH&MA |
The American Hotel and Motel Association-the only trade association representing the lodging industry |
|
|
|
AIDA Formula |
Marketing formula for ad writing for maximum results A-attention I-interest D-desire A-action |
|
|
|
Alienate |
Transfer ownership or sell |
|
|
|
Alienation clause |
Clause in a loan document that would allow the lender to call the entire loan due upon the sale of the property |
|
|
|
Additional interest due/pay |
The buyer and seller agree that disbursement of any payoffs for encumbrances being paid off at close of escrow must be received by the Lender by a specific date to avoid further accrual of interest. You are instructed to forward payoff funds to the lender and charge the appropriate account any fees at close of escrow. In the event the lender demands additional funds after the close of escrow buyer or seller agrees to deposit additional funds according to lender's instructions |
|
|
|
Adjustable Rate Mortgage (ARM) |
A note whose interest rate is tied to a flexible index. |
|
|
|
Adjusted cost basis |
Original basis plus capital improvements and costs of the sale, less depreciation if income producing |
|
|
|
Administrator/administratrix |
A person appointed by the court to handle the affairs of a deceased person when there is no one mentioned in a will to do so. |
|
|
|
Adverse possession |
Acquiring title to property by continued possession and payment of taxes |
|
|
|
After acquired title |
Any benefits that come to a property after a sale must follow the sale and accrue to the new owner |
|
|
|
Agency |
A relationship in which one party (principal) authorizes another party (agent) to act as the principal's representative in dealing with third parties |
|
|
|
Agency relationship confirmation |
The following agency relationship is hereby confirmed for this transaction: The selling agent is the agent of the buyer exclusively; or seller exclusively; or both the buyer and seller. |
|
|
|
Agent |
A person who acts for and in the place of another, called a principal, for the purpose of affecting the principal's legal relationship with third persons |
|
|
|
All-inclusive trust deed |
A purchase money deed of trust subordinate to-but still including the original loan |
|
|
|
Alluvial deposit |
Sand or mud carried by water and deposited on land |
|
|
|
Alluvium |
Soil that builds up as a result of accretion |
|
|
|
Amending previous instructions |
These instructions supersede and amend any previous instructions in your escrow no.-relative to the terms set forth. These instructions shall be your authority to act as directed in your capacity as escrow agent |
|
|
|
ADA |
Americans with Disabilities Act- a law passed by congress in 1990 requiring any business or public facility to be accessible to everyone including those with disabilities |
|
|
|
ADAAG |
Americans with Disabilities Act Accessibility Guidelines- a document which provides standards to be observed in the design construction and alteration of buildings that come under the jurisdiction of the ADA |
|
|
|
Annual net income |
(Net operating income) the amount of income left from an income-producing property after all expenses have been deducted |
|
|
|
APR |
Annual Percentage Rate-the relationship of the total finance charge to the total amount to be financed as required under the Truth-in-Lending-Act |
|
|
|
Appraisal |
An estimate or opinion of value supported by factual information as of a certain date |
|
|
|
Appraisal report |
A written report stating an appraiser's estimate of a subject property's value |
|
|
|
Appreciation |
Increase in value |
|
|
|
Appurtenance |
The rights, privileges and improvements that belong to and pass with the transfer of real property but are not necessarily a part of the actual property |
|
|
|
Arm's length transaction |
A transaction, such as a sale of property, in which all parties involved are acting in their own self-interest and are under no undue influence or pressure from other parties |
|
|
|
AHERA |
Asbestos Hazard Emergency Response Act-a Le passed by congress in 1986 which amends the toxic substances control act (TSCA). Requires all public schools to be inspected for the presence of the asbestos and to remedy the problem if it is likely to be hazardous to people's health. |
|
|
|
Assessment roll/tax roll |
List of all taxable property showing the assessed value of each parcel; establishes the tax base |
|
|
|
Asset manager |
(Portfolio manager)-An executive who overseas the firms real estate resources setting goals and interests. |
|
|
|
Assignee |
Person to whom a claim, benefit is right in property is made |
|
|
|
Assignment |
The transfer of a claim, benefit it right in property from one person to another |
|
|
|
Assignment of rents |
Agreement between a property owner and the holder of a trust deed or mortgage by which the holder receives as security the right to collect rents from tenants of the property in the event of default by the borrower. |
|
|
|
Assignor |
Person transferring a claim, benefit or right in property to another |
|
|
|
Assumption clause |
Buyer takes over the existing Lin and agrees to be liable for the repayment of the loan |
|
|
|
Attorney in fact |
A competent and disinterested person who is authorized by another person to act in his or her place in legal matters |
|
|
|
Avulsion |
The sudden washing or tearing away of land by the action of water |
|
|
|
Relationship of loyalty and trust that exists between a principal and agents most resembles... |
Trustee and beneficiary |
|
|
|
Fiduciary applies to the relationships between people in many different positions. It doesn't apply to... |
Trustor and beneficiary (borrower to lender) |
|
|
|
An agency relationship is created by... |
Express agreement, ratification, and estoppel |
|
|
|
Which of the following relationships is closest between broker and seller? |
Trustee and beneficiary. |
|
|
|
By accepting the actions of an agent, even though there is no contact, s seller may create an ang envy by... |
Ratification |
|
|
|
Ratification |
Acceptance of an act already performed. Ratification of an agency relationship is created by approving acts after they're done |
|
|
|
The fiduciary relationship between an agent and the principal is comparable to |
Trustee (agent) and beneficiary under a deed of trust |
|
|
|
The two parties in a listing contact are |
Broker and owner (seller)- the broker is working in a position of trust (fiduciary) for the seller |
|
|
|
Special agency |
Called upon to perform a specific task such as a listing ( a contract between an owner of real property and an agent who is authorized to obtain a buyer) |
|
|
|
Three steps required under the agency disclosure law: |
Disclosure, elect, and confirm |
|
|
|
A property manager |
Is an agent/broker who manages property for his principal. According to the law of agency, the agent may not gain any advantage over his principal |
|
|
|
Notice of trustee's sale may be recorded |
Three months after a notice of default is recorded |
|
|
|
What terminates easements |
Destruction of the serving tenement
Merger of the dominant and service the tenement
Express release by the owner of the dominant tenement |
|
|
|
Anyone who sells a promissory note for less than its value is: |
Discounting a note |
|
|
|
Financing statements are to be filed with |
Secretary of State |
|
|
|
Promissory note |
A written promise or order to pay-evidence of debt |
|
|
|
Maximum lease on property |
Agriculture: 51 years City and non-agricultural: 99 years |
|
|
|
Trust funds |
Money received by real estate brokers or salespersons on behalf of others |
|
|
|
State sales tax |
A tax on tangible personal property |
|
|
|
Pro rata |
When an insurance company cancels a policy the refund is prorated |
|
|
|
Pro rata |
When an insurance company cancels a policy the refund is prorated |
|
|
|
Short rate |
When the insured cancels the policy |
|
|
|
Square footage measured by: |
The outside perimeter of the house, excluding the garage |
|
|
|
Real estate syndicates: |
May operate as partnerships, corporations, or real estate investment trusts |
|
|
|
How many years does a taxpayer have to pay delinquent taxes before losing the title of the property |
5 years |
|
|
|
Regulation Z |
Specific credit terms such as down payment, monthly payment, and dollar amount of the finance charge may not be advertised by itself |
Requires borrowers to be informed about the cost of borrowing money |
|
|
Affirmation |
Declaration as to the truth of a statement, and is used in lieu of an oath by a person who objects for personal, or religious reasons |
|
|
|
Cost approach |
Tends to set the upper limit of value for a property |
|
|
|
Easement |
The right to use another's land for a specified purpose sometimes known as right of way |
|
|
|
Lock in clause |
Prohibits borrowers from paying off a loan in advance |
|
|
|
Dimensions equivalent to an acre |
43,560 SF
180' X 242'
1/640 of a section |
|
|
|
Lien |
A claim on the property of another for the payment of a debt |
|
|
|
Ratification |
Approval of a previously authorized act, performed on behalf of a person, which makes the act valid and legally binding |
|
|
|
Estoppel |
Legally prevents a person from denying something to be true or a fact which is contrary to previous statements made by that same person |
|
|
|
Appropriation |
Taking something public for private use |
|
|
|
Eminent domain |
The right of the government to take private property for public good |
|
|
|
Contingency |
Conditions that must be met that are set forth in the contract |
|
|
|
Accretion |
The way one acquires a title-how is a title accredited to you |
|
|
|
Accretion |
The way one acquires a title-how is a title accredited to you |
|
|
|
Prorate |
Distribute |
|
|
|
Capitalization |
Calculating the worth of a property on its capacity to produce income |
|
|
|
Alienate |
Transfer |
|
|
|
Alienate |
Transfer |
|
|
|
Injunction |
Court order |
|
|
|
Lis pendens |
Pending legal action |
|
|
|
Wrap around loan |
(All inclusive trust deed AITD) Method of financing where a new loan is placed in a secondary position-includes unpaid principal balance |
|
|
|
Void |
An agreement which is absent of legal effect |
|
|
|
Voidable |
An agreement which is valid and enforceable in its face, but may be rejected |
|
|
|
Vested |
Owned by |
|
|
|
Vendor |
The seller under a contact of sale (land contract) |
|
|
|
Vendee |
A buyer under contract of sale (land contract) |
|
|
|
VRM |
Variable Rate Mortgage: where the interest rate varies according to an agreed upon index |
|
|
|
Unilateral contract |
Agreement which one party promises to pay consideration of to someone in return for the performance of an act by another party (promise for an act) |
|
|
|
Trustor |
The borrower under a deed of trust |
|
|
|
Trustees sale |
Forced sale of real property by a lender to satisfy a debt |
|
|
|
Trustees deed |
A deed given to a buyer of real property at a trustees sale |
|
|
|
Trustee |
Holds legal title to property as a neutral third party where there is a deed of trust |
|
|
|
Trust deed |
Document where title to property is transferred to a third party trustee as a security for a debt owed by the trustor (borrower) to the beneficiary (lender) |
|
|
|
Triple nets |
Tenant pays rent utilities, property taxes, special assessments and insurance premiums |
|
|
|
TSCA |
Toxic substances control act 1976 |
|
|
|
Tort |
Negligent or intentional wrongful act arising from breach of duty created by law and not contract |
|
|
|
Title |
Evidence of ownership of land |
|
|
|
Tight money |
Supply of money is limited, and demand for money is high-example: high interest rates |
|
|
|
Testator/testatrix |
A person who has made a will |
|
|
|
Second trust deed |
Evidence of a debt that is recorded after a first trust deed; a junior trust deed |
|
|
|
Fully amortized note |
Fully repaid at maturity by periodic reduction of the principal |
|
|
|
Partially amortized note |
Promissory note with a repayment schedule that is not sufficient to amortize the loan over its term |
|
|
|
Straight note |
Payments of interest only are made periodically during the term |
|
|
|
Less than freehold estate |
Estate for years |
|
|
|
Five test for fixture: |
MARIA: method of attachment, adaption, relationship of the parties, intention, and agreement of the parties |
MARIA |
|
|
What kind of agency is a listing? |
Special agency: A contact between owner of real property and an agent who is authorized to obtain a buyer) |
|
