Pre Exam Study - likely on test Flashcards
Any estate for a definite period of time, such as a lease.
Title
Estate for Years
Foreclosure
Estate for Years
Loss of desirability and useful life of a property through economic forces, such as zoning changes, traffic pattern changes, etc., rather than deterioration.
Bundle of Rights
Regulation Z
Economic Obsolescence
Economic Obsolescence
One who owns property alone.
Blockbusting
Tenant in Severalty
Deed
Tenant in Severalty
(1) Actual notice - Express or implied knowledge of a fact. (2) Constructive notice - A fact, imputed to a person by law, which should have been discovered because of the person’s actual notice of circumstances and the inquiry that a prudent person would have been expected to make. (3) Legal Notice - Information required to be given by law.
Build to Suit
Priority of Lien
Notice
Notice
Any division of real property between co-owners, resulting in individual ownership and interests.
Duress
Bundle of Rights
Partition
Partition
An estate of property held by one person alone. Sole ownership.
- Valuation
- Severalty
- Police Power
Severalty
A conveying written instrument used to pass title to property upon sale from one person (grantor) to another person (grantee). To be valid, a deed must be properly executed and delivered.
Mortgage
Deed
Balloon Payment
Deed
A deed operating as a release, intended to pass any title, interest, or claim which the grantor may have in the property, but not containing any warranty of a valid interest or title by the grantor.
Quitclaim Deed
Estate for Life
Grantor
Quitclaim Deed
One who comes into possession lawfully, but who holds over after termination of his interest.
Planned Development
Tenant at Sufferance
Duress
Tenant at Sufferance
The intentional and successful employment of any cunning, deception, collusion used to circumvent, cheat or deceive another person whereby that person acts upon it to the loss of property and to legal injury. Actual fraud is a deliberate misrepresentation or representation made in reckless disregard of its truth or its falsity, the suppression of truth, a promise made with out the intention to perform it or any other act intended to deceive.
Deferred Maintenance
Contract for Deed
Fraud
Fraud
Having force or binding force, legally sufficient, and authorized by law.
Tenancy by the Entirety
Valid
Mortgage
Valid
Clause in a mortgage or deed of trust giving the mortgagee or trustee the power to sell the property in the event of default.
Power of Sale
Satisfaction
Option
Power of Sale
An outlining on a map of certain high risk areas for real estate loan purposes, meaning that lenders will not extend credit in those areas. Illegal in most states.
Estate from Period to Period
Redlining
Trade Fixtures
Redlining
The process by which real or personal property of a party to a lawsuit is seized and retained in the custody of the court for the purpose of acquiring jurisdiction over the property, to compel an appearance before the court, or to furnish security for a debt or costs arising out of the litigation.
Purchase Money Mortgage or Trust Deed
Attachment
Life Estate
Attachment
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 a periodic tenancy.
Estate from Period to Period
Statutory Lien
Basis
Estate from Period to Period
An installment contract for the sale of real estate where the seller has legal title until paid in full. The buyer only has equitable title during the contract term. Also known as a land sale contract or installment sale contract.
Contract for Deed
Goodwill
Exclusive Right to Sell
Contract for Deed
An estate of inheritance in real property.
Condition
Redlining
Fee
Fee
Marketable real or personal property which a borrower pledges as security for a loan. In mortgage transactions, specific land is the collateral to secure the performance of a principal agreement (the promissory note).
Market Data Approach
Balloon Note
Collateral
Collateral
Similar properties used as comparisons to determine the value of a specific property. Also known as comparable sales.
Comparables
Planned Development
Novation
Comparables
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 owner’s land provide such use does not injure other riparian owners.
Easement
Land Sales Contract
Riparian Rights
Riparian Rights
Used to determine a cap rate using a weighted average of select rates.
Assigns, Assignees
Band of Investment
Agency
Band of Investment
A method of acquiring title by possession under certain conditions. Generally, possession must be open, continuous, and hostile. Exact time of possession and specific requirements vary from state to state.
Assumption
Adverse Possession
Power of Sale
Adverse Possession
A reversion of property to the state in the absence of an individual owner, usually when a property owner dies without a will.
Gross Rent Multiplier
Escheat
Bill of Sale
Escheat
A mortgage or trust deed given from buyer to seller to secure all or a portion of the purchase price.
Riparian Rights
Contract
Purchase Money Mortgage or Trust Deed
Purchase Money Mortgage or Trust Deed
A general term which encompasses any method of financing property going beyond traditional real estate lending.
Creative Financing
Basis
Fiduciary
Creative Financing
A short term warranty deed which warrants by inference that the seller is the undisputed owner, has the right to convey the property, and will defend the title if necessary. It protects the purchaser in that the conveyor covenants to defend all claims against the property. If conveyor fails to do so, the new owner can defend said claims and sue the former owner.
Fraud
Statutory Warranty Deed
Grantee
Statutory Warranty Deed
A time period during which a mortgage, deed of trust, or contract can be redeemed. Usually set by statute, and after judicial foreclosure.
Free and Clear
Undivided Interest
Redemption Period
Redemption Period
An estate in real property for the life of a living person. The estate then reverts back to the grantor or to a third party.
Estate for Life
Free and Clear
Dedication
Estate for Life
Land and anything permanently affixed to the land such as buildings, fences, trees, and those things attached to the buildings, such as heating and plumbing fixtures, light fixtures, or other such items.
Real Estate
Reversion
Fiduciary Duty
Real Estate
A partial interest by two or more people in the same property, regardless of the equality of the interests.
Attest
Fraud
Undivided Interest
Undivided Interest
An estate or interest in real property which is held for the duration of the life of some certain person. It may be limited to the life of the person holding it or by the life of some other person.
Life Estate
Lien Theory
Domicile
Life Estate
Appraising the value of property by comparing the price of similar properties (comparables) recently sold. This is the most widely used of the three methods of appraisal for residential property.
Market Data Approach
Severalty
Mortgagor
Market Data Approach
Personal property. Also goods or every species of property movable or immovable which are not real property.
Sublease
Purchase Agreement
Chattel
Chattel
Land that borders a lake or ocean.
Prescriptive Easement
Principal Of Substitution
Littoral
Littoral
Laws requiring certain types of contracts to be in writing. All contracts for the sale of real property must be in writing, and leases for more than one year must be in writing.
- Distress Sale
- Statute of Frauds
- Dedication
Statute of Frauds
Having force or binding force, legally sufficient, and authorized by law.
Mortgagee
Valid
Proration
Valid
The practice on the part of unscrupulous speculators or real estate agents of inducing panic selling of homes at prices below market value, especially by exploiting the prejudices of property owners in neighborhoods in which the racial make-up is changing or appears to be on the verge of changing. This practice is prohibited by fair housing laws.
Blockbusting
ALTA Title Policy
Appurtenance
Blockbusting
The filing of documents affecting real property as a matter of public record, giving constructive notice to future purchasers, creditors, or other interested parties.
Mortgagee
Recording
Real Estate
Recording
The process of canceling a defeasible title to land, such as created by a mortgage foreclosure or tax sale.
Testate
Redemption
Habendum Clause
Redemption
The determination of present value of income property by taking the annual net income and dividing by a rate of return percentage which is commonly acceptable to buyers of similar properties (i.e. $10,000 / 11% = $90,909).
Conveyance
Capitalization
Trustor
Capitalization
Similar to a mortgage. A security instrument whereby real property is given as security for a debt. See Trust Deed.
Void
Market Data Approach
Deed of Trust
Deed of Trust
A legal theory under which a person is barred from asserting or denying a fact because of the person’s previous acts or words.
Duress
Township
Estoppel
Estoppel
One who transfers property or property rights. One who gives a deed.
Eminent Domain
Grantor
Domicile
Grantor
A legal document pledging collateral for a loan that has first priority over all other claims against the property except taxes and bonded indebtedness. The trust deed that is superior to all others, usually determined by the order in which it was recorded.
Tenant in Severalty
Equity
First Trust Deed
First Trust Deed
Everything capable of being owned and acquired lawfully. The rights of ownership. The right to use, possess, enjoy and dispose of a thing in every legal way and to exclude everyone else from interfering with these rights.
Power of Attorney
Property
Mortgage
Property
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. The tax on the gain is postponed under the rules of IRS Code Section 1031. Also known as a 1031 Exchange.
Deed
Blockbusting
Tax Free Exchange
Tax Free Exchange
The rights in real property to the reasonable use of the air space above the surface of the land.
Air Rights
Collateral
Null and Void
Air Rights
One who holds title to real property under the terms of a deed of trust.
Trustee
Property
Void
Trustee
This is the amount of money that would be paid for a property offered on the open market for a reasonable period of time with both buyer and seller knowing all the uses to which the property could be put and with neither party being under pressure to sell or buy.
Fair Market Value
Subagent
Attest
Fair Market Value
A lien which is senior or superior to all others.
Prior Lien
Base and Meridian
Assignor
Prior Lien
Affirms that the maximum value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property, assuming no costly delay is encountered in make the substitution.
Lien Theory
Principal Of Substitution
Free and Clear
Principal Of Substitution
Any estate for a definite time period (a lease).
- Statute of Frauds
- Lien Theory
- Tenancy for Years
Tenancy for Years
An acre (43,560 square feet), as distinguished from a net (usable) acre.
Fee Simple Estate
Testate
Gross Acre
Gross Acre
A form of ownership by husband and wife whereby each owns the entire property. In the event of the death of one, the survivor owns the property without probate.
Ownership
Tenancy by the Entirety
Dual Agency
Tenancy by the Entirety
Generally, construction onto the property of another, as of a wall, fence, building, etc.
Encroachment
Base and Meridian
Market Value
Encroachment
A comparison of similar properties to a subject property for the purpose of evaluating market value and proper pricing.
Assignor
Comparative Analysis
Statute of Limitations
Comparative Analysis
One who assigns or transfers property.
Prior Lien
Assignor
Mortgagee
Assignor
The giving of land by its owner to a public use and the acceptance for such use by authorized officials on behalf of the public.
Dedication
Lien
Contract
Dedication
The granting of an easement by a court, based on the presumption that a written easement was given, although none existed, after a period of open and continuous use of land.
Prescriptive Easement
Restriction
Estate from Period to Period
Prescriptive Easement
Gains realized from the sale of capital assets, and generally the difference between cost and selling price minus deductible expenses. Used mainly for income tax purposes.
Statute of Limitations
Capital Gains
Band of Investment
Capital Gains
A governmental right to acquire property for public use by condemnation, and the payment of just compensation.
Capital Gains
Eminent Domain
Null and Void
Eminent Domain
To have no force or effect. That which is unenforceable.
Trust Deed
Void
Eminent Domain
Void
An agency of the federal government that insures private mortgage loans for financing of new and existing homes and home repairs.
Bill of Sale
Littoral
Federal Housing Administration (FHA)
Federal Housing Administration (FHA)
(1) The person who gives authority to an agent or attorney. (2) Debt amount, less the interest.
Principal
Quiet Title
Ad Valorem
Principal
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 (HUD).
Option
Condemnation
Real Estate Settlement Procedures Act (RESPA)
Real Estate Settlement Procedures Act (RESPA)
An appraisal method to determine the value of rental property by use of the estimated net income over the life of the structure. The calculation of value is a three step process, 1) determine net annual income, 2) set an appropriate capitalization rate or “present worth” factor, and 3) capitalize the income dividing the net income by the capitalization rate.
Income (Capitalization) Approach
Condition
Lis Pendes
Income (Capitalization) Approach
The building of a structure to meet the specifications of a purchaser.
Involuntary Lien
Prescriptive Easement
Build to Suit
Build to Suit
The required computation of financial adjustment between buyer and seller as of the day of closing. The final statement in most real estate transactions is known as the Closing Disclosure (CD).
Lien
Closing Statement
Open Listing
Closing Statement
An estate which takes effect after the termination of the prior estate, such as a life estate. A future possessory interest in real property.
Encumbrance
Remainder
Severalty
Remainder
An instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor) in favor of a lender (beneficiary) and reconveyed upon full payment.
Market Data Approach
Market Value
Trust Deed
Trust Deed
Discharge of an obligation by payment of the amount due, as on a mortgage or trust deed, or payment of a debt awarded, such as satisfaction of a judgment.
Valuation
Satisfaction
Lease
Satisfaction
Ownership by one who does not have legal title, such as a vendee under a land sales contract.
Exclusive Right to Sell
Ad Valorem
Equitable Ownership
Equitable Ownership
A legal theory under which a person is barred from asserting or denying a fact because of the person’s previous acts or words.
Estoppel
Estate of Inheritance
Subrogation
Subrogation
The interest or nature of the interest which one has in property.
Subrogation
Government Patent
Estate
Estate
Land that borders a lake or ocean.
Littoral
Exclusive Right to Sell
Note
Littoral
A subdivision consisting of separately owned parcels of land together with memebership in an association which owns common area. Sometimes the owners of separate interests also have an undivided interest in the common area.
Planned Development
Caveat Emptor
Estate for Life
Planned Development
The right to future possession or enjoyment by a person or the person’s heirs, creating the preceding estate.
Chain of Title
Reversion
Chattel
Reversion
To affirm to be true or genuine. An official act establishing authenticity.
Redemption Period
Personal Property
Attest
Attest
A person upon whom the powers of an agent have been conferred by an agent as authorized by the agent’s principal.
Subagent
Federal Housing Administration (FHA)
Condemnation
Subagent
Agreement by a buyer to assume the liability under an existing note secured by a mortgage or deed of trust.
Agent
Assumption
Attest
Assumption
An undivided ownership in real estate by two or more persons. The interests need not be equal, and upon death of a co-tenant, the interest passes to the deceased co-tenant’s heirs.
Tenant at Will
Federal Housing Administration (FHA)
Tenancy in Common
Tenancy in Common
One who acts for and with authority from another called the principal.
Base and Meridian
Trade Fixtures
Agent
Agent
Personal property which is attached to real property and is legally treated as real property while it is so attached.
Fixtures
Option
Subagent
Fixtures
An estate of inheritance in real property.
Fee
Rescission
Statutory Lien
Fee
Laws requiring certain types of contracts to be in writing. All contracts for the sale of real property must be in writing, and leases for more than one year must be in writing.
Basis
Purchase Agreement
Statute of Frauds
Statute of Frauds
The clause in a deed which defines the extent of the estate of the grantee. It is often referred to as the “to have and to hold” clause.
Habendum Clause
Band of Investment
Exclusive Right to Sell
Habendum Clause
(1) In contract law, a future and uncertain event which must happen to create an obligation or which extinguishes an existent obligation. (2) In conveyances of real property, conditions in which the conveyance may cause an interest to be vested or defeated.
Real Estate Settlement Procedures Act (RESPA)
Band of Investment
Condition
Condition
Imaginary lines used by surveyors to find and describe the location of private or public lands. In government surveys, a base line runs due east and west, meridians run due north and south, and are used to establish township boundaries.
Trust Deed
Base and Meridian
Tenancy for Years
Base and Meridian
An estate of inheritance in real property.
Fee
Quiet Enjoyment
Voluntary Lien
Fee
To repossess or a court action to repossess.
Replevin
Exclusive Right to Sell
Planned Development
Replevin
The amount of money the borrower or seller must pay the lender to get a mortgage at a stated interest rate. A point is equal to one percent of the loan amount.
Estate
Fee Simple Estate
Discount Points
Discount Points
An estate under which the owner is entitled to unrestricted powers to dispose of the property, and can be left by will or inherited. The greatest interest one can have in real property.
Assumption
Tenant in Severalty
Fee Simple Estate
Fee Simple Estate
A lien placed against real property by the voluntary act of the owner. Most commonly, a mortgage or deed of trust.
Voluntary Lien
Prescription
Unearned Increment
Voluntary Lien
The representation by an agent of opposing principals (buyer and seller) at the same time. This practice is legal only if properly disclosed.
Dual Agency
Power of Attorney
Estoppel
Dual Agency
Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse. Each spouse has equal rights of management, alienation and testamentary disposition of community property. Washington and California are examples of community property states.
Community Property
Subordinate
Bundle of Rights
Community Property
A second or junior mortgage with a face value of both the amount it secures and the balance due under the first mortgage. The mortgagee under the wrap-around collects a payment based on its face value and then pays the first mortgagee.
Wrap-Around Mortgage
Restriction
Contract
Wrap-Around Mortgage
The borrower under a deed of trust. One who deeds his property to a trustee as security for the repayment of a loan.
Gross Rent Multiplier
Trustor
Priority of Lien
Trustor
A court action brought to establish title. To remove a cloud on the title.
Power of Sale
Quiet Title
Lis Pendes
Quiet Title
