Term
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Definition
| A graduated payment buydown where the payments are subsidized for only two years, usually 2% the first year and 1% the second year. |
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Term
|
Definition
| A graduated payment buydown where the payments are subsidized for three years, usually 3% the first year and 2% the second year and 1% the third year. |
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Term
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Definition
| The failure to occupy and use property which may result in a loss of rights. |
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Term
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Definition
| A brief, chronological summary of the recorded documents affecting the title to a particular parcel of real property. COMPARE: Title Report. |
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Term
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Definition
| To make something go faster; in finance, making a loan come due faster by having all payments become due immediately |
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Term
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Definition
| A contract clause that gives the lender the right to declare the entire loan amount due immediately because of borrower's default, or other reasons as stated in the contract. |
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Term
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Definition
| 1. Agreeing to the terms of an offer to enter into a contract, thereby creating a binding contract. 2. Taking delivery of a deed. |
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Term
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Definition
| The acquisition of title to land by its addition to real estate already owned, through human actions or natural processes. |
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Term
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Definition
| An agreement to accept something different (and usually less) than what the original contract called for. |
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Term
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Definition
| A gradual addition to dry land by the forces of nature, as when the tide deposits water-borne sediment on shoreline property. |
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Term
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Definition
| When a person who has signed a document formally declares to an authorized official (usually a notary public) that he or she signed voluntarily. The official certifies that the signature is voluntary and genuine. COMPARE: Attestation. |
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Term
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Definition
| The purchase price of a property, plus (allowable) buyer paid closing costs. |
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Term
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Definition
| A law enacted by the U.S. Congress. |
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Term
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Definition
| Fraud that meets certain criteria, so that a victim can successfully sue. Victim/plaintiff must prove the defendant concealed material facts or made false statement (intentionally or negligently) with intent to in-duce victim to enter a transaction, and that the victim was harmed by relying on these misrepresentations. |
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Term
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Definition
| A physical attachment of personal property to land. |
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Term
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Definition
| Authority intentionally given to an agent by the principal, either expressly or by implication. |
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Term
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Definition
| SEE: Damages,Compensatory |
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Term
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Definition
| Physically forcing someone off of property, preventing someone from re-entering property, or using the legal process to make someone leave. COMPARE: Eviction, Constructive. |
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Term
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Definition
| An intentional misrepresentation or concealment of a material fact; when a person actively conceals material information, or makes statements that he or she knows are false or misleading. |
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Term
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Definition
| Actual knowledge of a fact, rather than knowledge imputed or inferred by law. |
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Term
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Definition
| A Latin phrase meaning 'according to value'; used to refer to taxes assessed on the value of property. |
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Term
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Definition
| Additional parts of an appraisal report. Addenda usually consist of photos of the subject house and comparables, a sketch of the subject's floor plan and a table for calculating the area of the subject, and a location map. |
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Term
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Definition
| Consideration that is comparable in value to the consideration the other party to the contract is giving. A contract is enforceable even if the consideration is inadequate, but a court cannot order specific performance in that case. |
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Term
| Adjustable-Rate (ARM) Mortgage |
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Definition
| A mortgage that permits the lender to periodically adjust the interest rate so that the rate reflects fluctuations in the cost of money. |
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Term
|
Definition
| A loan made by savings and loan associations that is very similar to an adjustable-rate mortgage. Also called ALM. |
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Term
|
Definition
| A mortgage that permits the lender to periodically adjust the interest rate so that the rate reflects fluctuations in the cost of money. Also called ARM. |
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Term
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Definition
| A government agency (federal, state, or local) that administers a complex area of law, adopting and enforcing detailed regulations that have the force of law. |
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Term
|
Definition
| A person appointed by the probate court to manage and distribute the estate of a deceased person when no executor is named in the will or there is no will. |
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Term
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Definition
| (job) An improvement in ones job position, given as a reason for changing jobs (as opposed to job hopping for no reason). |
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Term
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Definition
| Acquiring title to someone else's real property by possession of it. The possession must be open and notorious, hostile and adverse, exclusive, and continuous for more than 21 years. COMPARE: Prescription. |
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Term
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Definition
| Any public notification of property being offered for sale, and thus must follow guidelines of Regulation Z of Truth-In-Lending Act. |
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Term
|
Definition
| (foreclosure) Required notification of foreclosure sale by notifying the public of the date and time of the sale for three consecutive weeks in a newspaper (of general circulation) circulated in the county. |
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Term
|
Definition
| A person who makes an affidavit. |
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Term
|
Definition
| A sworn statement that has been written down and acknowledged; may be submitted as evidence in a trial. |
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Term
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Definition
| Ruling by an appeals court that the lower court's decision was correct, rejecting the appellant's arguments. |
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Term
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Definition
| Title acquired by a grantor after he or she attempted to convey property he or she did not own. |
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Term
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Definition
| The age at which a person gains legal capacity; in Ohio, 18 years old. COMPARE: Minor. |
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Term
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Definition
| A relationship of trust created when one person (the principal) gives another person (the agent) the right to represent the principal in dealings with third parties. |
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Term
| Agency Coupled with an Interest |
|
Definition
| When the agent has a personal interest in the subject of the agency; as when one co-owner has been authorized by the others to sell their property. |
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Term
| Agency Disclosure Statement |
|
Definition
| Form that states whether an agent is representing the seller or the buyer, or both, in a transaction. |
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Term
|
Definition
| A person licensed to represent another in a real estate transaction; or a person authorized to represent another (the principal) in dealings with third parties. |
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Term
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Definition
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Term
|
Definition
|
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Term
|
Definition
| The right to undisturbed use and control of the airspace over a parcel of land (within reasonable limits for air travel); may be transferred separately from the land. |
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Term
|
Definition
| The transfer of ownership or an interest in property from one person to another, by any means. |
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Term
|
Definition
| A contract clause that gives the lender certain stated rights when there's a transfer of ownership in property. (Often called a Due-On-Sale Clause.) |
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Term
|
Definition
| Money paid to an ex-spouse as part of a divorce settlement. (Alimony does not have to be revealed as a source of income if it's not counted to help repay the loan, but must be revealed as a debt obligation.) |
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Term
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Definition
| A site valuation method that separates the value of the land from the structures that sit on it by taking a ratio of the land or site value to the total property value, based on a typical property in the area. |
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Term
|
Definition
| The system of land ownership where anyone can own land. |
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Term
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Definition
| The solid material deposited along a shore by accretion. Also called alluvium. |
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Term
|
Definition
| When real estate is financed with terms or financing concessions other than those that are typical for conventional loans. |
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Term
| Alternative Financing Tools |
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Definition
| Specific financing programs or methods, not used in conventional financing, to help get a loan approved. |
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Term
|
Definition
| A home exterior material. |
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Term
|
Definition
| A tangible or intangible feature that enhances and adds value to real estate. |
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Term
|
Definition
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Term
| American Society of Appraisers |
|
Definition
| (ASA) A professional organization for real estate appraisers. |
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Term
| American Society of Home Inspectors® |
|
Definition
| (ASHI) The oldest and leading non-profit professional association for independent home inspectors. |
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Term
|
Definition
| When a loan a loan balance decreases because of periodic installments that pay principal and interest. COMPARE: Negative Amortization. |
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Term
|
Definition
| SEE: Negative Amortization Cap |
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Term
|
Definition
| In a zoning law, a provision that places time limits on nonconforming uses. Not permitted in Ohio. |
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Term
|
Definition
| A table or chart that shows the periodic payments, interest and principal requirements, and unpaid loan balance for each period of the life of a loan. |
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Term
|
Definition
| To calculate payments to pay off a debt by periodic installments, with payments going to pay principal and interest. |
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Term
|
Definition
| Loan where payments are applied to principal and interest. COMPARE: Fully Amortized Loan and Partially Amortized Loan. |
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Term
|
Definition
| Loans where payments are applied to principal and interest. |
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Term
|
Definition
| The amount of money at issue in a lawsuit; used as a limitation on the jurisdiction of some courts. |
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Term
|
Definition
| A trustee appointed by the Ohio Real Estate Commission to wrap up the brokerage business of a broker who dies. |
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Term
|
Definition
| Attaching personal property to land so that the law views it as part of the real property. |
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Term
|
Definition
| Person who owns an item as personal property and brings it onto real property, making it a part of the real property. |
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Term
|
Definition
| The total cost of financing a loan in percentage terms, as a relationship of the total finance charges to the total amount financed. Also called APR. |
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Term
|
Definition
| Document a defendant must file with the court in response to the plaintiff's complaint. |
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Term
|
Definition
| An economic theory that says value is created by expectation of future benefits. |
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Term
|
Definition
| When one party to a contract informs the other before the time set for performance that he or she does not intend to perform as agreed. |
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Term
|
Definition
| 1. When someone who has not been authorized to represent another acts as if he or she is that person's agent. 2. When an agent acts beyond the scope of his or her authority, giving a third party the impression that the acts are authorized. Also called ostensible agency. |
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Term
|
Definition
|
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Term
|
Definition
| The process in which a higher court reviews the decision of a lower court or an administrative tribunal. |
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Term
|
Definition
| The party who files an appeal because he or she is dissatisfied with the trial court's decision. Also called the petitioner. |
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Term
|
Definition
| The authority to hear an appeal (as opposed to conducting a trial). COMPARE: Jurisdiction, Original. |
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Term
|
Definition
| In an appeal, the party who did not file the appeal. Also called the respondent. |
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Term
|
Definition
| An estimate or opinion of the value of a piece of property as of a certain date. Also called valuation. |
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Term
|
Definition
| Non-profit organization, created by the nine (now eight) leading appraisal organizations, which is recognized as authority for professional appraisal standards. |
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Term
|
Definition
| (AI) A professional organization for appraisers, created in 1990 by the merger of the American Institute of Real Estate Appraisers and Society of Residential Appraisers. |
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Term
|
Definition
| A preliminary survey identifying the scope, character and amount of work needed to complete the appraisal. |
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Term
|
Definition
| A type of appraisal report that lets appraisers to fill in the blanks. |
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Term
|
Definition
| A person who estimates the value of property, especially an expert qualified to do so by education and experience. |
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Term
|
Definition
| Taking private property for public use, through the government's power of eminent domain. Also called condemnation. |
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Term
|
Definition
| Water rights allocated by government permit, according to an appropriation system. It is not necessary to own property beside the body of water in order to apply for an appropriation permit. COMPARE: Littoral Rights, Riparian Rights. |
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Term
|
Definition
| A right that goes along with ownership of real property; usually transferred with the property, but may be sold separately. |
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Term
|
Definition
| An easement that benefits a particular piece of property (dominant tenement). COMPARE: Easement in Gross. |
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Term
|
Definition
| SEE: Annual Percentage Rate |
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Term
|
Definition
| An alternative to going to court whereby the parties agree to submit facts and evidence to an impartial third party. |
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Term
|
Definition
| A variance that permits an owner to build a structure that does not strictly comply with the zoning law's setback requirements, height limits, or other rules affecting the size or placement of buildings. |
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Term
|
Definition
| SEE: Adjustable-Rate Mortgage |
|
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Term
|
Definition
| A transaction that occurred under typical conditions in the marketplace where each of the parties were acting in their own best interests. |
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Term
|
Definition
| An entity created by law, as (distinguished from a natural person, a human being); usually refers to a corporation. |
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Term
|
Definition
| A provision in a purchase agreement stating that the buyer accepts the property in its present condition. |
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Term
|
Definition
| SEE: American Society of Appraisers |
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Term
|
Definition
| A professional designation offered by the American Society of Appraisers. |
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Term
|
Definition
| A fibrous material that was once very common in many building materials because of its insulating and heat-resistant value. (Now banned in most places for most uses, and subject to strict EPA regulations.) |
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Term
|
Definition
| SEE: American Society of Home Inspectors® |
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Term
|
Definition
| The price the seller asked for the property when it was first put on the market. |
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Term
|
Definition
|
|
Term
| ASR Senior Residential Member |
|
Definition
| A professional designation offered by the American Society of Appraisers. |
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Term
|
Definition
| The combining of two or more parcels of land into one larger parcel. |
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Term
|
Definition
| The value placed on property by the taxing authority (e.g. county assessor) for the purposes of taxation. (Usually with real estate, this value is only a fraction of the real value.) |
|
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Term
|
Definition
| 1. A government's valuation of property for tax purposes. 2. A special assessment. |
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Term
|
Definition
| An official who determines the value of property for taxation. |
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Term
|
Definition
| The value of property based on specific investment criteria. |
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Term
|
Definition
| Items of value; usually refers to items owned by the borrower. |
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Term
|
Definition
| 1. To transfer a right or interest to another. 2. When a tenant transfers his or her right of possession, or other interest in leased property, to another person for the entire remainder of the lease term. COMPARE: Sublease. |
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Term
|
Definition
| Person to whom a right or interest has been assigned. |
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Term
|
Definition
|
|
Term
|
Definition
| A person who assigns a right or interest to another. |
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Term
|
Definition
| One who has qualified as a real estate broker but works for another broker. |
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Term
|
Definition
| Any loan for which an assumption may be exercised. |
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Term
|
Definition
| When one party takes over responsibility for the loan of another party, with terms of the loan or note remaining unchanged. (Usually lender approval is needed. Also, a release is needed or original party remains secondarily liable for the loan.) |
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Term
|
Definition
| Court-ordered seizure of property belonging to a defendant in a lawsuit, so that it will be available to satisfy a judgment. In the case of real property, attachment creates a lien. |
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Term
|
Definition
| A lien intended to prevent transfer of property pending the outcome of litigation. |
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Term
|
Definition
| When witnesses sign a legal document to affirm that the parties' signatures are real; the act of witnessing the execution of a legal document (such as a deed or will). COMPARE: Acknowledgment. |
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Term
|
Definition
| Any person authorized to act for another by a power of attorney; (not necessarily a lawyer, who is an attorney at law). |
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Term
|
Definition
| A method of selling property to the highest bidder, required for foreclosure sales to ensure the highest price is obtained. |
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Term
|
Definition
| A window style that is hinged on top. |
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Term
|
Definition
| A condition that exists in the real estate market when there are slightly more homes available than buyers. |
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Term
|
Definition
| (Framing) A type of framing where long studs go up the entire length of the house, from the foundation to the roof. |
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Term
|
Definition
| A final payment at the end of a loan term to pay off the entire remaining balance of principal and interest not covered by payments during the loan term. |
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Term
|
Definition
| A deed that implies the grantor owns the property and has the right to convey it, but does not carry any warranties. |
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Term
|
Definition
|
|
Term
|
Definition
| Main east-west lines designated and named throughout the country for use with the government survey system. |
|
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Term
|
Definition
| The part of a house or building which is partially or entirely below grade (ground level), and used to support the rest of the structure. |
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Term
|
Definition
| A window style that projects out from a wall. |
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Term
|
Definition
| Refers to credit condition of people with less-than-perfect credit, or serious blemishes on their credit report. Also used to refer to Sub-Prime Loans (see that entry). |
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Term
|
Definition
|
|
Term
|
Definition
| A type of credit scoring, where a number from 400-900 is assigned to a credit report. The lower the score, the greater the risk of default. Above 660 is an acceptable risk, 620-660 is a marginal risk, below 620 is a high risk. Also referred to as FICO Score. |
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Term
|
Definition
| SEE: Building Equity Mortgage |
|
|
Term
|
Definition
| One who receives a benefit; refers to the lender in a trust deed (see that entry). |
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Term
|
Definition
| To transfer personal property to another by a will. |
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Term
|
Definition
| Personal property transferred by a will. |
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Term
|
Definition
| A contract in which each party promises to do something. COMPARE: Contract, Unilateral. |
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Term
|
Definition
|
|
Term
|
Definition
| A proposed law, formally submitted to a legislature for consideration. |
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Term
|
Definition
| Borrowing a larger sum of money to pay off many smaller debts. |
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Term
|
Definition
| A document used to transfer title to personal property from one person to another. |
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Term
|
Definition
| A precedent that a particular court is required to follow, because it was decided by a higher court in the same jurisdiction. |
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Term
|
Definition
| A fixed rate mortgage, similar to a standard mortgage, but with payments made every two weeks instead of every month, thus making an extra payment each year. |
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Term
|
Definition
| When the holder of a note simply signs his or her name on the back of the note. (Done to transfer or cash in the note.) |
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Term
|
Definition
| 1. Mortgage that covers more than one parcel of real estate. 2. Mortgage that covers an entire building or development, rather than an individual unit or lot. |
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Term
|
Definition
| The illegal practice of inducing owners to sell their homes (often at a deflated price) by suggesting that the ethnic or racial composition of the neighborhood is changing, with the implication that property values will decline as a result. Also called panic selling. |
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Term
|
Definition
| Detailed building plans, used to evaluate design, determine feasibility and guide construction of a structure. |
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Term
|
Definition
| A seven member committee that controls the Federal Reserve System. Also called the Federal Reserve Board. |
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Term
|
Definition
|
|
Term
|
Definition
| Mortgage backed securities issued by GNMA, which are long-term, pay interest semi-annually, and provide for repayment at a specified date. |
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Term
|
Definition
| Money paid to someone in addition to his or her regular salary. (May only be counted as income if they are consistent.) |
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Term
|
Definition
| The value of property as capital based on accounting methods. |
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Term
|
Definition
| Unlike property thrown into a deal to balance the value. (Taxable as part of an exchange. |
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Term
|
Definition
| The perimeter or border of a parcel of land; the dividing line between one piece of property and another. |
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Term
|
Definition
| Violation of an obligation, duty, or law. |
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Term
|
Definition
|
|
Term
|
Definition
| An unexcused failure to perform according to the terms of a contract. |
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|
Term
|
Definition
| A home exterior material. |
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Term
|
Definition
| A mortgage that occurs between the termination of one mortgage and the beginning of the next. When the next mortgage is taken out, the bridge is repaid. |
|
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Term
|
Definition
| The amount of heat needed to raise the temperature of one pound of water by one degree Fahrenheit. (Measure of furnace, A/C capacity.) |
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Term
|
Definition
| One who is licensed to represent one of the parties in a real estate transaction, for compensation. |
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Term
|
Definition
|
|
Term
|
Definition
| SEE: British Thermal Unit |
|
|
Term
|
Definition
| A mortgage agreement where payments include principal and interest on the loan, plus 1/12 of the year's property taxes and hazard insurance premiums as well. |
|
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Term
|
Definition
| Government regulations specifying minimum construction and building standards to safeguard the health, safety, and welfare of the public. |
|
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Term
|
Definition
| SEE: Growth Equity Mortgage |
|
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Term
|
Definition
| A process whereby local government employees, often engineers, are charged with ensuring compliance with state and local building codes. |
|
|
Term
|
Definition
| Official documents from a local government or other authority that allow the beginning of a construction or remodeling project. |
|
|
Term
| Built-Up/Hot Asphalt on Felt |
|
Definition
|
|
Term
|
Definition
| A provision in a purchase agreement that allows the seller to keep the property on the market until a condition in the contract is fulfilled. |
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Term
|
Definition
| All real property rights that are conferred with ownership, including right of use, right of enjoyment and right of disposal. |
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Term
|
Definition
| The responsibility for proving or disproving a particular issue in a lawsuit. The plaintiff usually has the burden of proof. |
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Term
|
Definition
|
|
Term
|
Definition
| General swings in business activity, resulting in expanding activity and contracting activity during different phases of the cycle. |
|
|
Term
| Business Name Certificate |
|
Definition
| Partnership document listing the names and addresses of all partners, which must be filed in the county where the partnership office is located before property can be held in a partnership's name. |
|
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Term
|
Definition
| When additional funds in the form of points are paid to a lender at the beginning of a loan to lower the interest rate and monthly payments on the loan. |
|
|
Term
|
Definition
| A situation in the housing market where buyers have a large selection of properties to choose from. |
|
|
Term
|
Definition
| Clause that lets lender demand full payment of a loan now. (verb: Call a Note.) |
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|
Term
|
Definition
| Terminating an obligation, such as when a note is cancelled after payment, or when PMI is cancelled after certain conditions are met. |
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|
Term
|
Definition
| Limit, usually used with ARMs, to protect borrowers from large increases. |
|
|
Term
|
Definition
| Legal ability to perform some act, such as enter into a contract or execute a deed or will. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Profit made from an investment. |
|
|
Term
|
Definition
| A way to convert a property's income figure into an estimated value. |
|
|
Term
| Capitalization of Ground Rents Method |
|
Definition
| A site valuation method that takes an estimated value of improvements and subtracts that from the total sales price to derive a figure for the land value. |
|
|
Term
|
Definition
| A percentage rate of return used by investors to calculate the present value of future income. Used for an income approach to appraisal. Also called Rate. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Rules of law developed in court decisions, as opposed to constitutional law, statutory law, or administrative regulations. |
|
|
Term
|
Definition
| A window style that is hinged on the side. |
|
|
Term
|
Definition
| Money available to an individual on a regular basis, after subtracting all expenses. |
|
|
Term
|
Definition
| A mortgage that a borrower gives to lenders so that he or she can get cash for the equity that has built up in property (e.g. a home equity loan taken out for a non-house purpose, or an investor trying to recoup money invested in fixing up a property) |
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|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| A Latin phrase meaning 'let the buyer beware.' The rule that says a buyer is expected to examine property carefully, instead of relying on the seller to point out problems. |
|
|
Term
|
Definition
| A declaration of Covenants, Conditions, and Restrictions; usually recorded by a developer to create a general plan of private restrictions for a subdivision. |
|
|
Term
|
Definition
| A court order requiring the stoppage of certain activities. |
|
|
Term
|
Definition
|
|
Term
| Certificate of Eligibility |
|
Definition
| A certificate issued by VA to establish status and amount of a vet-eran's eligibility to qualify for loan guarantee. |
|
|
Term
|
Definition
| A summary of the provisions of a court judgment; when recorded, it creates a lien on all the real property of the debtor in the county where recorded. |
|
|
Term
| Certificate of Reasonable Value |
|
Definition
| A document issued by the VA which states the value of the subject property based on an approved appraisal. Also called the CRV. (The VA loan amount cannot exceed the CRV.) |
|
|
Term
|
Definition
| A document prepared by an attorney stating the attorney's opinion of the status of the title to a piece of property, after performing a title search and reviewing the public records. |
|
|
Term
|
Definition
| A document issued by a probate court showing a transfer of title from a deceased person to his or her heirs or devisees. |
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Term
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Definition
| SEE: Certificate of Transfer |
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Term
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Definition
| The chain of deeds (and other documents) transferring title to a piece of property from one owner to the next, as disclosed in the public record. |
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Term
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Definition
| A principle affecting value in real estate which says that all factors which influence real estate--economic, governmental, social, physical--are constantly changing, and thus property value itself is subject to constant change as well. |
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Term
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Definition
| Stability in job and responsibilities such that even with setbacks financial obligations will be honored by the borrower. (Used by a lender in evaluating a loan.) |
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Term
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Definition
| A piece of personal property. |
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Term
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Definition
| Personal property that is closely associated with real property, such as a lease. |
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Term
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Definition
| A person working with a fair housing organization, who pretends to be interested in buying or renting property from someone suspected of unlawful discrimination. Also called a tester. |
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Term
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Definition
| Money paid to the parent or guardian of children as part of a divorce settlement. (Child support does not have to be revealed as a source of income if it's not counted to help repay the loan, but must be revealed as a debt obligation.) |
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Term
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Definition
| Dower rights that have vested in a person, creating a statutory life estate. This occurred because the person's spouse sold the property without a dower release and subsequently died. |
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Term
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Definition
| The body of law concerned with the rights and liabilities of one individual in relation to another; includes contract, tort, and property law. COMPARE: Criminal Law. |
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Term
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Definition
| A lawsuit in which one person sues another for compensation. |
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Term
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Definition
| Fundamental rights guaranteed to all persons by the law. The term is primarily used in reference to constitutional and statutory protections against discrimination based on race, religion, sex, or national origin. |
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Term
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Definition
| Federal law prohibiting public and private racial discrimination in any property transaction in the U.S. |
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Term
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Definition
| Federal law prohibiting discrimination based on race, color, religion, sex, national origin, disability or familial status. Also called Title VIII or Federal Fair Housing Act. |
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Term
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Definition
|
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Term
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Definition
| A paragraph or section of a contract or other document that defines or assigns specific rights and duties to the parties. (Also see entries for specific names of clauses.) |
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Term
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Definition
|
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Term
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Definition
| SEE: Unencumbered Property |
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Term
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Definition
| Person who employs a broker, lawyer or other professional. Real estate clients can be sellers, buyers, or both. |
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Term
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Definition
| The weather conditions of a given area. |
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Term
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Definition
| Transfer of ownership of real property from seller to buyer, according to terms and conditions in sales contract or escrow agreement. Final stage in a real estate transaction. |
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Term
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Definition
| Expenses incurred in the transfer of real estate in addition to the purchase price; e.g., the appraisal fee, title insurance premiums, broker's commission, transfer tax. |
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Term
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Definition
| SEE: Settlement Statement |
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Term
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Definition
| A claim, encumbrance, or defect that makes the title to real property unmarketable. |
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Term
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Definition
| SEE: Competitive Market Analysis |
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Term
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Definition
| SEE: Constant Maturity (of one-year U.S. Treasury security) |
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Term
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Definition
| A person who signs a note (or other debt obligation) with another party and thus accepts joint obligation to repay the note. |
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Term
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Definition
| Addition to or revision of a will. (Must be executed with the same formalities as a will.) |
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Term
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Definition
| Collection and organization of various laws into a comprehensive statutory code. |
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Term
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Definition
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Term
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Definition
| Property pledged as security for a debt. |
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Term
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Definition
| An agreement between two or more persons to defraud someone. |
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Term
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Definition
| Title that appears to be good title, but which in fact is not. |
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Term
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Definition
| Financial institutions that provide a variety of financial services. |
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Term
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Definition
| Property zoned and used for business purposes, such as warehouses, restaurants, and office buildings (as distinguished from residential, industrial, or agricultural property). |
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Term
| Commercial Real Estate Lenders |
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Definition
| Lenders who lend money for commercial real estate projects |
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Term
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Definition
| Illegally mixing money held in trust on behalf of a client with personal funds. |
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Term
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Definition
| Compensation paid a broker for services in a real estate transaction; usually percentage of sales price, rather than flat fee. |
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Term
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Definition
| The compensation paid to someone in lieu of or in addition to his or her regular salary. (Commissions may be a flat rate or percentage of sales price, but can only be counted as income if they are consistent.) |
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Term
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Definition
| The land and improvements in a condominium, planned unit development, or cooperative that all residents use and own as tenants in common, such as the parking lot, hallways, and recreational facilities; does not include individual apartment units or homes. |
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Term
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Definition
| A person who owned two or more neighboring properties and then sold them to different buyers. |
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Term
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Definition
| 1. Early English law. 2. Long- established rules based on English law, still followed in many states. 3. Case law. |
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Term
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Definition
| Dedication resulting from the owner's intention to donate land for public use, along with the government's acceptance of the donation. Common law dedication is actually involuntary in some cases; if an owner acquiesces to public use of his or her property. |
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Term
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Definition
| When two people of the opposite sex hold themselves out to the world as being married, such as through the use of a joint checking account, even though no formal marriage decree has been issued by a court. No longer available in Ohio. |
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Term
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Definition
|
|
Term
| Community Home Buyers Programs |
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Definition
| Programs that represent a plethora of offerings by lenders to attract more business in a community. Generally, these programs allow people to buy homes with lower down payments than conventional loans, often 3% or less. |
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Term
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Definition
| In some states, property is owned jointly by a married couple. Only Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, and Washington have community property system laws. COMPARE: Separate Property. |
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Term
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Definition
| A persons who signs a mortgage with another party (primary mortgagor) and thus accepts a joint obligation to repay the loan. Also called Co-Borrower or Co-Signer. |
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Term
| Comparable Market Analysis |
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Definition
| SEE: Competitive Market Analysis |
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Term
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Definition
| Other similar properties that have sold in a certain area. Also called Comps. |
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Term
| Comparative Negligence Rule |
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Definition
| When parties share liability based on their partial fault or negligence in causing the injury or tort. |
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Term
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Definition
| Specific data that includes information about comparable sale properties, as well as income and cost information. |
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Term
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Definition
| Method for determining the cost of a building that uses the cost of recently built comparable buildings as a basis for estimating the cost of replacing the subject property. |
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Term
|
Definition
| SEE Damages, Compensatory. |
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Term
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Definition
| A USPAP provision that requires appraisers to have knowledge and experience necessary to complete assignments competently, and also contains specific requirements and procedures for appraisers who don't have sufficient competence. |
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Term
|
Definition
| 1. Of sound mind, for the purposes of entering a contract or executing a will; not suffering from mental illness, retardation, or senility. 2. Of sound mind and having reached the age of majority. |
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Term
| Competitive Market Analysis |
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Definition
| (CMA) A method of determining the approximate market value of a home by comparing the subject property to other homes that have sold, are presently for sale or did not sell in a given area. |
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Term
|
Definition
| The document a plaintiff files with the court to start a lawsuit. |
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Term
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Definition
| Under USPAP, the act or process of estimating value or an estimate of value performed without invoking the Departure Provision. COMPARE: Limited Appraisal. |
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Term
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Definition
| Interest calculated as a percentage of both the principal amount and accumulated unpaid interest. COMPARE: Simple Interest. |
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Term
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Definition
| Long range plan for development of a city or region. |
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Term
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Definition
|
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Term
|
Definition
| The base that a foundation sits on. (Must be poured on solid ground, below frost depth, and wider at the bottom that the structure to be supported.) |
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Term
|
Definition
| A foundation made from a layer of poured concrete reinforced with steel rods (called rebar). |
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Term
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Definition
| When there is more than one court with jurisdiction over a case, thus a plaintiff may choose which court to file suit in. COMPARE: Jurisdiction, Exclusive. |
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Term
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Definition
|
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Term
|
Definition
| 1. Taking private property for public use, through the government's power of eminent domain. Also called appropriation. 2. A declaration that a structure is unfit for occupancy and must be closed or demolished. |
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Term
|
Definition
| A provision in a contract, deed, law, regulation, guideline, etc. that makes the parties' rights and obligations depend on the occurrence (or non-occurrence) of a particular event. Also called a Contingency Clause. |
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Term
|
Definition
| A type of defeasible fee; title may be terminated by former owner if conditions stated in deed aren't met. Former owner has a power of termination. Also called fee simple subject to a condition subsequent. COMPARE: Fee Simple Determinable. |
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Term
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Definition
| A land use that does not comply with the general zoning rules for the zone in which it's located, but is permitted there because it benefits the public; for example, a hospital in a residential neighborhood. Also called a special exception. |
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Term
| Conditions, and Restrictions Covenants |
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Definition
|
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Term
|
Definition
| A property developed for co- ownership, where each co-owner has a separate interest in an individual unit, combined with an undivided interest in common areas of the property. COMPARE: Cooperative. |
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Term
|
Definition
| SEE: Unit Owners Association |
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Term
|
Definition
| The document that must be filed for record when property is developed as or converted to a condominium. |
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Term
|
Definition
| SEE: Section 234(c) FHA Loan |
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Term
|
Definition
| A document filed by the court to finalize the sale of property at foreclosure, and after which time the equitable right of redemption is no longer available to the original defaulting borrower. |
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Term
|
Definition
| Loans that meet FNMA/FHLMC standards, and thus can be sold on the secondary market. |
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Term
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Definition
| A ""rule"" that says a particular home achieves maximum value when it's surrounded by homes similar in style and function. |
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Term
|
Definition
| Damages compensating for losses that were not the direct result of the defendant's wrongful act, but which were a foreseeable consequence of it. |
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Term
|
Definition
| Anything of value, such as money, services, goods, or promises, given to induce another to enter into a contract. Sometimes called valuable consideration. |
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Term
|
Definition
| (of one-year U.S. Treasury security) When the due date is adjusted to current dollars; an Index used for ARM loans. |
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Term
|
Definition
| A fundamental document that establishes a government's structure and sets limits on its power. |
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Term
|
Definition
| 1. Pertaining to or based on a constitution. 2. Not in violation of the U.S. Constitution or a state constitution. |
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Term
|
Definition
| Law derived from the Constitution. |
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Term
|
Definition
| A temporary loan used to finance the construction of a building on land. Replaced with a takeout loan. |
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Term
|
Definition
| When personal property is associated with real property in such a way that the law treats it as a fixture, even though it is not physically attached to the real property. |
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Term
|
Definition
| When a landlord's act (or failure to act) interferes with the tenant's quiet enjoyment of the property, or makes the property unfit for its intended use, to such an extent that the tenant is forced to move out. |
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Term
|
Definition
| A negligent misrepresentation or concealment of a material fact; when a person carelessly fails to disclose material information, or makes statements that he or she should realize are false or misleading. |
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Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| A term used to describe the lender's share of the appreciation paid on a SAM loan or other participation plan loan. |
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Term
|
Definition
| An agreement between two or more parties to do, or not do, a certain thing. The requirements for an enforceable contract are: capacity, mutual consent, lawful objective, and consideration. In addition, certain contracts must be in writing to be enforceable. |
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Term
|
Definition
| A method used to ensure that payments are made on an existing mortgage, whereby an escrow account or servicing agreement is established. |
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Term
|
Definition
| What tenants are actually paying in rent. COMPARE: Market Rent. |
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Term
|
Definition
| A ""rule"" that says a particular item or feature of a home is only worth what it actually contributes in value to that piece of property. |
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Term
|
Definition
| When real estate is paid for or financed with a conventional loan. |
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Term
|
Definition
| Loan that is not insured or guaranteed by a government entity. |
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Term
|
Definition
| A loan that is not insured or guaranteed by a government entity. |
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Term
|
Definition
| 1. Misappropriating property or funds belonging to another. 2. Changing an existing rental apartment building into a condominium. |
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Term
|
Definition
| A right the borrower has to convert from an adjustable-rate mortgage to a fixed rate mortgage one time during the loan term, provided certain conditions are met. |
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Term
|
Definition
| Able to be changed or converted; such as with an ARM loan where the borrower can change from a variable rate to a fixed rate. Often stated in a conversion option clause. |
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Term
|
Definition
| The transfer of title to real property from one person to another by means of a written document, such as a deed. |
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Term
|
Definition
| A building owned by a corporation, where the residents are shareholders in the corporation; each shareholder receives a proprietary lease on an individual unit and the right to use the common areas. COMPARE: Condominium. |
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Term
|
Definition
| Any form of ownership in which two or more people share title to a piece of property, holding undivided interests. Also called co-tenancy or concurrent ownership. |
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Term
|
Definition
| Action passed by a corporation authorizing the sale or purchase of real estate. |
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Term
|
Definition
| An association organized according to strict regulations, in which individuals purchase ownership shares; regarded by the law as an artificial person, separate from the individual shareholders. COMPARE: Partnership. |
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Term
|
Definition
| A deed used to correct minor mistakes in an earlier deed, such as misspelled names or errors in the legal description of the property. |
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Term
|
Definition
| SEE: Co-Borrower; Co-Mortgagor |
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Term
|
Definition
| An appraisal method which estimates the value of real estate by figuring the cost of building the house or other improvement on the land, minus depreciation, plus the value of the vacant land. |
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Term
|
Definition
| An increase in the cost of goods or services. COMPARE: Demand Inflation. |
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Term
|
Definition
| Books that give estimated construction costs for various types of buildings/ structures in different regions of the country. |
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Term
|
Definition
| Cost approach appraisal method that uses cost manuals to arrive at an estimate of value for property. |
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Term
|
Definition
| An index that reflects the cost of borrowing money as per the 11th District Federal Home Loan Bank. This index is used by FNMA when purchasing ARM loans. Also called COFI. |
|
|
Term
|
Definition
| The interest rate that people or businesses pay to use another's money for their own purposes. |
|
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Term
|
Definition
| Companies that provide appraisers with accurate, up-to-date data on building costs for labor and materials. |
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|
Term
|
Definition
| Anyone who shares ownership of a piece of property with another. In Ohio, a co-tenant may be a joint tenant, a statutory survivorship tenant, a tenant in common, a tenant by the entireties, or a tenant in partnership. SEE SPECIFIC ENTRIES. |
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|
Term
|
Definition
| A counteroffer represents a change. It is a response to an offer to enter into a contract, changing some of the terms of the original offer. A counteroffer is a rejection of the original offer (not a form of acceptance), and does not create a binding contract unless the new counteroffer is accepted by the original offeror (the counterofferee). |
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|
Term
|
Definition
| The interest rate stated in a note. Also called Nominal Rate or Note Rate. |
|
|
Term
|
Definition
| 1. A contract. 2. A promise. 3. A guarantee (express or implied) in a document such as a deed or lease. 4. A restrictive covenant. (Typical covenants compel or prevent certain actions by the property owner or uses for the property.) |
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|
Term
| Covenant of Quiet Enjoyment |
|
Definition
| A guarantee that a buyer or tenant has the right to exclusive, undisturbed possession of a leasehold estate, and will not be disturbed by the previous owner, the lessor, or anyone else claiming an interest in the property. |
|
|
Term
|
Definition
| The unfinished space below the first floor of a house or other structure, but space that is less than a full story in height. |
|
|
Term
|
Definition
| 1. The availability of money; the ability to borrow money. 2. A sum of money that is to be received. |
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Term
|
Definition
| A person's record of debt repayment, detailing how a person paid credit accounts in the past as a guide to whether he or she is likely to pay accounts on time and as agreed in the future. |
|
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Term
|
Definition
| A listing of a borrower's credit history, including amount of debt, record of repayment, job info, address info, etc. |
|
|
Term
|
Definition
| A means by which the lender makes certain determinations regarding the creditworthiness of potential borrowers. This involves a lender assigning specified numerical values to different aspects of a borrower. |
|
|
Term
|
Definition
| Financial institutions that are a type of cooperative organization where members share something in common (e.g. an employer), pool their deposits together, pay members better interest rates, and loan money to fellow members. |
|
|
Term
|
Definition
| A person or other entity, such as a bank, who is owed a debt. |
|
|
Term
|
Definition
| A sum of money that is to be received. |
|
|
Term
|
Definition
| The body of law concerned with crimes, an individual's actions against society. COMPARE: Civil Law. |
|
|
Term
|
Definition
| A lawsuit in which the government sues someone to punish the wrong doer and protect society. |
|
|
Term
|
Definition
| When the water supply line (the cold water line) has a chance of being contaminated by waste water lines or polluted by hot water lines. |
|
|
Term
|
Definition
| SEE: Certificate of Reasonable Value |
|
|
Term
|
Definition
| Repairable or able to be fixed; something that can be fixed at a reasonable cost, with the value added to the property being more than the cost of the repair. COMPARE: Incurable. |
|
|
Term
|
Definition
| To remedy a default, by paying money that is overdue or fulfilling other obligations. |
|
|
Term
|
Definition
| At common law, a husband's interest in his wife's property; in Ohio, courtesy has been abolished and replaced by dower rights. |
|
|
Term
|
Definition
| A party in a transaction to whom an agent does not have a fiduciary duty or relationship, but to whom an agent must still be fair and honest. |
|
|
Term
|
Definition
| An amount of money a defendant is ordered to pay to a plaintiff. |
|
|
Term
|
Definition
| A list of information sources. |
|
|
Term
|
Definition
| An information sheet for recording specific facts gathered. |
|
|
Term
|
Definition
| A person who holds property for the sole purpose of reselling it. |
|
|
Term
|
Definition
| A sum of money that is owed. |
|
|
Term
|
Definition
| Any sum of money that is owed. |
|
|
Term
|
Definition
| Recurring monetary obligation that cannot be cancelled. |
|
|
Term
|
Definition
| SEE: Total Debt Service Ratio |
|
|
Term
|
Definition
| A person or other entity, such as a company, who owes money to another. |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| Declaration of Restrictions |
|
Definition
|
|
Term
|
Definition
| The third stage that a neighborhood goes through in its life cycle, when property values begin to fall as demand falls. |
|
|
Term
|
Definition
| A gift of private property for public use; may transfer ownership or simply create a public easement. |
|
|
Term
|
Definition
| An instrument that conveys ownership of real property from the grantor to the grantee. |
|
|
Term
| Deed in Lieu of Foreclosure |
|
Definition
| Deed given by bor-rower to lender to satisfy a debt, avoiding fore-closure. Also called Voluntary Conveyance. |
|
|
Term
|
Definition
| An instrument held by a third party as security for the payment of a note (rarely used in Ohio). Like a mortgage, it creates a voluntary lien on real property to secure repayment of a debt. The parties to a deed of trust are the grantor or trustor (borrower), benficiary (lender), and trustee (neutral third party). Unlike a mortgage, a deed of trust includes a power of sale, allowing the trustee to foreclose non-judicially, Also called a Trust Deed. |
|
|
Term
|
Definition
| SEE: Restrictive Covenant |
|
|
Term
|
Definition
| Failure to fulfill an obligation, duty, or promise, as when borrower fails to make pay-ments, tenant fails to pay rent, or party fails to perform a contract. Mortgage, note or other document will define what constitutes default. |
|
|
Term
|
Definition
| A clause used to defeat or cancel a certain right upon the happening of a specific event (e.g. upon final payment, words of grant in a mortgage are void and the mortgage is thereby cancelled and title is re-vested to mortgagor). This clause may also be used to give a borrower the right to redeem real estate after default on a note, by paying the full amount due plus fees and court costs. |
|
|
Term
|
Definition
| SEE: Fee Simple Defeasible |
|
|
Term
|
Definition
| 1. Person being sued in a civil lawsuit. 2. Accused person in criminal lawsuit. |
|
|
Term
|
Definition
| Reasons used to justify certain actions, such as non-payment of a note. |
|
|
Term
|
Definition
| Permission to delay fulfillment of an obligation (e.g. paying taxes) until a later date. |
|
|
Term
|
Definition
| Accrued interest that is not paid by regularly scheduled payments; interest that is accumulated during payment periods but is not paid until a later date. This can be a common element of ARMs, and may cause negative amortization to occur. |
|
|
Term
|
Definition
| A court order stating that the debtor owes money to the creditor when the collateral property does not bring enough at foreclosure sale to cover the entire loan amount, accrued interest and other costs. |
|
|
Term
|
Definition
| When the government spends more money than it takes in from tax revenue. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| The legal transfer of a deed (or other instrument). A valid deed does not convey title until it has been delivered to the grantee. |
|
|
Term
|
Definition
| The need or desire for a specific good or service by others. |
|
|
Term
|
Definition
| Money that a customer may elect to withdraw from the bank at any time. They are immediately accessible, i.e. checks. |
|
|
Term
|
Definition
| Too much money chasing too few goods. |
|
|
Term
|
Definition
| A USPAP provision that permits limited deviations from sections of USPAP that are classified as specific guidelines rather than binding requirements. |
|
|
Term
|
Definition
| 1. Money offered as an indication of good faith regarding the future performance of a purchase agreement. Also called earnest money. 2. A tenant's security deposit. |
|
|
Term
|
Definition
| In a lawsuit, the formal, out-of-court testimony of a witness or a party, taken before the trial; used as part of discovery process, to determine facts of a case, or if witness is not able to attend trial. A transcript of a deposition can be introduced as evidence in the trial. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| A loss in value of a piece of property for any reason. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Credit history showing previous problems in meeting financial obligations. |
|
|
Term
|
Definition
| Chosen"" heir. By filing a document with probate court, a person can choose anyone to be his or her heir in eyes of the law. |
|
|
Term
|
Definition
| SEE: Unlawful Detainer Action |
|
|
Term
|
Definition
|
|
Term
|
Definition
| 1. (noun) Real property transferred in a will. 2. (verb) To transfer real property by will. COMPARE: Bequest; Bequeath; Legacy. |
|
|
Term
|
Definition
| A recipient of real property under a will. COMPARE: Beneficiary; Legatee. |
|
|
Term
|
Definition
| SEE: Law of Diminishing Returns |
|
|
Term
|
Definition
| An income capitalization method that takes a property's single-year income figure (net operating income, or NOI) divided by the sale price to derive a capitalization rate: NOI ÷ sale price = capitalization rate. |
|
|
Term
|
Definition
| Lenders who are authorized to underwrite their own FHA loan applications and are responsible for the entire loan process through closing. |
|
|
Term
|
Definition
| An index kept by the county recorder, with each recorded document listed in alphabetical order according to grantor's last name. Also called a grantor/grantee index. |
|
|
Term
|
Definition
| Payments made to someone as a result of an injury, illness or other infirmary. (The payments may be permanent if the disability is permanent, and thus may be counted as part of stable monthly income.) |
|
|
Term
|
Definition
| The act of asking a court to terminate a voidable contract. |
|
|
Term
|
Definition
| A document, required by law, which reveals specific information. For example, federal law requires that lenders give buyers a disclosure statement detailing the actual cost of borrowing money from the lender. |
|
|
Term
|
Definition
| Points or facts that must be revealed. For example, the law requires certain financial disclosures, specific disclosures for ARMs, and disclosures under Truth-In-Lending Act. (Refer to each of these in the index.) |
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Term
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Definition
| The difference between the stated amount of an obligation and the amount paid. |
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Term
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Definition
| An amount paid to a lender when a loan is made to make up the difference between the current market interest rate and the rate a lender gives a borrower on a note. Discount points increase a lender's yield on a note, allowing the lender to give a borrower a lower interest rate. |
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Term
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Definition
| The interest rate charged by the Federal Reserve Banks on loans to member commercial banks. Also referred to as the Federal Discount Rate. |
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Term
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Definition
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Term
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Definition
| Treating people unequally because of their race, religion, sex, national origin, age, or some other characteristic of a protected class, in violation of civil rights laws. |
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Term
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Definition
| The loss of deposits to competing investments that offer higher returns. |
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Term
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Definition
| When a law that isn't discriminatory on its face has a greater impact on a minority group than it has on other groups. |
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Term
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Definition
| When the facts of a case differ from a precedent. |
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Term
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Definition
| The federal courts power to hear cases in which a citizen of one state sues a citizen of another state (or country), in a dispute concerning more than $50,000. |
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Term
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Definition
| The rule that allows an agricultural tenant to re-enter the land to harvest crops if the lease ends, through no fault of the tenant, before the crop can be harvested. (Only applies to the first crop.) |
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Term
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Definition
| A corporation doing business in the state where it was created. |
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Term
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Definition
| The state where a person has his or her permanent home. |
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Term
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Definition
| A person who has easement rights on another's property; either the owner of a dominant tenement, or someone who has an easement in gross. |
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Term
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Definition
| Property that receives the benefit of an appurtenant easement. |
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Term
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Definition
| An intent to transfer title immediately and unconditionally. |
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Term
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Definition
| A window style where both sashes move. |
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Term
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Definition
| In Ohio (and some other states), the interest held by a married person in the real property his or her spouse owns in fee simple during their marriage. At common law, dower referred only to the wife's interest in her husband's property, while the husband's interest in his wife's property was called curtesy. Now dower refers to either spouse's interest in the other's property. |
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Term
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Definition
| The amount of money a buyer pays to obtain a property in addition to the money that the buyer borrows. |
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Term
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Definition
| When a broker or salesperson represents both parties (buyer and seller) in a transaction, AND all management level licensees at a brokerage. |
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Term
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Definition
| A licensee who enters into any of the dual agency relationships set forth in Ohio License Law; when a licensee represents both a buyer and seller in the same transaction, AND all management level licensees at a brokerage. |
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Term
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Definition
| Mortgage clause which prohibits assignment by making the entire mortgage balance due when property is sold. |
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Term
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Definition
| A fair hearing before an impartial judge. Under the U.S. Constitution, no one may be deprived of life, liberty, or property without due process of law. |
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Term
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Definition
| (of stable monthly income) The likelihood or probability that a person's source of income will continue into the future. |
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Term
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Definition
| Threatening violence against, or unlawfully confining, someone to force him or her to sign a document; or threatening or confining a signer's spouse, child, or other close relative. |
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Term
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Definition
| Demand-Utility-Scarcity-Transferability; the four value characteristics that must be present for anything to have value. (Also see individual definitions for each word.) |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| A right to use some part of another person's real property for a particular purpose. An easement is irrevocable and creates an interest in the property. COMPARE: License. |
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Term
| Easement by Express Grant |
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Definition
| An easement granted to another in a deed or other document. |
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Term
| Easement by Express Reservation |
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Definition
| An easement created in a deed when a landowner is dividing the property, transferring the servient tenement but retaining the dominant tenement. |
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Term
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Definition
| An easement created by operation of law (not express grant or reservation) when land is divided, if there is a long-standing, apparent use that is reasonably necessary for enjoyment of the dominant tenement. Also called an implied easement. |
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Term
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Definition
| A special kind of easement by implication that occurs when the dominant tenement would be completely useless without an easement, even if it is not a long-standing, apparent use. |
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Term
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Definition
| An easement acquired by prescription. Also called a prescriptive easement. |
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Term
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Definition
| An easement that benefits a person instead of a piece of land; there is a dominant tenant, but no dominant tenement. COMPARE: Easement, Appurtenant. |
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Term
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Definition
| A conventional loan a loan-to-value ratio (LTV) of 75% or less; a loan where lenders require the same documentation as other conventional loans, but relax qualifying standards due to increased equity borrower is putting into the home. (Lenders feel this loan is less risky since borrower has more to lose, and lendors can more easily recoup 75% of a home's value in foreclosure.) |
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Term
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Definition
| SEE: Equal Credit Opportunity Act |
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Term
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Definition
| SEE: Straight Line Depreciation |
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Term
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Definition
| The main business or industry in an area which a community uses to support and sustain itself. (A good economic base is critical for home values.) |
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Term
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Definition
| Threatening to take some action that will be financially harmful to a person, to force him or her to sign a document; for example, threatening to breach a contract. Also called business compulsion. |
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Term
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Definition
| The time during which a building can be used for its intended purpose and generate more income than operating expenses cost. Also called useful life. |
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Term
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Definition
| SEE: External Obsolescence |
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Term
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Definition
| The age of a structure based on the actual wear and tear that the building shows from physical, functional or external obsolescence; not necessarily the structure's age. |
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Term
| Effective Age-Life Method |
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Definition
| SEE: Straight Line Depreciation |
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Term
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Definition
| The prospective buyer having enough disposable income available to satisfy his or her needs, wants and desires. Also called purchase ability. |
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Term
|
Definition
| Potential gross income, less a figure for vacancy and collection losses. |
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Term
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Definition
|
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Term
|
Definition
| SEE: Environmental Impact Statement |
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Term
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Definition
| A house system comprised of several elements, including such things as the wiring, distribution box, circuit breaker box, circuit breakers, fuses, lights and lighting fixtures, light switches and wall outlets. |
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Term
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Definition
| SEE: Certificate of Eligibility |
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Term
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Definition
| The government's constitutional power to take (appropriate or condemn) private property for public use, as long as the owner is paid just compensation. (Government taking of private land is called condemnation.) |
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Term
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Definition
| Someone who works under the direction and control of another. COMPARE: Independent Contractor. |
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Term
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Definition
| The past stability of a person's job tenure at various companies, used on loan applications to help gauge income durability and reliability. |
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Term
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Definition
| A physical object intruding onto neighboring property, often due to a mistake regarding the boundary. |
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Term
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Definition
| Property which has mortgages, liens or other restrictions against it which prevent or restrict its transfer. |
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Term
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Definition
| A nonpossessory interest in property; a lien, easement, or restrictive covenant, burdening the property owner's title. |
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Term
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Definition
| Signing one's name to the back of a note, check or other instrument as a means of approving its deposit, transfer, etc.; the signature itself is also referred to as an endorsement. An endorsement may be blank, qualified, restrictive or special. |
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Term
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Definition
|
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Term
|
Definition
| To prohibit an act, or command performance, by court order; to issue an injunction. |
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Term
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Definition
|
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Term
|
Definition
|
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Term
|
Definition
| A situation that exists where there is potential for harm to come to persons or property from conditions that exist in a property or the surrounding area. |
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Term
| Environmental Impact Statement |
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Definition
| Study required for all federal and federally related projects by the National Environmental Policy Act which details a development project's impact on energy use, sewage systems, drainage, water facilities, schools and other environmental, economic and social areas. |
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Term
| Equal Credit Opportunity Act |
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Definition
| (ECOA) Federal law that prohibits discrimination in granting credit to people based on sex, age, marital status, race, color, religion, national origin or receipt of public assistance. |
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Term
| Equal Protection Requirement |
|
Definition
| Under the Fifth and Fourteenth Amendments to the U.S. Constitution, all citizens are entitled to equal protection of the laws; no law may arbitrarily discriminate between different groups, or be applied to groups in a discriminatory manner. |
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Term
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Definition
|
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Term
|
Definition
| A lien arising out of fairness, instead of agreement or operation of law. |
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Term
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Definition
| A judgment granted to a plaintiff that is something other than an award of money (damages); for example, an injunction, quiet title, rescission, and specific performance. COMPARE: Legal Remedy. |
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Term
| Equitable Right of Redemption |
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Definition
| The right of a debtor to save (redeem) property from foreclosure proceedings prior to confirmation of sale. COMPARE: Statutory Redemption. |
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Term
|
Definition
| An interest created in property upon the execution of a valid sales contract, whereby actual title will be transferred by deed at a future date (closing). Also, the vendee's (buyer's) interest in property under a land contract. Also called an equitable interest. |
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Term
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Definition
| 1. An owner's unencumbered interest in his or her property; the difference between the value of the property and the liens against it. 2. A judge's power to soften or set aside strict legal rules, to bring about a fair and just result in a particular case. |
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Term
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Definition
| An exchange in which value in a property is traded for value in another property. |
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Term
| Equity Participation Mortgage |
|
Definition
| A mortgage that lets the lender share part of the earnings, income or profits from a real estate project. |
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Term
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Definition
| A gradual loss of soil due to the action of water or wind. |
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Term
| Errors and Omissions Insurance |
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Definition
| Professional liability insurance that protects real estate licensees from mistakes or negligence. |
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Term
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Definition
| When property reverts to the state after a person dies without leaving a valid will and without heirs. (Property also reverts to the state after abandonment.) |
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Term
|
Definition
| The system in which things of value (e.g. money or documents) are held on behalf of the parties to a transaction by a disinterested third party (called an escrow agent), until the specified conditions have all been complied with. COMPARE: Escrows. |
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Term
|
Definition
| Account in which the lender maintains the borrower's extra 1/12, monthly deposits to cover next year's insurance and tax payments. Also called Reserve Account. |
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Term
|
Definition
| A closing by a disinterested third party, often an escrow agent. |
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Term
|
Definition
| The contract that authorizes an escrow agent to deliver items deposited in escrow once the parties have complied with specified conditions. This can be the purchase contract for real estate or a separate document. |
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Term
|
Definition
| Prepayable expenses that the lender requires a borrower to set aside prior to closing (e.g. property taxes and insurance). Also called Impounds. |
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Term
|
Definition
|
|
Term
|
Definition
| A leasehold estate set to last for a definite period (one week, three years, etc.), after which it terminates automatically. Also called a term tenancy. COMPARE: Tenancy, Periodic; Tenancy at Will. |
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Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
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Term
|
Definition
| An estate that can be willed or descend to heirs, such as a fee simple estate. |
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Term
|
Definition
| An approximation of the amount of money a borrower will need to buy a particular property. |
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Term
|
Definition
| A legal doctrine that prevents a person from asserting rights or facts that are inconsistent with his or her earlier actions or statements, when he or she failed to object (or attempt to ""stop"") another person's actions. |
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Term
|
Definition
| A lender's written consent to a sale, acknowledging the transfer & waiving any right to accelerate the loan because of the sale. |
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Term
|
Definition
| A USPAP provision that requires appraisers to avoid actions that could be considered misleading or fraudulent. |
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Term
|
Definition
| Dispossessing or expelling someone from real property. |
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Term
|
Definition
| Testimony, documents, and objects submitted in a lawsuit as proof of a fact. |
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Term
|
Definition
| A zoning law that effectively prevents certain groups (such as minorities or poor people) from living in a community. |
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Term
|
Definition
| SEE: Exclusive Agency Listing |
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Term
|
Definition
| A listing agreement that entitles the broker to a commission if anyone other than the seller finds a buyer for the property during the listing term. |
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Term
|
Definition
| When there is only one court in which a particular type of case can be filed, that court has exclusive jurisdiction. COMPARE: Jurisdiction, Concurrent. |
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Term
|
Definition
| SEE: Exclusive Right to Sell Listing |
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|
Term
| Exclusive Right to Sell Listing |
|
Definition
| A listing agreement that entitles the broker to a commission if anyone including the seller finds a buyer for the property during the listing term. |
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Term
|
Definition
| A clause in a contract or lease providing that one of the parties will not be liable in the event the other party (or someone else) is injured. This type of clause is void in residential leases in Ohio. |
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Term
|
Definition
| 1. To sign. 2. To perform or complete. |
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Term
|
Definition
| A contract in which both parties have completely performed their contractual obligations. |
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Term
|
Definition
| The head of a government, such as a president, governor, or mayor. |
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Term
|
Definition
| A person appointed in a will to carry out the provisions of the will. If a man is appointed, he is called an executor; if a woman is appointed, she is called an executrix. COMPARE: Administrator. |
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Term
|
Definition
| A contract in which one or more parties have not yet completed performance of their obligations, so they may be in the process of carrying out their duties. |
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Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| A provision holding that a law or rule does not apply to a particular person, entity or group (e.g. company with a property tax exemption does not have to pay property taxes). |
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Term
|
Definition
| 1. Documents or physical evidence submitted at trial. 2. Attachment to legal document. |
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Term
|
Definition
| A person who has expert knowledge of a subject, either through education or experience, who testifies in a court case. |
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Term
|
Definition
| Stated in words (spoken or written). COMPARE: Implied. |
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Term
|
Definition
| Authority expressly communicated, in words or in writing, by the principal to the agent. |
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Term
|
Definition
| A contract that has been put into words, either spoken or written. |
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Term
|
Definition
| SEE: Easement by Express Grant |
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Term
|
Definition
| SEE: Easement by Express Reservation |
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Term
|
Definition
| Listing agreement clause providing for a specified period after a listing expires, when broker will still be entitled to a commission if the property is sold to someone the broker dealt with during the listing term. Also called carryover clause or safety clause. |
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Term
|
Definition
| When something outside the control of a property makes it less desirable. Also called economic obsolescence. COMPARE: Functional Obsolescence. |
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Term
|
Definition
| A site valuation method takes an estimated value of improvements and subtracts that from the total sales price to derive a figure for the land value. |
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Term
|
Definition
| A person who witnessed actual events connected with a dispute. |
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Term
|
Definition
| When the maker of a note never gets what the original holder promised in return for the note (e.g. the maker doesn't end up with good title to land). |
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Term
|
Definition
| When the intended purpose of an agreement or arrangement can no longer be achieved; in most cases, this releases the parties from their obligations. |
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Term
|
Definition
| The amount of money a piece of property would bring if placed on the open market for a reasonable period of time, with a buyer willing (but not forced) to buy, and a selling willing (but not forced) to sell, if both buyer and seller were fully informed as to possible use of the land. Also Market Value. |
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Term
|
Definition
| A protected group under the Federal Fair Housing Act and Ohio Civil Rights Law, making it illegal to discriminate against a person because he or she is the parent or guardian of a child under 18 years of age. |
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Term
|
Definition
| SEE: Federal National Mortgage Association |
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|
Term
| Farmer's Home Administration |
|
Definition
| (FmHA) Former name of the program now called Rural Economic Community Development (RECD). |
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Term
|
Definition
| A marketing technique where you work a specific area over a period of time. |
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Term
|
Definition
| A professional designation offered by the American Society of Appraisers. |
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Term
|
Definition
| SEE: Federal Deposit Insurance Corp |
|
|
Term
|
Definition
| A body consisting of 12 members, elected one each by the 12 Federal Reserve Banks as district representatives. They meet quarterly with the Board of Governors to discuss business conditions and make policy recommendations. |
|
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Term
|
Definition
| When federal government income is less than its expenditures. |
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|
Term
| Federal Deposit Insurance Corporation |
|
Definition
| (FDIC) A public corporation, established in 1933, that insures up to $100,000 for each depositor for most member commercial banks and S&Ls. FDIC has its own reserves and can also borrow from the U.S. Treasury. |
|
|
Term
|
Definition
| The interest rate charged to banks by Federal Reserve on loans to member commercial banks. |
|
|
Term
|
Definition
| Common name for Title VIII of the Civil Rights Act of 1968. |
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|
Term
|
Definition
| The Federal Reserve's target for short term interest rates. |
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|
Term
| Federal Home Loan Mortgage Corporation |
|
Definition
| (FHLMC) Nonprofit, federally chartered institution that functions as a buyer and seller of savings and loan residential mortgages. |
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|
Term
| Federal Housing Administration |
|
Definition
| (FHA) Government agency that insures mortgage loans. |
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|
Term
| Federal National Mortgage Association |
|
Definition
| (FNMA) The nation's largest, and privately owned, investor in residential mortgages. |
|
|
Term
| Federal Open Market Committee |
|
Definition
| (FOMC) A body that controls the Fed's sale and purchase of government securities. The body is made up of the seven members of the Federal reserve Board, plus the President of the Federal Reserve Bank of New York, and four other Federal Reserve Bank Presidents. |
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Term
|
Definition
| Legal issue involving U.S. Constitution, treaty, or federal statute. Federal courts have jurisdiction over federal questions, but can also be decided in state court. |
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Term
|
Definition
| Laws enacted by the federal government. |
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Term
|
Definition
| Banks that provide services to financial institutions, e.g. check clearing. (One main office in each Federal Reserve district.) All nationally chartered commercial banks must join Federal Reserve and buy stock in its district reserve bank. |
|
|
Term
|
Definition
| (the Fed) The body re-sponsible for U.S. monetary policy, maintaining economic stability & regulating commercial banks. (Also referred to as Board of Gov-ernors, but most commonly called the Fed.) |
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|
Term
|
Definition
| Established by the Federal Reserve Act of 1913 with 12 Federal Reserve Banks as a lender of last resort. |
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|
Term
|
Definition
| 1. An estate of inheritance; title to real property that can be willed or descend to heirs. 2. Charge made for services rendered. |
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Term
|
Definition
| Appraisers who render their services on a fee compensation basis; they don't have an interest in the property being appraised, and aren't associated with any party to the transaction. (Also called independent fee appraisers.) COMPARE: Staff Appraisers. |
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|
Term
|
Definition
| Refers to a PMI payment due at closing. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| The greatest estate one can have in real property; freely transferable and inheritable, and of indefinite duration, with no conditions on the title. Often called fee simple or fee title. |
|
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Term
|
Definition
| A fee estate in real property that may be defeated or undone if certain events occur or conditions aren't met. |
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|
Term
|
Definition
| A defeasible fee that's terminated automatically if certain conditions occur. Grantor (or his or her heirs) has a possibility of reverter. Also called a determinable fee. COMPARE: Fee, Conditional. |
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|
Term
| Fee Simple Subject to a Condition Subsequent |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| The system of land ownership where a king or queen owns all of the land and all other people are merely tenants. |
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|
Term
|
Definition
| Federal Housing Administration; government agency that insures mortgage loans. |
|
|
Term
|
Definition
| SEE: Federal Home Loan Mortgage Corporation |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Person in a position of trust, held by law to high standards of good faith and loyalty. |
|
|
Term
|
Definition
| A deed executed by a trustee, executor, or other fiduciary, conveying property that the fiduciary does not own but is authorized to manage. |
|
|
Term
|
Definition
| A relationship of trust and confidence, in which one party owes the other (or both parties owe each other) loyalty and a higher standard of good faith than they owe to third parties. For example, an agent is a fiduciary in relation to the principal; husband and wife are fiduciaries in relation to each other. Can be referred to as a client. |
|
|
Term
|
Definition
| Financial institutions that specialize in making higher risk loans at higher interest rates. (Sources of second mortgages and home equity loans.) |
|
|
Term
|
Definition
| A written document used in the borrowing or lending of money. The most common type is promissory note. |
|
|
Term
|
Definition
| A document that shows assets and liabilities for an individual, covering a specific period of time or a specific point in time. |
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|
Term
|
Definition
| A brief document that, when recorded, gives constructive notice of a creditor's security interest in an item of personal property. |
|
|
Term
|
Definition
| Alternative financing methods that can help a borrower get approved for a loan easier or with less of a down payment. |
|
|
Term
|
Definition
| A referral fee paid for directing a buyer or seller to a real estate agent. |
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|
Term
|
Definition
| SEE: Recovery and Enforcement Act Financial Institutions Reform |
|
|
Term
|
Definition
| The spot held by the lien with highest priority, when there's more than one mortgage or other debt or obligation secured by the property. |
|
|
Term
|
Definition
| A security instrument with a first lien position, meaning the first mortgage holder is paid first from a foreclosure sale. |
|
|
Term
|
Definition
| The government's plan for spending, taxation and debt management. |
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Term
|
Definition
|
