Term
|
Definition
particular parcel of real estate,
consisting of a summaryof the original grant and all subsequent conveyances
and encumbrances affecting the property and a certification
by the abstractor that the history is complete and
accurate. 213 |
|
|
Term
|
Definition
The clause in a mortgage or deed
of trust that can be enforced to make the entire debt due
immediately if the borrower defaults on an installment
payment or other covenant. 228 |
|
|
Term
|
Definition
Acquiring title to additions or improvements
to real property as a result of the annexation of fixtures
or the accretion of alluvial deposits along the banks of
streams. 22 |
|
|
Term
|
Definition
The increase or addition of land by the
deposit of sand or soil washed up naturally from a river,
lake, or sea. 120 |
|
|
Term
|
Definition
Loss in value resulting from the
property's physical deterioration, external depreciation
(decrease in price), and functional obsolescence. 328 |
|
|
Term
|
Definition
On a closing statement, items of expense
that are incurred but not yet payable, such as interest on
a mortgage loan or taxes on real property. 414. |
|
|
Term
|
Definition
A formal declaration made before a
duly authorized officer, usually a notary public, by a per-
son who has signed a document. 197 |
|
|
Term
|
Definition
A measure of land equal to 43,560 square feet,
4,840 square yards, 4,047 square meters, 160 square rods,
or 0.4047 hectares. 156 |
|
|
Term
|
Definition
The legal process that results in the
tenant's being physically removed from the leased
premises. 281 |
|
|
Term
|
Definition
Express information or fact; that which is
known; direct knowledge. 212 |
|
|
Term
|
Definition
A tax levied according to value, gener-
ally used to refer to real estate tax. Also called the general
tax. 163 |
|
|
Term
|
Definition
| tract without altering the content of the original. Must be signed by all parties. 187 |
|
|
Term
| adjustable-rate mortgage (ARM) |
|
Definition
A loan characterized
by a fluctuating interest rate, usually one tied to a bank
or savings and loan association cost-of-funds index. 244 |
|
|
Term
| administrator/administratrix |
|
Definition
A court-selected person
who assists with the settlement of an estate of a person
who died without leaving a will. 200 |
|
|
Term
|
Definition
The actual, open, notorious, hostile,
and continuous possession of another's land under a
claim of title. Possession for a statutory period may be a
means of acquiring title. 202 |
|
|
Term
|
Definition
A written statement, made under oath
by a seller or grantor of real property and acknowledged
by a notary public, in which the grantor (1) identifies
himself or herself and indicates marital status, (2) certi-
fies that since the examination of the title, on the date of
the con-tract no defects have occurred in the title, and
(3) certifies that he or she is in possession of the property
(if applicable). 401 |
|
|
Term
|
Definition
The relationship between a principal and an
agent wherein the agent is authorized to represent the
principal in certain transactions. 45 |
|
|
Term
|
Definition
An agency relationship created
after the fact. |
|
|
Term
|
Definition
One who acts or has the power to act for another.
A fiduciary relationship is created under the law of agency
when a property owner, as the principal, executes a list-
ing agreement or management contract authorizing a
licensed real estate broker to be his or her agent. 45 |
|
|
Term
|
Definition
Designated airspace over a piece of land. An air
lot, like surface property, may be transferred. 153 |
|
|
Term
|
Definition
The right to use the open space above a prop-
erty, usually allowing the surface to be us~d for another
purpose. 18 |
|
|
Term
|
Definition
| The act of transferring property to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession. |
|
|
Term
|
Definition
The clause in a mortgage or deed
of trust that states that the balance of the secured debt
becomes immediately due and payable at the lender's
option if the property is sold by the borrower. In effect,
this clause prevents the borrower from assigning the debt
without the lender's approval. 230 |
|
|
Term
|
Definition
alA system of land ownership in which
land is held free and clear of any rent or service due to
the government; commonly contrasted to the feudal sys-
tem. Land is held under the allodial system in the United
States. |
|
|
Term
|
Definition
A change to the existing content of a con-'
tract (i.e., if words or provisions are added to or deleted
from the body of the contract). Must be initialed by all
parties, 187 |
|
|
Term
| American Land Title Association (ALTA) policy |
|
Definition
A
title insurance policy that protects the interest in a col-
lateral property of a mortgage lender who originates a
new real estate loan. 215 |
|
|
Term
| Americans with Disabilities Act (ADA) |
|
Definition
Act addresses
rights of individuals with disabilities in employment and
public accommodations, 360-61 |
|
|
Term
|
Definition
A loan in which the principal as well
as the interest is payable in monthly or other periodic
installments over the term of the loan. 243-44 |
|
|
Term
|
Definition
Process of converting personal property
into real property. 20 |
|
|
Term
| annual percentage rate (APR) |
|
Definition
The relationship of the
total finance charges associated with a loan. This must
be disclosed to borrowers by lenders under the Truth in
Lending Act. 256 |
|
|
Term
|
Definition
The appraisal principle that holds that
value can increase or decrease based on the expecta-
tion of some future benefit or detriment produced by the
property. 325 |
|
|
Term
|
Definition
Laws designed to preserve the free enter-
prise of the open marketplace by making illegal certain
private conspiracies and combinations formed to mini-
mize competition. Most violations of antitrust laws in
the real estate business involve either price-fixing (brokers
conspiring to set fixed compensation rates) or allocation of
customers or markets (brokers agreeing to limit their areas
of trade or dealing to certain areas or properties). 76-79 |
|
|
Term
|
Definition
An estimate of the quantity, quality, or value
of something, The process through which conclusions
of property value are obtained; also refers to the report
that sets forth the process of estimation and conclusion
of value. 4 |
|
|
Term
|
Definition
appraiser
An independent person trained to provide
an unbiased estimate of value, 4 |
|
|
Term
|
Definition
An increase in the worth or value of a
property due to economic or related causes, which may
prove to be either temporary or permanent; opposite of
depreciation. 431 |
|
|
Term
|
Definition
A right, privilege, or improvement
belonging to, and passing with, the land; "runs with the
land." 18 |
|
|
Term
|
Definition
An easement that is annexed to
the ownership of one parcel and allows the owner the use
of the neighbor's land. 116-17 |
|
|
Term
|
Definition
A level surface or piece of ground; the size of a
surface; the amount of a two-dimensional object. 464 |
|
|
Term
|
Definition
People's desire for one area over
another, based on a number of factors such as history, rep-
utation, convenience, scenic beauty, and location. 23 |
|
|
Term
|
Definition
A mineral once used in insulation and other
materials that can cause respiratory diseases. 375-77 |
|
|
Term
|
Definition
The combining of two or more adjoin-
ing lots into one larger tract to increase their total
value. 326 |
|
|
Term
|
Definition
The value set on property for taxation
purposes. 171 |
|
|
Term
|
Definition
|
|
Term
|
Definition
The transfer in writing of interest in a
bond, mortgage, lease, or other instrument. 180 |
|
|
Term
|
Definition
A buyer is personally obligated for the payment
of the entire debt of a seller; that is, the buyer assumes the
debt. The original seller is not liable for the debt if the
property is foreclosed on. 230 |
|
|
Term
|
Definition
Acquiring title to property
on which there is an existing mortgage and agreeing to
be personally liable for the terms and conditions of the
mortgage, including payments. 230 |
|
|
Term
|
Definition
The act of taking a person's property into
legal custody by writ or other judicial order to hold it
available for application to that person's debt to a
creditor. 25 |
|
|
Term
| attorney's opinion of title |
|
Definition
An abstract of title that an
attorney has examined and has certified to be, in his or
her opinion, an accurate statement of the facts concern-
ing the property's ownership. 215 |
|
|
Term
|
Definition
Computer systems that per-
mit lenders to expedite the loan approval process and
reduce lending costs. 259 |
|
|
Term
|
Definition
A listing agreement clause stat-
ing that the agreement will continue automatically for a
certain period of time after its expiration date. In many
states, use of this clause is discouraged or prohibited. 91 |
|
|
Term
|
Definition
The sudden tearing away of land, as by earth-
quake, flood, volcanic action, or the sudden change in
the course of a stream. 120 |
|
|
Term
|
Definition
The appraisal principle that states that the
greatest value in a property will occur when the type and
size of the improvements are proportional to each other
as well as the land. |
|
|
Term
|
Definition
A final payment of a mortgage
loan that is considerably larger than the required peri-
odic payments because the loan amount was not fully
amortized. 243 |
|
|
Term
|
Definition
A deed that carries with it no
warranties against liens or other encumbrances but that
does imply that the grantor has the right to convey title.
The grantor may add warranties to the deed at his or her
discretion. 199 |
|
|
Term
|
Definition
The main imaginary line running east and
west and crossing a principal meridian at a definite point;
used by surveyors for reference in locating and describing
land under the rectangular (government) survey system
of legal description. 146 |
|
|
Term
|
Definition
The financial interest that the Internal Revenue
Service attributes to an owner of an investment prop-
erty for the purpose of determining annual depreciation
and gain or loss on the sale of the asset. If a.pr.operty was
acquired by purchase, the owner's basis is the cost of the
property plus the value of any capital expenditures for
improvements to the property, minus any depreciation
allowable or actually taken. This new basis is called the
adjusted basis. 434 |
|
|
Term
|
Definition
Permanent reference marks or points
established for use by surveyors in measuring differences
in elevation. 154 |
|
|
Term
|
Definition
(1) The person for whom a trust operates or
in whose behalf the income from a trust estate is drawn.
(2) A lender in a deed of trust loan transaction. 130
See contract |
|
|
Term
|
Definition
An agreement that may accompany an earnest
money deposit for the purchase of real property as evi-
dence of the purchaser's good faith and intent to com-
plete the transaction. 184 |
|
|
Term
|
Definition
A mortgage covering more than one
parcel of real estate, providing for each parcel's partial
release from the mortgage lien upon repayment of a defi-
nite portion of the debt. 253-54 |
|
|
Term
|
Definition
The illegal practice of inducing hom-
eowners to sell their properties by making represen-
tations regarding the entry or prospective entry of
persons of a particular race or national origin into the
neighborhood. 305 |
|
|
Term
|
Definition
Common name for those state and fed-
erallaws that regulate the registration and sale of invest-
ment securities. 437 |
|
|
Term
|
Definition
Money or property given to make up any differ-
ence in value or equity between two properties in an
exchange. 436 |
|
|
Term
|
Definition
A secondary place of business apart from
the principal or main office from which real estate busi-
ness is conducted. A branch office usually must be run
by a licensed real estate broker working on behalf of the
broker. |
|
|
Term
|
Definition
Violation of any terms or conditions
in a contract without legal excuse; for example, failure to
make a payment when it is due. 180-81 |
|
|
Term
|
Definition
One who acts as an intermediary on behalf of
others for a fee or commission. 4 |
|
|
Term
| broker's price opinion (BPO) |
|
Definition
An opinion of real estate
value commissioned by a bank or attorney and provided
by a broker. 316 |
|
|
Term
|
Definition
The bringing together of parties interested
in making a real estate transaction. 4 |
|
|
Term
|
Definition
Defunct, derelict, or abandoned commer-
cial or industrial sites; many have toxic wastes. 386-87 |
|
|
Term
| budget comparison statement |
|
Definition
Compares actual results
with the original budget, often giving either percentages
or a numerical variance of actual versus projected income
and expenses. 298 |
|
|
Term
|
Definition
A strip of land, usually used as a park or
designated for a similar use, separating land dedicated to
one use from land dedicated to another use (e.g., residen-
tial from commercial). 341 |
|
|
Term
|
Definition
An ordinance that specifies minimum
standards of construction for buildings to protect public
safety and health. 344 |
|
|
Term
|
Definition
Written governmental permission for
the construction, alteration, or demolition of an improve-
ment, showing compliance with building codes and zon-
ing ordinances. 344 |
|
|
Term
| building-related illness (BRI) |
|
Definition
An illness due to air
quality problems, typically toxic substances or patho-
gens; a clinically diagnosed condition. Symptoms include
asthma, allergies, and hypersensitivity. 308 |
|
|
Term
|
Definition
The concept of land ownership
that includes ownership of all legal rights to the land-
possession, control within the law, enjoyment, exclusion,
and disposition. 17 |
|
|
Term
|
Definition
A financing technique used to reduce the
monthly payments for the first few years of a loan. Funds
in the form of discount points are given to the lender by
the builder or seller to buy down or lower the effective
interest rate paid by the buyer, thus reducing the monthly
payments for a set time. 255 |
|
|
Term
|
Definition
A principal-agent relation-
ship in which the broker is the agent for the buyer, with
fiduciary responsibilities to the buyer. The broker repre-
sents the buyer under the law of agency. 47 |
|
|
Term
|
Definition
A residential real estate broker or sales-
person who represents the prospective purchaser in a
transaction. The buyer's agent owes the buyer-principal
the common-law or statutory agency duties. 54 |
|
|
Term
|
Definition
A residential real estate broker who
represents prospective buyers exclusively. As the buyer's
agent, the broker owes the buyer-principal the common-
law or statutory agency duties. 89 |
|
|
Term
|
Definition
Profit earned from the sale of an asset.
434-35 |
|
|
Term
|
Definition
A mathematical process for estimating
the value of a property using a proper rate of return on
the investment and the annual net operating income
expected to be produced by the property. The formula is
expressed as follows: Income + Rate = Value. |
|
|
Term
|
Definition
The rate of return a property will
produce on the owner's investment. 331 |
|
|
Term
|
Definition
The process oflaying two to four feet of soil over
the top of a landfill site and then planting grass on it to
enhance the aesthetic value and prevent erosion. 386 |
|
|
Term
|
Definition
A colorless, odorless gas that
occurs as a by-product of fuel combustion that may result
in death in poorly ventilated areas. 381 |
|
|
Term
|
Definition
The net spendable income from an invest-
ment, determined by deducting all operating and fixed
expenses from the gross income. When expenses exceed
income, a negative cash flow results. 431 |
|
|
Term
|
Definition
A monthly statement that details the
financial status of the property. 297 |
|
|
Term
|
Definition
A Latin phrase meaning, Let the buyer
beware. 68 |
|
|
Term
|
Definition
See covenants, conditions, and restrictions.
certificate of occupancy Permission by the munici-
pal inspector to occupy a completed building structure
after being inspected and having complied with building
codes. 344 |
|
|
Term
| certificate of reasonable value (CRV) |
|
Definition
A form indicat-
ing the appraised value of a property being financed with
a VA loan. 252 |
|
|
Term
|
Definition
The document generally given to the
purchaser at a tax foreclosure sale. A certificate of sale
does not convey title; normally, it is an instrument certi-
fying that the holder received title to the property after
the redemption period passed and that the holder paid
the property taxes for that interim period. 166 |
|
|
Term
|
Definition
A statement of opinion on the status
of the title to a parcel of real property based on an exami-
nation of specified public records. 214-15 |
|
|
Term
|
Definition
The succession of conveyances, from
some accepted starting point, whereby the present holder
of real property derives title. 213 |
|
|
Term
|
Definition
The appraisal principle that holds that no phys-
ical or economic condition remains constant. 325 |
|
|
Term
|
Definition
|
|
Term
| chlorofluorocarbons (CFCs) |
|
Definition
Nontoxic, nonflamma-
ble chemicals containing atoms of carbon, chlorine, and
fluorine, such as air conditioners and refrigerators. CFCs
are safe in application but cause ozone depletion. 382 |
|
|
Term
|
Definition
An act that prohibits racial
discrimination in the sale and rental of housing. 354 |
|
|
Term
|
Definition
|
|
Term
|
Definition
An event where promises made in a sales con-
tract are fulfilled and mortgage loan funds (if any) are
distributed to the buyer. 398 |
|
|
Term
|
Definition
A detailed cash accounting of a
real estate transaction showing all cash received, all
charges and credits made, and all cash paid out in the
transaction. 412-14 |
|
|
Term
|
Definition
Any document, claim, unreleased lien,
or encumbrance that may impair the title to real prop-
erty or make the title doubtful; usually revealed by a title
search and removed by either a quitclaim deed or suit to
quiet title. 200 |
|
|
Term
|
Definition
A written system of standards for ethical
conduct. 367 |
|
|
Term
|
Definition
A supplement or an addition to a will, executed
with the same formalities as a will, which normally does
not revoke the entire will. 204 |
|
|
Term
|
Definition
A clause in insurance policies cov-
ering real property that requires the policyholder to main-
tain fire insurance coverage generally equal to at least 80
percent of the property's actual replacement cost. 37 |
|
|
Term
|
Definition
Something having value that is given to
secure repayment of a debt. 161 |
|
|
Term
|
Definition
The illegal act by a real estate broker of
placing client or customer funds with personal funds. By
law, brokers are required to maintain a separate trust or
escrow account for other parties' funds held temporarily
by the broker. 184 |
|
|
Term
|
Definition
Payment to a broker for services rendered,
such as in the sale or purchase of real property; usually a
percentage of the selling price of the property. 71-72 |
|
|
Term
|
Definition
Parts of a property that are neces-
sary or convenient to the existence, maintenance, and
safety of a condominium or are normally in common use
by all of the condominium residents. Each condominium
owner has an undivided ownership interest in the com-
mon elements. 32 |
|
|
Term
|
Definition
The body of law based on custom, usage,
and court decisions. 45 |
|
|
Term
| community association management |
|
Definition
Provides a team
of property managers, accounting staff, office staff, and
property consultants to manage property. 293 |
|
|
Term
|
Definition
A system of property ownership
based on the theory that each spouse has an equal inter-
est in the property acquired by the efforts of either spouse
during marriage. A holdover of Spanish law found pre-
dominantly in the western U.S. states; the system was
unknown under English common law. 129-30 |
|
|
Term
| Community Reinvestment Act of 1977 (CRA) |
|
Definition
Under
the act, financial institutions are expected to meet the
deposit and credit needs of their communities; partici-
pate and invest in local community development and
rehabilitation projects; and participatein loan programs
for housing, small businesses, and small farms. 258 |
|
|
Term
|
Definition
Properties used in an appraisal report that
are substantially equivalent to the subject property. 327 |
|
|
Term
|
Definition
A person who has the capacity to be
engaged in a legal contract; being of sound mind and
body. |
|
|
Term
|
Definition
The appraisal principle that states that
excess profits generate competition. 325 |
|
|
Term
| competitive market analysis (CMA |
|
Definition
) A comparison
of the prices of recently sold homes that are similar to
a listing seller's home in terms of location, style, and
amenities. 315-16 |
|
|
Term
Comprehensive Environmental Response, Compen-
sation, and Liability Act (CERCLA) |
|
Definition
A federal law
administered by the Environmental Protection Agency
that establishes a process for identifying parties respon-
sible for creating hazardous waste sites, forcing liable par-
ties to clean up toxic sites, bringing legal action against
responsible parties, and funding the abatement of toxic
sites. See also Superfund. 387-88 |
|
|
Term
Comprehensive Loss Underwriting Exchange
(CLUE) |
|
Definition
A database of consumer claims history that
allows insurance companies to access prior claims infor-
mation in the underwriting and rating process. 38 |
|
|
Term
|
Definition
|
|
Term
| computerized loan origination (CLO) |
|
Definition
An elec-
tronic network for handling loan applications through
remote computer terminals linked to various lenders'
computers. 358-59 |
|
|
Term
|
Definition
A judicial or administrative proceeding
to exercise the power of eminent domain, through which
a government agency takes private property for public
use and compensates the owner. 110 |
|
|
Term
|
Definition
Written governmental per-
mission allowing a use inconsistent with zoning but
necessary for the common good, such as locating an
emergency medical facility in a predominantly residen-
tial area. 343 |
|
|
Term
|
Definition
The absolute ownership of a unit in a
multiunit building based on a legal description of the air-
space the unit actually occupies, plus an undivided inter-
est in the ownership of the common elements, which
are owned jointly with the other condominium unit
owners. 32 |
|
|
Term
| confession of judgment clause |
|
Definition
Permits judgment to be
entered against a debtor without the creditor's having to
institute legal proceedings. |
|
|
Term
|
Definition
The appraisal principle that holds that the
greater the similarity among properties in an area, the
better they will hold their value. 325 |
|
|
Term
|
Definition
Expressing or implying permission, approval,
or agreement of an action or decision. 178-79 |
|
|
Term
|
Definition
(1) That received by the grantor in
exchange for his or her deed. (2) Something of value that
induces a person to enter into a contract. 178 |
|
|
Term
|
Definition
Actions of a landlord that so
materially disturb or impair a tenant's enjoyment of the
leased premises that the tenant is effectively forced to
move out and terminate the lease without liability for
any further rent. 282 |
|
|
Term
|
Definition
Notice given to the world by
recorded documents. All people are charged with knowl-
edge of such documents and their contents, whether or
not they have actually examined them. Possession of
property is also considered constructive notice that the
person in possession has an interest in the property. 212 |
|
|
Term
|
Definition
An individual who purchases goods or ser-
vices that are not for resale. |
|
|
Term
|
Definition
A provision in a contract that requires a
certain act to be done or a certain event to occur before
the contract becomes binding. 186 |
|
|
Term
|
Definition
A legally enforceable promise or set of prom-
ises that must be performed and for which, if a breach of
the promise occurs, the law provides a remedy. A contract
may be either unilateral, by which only one party is bound
to act, or bilateral, by which all parties to the instrument
are legally bound to act as prescribed. 176 |
|
|
Term
|
Definition
The appraisal principle that states that
the value of any component of a property is what it gives
to the value of the whole or what its absence detracts
from that value. 325 |
|
|
Term
| controlled business arrangement |
|
Definition
An arrangement
where a package of services (e.g., a real estate firm, title
insurance company, mortgage broker, and home inspec-
tion company) is offered to consumers. 404 |
|
|
Term
|
Definition
A loan that requires no insurance or
guarantee. 247·48 |
|
|
Term
|
Definition
A term used to refer to any document that
transfers title to real property. The term is also used in
describing the act of transferring. 194 |
|
|
Term
|
Definition
A residential multiunit building whose
title is held by a trust or corporation that is owned by and
operated for the benefit of people living within the build-
ing who are the beneficial owners of the trust or share-
holders of the corporation, each possessing a proprietary
lease. 33 |
|
|
Term
|
Definition
Title ownership held by two or more
persons. 126 |
|
|
Term
|
Definition
An entity or organization, created by oper-
ation of law, whose rights of doing business are essentially
the same as those of an individual. The entity has con-
tinuous existence until it is dissolved according to legal
procedures. 132 |
|
|
Term
|
Definition
Corrects problems after they
have occurred. 302 |
|
|
Term
|
Definition
The total amount of money incurred for products
or services |
|
|
Term
|
Definition
The process of estimating the value of
a property by adding to the estimated land value the
appraiser's estimate of the reproduction or replacement
cost of the building, less depreciation. 335 |
|
|
Term
|
Definition
An Internal Revenue Service term for
depreciation. 435 |
|
|
Term
|
Definition
A new offer made in response to an offer
received. It has the effect of rejecting the original offer,
which cannot be accepted thereafter unless revived by
the offeror. 183 |
|
|
Term
|
Definition
A written agreement between two or more
parties in which a party or parties pledge to perform or
not perform specified acts with regard to property; usually
found in such real estate documents as deeds, mortgages,
leases, and contracts for deed. 198 |
|
|
Term
|
Definition
conditions, and restrictions (CC&Rs) Pri-
vate agreements that affect the land use. They may be
enforced by an owner of real estate and included in the
seller's deed to the buyer. 116 |
|
|
Term
| covenant of quiet enjoyment |
|
Definition
The covenant implied by
law by which a landlord guarantees that a tenant may
take possession of leased premises and that the landlord
will not interfere in the tenant's possession or use of the
property. 198 |
|
|
Term
|
Definition
On a closing statement, an amount entered in
a person's favor-either an amount the party has paid or
an amount for which the party must be reimbursed. 425 |
|
|
Term
|
Definition
A life estate, usually a fractional interest, given
by some states to the surviving husband in real estate
owned by his deceased wife. Most states have abolished
curtesy. 114·15 |
|
|
Term
|
Definition
The third party or nonrepresented consumer
for whom some level of service is provided. 46 |
|
|
Term
|
Definition
A horizontal plane from which heights and
depths are measured. 153 |
|
|
Term
|
Definition
On a closing statement, an amount charged; that
is, an amount that the debited party must pay. 425 |
|
|
Term
|
Definition
| A person who has died. 202 |
|
|
Term
|
Definition
The voluntary transfer of private property
by its owner to the public for some public use, such as for
streets or schools. |
|
|
Term
|
Definition
A written instrument that, when executed
and delivered, conveys title to or an interest in real
estate. 17 |
|
|
Term
| deed in lieu of foreclosure |
|
Definition
A deed given by the mort-
gagor to the mortgagee when the mortgagor is in default
under the terms of the mortgage. This is a way for the
mortgagor to avoid foreclosure. 233 |
|
|
Term
|
Definition
An instrument that grants a trustee under
a land trust full power to sell, mortgage, and subdivide a
parcel of real estate. The beneficiary controls the trust-
ee's use of these powers under the provisions of the trust
agreement. 129 |
|
|
Term
|
Definition
A document that transfers the
title back to the borrower when the note is repaid. 229 |
|
|
Term
|
Definition
Clauses in a deed limiting the future
uses of the property. Deed restrictions may impose a vast
variety of limitations and conditions-for example, they
may limit the density of buildings, dictate the types of
structures that can be erected, or prevent buildings from
being used for specific purposes or even from being used
at all. 116 |
|
|
Term
|
Definition
The nonperformance of a duty, whether arising
under a contract or otherwise; failure to meet an obliga-
tion when due. 228-29 |
|
|
Term
|
Definition
A clause used in leases and mort-
gages that cancels a specified right upon the occurrence
of a certain condition, such as cancellation of a mortgage
upon repayment of the mortgage loan. 229 |
|
|
Term
|
Definition
An estate in which the holder has
a fee simple title that may be divested upon the occur-
rence or nonoccurrence of a specified event. There are
two categories of defeasible fee estates: fee simple on
condition precedent (fee simple determinable) and fee
simple on condition subsequent. 112 |
|
|
Term
|
Definition
A personal judgment levied
against the borrower when a foreclosure sale does not
produce sufficient funds to pay the mortgage debt in
full. 234 |
|
|
Term
|
Definition
Taxes that are unpaid and past
due. 165-66 |
|
|
Term
|
Definition
When the title is delivered by
the grantor and accepted by the grantee. 197 |
|
|
Term
|
Definition
The amount of goods people are willing
and able to buy at a given price; often coupled with
supply. 7-8 |
|
|
Term
|
Definition
The number written below the line in a
fraction. 469 |
|
|
Term
|
Definition
Zoning ordinances that restrict the max-
imum average number of houses per acre that may be built
within a particular area, generally a subdivision. 346 |
|
|
Term
Department of Housing and Urban Development
(HUD) |
|
Definition
Governmental department that has estab-
lished rules and regulations that further interpret the
practices affected by the law. In addition, HUD distrib-
utes an equal housing opportunity poster. 242 |
|
|
Term
|
Definition
( 1) In appraisal, a loss of value in property
due to any cause, including physical deterioration, functional
obsolescence, and external obsolescence. (2) In real estate
investment, an expense deduction for tax purposes taken
over the period of ownership of income property. 329 |
|
|
Term
|
Definition
Acquisition or/an estate by inheritance in
which an heir succeeds to the property by operation of
law. 209 |
|
|
Term
|
Definition
A process that accommodates an
in-house sale in which two different agents are involved.
The broker designates one agent to represent the seller
and one agent to represent the buyer. 55 |
|
|
Term
|
Definition
A licensee authorized by a broker to
act as the agent for a specific principal in a particular
transaction. 53 |
|
|
Term
|
Definition
A fee simple estate where the
property returns to the original grantor or heirs when a
specified condition occurs whereas the property is no lon-
ger being used for the purpose prescribed. 112 |
|
|
Term
|
Definition
One who attempts to put land to its
most profitable use through the construction of
improvements. 345 |
|
|
Term
|
Definition
A gift of real property by will. The donor is the
devisor, and the recipient is the devisee. 203 |
|
|
Term
|
Definition
A statement indicating no legal responsibil-
ity for information; no warranties or representations have
been made. 77 |
|
|
Term
|
Definition
Relevant information or facts that are
known or should have been known. 50-51 |
|
|
Term
|
Definition
A unit of measurement used for various
loan charges; one point equals 1 percent of the amount
of the loan. 226 |
|
|
Term
|
Definition
The interest rate set by the Federal
Reserve that member banks are charged when they bor-
row money through the Fed. 9 |
|
|
Term
|
Definition
A number or quantity divided into
another. 472 |
|
|
Term
|
Definition
A property that includes in its
ownership the appurtenant right to use an easement over
another person's property for a specific purpose. 116-17 |
|
|
Term
|
Definition
A national registry, managed by
the Federal Trade Commission, that lists the phone num-
bers of consumers who have indicated their preference to
limit the telemarketing calls they receive. 79 |
|
|
Term
|
Definition
The legal right or interest, recognized in some
states, that a wife acquires in the property her husband
held or acquired during their marriage. During the hus-
band's lifetime, the right is only a possibility of an interest;
upon his death, it can become an interest in land. 114-15 |
|
|
Term
|
Definition
Representing both parties to a transaction.
This is unethical unless both parties agree to it, and it is
illegal in many states. 54-56 |
|
|
Term
|
Definition
A provision in the mortgage that
states that the entire balance of the note is immediately
due and payable if the mortgagor transfers (sells) the
property. 230 |
|
|
Term
|
Definition
Unlawful constraint or action exercised upon a
person whereby the person is forced to perform an act
against his or her will. A contract entered into under
duress is voidable. 179 |
|
|
Term
|
Definition
Money deposited by a buyer under the
terms of a contract, to be forfeited if the buyer defaults |
|
|
Term
|
Definition
A right to use the land of another for a spe-
cific purpose, such as for a right-of-way or utilities; an
incorporeal interest in land. 116 |
|
|
Term
|
Definition
An: easement that follows along
with the land. 116 |
|
|
Term
|
Definition
An easement that occurs
when a party's actions reflect the intention of creating
an easement. |
|
|
Term
|
Definition
An easement allowed by law
as necessary for the full enjoyment of a parcel of real
estate (e.g., a right of ingress and egress over a grantor's
land). 118 |
|
|
Term
|
Definition
An easement acquired by
continuous, open, and hostile use of the property for the
period of time prescribed by state law. 118 |
|
|
Term
|
Definition
s An easement that is not created for
the benefit of any land owned by the owner of the ease-
ment but that attaches personally to the easement owner.
For example, a right granted by Eleanor Franks to Joe
Fish to use a portion of her property for the rest of his life
would be an easement in gross. 117 |
|
|
Term
|
Definition
The number of years during which an
improvement will add value to the land. 331 |
|
|
Term
| electromagnetic fields (EMFs) |
|
Definition
Generated by the
movement of electrical currents and may be related to a
variety of health complaints. 384 |
|
|
Term
|
Definition
A process of integrating infor-
mation electronically in a real estate transaction between
clients, lender, and title and closing agents. 78 |
|
|
Term
Electronic Signatures in Global and National Commerce
Act (E-Sign) |
|
Definition
An act that makes contracts (including
signatures) and records legally enforceable regardless of
the medium in which they are created. 78-79 |
|
|
Term
|
Definition
Growing crops, such as com, that are pro-
duced annually through labor and industry; also called
fructus industriales. 20 |
|
|
Term
|
Definition
The right of a government or munici-
pal quasi-public body to acquire property for public use
through a court action called condemnation, in which the
court decides that the use is a public use and determines
the compensation to be paid to the owner. 110-11 |
|
|
Term
|
Definition
Someone who works as a direct employee of
an employer and has employee status. The employer is
obligated to withhold income taxes and Social Security
taxes from the compensation of employees. See also inde-
pendent contractor. 75 |
|
|
Term
|
Definition
A document evidencing formal
employment between employer and employee or between
principal and agent. In the real estate business, this gen-
erally takes the form of a listing agreement or manage-
ment agreement. |
|
|
Term
|
Definition
State legislation that confers zoning pow-
ers on municipal governments. 339 |
|
|
Term
|
Definition
A method of controlling environ-
mental contamination by' sealing off a dangerous
substance. 376 |
|
|
Term
|
Definition
A building or some portion of it-a wall
or fence, for instance-that extends beyond the land
of the owner and illegally intrudes on some land of an
adjoining owner or a street or alley. 119 |
|
|
Term
|
Definition
Anything-such as a mortgage, tax, or
judgment lien; an easement; a restriction on the use of the
land; or an outstanding dower right-that may diminish
the value or use and enjoyment of a property. 115 |
|
|
Term
| environmental impact statement (EIS) |
|
Definition
A statement
that details the impact a federally funded project will
have on the environment. 390 |
|
|
Term
| environmental site assessment (ESA |
|
Definition
) An evaluation
of property to show that due care was exercised in the
determination of environmental impairments. 390 |
|
|
Term
| Equal Credit Opportunity Act (ECOA) |
|
Definition
The federal
law that prohibits discrimination in the extension of
credit because of race, color, religion, national origin,
sex, age, or marital status. 257-58 |
|
|
Term
|
Definition
The raising or lowering of assessed values
for tax purposes in a particular county or taxing district
to make them equal to assessments in other counties or
districts. 164 |
|
|
Term
|
Definition
A factor (number) by which the
assessed value of a property is multiplied to arrive at a
value for the property that is in line with statewide tax
assessments. The ad valorem tax would be based on this
adjusted value. 164 |
|
|
Term
| equitable right of redemption |
|
Definition
The right of a defaulted
property owner to recover the property prior to its sale by
paying the appropriate fees and charges. 233 |
|
|
Term
|
Definition
The interest held by a vendee under a
contract for deed or an installment contract; the equita-
ble right to obtain absolute ownership to property when
legal title is held in another's name. 184-85 |
|
|
Term
|
Definition
The interest or value that an owner has in prop-
erty over and above any indebtedness. 40 |
|
|
Term
|
Definition
That portion of the loan payment
directed toward the principal rather than the interest, plus
any gain in property value due to appreciation. 433 |
|
|
Term
|
Definition
The closing of a transaction through a third
party called an escrow agent, or escrowee, who receives
certain funds and documents to be delivered upon the
performance of certain conditions outlined in the escrow
instructions. 402 |
|
|
Term
|
Definition
The trust account established by a bro-
ker under the provisions of the license law for the pur-
pose of holding funds on behalf of the broker's principal
or some other person until the consummation or termi-
nation of a transaction. 229-30 |
|
|
Term
|
Definition
A disinterested third party is authorized
to act as escrow agent (escrow holder) and to coordi-
nate the closing activities on behalf of the buyer and the
seller. 402-3 |
|
|
Term
|
Definition
An agreement between a buyer, a
seller, and an escrow holder setting forth rights and
responsibilities of each. An escrow contract is entered
into when earnest money is deposited in a broker's escrow
account. 184 |
|
|
Term
|
Definition
s A document that sets forth the
duties of the escrow agent, as well as the requirements
and obligations of the parties, when a transaction is
closed through an escrow. 401 |
|
|
Term
| estate (tenancy) at sufferance |
|
Definition
The tenancy of a lessee
who lawfully comes into possession of a landlord's real
estate but who continues to occupy the premises improp-
erly after his or her lease rights have expired. 271 |
|
|
Term
|
Definition
l An estate that gives the lessee
the right to possession until the estate is terminated by
either party; the term of this estate is indefinite. 270 |
|
|
Term
| estate (tenancy) for years |
|
Definition
An interest for a certain,
exact period of time in property leased for a specified
consideration. 269 |
|
|
Term
| estate (tenancy) from period to period |
|
Definition
An interest in
leased property that continues from period to period-
week to week, month to month, or year to year. 269-70 |
|
|
Term
|
Definition
The degree, quantity, nature, and extent
of interest a person has in real property. 112 |
|
|
Term
|
Definition
Federal tax on a decedent's real and personal
property. 169 |
|
|
Term
|
Definition
Method of creating an agency relationship
in which someone states incorrectly that another per-
son is his or her agent and a third person relies on that
representation. |
|
|
Term
|
Definition
A document in which a borrower
certifies the amount owed on a mortgage loan and the
rate of interest. |
|
|
Term
|
Definition
The system of moral principles and rules that
becomes standards for professional conduct. 367 |
|
|
Term
|
Definition
A legal process to oust a person from posses-
sion of real estate. 281 |
|
|
Term
|
Definition
Proof of ownership of property; com-
monly a certificate of title, an abstract of title with law-
yer's opinion, title insurance, or a Torrens registration
certificate. 402 |
|
|
Term
|
Definition
The exclusion of a part of the property
conveyed. 196 |
|
|
Term
|
Definition
A transaction in which all or part of the con-
sideration is the transfer of like-kind property (e.g., real
estate for real estate). 435-36 |
|
|
Term
|
Definition
A listing contract under
which the owner appoints a real estate broker as his or
her exclusive agent for a designated period of time to sell
the property, on the owner's stated terms, for a commis-
sion. The owner reserves the right to sell without paying
anyone a commission if the sale is to a prospect who has
not been introduced or claimed by the broker. 89 |
|
|
Term
| exclusive-right-to-sell listing |
|
Definition
A listing contract under
which the owner appoints a real estate broker as his or her
exclusive agent for a designated period of time to sell the
property on the owner's stated terms and agrees to pay the
broker a commission when the property is sold, whether
by the broker, the owner, or another broker. 88-89 |
|
|
Term
|
Definition
A contract in which all parties
have fulfilled their promises and thus performed the
contract. 177 |
|
|
Term
|
Definition
The signing and delivery of an instrument.
Also, a legal order directing an official to enforce a judg-
ment against the property of a debtor. 168 |
|
|
Term
|
Definition
An appointed person who carries
out the directions of a will. 205 |
|
|
Term
|
Definition
A contract under which something
remains to be done by one or more of the parties. 177 |
|
|
Term
|
Definition
An agency relationship based on a for-
mal agreement between the parties. 47 |
|
|
Term
|
Definition
An oral or written contract in
which the parties state the contract's terms and express
their intentions in words. 47 |
|
|
Term
|
Definition
Reduction in a property's value
caused by outside factors (i.e., those that are off the
property). 328 |
|
|
Term
|
Definition
Incurable depreciation caused
by factors not on the subject property, such as environ-
mental, social, or economic factors. 330 |
|
|
Term
|
Definition
The federal law that prohibits dis-
crimination in housing based on race, color, religion, sex,
handicap, familial status, and national origin. 305 |
|
|
Term
| Fair Housing Amendments Act of 1988 |
|
Definition
Expansion of
the Fair Housing Act to include families with children
and those with physical or mental disabilities. 282 |
|
|
Term
| fair housing and civil rights laws |
|
Definition
Federal laws that
prohibit discrimination in housing based on race, color,
religion, sex, handicap, familial status, and national
origin. 282 |
|
|
Term
|
Definition
A government-sponsored enterprise estab-
lished to purchase any kind of mortgage loans in the sec-
ondary mortgage market from the primary lenders. 248 |
|
|
Term
| Federal Deposit Insurance Corporation (FDIC) |
|
Definition
An
independent federal agency that insures the deposits in
commercial banks. 240 |
|
|
Term
| Federal Emergency Management Agency (FEMA) |
|
Definition
A
federal agency that is responsible for assisting the nation
in the event of a disaster providing response and recovery
efforts. 38 |
|
|
Term
|
Definition
The rate recommended by the Fed-
eral Reserve for the member banks to charge each other
on short-term loans. These rates form the basis on which
the banks determine the percentage rate of interest they
will charge their loan customers. |
|
|
Term
| Federal Reserve System (Fed) |
|
Definition
The country's central
banking system, which is responsible for the nation's
monetary policy by regulating the sup-ply of money and
interest rates. 239 |
|
|
Term
|
Definition
Arrangement where a consumer asks a
licensee to perform specific real estate services for a set
fee. 72 |
|
|
Term
|
Definition
The highest interest in real estate recog-
nized by the law; the holder is entitled to all rights to the
property, 121 |
|
|
Term
|
Definition
A fee simple estate qualified
by a special limitation. Language used to describe limita-
tion includes the words so long as, while, or during. 112 |
|
|
Term
| fee simple subject to a condition subsequent |
|
Definition
If an estate
is no longer used for the purpose conveyed, it reverts to
the original grantor by the right of reentry. 113 |
|
|
Term
|
Definition
A system of ownership usually associated
with precolonial England, in which the king or other sov-
ereign is the source of all rights. The right to possess real
property was granted by the sovereign to an individual as
a life estate only. Upon the death of the individual, title
passed back to the sovereign, not to the decedent's heirs. |
|
|
Term
|
Definition
A loan insured by the Federal Housing
Administration and made by an approved lender in
accordance with the FHA's regulations. 261 |
|
|
Term
|
Definition
One in whom trust and confidence is placed;
a reference to a broker employed under the terms of a list-
ing contract or buyer agency agreement. 46 |
|
|
Term
|
Definition
A relationship of trust and con-
fidence, as between trustee and beneficiary, attorney and
client, or principal and agent. 48 |
|
|
Term
Financial Institutions Reform, Recovery, and Enforce-
ment Act (FIRREA) |
|
Definition
This act restructured the sav-
ings and loan association regulatory system; enacted in
response to the savings and loan crisis of the 1980s. 315 |
|
|
Term
|
Definition
A mortgage that has priority over all
other mortgages. 167 |
|
|
Term
|
Definition
The government's policy in regard to taxa-
tion and spending programs. The balance between these
two areas determines the amount of money the govern-
ment will withdraw from or feed into the economy, which
can counter economic peaks and slumps. |
|
|
Term
|
Definition
An item of personal property that has been
converted to real property by being permanently affixed
to the realty. 21 |
|
|
Term
|
Definition
Removal of a tenant from a rental
property by the landlord if the tenant breached one of
the terms of the lease agreement. |
|
|
Term
|
Definition
A legal procedure whereby property used
as security for a debt is sold to satisfy the debt in the
event of default in payment of the mortgage note or
default of other terms in the mortgage document. The
foreclosure procedure brings the rights of all parties to a
conclusion and passes the title in the mortgaged property
to either the holder of the mortgage or a third party who
may purchase the realty at the foreclosure sale, free of all
encumbrances affecting the property subsequent to the
mortgage. 232 |
|
|
Term
| formal will/witnessed will |
|
Definition
A document having writ-
ten instructions of property disbursements upon the
death of the owner. The document must be signed and
witnessed. 203 |
|
|
Term
|
Definition
An air pollutant that is a colorless
chemical used to manufacture building materials and
many household products, such as particleboard, hard-
wood plywood paneling, and urea-formaldehyde foam
insulation. 391 |
|
|
Term
|
Definition
Deception intended to cause a person to give up
property or a lawful right. 59 |
|
|
Term
|
Definition
A government-sponsored enterprise
established to purchase primarily conventional mortgage
loans in the secondary mortgage market. 260 |
|
|
Term
|
Definition
An estate in land in which ownership
is for an indeterminate length of time, in contrast to a
leasehold estate. 117 |
|
|
Term
|
Definition
The measurement of a parcel of land by
the number of feet of street or road frontage. |
|
|
Term
|
Definition
A loan consisting of equal, regular
payments satisfying the total payment of principal and
interest by the due date. 244 |
|
|
Term
|
Definition
A loss of value to an improve-
ment to real estate arising from functional problems,
often caused by age or poor design. 330 |
|
|
Term
|
Definition
A person's present right to an interest
in real property that will not result in possession or enjoy-
ment until some time in the future, such as a reversion or
right of re-entry. 113 |
|
|
Term
|
Definition
A defect in the chain of title of a particular parcel of
real estate; a missing document or conveyance that raises
doubt as to the present ownership of the land. 213 |
|
|
Term
|
Definition
One who is authorized by a principal to
represent the principal in a specific range of matters. 52 |
|
|
Term
|
Definition
The right of a creditor to hav'e all of a
debtor's property-both real and personal-sold to sat-
isfy a debt. 162 |
|
|
Term
|
Definition
A tax that is made up of the
taxes levied on the real estate by government agencies
and municipalities. 163-64 |
|
|
Term
|
Definition
A deed in which the grantor
fully warrants good, clear title to the premises. Used in
most real estate deed transfers, a general warranty deed
offers the greatest protection of any deed. 198 |
|
|
Term
|
Definition
A government agency that plays an impor-
tant role in the secondary mortgage market. It guarantees
mortgage-backed securities using FHA and VA loans as
collateral. 260 |
|
|
Term
| good and indefeasible title |
|
Definition
A title that cannot be
annulled or rendered void. |
|
|
Term
| good-faith estimate (GFE) |
|
Definition
An estimate of all closing
fees that must be provided to a borrower within three
days of the loan application as required by the Real Estate
Settlement Procedures Act (RESPA). 407 |
|
|
Term
| graduated-payment mortgage (GPM) |
|
Definition
A loan in which
the monthly principal and interest payments increase by
a certain percentage each year for a certain number of
years and then level off for the remaining loan term. |
|
|
Term
|
Definition
A person who receives a transfer of real prop-
erty from a grantor. 194 |
|
|
Term
|
Definition
Words in a deed of conveyance that
state the grantor's intention to convey the property at
the present time. This clause is generally worded as "con-
vey and warrant"; "grant"; "grant, bargain, and sell"; or
the like. 196 |
|
|
Term
|
Definition
The owner transferring title to or an interest in
real property to a grantee. 194 |
|
|
Term
| gross income multiplier (GIM) |
|
Definition
A figure used as a mul-
tiplier of the gross annual income of a property to pro-
duce an estimate of the property's value. 333 |
|
|
Term
|
Definition
A lease of property according to which a
landlord pays all property charges regularly incurred
through ownership, such as repairs, taxes, insurance,
and operating expenses. Most residential leases are gross
leases. 279 |
|
|
Term
| gross rent multiplier (GRM) |
|
Definition
The figure used as a mul-
tiplier' of the gross monthly income of a property to pro-
duce an estimate of the property's value. 333 |
|
|
Term
|
Definition
A lease of land only, on which the tenant
usually owns a building or is required to build as speci-
fied in the lease. Such leases are usually long-term net
leases; the tenant's rights and obligations continue until
the lease expires or is terminated through default. 280 |
|
|
Term
|
Definition
Water that exists under the earth's sur-
face within the tiny spaces or crevices in geological
formations. 384 |
|
|
Term
|
Definition
Law that states that groundwater is
the private property of the landowner. |
|
|
Term
|
Definition
A loan in which the
monthly payments increase annually, with the increased
amount being used to reduce directly the principal bal-
ance outstanding and thus shorten the overall term of
the loan. 245 |
|
|
Term
|
Definition
That part of a deed beginning with
the words "to have and to hold," following the granting
clause and defining the extent of ownership the grantor
is conveying. 196 |
|
|
Term
|
Definition
A property that is suitable for living in or
on. |
|
|
Term
|
Definition
One who might inherit or succeed to an interest in
land under the state law of descent when the owner dies
without leaving a valid will. 202 |
|
|
Term
|
Definition
The possible use of a property
that would produce the greatest net income and, thereby,
develop the highest value. 340 |
|
|
Term
|
Definition
A tenancy whereby a lessee retains
possession of leased property after the lease has expired
and the landlord, by continuing to accept rent, agrees
to the tenant's continued occupancy as defined by state
law. 270 |
|
|
Term
|
Definition
A will that is written, dated, and
signed in the testator's handwriting. 204 |
|
|
Term
|
Definition
A loan (sometimes called a line of
credit) under which a property owner uses his or her resi-
dence as collateral and can then draw funds up to a prear-
ranged amount against the property. 255-56 |
|
|
Term
| Home Mortgage Disclosure Act |
|
Definition
A federal law that
requires lenders to annually disclose the number of loan
applications and loans in certain areas, thus eliminating
the practice of "redlining." |
|
|
Term
| homeowners' insurance policy |
|
Definition
A standardized pack-
age insurance policy that covers a residential real estate
owner against financial loss from fire, theft, public liabil-
ity, and other common risks. 36-38 |
|
|
Term
|
Definition
Land that is owned and occupied as the
family home. In many states, a portion of the area or
value of this land is protected or exempt from judgments
for debts. 115 |
|
|
Term
|
Definition
A form that itemizes fees and services charged
to a borrower and seller during a real estate transaction. |
|
|
Term
|
Definition
To pledge property as security for
an obligation or loan without giving up possession of
it. 224 |
|
|
Term
|
Definition
Based on the actions of the parties
that imply that they have mutually consented to an
agency relationship, an implied agency relationship is
formed. 47 |
|
|
Term
|
Definition
A contract under which the agree-
ment of the parties is demonstrated by their acts and
conduct. 47 |
|
|
Term
| implied warranty of habitability |
|
Definition
A theory in landlord/
tenant law in which the landlord renting residential
property implies that the property is habitable and fit for
its intended use. |
|
|
Term
|
Definition
An account that most mortgage
lenders require borrowers to have for funds to pay future
real estate taxes and insurance premiums. 229-30 |
|
|
Term
|
Definition
(1) Any structure, usually privately
owned, erected on a site to enhance the value of the
property (e.g., building a fence or a driveway). (2) A pub-
licly owned structure added to or benefiting land (e.g., a
curb, sidewalk, street, or sewer). 17 |
|
|
Term
|
Definition
The process of estimating the value
of an income-producing property through capitalization
of the annual net income expected to be produced by the
property during its remaining useful life. 331-33 |
|
|
Term
|
Definition
Property held for current income as
well as a potential profit upon its sale. 431 |
|
|
Term
|
Definition
A nonpossessory right in real estate
(e.g., an easement or a right-of-way). |
|
|
Term
|
Definition
Someone who is retained to
perform a certain act but who is subject to the control
and direction of another only as to the end result and not
as to the way in which the act is performed. Unlike an
employee, an independent contractor pays for all expenses
and Social Security and income taxes and receives no
employee benefits. Most real estate salespeople are inde-
pendent contractors. 75 |
|
|
Term
|
Definition
An objective economic indicator to which the
interest rate for an adjustable-rate mortgage is tied. 244 |
|
|
Term
|
Definition
The gradual reduction of the purchasing power
of the dollar, usually related directly to the increases in
the money supply by the federal government. 431 |
|
|
Term
|
Definition
State-imposed taxes on a decedent's
real and personal property. 162 |
|
|
Term
|
Definition
A transaction in which the sales price
is paid in two or more installments over two or more
years. If the sale meets certain requirements, a taxpayer
can postpone reporting such income until future years by
paying tax each year only on the proceeds received that
year. 436 |
|
|
Term
|
Definition
A charge made by a lender for the use of
money. 225 |
|
|
Term
|
Definition
A mortgage that only requires
the payment of interest for a stated period of time with
the principal due at the end of the term. 242 |
|
|
Term
|
Definition
A short-term loan usually made dur-
ing the construction phase of a building project (often
referred to as a construction loan). 255 |
|
|
Term
| Internal Revenue Service tax lien |
|
Definition
A lien charged by
the Internal Revenue Service for nonpayment of income
taxes. 170 |
|
|
Term
|
Definition
A powerful computer tool for
providing information about properties, relocation ser-
vices, and particular communities; however, state laws do
apply. 78 |
|
|
Term
| Internet Listing Display Policy |
|
Definition
A policy from the
National Association of REALTORS® that allows all MLS
members to have equal right to display MLS data, and
respects the rights of property owners and their listing
brokers to market a property as they wish. 77 |
|
|
Term
| Interstate Land Sales Full Disclosure Act |
|
Definition
A federal
law that regulates the sale of certain real estate in inter-
state commerce. 347-48 |
|
|
Term
|
Definition
The condition of a property owner who dies
without leaving a valid will. Title to the property will
pass to the decedent's heirs as provided in the state law
of descent. 202 |
|
|
Term
|
Definition
An appraisal term referring to the value
created by a person's personal preferences for a particular
type of property. 431 |
|
|
Term
|
Definition
An action brought by a prop-
erty owner seeking just compensation for land taken for
public use when the taker of the property does not intend
to bring eminent domain proceedings. Property is con-
demned because its use and value have been diminished
due to an adjacent property's public use. 342 |
|
|
Term
|
Definition
Money directed toward the purchase,
improvement, and development of an asset in expecta-
tion of income or profits. 23 |
|
|
Term
|
Definition
A lien placed on property without the
consent of the property owner. 161 |
|
|
Term
|
Definition
Ownership of real estate between two or
more parties who have been named in one conveyance
as joint tenants. Upon the death of a joint tenant, the
decedent's interest passes to the surviving joint tenant or
tenants by the right of survivorship. 127-28 |
|
|
Term
|
Definition
The formal decision of a court upon the
respective rights and claims of the parties to an action
or suit. After a judgment has been entered and recorded
with the county recorder, it usually becomes a general
lien on the property of the defendant. 168-69 |
|
|
Term
|
Definition
In law, the requirements established
by prior court decisions. |
|
|
Term
|
Definition
An obligation, such as a second mortgage,
that is subordinate in right or lien priority to an existing
lien on the same realty. 167 |
|
|
Term
|
Definition
An equitable doctrine used by courts to bar a
legal claim or prevent the assertion of a right because of
undue delay or failure to assert the claim or right. 347 |
|
|
Term
|
Definition
The earth's surface, extending downward to the
center of the earth and upward infinitely into space,
including things permanently attached by nature, such as
trees and water. 16-17 |
|
|
Term
|
Definition
A hidden structural defect that could not
be discovered by ordinary inspection and that threatens
the property's soundness or the safety of its inhabitants.
Some states impose on sellers and licensees a duty to
inspect for and disclose latent defects. 60 |
|
|
Term
| law of diminishing returns |
|
Definition
Law that applies when at
the point where additional improvements do not increase
income or value. 326 |
|
|
Term
| law of increasing returns |
|
Definition
Law that applies as long
as money being spent on improvements produces an
increase in income or value. 326 |
|
|
Term
|
Definition
Used as a pigment and drying agent in alkyd oil-
based paint in about 75 percent of housing built before
1978. An elevated level of lead in the body can cause
serious damage to the brain, kidneys, nervous system, and
red blood cells. Children under the age of six are most
vulnerable. 277 |
|
|
Term
|
Definition
A written or oral contract between a landlord
(the lessor) and a tenant (the lessee) that transfers the
right to exclusive possession and use of the landlord's real
property to the lessee for a specified period of time and
for a stated consideration (rent). By state law, leases for
longer than a certain period of time (generally one year)
must be in writing to be enforceable. 268 |
|
|
Term
|
Definition
A lease under which the tenant has the
right to purchase the property either during the lease
term 'Or at its end. 278 |
|
|
Term
|
Definition
The purchase of real property, the
consummation of which is preceded by a lease, usually
long-term, that is typically done for tax or financing
purposes. 280 |
|
|
Term
|
Definition
A tenant's right to occupy real estate
during the term of a lease, generally considered to be a
personal property interest. 112 |
|
|
Term
|
Definition
A disposition of money or personal property by
will. 207 |
|
|
Term
|
Definition
A description of a specific parcel of
real estate complete enough for an independent surveyor
to locate and identify it. 144 |
|
|
Term
|
Definition
A form of life estate established by
state law, rather than created voluntarily by an owner. It
becomes effective when certain events occur. See dower,
curtesy, and homestead for legal life estates used in some
states. 114 |
|
|
Term
| legally competent parties |
|
Definition
People who are recognized
by law as being able to contract with others; those of legal
age and sound mind. 179 |
|
|
Term
|
Definition
The use of borrowed money to finance an
investment. 433-34 |
|
|
Term
|
Definition
To assess; to seize or collect. To levy a tax is to
assess a property and set the rate of taxation. To levy an
execution is to officially seize the property of a person in
order to satisfy an obligation. 163 |
|
|
Term
|
Definition
Insurance that covers injuries or
losses sustained within the home. 37 |
|
|
Term
|
Definition
(1) A privilege or right granted to a person by
a state to operate as a real estate broker or salesperson.
(2) The revocable permission for a temporary use of
land-a personal right that cannot be sold. 69 |
|
|
Term
|
Definition
A person who has the skills and knowledge to
be licensed in real estate. 4 |
|
|
Term
|
Definition
A right given by law to certain creditors to have
their debts paid out of the property of a defaulting debtor,
usually by means of a court sale. 121 |
|
|
Term
|
Definition
Some states interpret a mortgage as being
purely a lien on real property. The mortgagee thus has no
right of possession but must foreclose the lien and sell the
property if the mortgagor defaults. 223 |
|
|
Term
|
Definition
In property management, compar-
ing one type of equipment with another based on both
purchase cost and operating cost over its expected useful
lifetime. |
|
|
Term
|
Definition
An interest in real or personal property that
is limited in duration to the lifetime of its owner or some
other designated person or persons. 112 |
|
|
Term
|
Definition
A person in possession of a life estate. 114
limited liability company (LLC) A form of business
organization that combines the most attractive features
of limited partnerships and corporations. 133 |
|
|
Term
|
Definition
Measurement in a straight
line. 463 |
|
|
Term
|
Definition
An amount predetermined by
the parties to a contract as the total compensation
to an injured party should the other party breach the
contract. 185 |
|
|
Term
|
Definition
The ability to sell an asset and convert it into
cash, at a price close to its true value, in a short period of
time. 430 |
|
|
Term
|
Definition
A recorded legal document giving construc-
tive notice that an action affecting a particular property
has been filed in either a state or a federal court. 169 |
|
|
Term
|
Definition
A contract between an owner (as
principal) and a real estate broker (as agent) by which
the broker is employed as agent to find a buyer for the
owner's real estate on the owner's terms, for which ser-
vice the owner agrees to pay a commission. 47 |
|
|
Term
|
Definition
The broker in a multiple-listing situa-
tion from whose office a listing agreement is initiated,
as opposed to the cooperating broker, from whose office
negotiations leading up to a sale are initiated. The list-
ing broker and the cooperating broker may be the same
person. 90 |
|
|
Term
|
Definition
(1) A landowner's claim to use water in
large navigable lakes and oceans adjacent to his or her
property. (2) The ownership rights to land bordering
these bodies of water up to the high-water mark. 119-20 |
|
|
Term
|
Definition
A trust that is created during one's
lifetime. 131 |
|
|
Term
|
Definition
A fee charged to the borrower by
the lender for making a mortgage loan. The fee is usually
computed as a percentage of the loan amount. 225-26 |
|
|
Term
| loan-to-value ratio (LTV) |
|
Definition
The relationship between
the amount of the mortgage loan and the value of the
real estate being pledged as collateral. 247 |
|
|
Term
| lot-and-block (recorded plat) system |
|
Definition
A method of
describing real property that identifies a parcel of land by
reference to lot and block numbers within a subdivision,
as specified on a recorded subdivision plat. 151-52 |
|
|
Term
|
Definition
A contract between the owner
of income property and a management firm or individual
property manager that outlines the scope of the manag-
er's authority. 10 |
|
|
Term
|
Definition
A highly detailed plan that lays out
the owner's objectives with the property, as well as what
the property manager wants to accomplish and how,
including all budgetary information. 295 |
|
|
Term
|
Definition
Dwellings that are built off-site
and trucked to a building lot where they are installed or
assembled. 19-20 |
|
|
Term
|
Definition
A premium added to the index rate represent-
ing the lender's cost of doing business. 244 |
|
|
Term
|
Definition
A place where goods can be bought and sold
and a price established. 7-10 |
|
|
Term
|
Definition
Good or clear title, reasonably free
from the risk of litigation over possible defects. 214 |
|
|
Term
|
Definition
Also known as the sales compari-
son approach. An estimate of value obtained by comparing
property being appraised with recently sold comparable
properties. 327 |
|
|
Term
|
Definition
The most probable price property would
bring in an arm's-length transaction under normal condi-
tions on the open market. 324 |
|
|
Term
|
Definition
A comprehensive plan to guide the long-
term physical development of a particular area. 339 |
|
|
Term
|
Definition
A statutory lien created in favor of con-
tractors, laborers, and materialmen who have performed
work or furnished materials in the erection or repair of a
building. 167-68 |
|
|
Term
|
Definition
Federal legislation that promotes the
establishment of state registration systems to maintain
residential information on every person who kidnaps
children, commits sexual crimes against children, or
commits sexually violent crimes. 60 |
|
|
Term
|
Definition
One of a set of imaginary lines running north
and south and crossing a base line at a definite point, used
in the rectangular (government) survey system of prop-
erty description. 146 |
|
|
Term
| metes-and-bounds description |
|
Definition
A legal description of
a parcel of land that begins at a well-marked point and
follows the boundaries, using directions and distances
around the tract, back to the place of beginning. 144-46 |
|
|
Term
|
Definition
One-tenth of one cent. Some states use a mill rate
to compute real estate taxes; for example, a rate of 52
mills would be $0.052 tax for each dollar of assessed valu-
ation of a property. 165 |
|
|
Term
|
Definition
Some states are requiring
that licensees perform some minimum level of service to
clients. 74-75 |
|
|
Term
|
Definition
A person who has not reached the age of major-
ity and, therefore, does not have legal capacity to transfer
title to real property. 179 |
|
|
Term
|
Definition
Property that accommodates more than one
use, such as commercial use and residential use. 7 |
|
|
Term
| Model Real Estate Time-Share Act |
|
Definition
An act that gov-
erns the management, use, and termination of time-share
units. 138 |
|
|
Term
|
Definition
A form of fungus that can be found almost any-
where and can grow on almost any organic substance,
so long as moisture, oxygen, and an organic food source
are present. Mold growth can gradually destroy what it is
growing on as well as cause serious health problems. 382-83 |
|
|
Term
|
Definition
Governmental regulation of the
amount of money in circulation through such institu-
tions as the Federal Reserve Board. 9 |
|
|
Term
|
Definition
A periodic tenancy under
which the tenant rents for one month at a time. In the
absence of a rental agreement (oral or written), a tenancy
is generally considered to be month to month. 283 |
|
|
Term
|
Definition
A fixed natural or artificial object used to
establish real estate boundaries for a metes-and-bounds
description. 145 |
|
|
Term
|
Definition
A conditional transfer or pledge of real estate
as security for the payment of a debt. Also, the document
creating a mortgage lien. 223 |
|
|
Term
|
Definition
Mortgage loan companies that origi-
nate, service, and sell loans to investors. 240-41 |
|
|
Term
|
Definition
An agent of a lender who brings the
lender and borrower together. The broker receives a fee
for this service. 241 |
|
|
Term
| Mortgage Disclosure Improvement Act (MDIA) |
|
Definition
The
timeliness of certain disclosures affects the date of clos-
ings. Lenders and licensees need to keep three numbers
in mind: 3-7 -3-three business days to provide a truth-in-
lending statement (TIL) and good-faith estimate (GFE);
seven business days before signing loan documents after
the borrower receives final TIL and GFE; three business
days for closing if the APR has changed more than 0.125
percent from the original or most recent TIL and GFE;
and three business days before closing to provide con-
sumer with copy of appraisal. 404-5 |
|
|
Term
| mortgage insurance premium (MIP) |
|
Definition
The FHA insur-
ance that the borrower is charged with a percentage of
the loan as a premium. 259 |
|
|
Term
|
Definition
A lien or charge on the property of a mort-
gagor that secures the underlying debt obligations. 164 |
|
|
Term
|
Definition
A lender in a mortgage loan transac-
tion. 223 |
|
|
Term
|
Definition
A borrower in a mortgage loan transac-
tion. 223 |
|
|
Term
|
Definition
Insurance policies that offer protec-
tion from a range of potential perils, such as those of a
fire, hazard, public liability, and casualty. 307 |
|
|
Term
|
Definition
A provision in an exclusive list-
ing for the authority and obligation on the part of the
listing broker to distribute the listing to other brokers in
the multiple-listing organization. 89 |
|
|
Term
| multiple listing service (MLS) |
|
Definition
A marketing organi-
zation composed of member brokers who agree to share
their listing agreements with one another in the hope of
procuring ready, willing, and able buyers for their proper-
ties more quickly than they could on their own. Most
multiple listing services accept exclusive-right-to-sell or
exclusive-agency listings from their member brokers. 68 |
|
|
Term
| National Association of REALTORS® (NAR) |
|
Definition
The
largest real estate organization in the world; NAR
members subscribe to a strict code of ethics. Active bro-
kers are allowed to use the trademarked designation,
REALTOR@. 6 |
|
|
Term
| negligent misrepresentation |
|
Definition
Occurs when the broker
should have known that a statement about a material fact
was false. 79 |
|
|
Term
|
Definition
A written promise or order to
pay a specific sum of money that may be transferred by
endorsement or delivery. The transferee then has the
original payee's right to payment. 225 |
|
|
Term
|
Definition
A lease requiring the tenant to pay not only
rent but also costs incurred in maintaining the property,
including taxes, insurance, utilities, and repairs. 279 |
|
|
Term
|
Definition
A listing based on the net price the seller
will receive if the property is sold. Under a net listing,
the broker can offer the property for sale at the highest
price obtainable to increase the commission. This type of
listing is illegal in many states. 90 |
|
|
Term
| net operating income (NOI) |
|
Definition
The income projected for
an income-producing property after deducting losses for
vacancy and collection and operating expenses. 331 |
|
|
Term
|
Definition
An intermediary between a buyer and a
seller, or a landlord and a tenant, who assists one or both
parties with a transaction without representing either.
Also known as a facilitator, transaction broker, transaction
coordinator, and contract broker. 46 |
|
|
Term
|
Definition
A use of property that is permitted
to continue after a zoning ordinance prohibiting it has
been established for the area. 343 |
|
|
Term
|
Definition
A mortgage clause stating that
the mortgagee agrees not to terminate the tenancies of
the lessees in the event the mortgagee forecloses on the
mortgagor-lessor's building. 278 |
|
|
Term
|
Definition
A lack of uniformity; dissimilarity.
Because no two parcels of land are exactly alike, real
estate is said to be nonhomogeneous. 23 |
|
|
Term
|
Definition
To certify the validity of a signature on a
document. 197 |
|
|
Term
|
Definition
Substituting a new obligation for an old one or
substituting new parties to an existing obligation. 180 |
|
|
Term
|
Definition
The number written above the line of a
fraction representing the number to be divided by the
denominator. 469 |
|
|
Term
|
Definition
An oral will declared by the testator
in his or her final illness, made before witnesses and after-
ward reduced to writing. 204 |
|
|
Term
|
Definition
The loss of value due to factors that are
outmoded or less useful. Obsolescence may be functional
or external. 330 |
|
|
Term
|
Definition
A permit issued by the appropri-
ate local governing body to establish that the property
is suitable for habitation by meeting certain safety and
health standards. 344 |
|
|
Term
|
Definition
Two essential components of a
valid contract; a "meeting of the minds." 170 |
|
|
Term
|
Definition
The person who makes the offer is the
offeror. The person to whom the offer is made is the
offeree. 177 |
|
|
Term
|
Definition
A mortgage loan that is expandable by
increments up to a maximum dollar amount, the full loan
being secured by the same original mortgage. 254 |
|
|
Term
|
Definition
A listing contract under which the bro-
ker's commission is contingent on the broker's producing
a ready, willing, and able buyer before the property is sold
by the seller or another broker. 89 |
|
|
Term
|
Definition
A guide of the property's financial
performance in the present and future. It gives the owner
a sense of expected profit. 297 |
|
|
Term
|
Definition
An agreement to keep open for a set period an
offer to sell or purchase property. 187 |
|
|
Term
|
Definition
A form of implied agency relation-
ship created by the actions of the parties involved rather
than by written agreement or document. |
|
|
Term
|
Definition
A lien created by the order of the court to
make an equitable partition of property when otherwise
an agreeable partition is impossible or impractical (i.e.,
in a divorce). |
|
|
Term
|
Definition
The seller is the primary lender secur-
ing his or her interest with the use of a deed, note and
mortgage, deed of trust, or contract for deed. The buyer
takes possession of the property, but the seller retains
legal title until paid in full. 231 |
|
|
Term
| P&I Principal and interest package loan |
|
Definition
A real estate loan used to finance the pur-
chase of both real property and personal property, such as
in the purchase of a new home that includes carpeting,
window coverings, and major appliances. 253 |
|
|
Term
|
Definition
The illegal practice of soliciting people
in a neighborhood to sell their homes because of fear or
alarm; also referred to as blockbusting. |
|
|
Term
|
Definition
|
|
Term
|
Definition
A rule of evidence providing that
a written agreement is the final expression of the agree-
ment of the parties, not to be varied or contradicted by
prior or contemporaneous oral or written negotiations. |
|
|
Term
|
Definition
A mortgage loan wherein the
lender has a partial equity interest in the property or
receives a portion of the income from the property. |
|
|
Term
|
Definition
The division of cotenants' interests in real
property when the parties do not all voluntarily agree to
terminate the co-ownership; takes place through court
procedures. 128-29 |
|
|
Term
|
Definition
An association of two or more individuals
who carryon a continuing business for profit as co-own-
ers. Under the law, a partnership is regarded as a group of
individuals rather than as a single entity. A general part-
nership is a typical form of joint venture in which each
general partner shares in the administration, profits, and
losses of the operation. A limited partnership is a business
arrangement whereby the operation is administered by
one or more general partners and funded, by and large, by
limited or silent partners, who are by law responsible for
losses only to the extent of their investments. 132 |
|
|
Term
|
Definition
A grant or franchise of land from the U.S.
government. |
|
|
Term
|
Definition
The limit on the amount the monthly
payment can be increased on an adjustable-rate mortgage
when the interest rate is adjusted. 244 |
|
|
Term
|
Definition
A lease, commonly used for commer-
cial property, whose rental is based on the tenant's gross
sales at the premises; it usually stipulates a base monthly
rental plus a percentage of any gross sales above a certain
amount. 284 |
|
|
Term
|
Definition
A test of the soil to determine if it will
absorb and drain water adequately to use. a septic system
for sewage disposal. |
|
|
Term
|
Definition
Items, called chattels, that do not fit
into the definition of real property; movable objects. 19 |
|
|
Term
|
Definition
|
|
Term
|
Definition
A reduction in a property's
value resulting from a decline in physical condition; can
be caused by action of the elements or by ordinary wear
and tear. 330 |
|
|
Term
|
Definition
The basic costs of owning a home-mortgage
Principal and Interest, real estate Taxes, and hazard
Insurance. 35 |
|
|
Term
| planned unit development (PUD) |
|
Definition
A planned com-
bination of diverse land uses, such as housing, recre-
ation, and shopping, in one contained development or
subdivision. 349 |
|
|
Term
|
Definition
A detailed map that illustrates the geographic
boundaries of individual lots. 345 |
|
|
Term
|
Definition
A map of a town, section, or subdivision
indicating the location and boundaries of individual properties.
151 |
|
|
Term
|
Definition
The increase in value or utility resulting from
the consolidation (assemblage) of two or more adjacent
lots into one larger lot. 326 |
|
|
Term
|
Definition
A term used for a percentage of the principal
loan amount charged by the lender. Each point is equal
to 1 percent of the loan amount. 225 |
|
|
Term
|
Definition
In a metes-and-bounds legal
description, the starting point of the survey, situated in
one corner of the parcel; all metes-and-bounds descrip-
tions must follow the boundaries of the parcel to the point
of ending, which is also the point of beginning. 145 |
|
|
Term
|
Definition
In a metes-and-bounds legal
description, the ending point of the survey, which is also
the point of beginning. 145 |
|
|
Term
|
Definition
The government's right to impose laws,
statutes, and ordinances, including zoning ordinances
and building codes, to protect the public health, safety,
and welfare. 110 |
|
|
Term
| polychlorinated biphenyls (PCBs) |
|
Definition
Used as an insulat-
ing material in dielectric oil. It can linger in the envi-
ronment for long periods of time and can cause health
problems. 382 |
|
|
Term
|
Definition
Owning or occupying a property. 276
power of attorney A written instrument authorizing a
person, the attorney-in-fact, to act as agent for another
person to the extent indicated in the instrument. 197 |
|
|
Term
|
Definition
On a closing statement, items that have
been paid in advance by the seller, such as insurance pre-
miums and some real estate taxes, for which the seller
must be reimbursed by the buyer. 414 |
|
|
Term
|
Definition
A charge imposed on a borrower
who pays off the loan principal early. This penalty com-
pensates the lender for interest and other charges that
would otherwise be lost. 226-27 |
|
|
Term
|
Definition
Small repairs that help pre-
vent bigger problems and expenses. 302 |
|
|
Term
|
Definition
The amount of money paid for an item or
service. 7 |
|
|
Term
|
Definition
The mortgage market in
which loans are originated and consisting of lenders such
as commercial banks, savings associations, and mutual
savings banks. 239-41 |
|
|
Term
|
Definition
(1) A sum loaned or employed as a fund or
an investment, as distinguished from its income or prof-
its. (2) The original amount (as in a loan) of the total due and payable at a certain date. (3) A main party to a transaction-the person for whom the agent works. 46 |
|
|
Term
|
Definition
The main imaginary line running
north and south and crossing a base line at a definite
point; used by surveyors for reference in locating and
describing land under the rectangular (government) sur-
vey system of legal description. 146 |
|
|
Term
|
Definition
The belief of what a prop-
erty will draw for a fair market price when located with
similar properties of the same size, style, condition, and
location. 325 |
|
|
Term
|
Definition
A concept of water ownership in
which the landowner's right to use available water is based
on a government-administered permit system. 122 |
|
|
Term
|
Definition
The order of position or time. The priority of
liens is generally determined by the chronological order
in which the lien documents are recorded; tax liens,
however, have priority even over previously recorded
liens. 212 |
|
|
Term
| private mortgage insurance (PMI) |
|
Definition
Insurance provided
by private carrier that protects a lender against a loss in
the event of a foreclosure and deficiency. 261 |
|
|
Term
|
Definition
A legal process by which a court determines
who will inherit a decedent's property and what the
estate's assets are. 203 |
|
|
Term
|
Definition
The effort that brings about the desired
result. Under an open listing, the broker who is the pro-
curing cause of the sale receives the commission. 71 |
|
|
Term
|
Definition
Making a gain from an investment after subtract-
ing expenses. 483-84 |
|
|
Term
| profit and loss statement |
|
Definition
A general financial picture
based on the monthly cash flow reports; does not include
itemized information. 298 |
|
|
Term
|
Definition
An appraisal principle that states that,
between dissimilar properties, the value of the lesser-
quality property is favorably affected by the presence of
the better-quality property. 326 |
|
|
Term
|
Definition
A financing instrument that states the
terms of the underlying obligation, is signed by its maker,
and is negotiable (transferable to a third party). 224 |
|
|
Term
|
Definition
Someone who manages real estate
for another person for compensation. Duties include col-
lecting rents, maintaining the property, and keeping up
all accounting. 5 |
|
|
Term
|
Definition
The mandatory federal and state
documents compiled by subdividers and developers to
provide potential purchasers with facts about a property
prior to their purchase. |
|
|
Term
|
Definition
A lease given by the corporation that
owns a cooperative apartment building to the shareholder for the shareholder's right as a tenant to an individual apartment. 33 |
|
|
Term
|
Definition
Expenses, either prepaid or paid in arrears,
that are divided or distributed between the buyer and the
seller at the closing. 414 |
|
|
Term
|
Definition
Any group of people designated as such
by the Department of Housing and Urban Development
(HUD) in consideration of federal and state civil rights
legislation. Currently includes ethnic minorities, women,
religious groups, the disabled, and others. 282 |
|
|
Term
|
Definition
Government-owned property.
puffing Exaggerated or superlative comments or
opinions. 59 |
|
|
Term
| pur autre vie "For the life of another." |
|
Definition
A life estate pur
autre vie is a life estate that is measured by the life of a
person other than the grantee. 114 |
|
|
Term
| purchase-money mortgage (PMM) |
|
Definition
A note secured by
a mortgage or deed of trust given by a buyer, as borrower,
to a seller, as lender, as part of the purchase price of the
real estate. 253 |
|
|
Term
|
Definition
Some leases grant the lessee the
option to purchase the leased premises. This option nor-
mally gives the tenant the right to purchase the property
at a predetermined price within a certain period, possibly
the lease term. 278-79 |
|
|
Term
|
Definition
The process of acquiring additional proper-
ties by refinancing properties already owned and invest-
ing the loan proceeds in additional properties. 438 |
|
|
Term
|
Definition
A court action to remove a cloud on the
title. 213 |
|
|
Term
|
Definition
A conveyance by which the grantor
transfers whatever interest he or she has in the real estate,
without warranties or obligations. 207 |
|
|
Term
|
Definition
The number resulting from dividing one num-
ber by another. 472 |
|
|
Term
|
Definition
A naturally occurring gas that is suspected of
causing lung cancer. 391 |
|
|
Term
|
Definition
A strip of land six miles wide, extending north
and south and numbered east and west according to its
distance from the principal meridian in the rectangular
(government) survey system oflegal description. 146 |
|
|
Term
|
Definition
The limit on the amount the interest rate can
be increased at each adjustment period in an adjustable-
rate loan. The cap may also set the maximum interest
rate that can be charged during the life of the loan. 244 |
|
|
Term
|
Definition
Method of creating an agency relationship
in which the principal accepts the conduct of someone
who acted without prior authorization as the principal's
agent. |
|
|
Term
| ready, willing, and able buyer |
|
Definition
Person who is prepared
to buy property on the seller's terms and is ready to take
positive steps to consummate the transaction. 71 |
|
|
Term
|
Definition
a portion of the earth's surface extend-
ing downward to the center of the earth and upward
infinitely into space, including all things permanently
attached to it, whether naturally or artificially. 17 |
|
|
Term
|
Definition
A person licensed to arrange the
buying and selling of property for a fee. 4 |
|
|
Term
| real estate investment trust (REIT) |
|
Definition
Trust ownership
of real estate by a group of individuals who purchase cer-
tificates of ownership in the trust, which in turn invests
the money in real property and distributes the profits back
to the investors free of corporate income tax. 437 |
|
|
Term
|
Definition
State law enacted to protect the
public from fraud, dishonesty, and incompetence in the
purchase and sale of real estate. 24 |
|
|
Term
| real estate mortgage investment conduit (REMIC) |
|
Definition
A
tax entity that issues multiple classes of investor interests
(securities) backed by a pool of mortgages. 437 |
|
|
Term
| real estate recovery fund |
|
Definition
A fund established in some
states from real estate license revenues to cover claims
of aggrieved parties who have suffered monetary damage
through the actions of a real estate licensee. |
|
|
Term
| Real Estate Settlement Procedures Act (RESPA) |
|
Definition
The
federal law that requires certain disclosures to consumers
about mortgage loan settlements. The law also prohibits
the payment or receipt of kickbacks and .certain kinds of
referral fees. 405-6 |
|
|
Term
|
Definition
The interests, benefits, and rights inher-
ent in real estate ownership. 25 |
|
|
Term
|
Definition
A registered trademarked term reserved
for the sole use of active members of local REALTOR®
boards affiliated with the National Association of
REALTORS®. 6 |
|
|
Term
|
Definition
The final step in the appraisal process,
in which the appraiser combines the estimates of value
received from the sales comparison, cost, and income
approaches to arrive at a final estimate of market value
for the subject property. 335 |
|
|
Term
|
Definition
A deed used by a trustee under a
deed of trust to return title to the trustor. 200 |
|
|
Term
|
Definition
A map of a subdivision filed as a public
record showing the location and boundaries of the indi-
vidual parcels. 151-52 |
|
|
Term
|
Definition
The act of entering or recording documents
affecting or conveying interests in real estate in the
recorder's office established in each county. Until it is recorded, a deed or mortgage ordinarily is not effective |
|
|
Term
| rectangular (government) survey system |
|
Definition
A system
established in 1785 by the federal government, providing
for surveying and describing land by reference to princi-
pal meridians and base lines. 155 |
|
|
Term
|
Definition
The right of a defaulted property owner to
recover his or her property by curing the default. 166 |
|
|
Term
|
Definition
A period of time established by
state law during which a property owner has the right to
redeem his or her real estate from a foreclosure or tax sale
by paying the sales price, interest, and costs. Many states
do not have mortgage redemption laws. 233 |
|
|
Term
|
Definition
The illegal practice of a lending institution
denying loans or restricting their number for certain areas
of a community. 364 |
|
|
Term
| reduction certificate (payoff statement) |
|
Definition
The docu-
ment signed by a lender indicating the amount required
to pay a loan balance in full and satisfy the debt; used in
the settlement process to protect both the seller's and the
buyer's interests. 400 |
|
|
Term
|
Definition
An appraisal principle that states that,
between dissimilar properties, the value of the better-
quality property is affected adversely by the presence of
the lesser-quality property. 326 |
|
|
Term
|
Definition
Implements the Truth in Lending Act
requiring credit institutions to inform borrowers of the
true cost of obtaining credit. 262 |
|
|
Term
|
Definition
A document, also known as a deed of recon-
veyance, that transfers all rights given a trustee under a
deed of trust loan back to the grantor after the loan has
been fully repaid. 229 |
|
|
Term
|
Definition
A lien on a property that is now free
from a mortgage. |
|
|
Term
|
Definition
The remnant of an estate that has
been conveyed to take effect and be enjoyed after the
termination of a prior estate, such as when an owner
conveys a life estate to one party and the remainder to
another. 114 |
|
|
Term
|
Definition
A clause in a lease that grants the les-
see the privilege of renewing the lease. 278 |
|
|
Term
|
Definition
A fixed, periodic payment made by a tenant of a
property to the owner for possession and use, usually by
prior agreement of the parties. 309 |
|
|
Term
|
Definition
A statement of proposed rental rates,
determined by the owner or the property manager or
both, based on a building's estimated expenses, market
supply and demand, and the owner's long-range goals for
the property. |
|
|
Term
|
Definition
The construction cost at current
prices of a property that is not necessarily an exact dupli-
cate of the subject property but serves the same purpose
or function as the original. 37 |
|
|
Term
|
Definition
The construction cost at current
prices of an exact duplicate of the subject property. 329 |
|
|
Term
|
Definition
The practice of one party canceling or ter-
minating a contract, which has the effect of returning
the parties to their original positions before the contract
was made. 197 |
|
|
Term
|
Definition
Something that is retained by the seller
(i.e., a life estate or an access easement). 181 |
|
|
Term
| Resolution Trust Corporation |
|
Definition
The organization cre-
ated by the Financial Institutions Reform, Recovery, and
Enforcement Act (FIRREA) to liquidate the assets of
failed savings and loan associations. |
|
|
Term
|
Definition
A clause in a deed that limits the
way the real estate ownership may be used. 346 |
|
|
Term
|
Definition
A loan under which the homeowner
receives monthly payments based on his or her accu-
mulated equity rather than a lump sum. The loan must
be repaid at a prearranged date, upon the death of the
owner, or upon the sale of the property. 247 |
|
|
Term
|
Definition
The remnant of an estate that
the grantor holds after granting a life estate to another
person. 114 |
|
|
Term
|
Definition
The return of the rights of posses-
sion and quiet enjoyment to the lessor at the expiration
of a lease. 283 |
|
|
Term
|
Definition
Cancelling or annulling licensed privileges
or rights. 69 |
|
|
Term
|
Definition
A clause allowing the tenant the
opportunity to buy the property before the owner accepts
an offer from another party. 278 . |
|
|
Term
|
Definition
The right given by one landowner to
another to pass over the land, construct a roadway, or use as
a pathway, without actually transferring ownership. 116 |
|
|
Term
|
Definition
An owner's rights in land that bor-
ders on or includes a stream, river, or lake. These rights
include access to and use of the water. 119 |
|
|
Term
|
Definition
Evaluation and selection of appropri-
ate property and other insurance. 310 |
|
|
Term
|
Definition
Day-to-day duties such as cleaning
common areas, performing minor carpentry and plumbing
adjustments, and providing regularly scheduled upkeep of
heating, air-conditioning, and landscaping. 302 |
|
|
Term
|
Definition
Real estate licensing authority
orders that govern licensees' activities; they usually have
the same force and effect as statutory law. 45 |
|
|
Term
| Safe Drinking Water Act An |
|
Definition
act to protect public
health by authorizing the EPA to set national health-
based standards for drinking water. 384 |
|
|
Term
|
Definition
A transaction in which an owner
sells his or her improved property and, as part of the same
transaction, signs a long-term lease to remain in posses-
sion of the premises. 280 |
|
|
Term
| sales comparison approach |
|
Definition
The process of estimat-
ing the value of a property by examining and comparing
actual sales of comparable properties. 327 |
|
|
Term
|
Definition
The amount of money paid to a seller for a
product bought. 327 |
|
|
Term
|
Definition
A person who performs real estate activi-
ties while employed by or associated with a licensed real
estate broker. 4 |
|
|
Term
|
Definition
Release or discharge of when a note has
been fully paid. This document returns to the borrower
all interest in the real estate originally conveyed to the
lender. Entering this release in the public record shows
that the debt has been removed from the property. 229 |
|
|
Term
|
Definition
A document acknowledging
the payment of a mortgage debt. 223 |
|
|
Term
| secondary mortgage market |
|
Definition
A market for the pur-
chase and sale of existing mortgages, designed to provide
greater liquidity for mortgages; also called the secondary
money market. Mortgages are first originated in the pri-
mary mortgage market. 241 |
|
|
Term
|
Definition
A portion of township under the rectangular
(government) survey system. A township is divided into
36 sections, numbered 1 through 36. A section is a square
with mile-long sides and an area of one square mile, or
640 acres. 155 |
|
|
Term
|
Definition
A payment by a tenant, held by the
landlord during the lease term, and kept (wholly or par-
tially) on default, or on destruction of the premises by the
tenant. 283 |
|
|
Term
|
Definition
The real estate broker who represents
only the seller in transactions. 48 |
|
|
Term
| seller's disclosure notice |
|
Definition
Documents completed by the
seller of a home listing any known issues of the property,
including home improvements made. 60 |
|
|
Term
|
Definition
Under community property law,
property owned solely by either spouse before the mar-
riage, acquired by gift or inheritance after the marriage, or
purchased with separate funds after the marriage. 139 |
|
|
Term
|
Definition
Land on which an easement exists
in favor of an adjacent property (called a dominant estate);
also called a servient estate. 116 |
|
|
Term
|
Definition
| require between a lot line and a building line. 340 |
|
|
Term
|
Definition
Ownership of real property by one person
only; also called sale ownership. 138 |
|
|
Term
|
Definition
Changing an item of real estate to personal
property by detaching it from the land (e.g., cutting down
a tree). 20 |
|
|
Term
| shared-appreciation mortgage (SAM) |
|
Definition
A mortgage
loan in which the lender, in exchange for a loan with a
favorable interest rate, participates in the profits (if any)
the borrower receives when the property is eventually
sold. |
|
|
Term
| sick building syndrome (SBS) |
|
Definition
An illness caused
by poor air quality, typically in office building settings.
Symptoms include fatigue, nausea, headache, and sensi-
tivity to odors. 308 |
|
|
Term
|
Definition
The personal preference of people for one area
over another, not necessarily based on objective facts and
knowledge. 23 |
|
|
Term
|
Definition
One who is authorized by a principal to
perform a single act or transaction; a real estate broker is
usually a special agent authorized to find a ready, willing,
and able buyer for a particular property. 52 |
|
|
Term
|
Definition
A tax or levy customarily imposed
against only those specific parcels of real estate that will
benefit from a proposed public improvement like a street
or sewer. 166-67 |
|
|
Term
|
Definition
A deed in which the grantor
warrants, or guarantees, the title only against defects aris-
ing during the period of his or her tenure and ownership
of the property and not against defects existing before
that time, generally using the language, "by, through, or
under the grantor but not otherwise." 206 |
|
|
Term
|
Definition
A lien affecting or attaching only to a cer-
tain, specific parcel of land or piece of property. 170 |
|
|
Term
|
Definition
A legal action to compel a party
to carry out the terms of a contract. 181 |
|
|
Term
|
Definition
Granting a particular area a certain classifi-
cation that differs from the classification of other land in
the immediate area. This zoning is considered invalid. |
|
|
Term
|
Definition
That part of a state law that requires
certain instruments, such as deeds, real estate sales con-
tracts, and certain leases, to be in writing to be legally
enforceable. 194 |
|
|
Term
|
Definition
That law pertaining to the period
of time within which certain actions must be brought to
court. 181 |
|
|
Term
|
Definition
A lien imposed on property by statute-
a tax lien, for example-in contrast to an equitable lien,
which arises out of common law. 161 |
|
|
Term
| statutory right of redemption |
|
Definition
The right of a defaulted
property owner to recover the property after its sale by
paying the appropriate fees and charges. 172 |
|
|
Term
|
Definition
r A year composed of 12 months, with
each month consisting of 30 days, for a total of 360 days
in the year. Also referred to as a banker's year. 490 |
|
|
Term
|
Definition
The illegal practice of channeling home seek-
ers to particular areas, either to maintain the homogene-
ity of an area or to change the character of an area, which
limits their choices of where they can live. 305 |
|
|
Term
|
Definition
A property that has acquired an
undesirable reputation due to an event that occurred on
or near it, such as violent crime, gang-related activity, ill-
ness, or personal tragedy. Some states restrict the disclo-
sure of information about stigmatized properties. 60-61 |
|
|
Term
|
Definition
A loan in which only interest is
paid during the term of the loan, with the entire princi-
pal amount due with the final interest payment. 242 |
|
|
Term
|
Definition
One who buys undeveloped land, divides
it into smaller, usable lots and sells the lots to potential
users. 345 |
|
|
Term
|
Definition
A tract of land divided by the owner,
known as the subdivider, into blocks, building lots, and
streets according to a recorded subdivision plat, which
must comply with local ordinances and regulations. 5 |
|
|
Term
|
Definition
Buyer takes title of property and makes pay-
ments on the existing loan but is not personally obligated
to pay the debt in full. Original seller might continue to
be liable for debt. 230 |
|
|
Term
|
Definition
The perceived value of an item based
on the benefits given to the owner. |
|
|
Term
|
Definition
The leasing of premises by a lessee to a third
party for part of the lessee's remaining term. See also
assignment. 278 |
|
|
Term
|
Definition
Relegation to a lesser position, usually
in respect to a right or security. 48 |
|
|
Term
|
Definition
A written agreement
between holders of liens on a property that changes the priority of mortgage, judgment, and other liens under
certain circumstances. 163 |
|
|
Term
|
Definition
An appraisal principle that states that the
maximum value of a property tends to be set by the cost
of purchasing an equally desirable and valuable substitute
property, assuming that no costly delay is encountered in
making the substitution. 326 |
|
|
Term
|
Definition
Ownership rights in a parcel of real
estate to the water, minerals, gas, oil, and so forth that lie
beneath the surface of the property. 18 |
|
|
Term
|
Definition
A court suit initiated by a landlord
to evict a tenant from leased premises after the tenant has
breached one of the terms of the lease or has held posses-
sion of the property after the lease's expiration. 281 |
|
|
Term
|
Definition
A court action intended to establish
or settle the title to a particular property, especially when
there is a cloud on the title. 213 |
|
|
Term
| suit for specific performance |
|
Definition
If the seller breaches a
real estate sales contract, the buyer may sue, asking the
court to force the seller to go through with the sale and
convey the property as previously agreed. 181 |
|
|
Term
|
Definition
Popular name of the hazardous-waste
cleanup fund est~blished by the Comprehensive Envi-
ronmental Response, Compensation, and Liability Act
(CERCLA). 388-89 |
|
|
Term
|
Definition
The amount of goods available in the market to
be sold at a given price. The term is often coupled with
demand. 7 -8 |
|
|
Term
|
Definition
The appraisal principle that fol-
lows the interrelationship of the supply of and demand
for real estate. Because appraising is based on economic
concepts, this principle recognizes that real property is
subject to the influences of the marketplace as with any
other commodity. 7-8 |
|
|
Term
|
Definition
An agreement by an insurance or bonding
company to be responsible for certain possible defaults,
debts, or obligations contracted for by an insured party;
in essence, a policy insuring one's personal and/or finan-
cial integrity. In the real estate business, a surety bond
is generally used to ensure that a particular project will
be completed at a certain date or that a contract will be
performed as stated. 307 |
|
|
Term
|
Definition
Ownership rights in a parcel of real
estate that are limited to the surface of the property and do not include the air above it (air rights) or the minerals below the surface (subsurface rights). 18 |
|
|
Term
|
Definition
The process by which boundaries are measured
and land areas are determined; the on-site measurement
of lot lines, dimensions, and position of a house on a lot,
including the determination of any existing encroach-
ments or easements. 144 |
|
|
Term
|
Definition
A combination of people or firms formed to
accomplish a business venture of mutual interest by pool-
ing resources. In a real estate investment syndicate, the par-
ties own and/or develop property, with the main profit
generally arising from the sale of the property. 437 |
|
|
Term
|
Definition
A math tool used to solve percentage
problems. A common value X is on the top of the bar,
with two different Y values under the bar. 474-75 |
|
|
Term
|
Definition
The point from which gains and losses are fig-
ured for tax purposes. |
|
|
Term
|
Definition
An amount by which tax owed is reduced
directly. 436 |
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Term
|
Definition
An instrument, similar to a certificate of sale,
given to a purchaser at a tax sale. See also certificate of
sale. 166 |
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|
Term
|
Definition
A charge against property, created by opera-
tion of law. Tax liens and assessments take priority over
all other liens. 163 |
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Term
|
Definition
A court-ordered sale of real property to raise
money to cover delinquent taxes. 165 |
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Term
|
Definition
The process by which a government or
municipal quasi-public body raises monies to fund its
operation. 111 |
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Term
|
Definition
The joint ownership, recog-
nized in some states, of property acquired by husband and
wife during marriage. Upon the death of one spouse, the
survivor becomes the owner of the property. 129 |
|
|
Term
|
Definition
A form of co-ownership by which
each owner holds an undivided interest in real property
as if each were sole owner. Each individual owner has the
right to partition. Unlike joint tenants, tenants in com-
mon have right of inheritance. 126-27 |
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|
Term
|
Definition
One who holds or possesses lands or tenements
by any kind of right or title. 309 |
|
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Term
|
Definition
Alterations to the interior of a
building to meet the functional demands of the tenant.
Also known as build-outs. 302-3 |
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Term
|
Definition
Insurance coverage that protects
the personal belongings of tenants. 302 |
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Term
|
Definition
| Having made and left a valid will. 202 |
|
|
Term
|
Definition
A person who has made a valid will. A woman
often is referred to as a testatrix, although testator can be
used for either gender. 204 |
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|
Term
|
Definition
A strip of land six miles wide,
extending east and west and numbered north and
south according to its distance from the base line in
the rectangular (government) survey system of legal
description. 147 |
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|
Term
|
Definition
A phrase in a contract that
requires the performance of a certain act within a stated
period of time. 180 |
|
|
Term
|
Definition
A form of ownership interest that may
include an estate interest in property and that allows use
of the property for a fixed or variable time period. 34 |
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Term
|
Definition
(1) The right to ownership or the ownership of
land. (2) The evidence of ownership of land. 17 |
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|
Term
|
Definition
A policy insuring the owner or mort-
gagee against loss by reason of defects in the title to a
parcel of real estate, other than encumbrances, defects,
and matters specifically excluded by the policy. 215-16 |
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|
Term
|
Definition
The examination of public records relat-
ing to real estate to determine the current state of the
ownership. 213 |
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|
Term
|
Definition
Some states interpret a mortgage to mean
that the lender is the owner of mortgaged land. Upon full
payment of the mortgage debt, the borrower becomes the
landowner. 223 |
|
|
Term
Title VIII of Civil Rights Act of 1968 (called the federal
Fair Housing Act) |
|
Definition
Prohibits discrimination in housing
based on race, color, religion, or national origin. 354 |
|
|
Term
|
Definition
A method of evidencing title by reg-
istration with the proper public authority, generally
called the registrar; named for its founder, Sir Robert
Torrens. 216 |
|
|
Term
|
Definition
A type of residential dwelling with two
floors that is connected to one or more dwellings by a
common wall or walls. Title to the unit and lot vest in the
owner who shares a fractional interest with other owners
for the common areas. 136 |
|
|
Term
|
Definition
The principal unit of the rectangular (gov-
ernment) survey system. A township is a square with
6-mile sides and an area of 36 square miles. 147 |
|
|
Term
|
Definition
All the lines in a rectangular survey sys-
tem that run east and west, parallel to the base line six
miles apart. 147 |
|
|
Term
|
Definition
Township lines that form strips of land
and are designated by consecutive numbers north or
south of the base line. 147 |
|
|
Term
|
Definition
An article installed by a tenant under the
terms of a lease and removable by the tenant before the
lease expires. 21-22 |
|
|
Term
|
Definition
Helps both the buyer and the
seller with paperwork and formalities in transferring
ownership of real property, but who is not an agent of
either party. 45 |
|
|
Term
|
Definition
Tax stamps required to be affixed to a deed
by state and/or local law. 201 |
|
|
Term
|
Definition
Specific credit terms, such as down pay-
ment, monthly payment, and amount of finance charge
or term ofloan. 257 |
|
|
Term
|
Definition
A fiduciary arrangement whereby property is con-
veyed to, ~ person or institution, called a trustee, to be
held and administered on behalf of another person, called
a beneficiary. The one who conveys the trust is called the
trustor. 130-32 |
|
|
Term
|
Definition
An instrument used to create a mortgage
lien by which the borrower conveys title to a trustee, who
holds it as security for the benefit of the note holder (the
lender); also called a deed of trust. 200 |
|
|
Term
|
Definition
A lien on the property of a trustor that
secures a deed of trust loan. Also known as a mortgage
lien. 162 |
|
|
Term
|
Definition
One to whom something is entrusted and who
holds legal title to property and administers the property
for the benefit of a beneficiary. Or a member of a board
entrusted with the administration of an institution or
organization, such as a cooperative. 130 |
|
|
Term
|
Definition
A deed executed by a trustee conveying
land held in a trust. 200 |
|
|
Term
|
Definition
A borrower in a deed of trust loan transaction;
one who places property in a trust. Also called a grantor
or settler. 130 |
|
|
Term
| Truth in Lending Act (TIL) |
|
Definition
Federal government reg-
ulates the lending practices of mortgage lenders through
this act. 256-57 |
|
|
Term
|
Definition
Offering real estate services in a
piecemeal fashion. 73 |
|
|
Term
| underground storage tanks (USTs) |
|
Definition
Commonly found
on sites where petroleum products are used or where gas
stations and auto repair shops are located. In residen-
tial areas, tanks are used to store heating oil. Over time,
neglected tanks may leak hazardous substances into the
environment. 385-86 |
|
|
Term
|
Definition
A contract that has all the ele-
ments of a valid contract, yet neither party can sue the
other to force performance of it. For example, an unsigned
contract is generally unenforceable. 179 |
|
|
Term
| Uniform Commercial Code (UCC) |
|
Definition
A codification of
commercial law, adopted in most states, that attempts
to make uniform all laws relating to commercial trans-
actions, including chattel mortgages and bulk transfers.
Security interests in chattels are created by an instru-
ment known as a security agreement. To give notice of the
security interest, a financing statement must be recorded.
Article 6 of the code regulates bulk transfers-the sale of
a business as a whole, including all fixtures, chattels, and
merchandise. |
|
|
Term
| Uniform Electronic Transactions Act (UETA) |
|
Definition
Sets
forth rules for entering into an enforceable contract using
electronic means. 7-8 |
|
|
Term
| Uniform Settlement Statement (HUD-l) |
|
Definition
A special
HUD form that itemizes all charges to be paid by a bor-
rower and a seller in connection with the settlement.
Also called the HUD-1 form. 424 |
|
|
Term
Uniform Standards of Professional Appraisal Practice
(USPAP) |
|
Definition
A set of standards that details information
required of an appraisal of residential property. The Uni-
form Residential Appraisal Report is required by many
government agencies. 315 |
|
|
Term
|
Definition
A one-sided contract wherein one
party makes a promise so as to induce a second party to
do something. The second party is not legally bound to
perform; however, if the second party does comply, the
first party is obligated to keep the promise. 177 |
|
|
Term
|
Definition
The four unities that are tradition-
ally needed to create a joint tenancy-unity of title, time,
. interest, and possession. 127-28 |
|
|
Term
|
Definition
A person empowered to do anything
the principal could do personally. 52 |
|
|
Term
| urea-formaldehyde foam insulation (UFFI) |
|
Definition
Insulat-
ing foam that can release harmful formaldehyde gases.
Formaldehyde causes some individuals to suffer respira-
tory problems, as well as eye and skin irritations. 391 |
|
|
Term
|
Definition
Charging interest at a higher rate than the maxi-
mum rate established by state law. 225 |
|
|
Term
|
Definition
A contract that complies with all the
essentials of a contract and is binding and enforceable on
all parties to it. 179 |
|
|
Term
|
Definition
A mortgage loan on approved property made
to a qualified veteran by an authorized lender and guar-
anteed by the Department of Veterans Affairs in order to
limit the lender's possible loss. 261 |
|
|
Term
|
Definition
The power of a good or service to command other
goods in exchange for the present worth of future rights
to its income or amenities. 324 |
|
|
Term
|
Definition
A mortgage loan where the inter-
est rate varies depending on market conditions. 257 |
|
|
Term
|
Definition
A buyer, usually under the terms of a land
contract. 187 |
|
|
Term
|
Definition
A seller, usually under the terms of a land
contract. 187 |
|
|
Term
|
Definition
A lien that belongs to a vendor for the
unpaid purchase price of land, where the vendor has not
taken any other lien or security beyond the personal obli-
gation of the purchaser. 162 |
|
|
Term
|
Definition
A contract that has no legal force or
effect because it does not meet the essential elements of
a contract. 179 |
|
|
Term
|
Definition
A contract that seems to be valid on
the surface but may be rejected or disaffirmed by one or
both of the parties. 179 |
|
|
Term
|
Definition
The amount of space of a three-dimensional
object. 466 |
|
|
Term
|
Definition
A lien placed on property with the
knowledge and consent of the property owner. 161 |
|
|
Term
|
Definition
A part of the deed where the seller
warrants the title conveyed to the buyer. |
|
|
Term
|
Definition
An improper use or an abuse of a property by
a possessor who holds less than fee ownership, such as
a tenant, life tenant, mortgagor, or vendee. Such waste
ordinarily impairs the value of the land or the interest of
the person holding the title or the reversionary rights. |
|
|
Term
|
Definition
Common law rights held by owners of
land adjacent to rivers, lakes, or oceans; includes restric-
tions on those rights and land ownership. 19 |
|
|
Term
|
Definition
The natural level at which the ground is
saturated. The water table may be several hundred feet
underground or near the surface. 384 |
|
|
Term
|
Definition
A written document, properly witnessed, provid-
ing for the transfer of title to property owned by the
deceased, called the testator. 203-4 |
|
|
Term
| workers' compensation acts |
|
Definition
Laws that require
an employer to obtain insurance coverage to pro-
tect employees who are injured in the course of their
employment. 307 |
|
|
Term
|
Definition
A method of refinancing in which
the new mortgage is placed in a secondary, or subor-
dinate, position; the new mortgage includes both the
unpaid principal balance of the first mortgage and what-
ever additional sums are advanced by the lender. In
essence, it is an additional mortgage in which another
lender refinances a borrower by lending an amount over
the existing first mortgage amount without disturbing the existence of the first mortgage. 254 |
|
|
Term
|
Definition
A document ordered by the court to
have a sheriff enter a leased property to give possession
back to the owner. 126 |
|
|
Term
|
Definition
A regulatory tool that helps communities regu-
late and control how land is used. 340 |
|
|
Term
|
Definition
A board that must be formed
when the local legislature adopts a new zoning law. 343 |
|
|
Term
|
Definition
An exercise of police power by a
municipality to regulate and control the character and
use of property. 340 |
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