Term
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Definition
| A loan with three years of the same rate then rate adjustments every year thereafter. |
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Term
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Definition
| The continuing education course required by the Utah Division of Real Estate for a new licensee's initial renewal period. |
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Term
| 72-HOUR RIGHT OF RESCESSION |
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Definition
| All borrowers must receive this notice if the loan is a refinance loan. |
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Term
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Definition
| When a tenant leaves a property before the expiration of the lease agreement. |
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Term
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Definition
| An interest rate quoted that would give a credit to the borrower. |
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Term
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Definition
| To nullify or replace. Signing of the closing documents nullifies the R.E.P.C. except for warranties which extend beyond the closing date. |
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Term
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Definition
| Allows a loan to become due and payable immediately if certain requirements are not met, such as making payments, maintaining the physical condition of the property or paying property taxes which extend beyond the closing date. |
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Term
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Definition
| The process of adding to real property. |
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Term
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Definition
| The legal process of having the signature on a contract or other legal document verified by a notary public. |
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Term
| How many sq. feet are in a ACRE? |
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Definition
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Term
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Definition
| Consists of 43560 cubic feet of water, or an acre of land covered by 12 inches of water. |
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Term
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Definition
| Transferring a deed from the grantor to the grantee by handing the deed to the grantee or sending it by certified mail. |
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Term
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Definition
| The legal process by which a lessor evicts the lessee and regains possession of the property. |
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Term
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Definition
| The loan amount including upfront funding fee. |
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Term
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Definition
| A tax levied according to the value of the property |
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Term
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Definition
| Additions or changes incorporated into the REPC by reference. |
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Term
| ADDENDUM TO LEASE AGREEMENT WITH OPTION FOR PURCHASE |
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Definition
| This form is used for any additional terms the buyer or seller with to include in the agreement. |
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Term
| (ARM)ADJUSTABLE RATE MORTGAGE |
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Definition
| A loan where the interest rate is periodically adjusted based on a specific economic indicator (or financial index). |
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Term
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Definition
| Cost basis plus improvements, minus depreciation claimed during the years the property was owned. |
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Term
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Definition
| Lengthen of time between interest rate adjustments on an adjustable rate loan. |
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Term
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Definition
| A person appointed by the court to carry out the terms of a will. |
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Term
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Definition
| The process whereby a non-owner can gain ownership of property by occupying it in hostile, continuous, open, and notorious possession, and in Utah, paying the property taxes for the statutory period of time (7 years in UT) |
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Term
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Definition
| A relationship between two parties wherein the principal hires another person to represent him or her. |
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Term
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Definition
| The principal seeks to deny an agency relationship, but the court stops him from denying the agency, and thereby confirms it. |
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Term
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Definition
| The agency is created by implication, or actions, and the principal approves it by agreeing after the agency service has been performed to compensate the agent. |
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Term
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Definition
| The law has given rise to the agency, such as a Sheriff appointed by the court to be the agent of the owner in a foreclosure sale. |
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Term
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Definition
| The person hired by a principal to act for and in behalf of, or to represent the principal, always acting in the principal's best interest. |
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Term
| AGGREGATE ESCROW ANALYSIS |
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Definition
| A formula for determining that no mare than the RESPA allowed amount is being held in the borrower's reserve account. |
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Term
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Definition
| In condominium ownership, what is actually owned by the unit owner (in addition to tenancy in common for common areas). |
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Term
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Definition
| A change of ownership. May be voluntary (sold the property) or involuntary (foreclosure sale). |
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Term
| ALIENATION, DUE ON SALE, NON-ASSUMPTION CLAUSE |
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Definition
| A clause which allows the lender to call the loan due and payable immediately if the property is sold or the loan is assumed. |
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Term
| ALL-INCLUSIVE TRUST DEED (AITD) |
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Definition
| A state-approved document used for security, usually in seller financing, where the financing is structured as a wraparound. |
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Term
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Definition
| A socio-economic system that allows for private ownership of real property. |
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Term
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Definition
| The lender's title insurance policy which offers coverage in the amount of the loan which includes a site visit to discover unrecorded encumbrances. |
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Term
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Definition
| A "nice, but not necessary" feature which provides personal pleasure to the owner of real property. |
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Term
| AMERICANS WITH DISABILITIES ACT (ADA) |
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Definition
| An act designed to elimnate discrimination against handicapped persons in employment, government services, and all facilities and services offered to the public. |
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Term
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Definition
| A loan which has regular monthly payments of principal and interest that if paid would reduce the balance of the loan with each payment untill the balance of the loan with each payment until the balance is zero at the end of the amortization period. |
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Term
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Definition
| A schedule of payments toward principal and interest and loan balance after each payment through the life of a loan. |
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Term
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Definition
| A loan which has regular monthly payments of principal and interest that if paid would reduce the balance of the loan. |
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Term
| ANNUAL PERCENTAGE RATE (APR) |
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Definition
| The interest rate plus any other charges for the loan, including such things as discount points and arigination fees; computed as a yearly percentage rate. It is used for comparing loans. |
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Term
| ANNUAL PERCENTAGE YIELD (APY) |
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Definition
| The effective interest rate based on the frequency of interest payment paid on deposits. |
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Term
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Definition
| The appraisal principle that weighs the value of the future benefits a product or property will bring. |
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Term
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Definition
| Materially representing or even omitting any item on the 1003 or other loan application with the intent of misleading a lender. |
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Term
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Definition
| A professional process for estimating the value of real property. |
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Term
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Definition
| Authority for the property manager to sign leases effectively binding the owner to the lease agreement must be specifically stated in the agency agreement. |
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Term
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Definition
| A loan with a balloon payment at the end of its term. It could be partially amortized or a straight loan or note. |
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Term
| BANK RESERVE REQUIREMENTS |
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Definition
| The amount of funds that a depository institution must hold in reserve against specified liabilities or other risks. |
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Term
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Definition
| Required payments larger than the regular payment. These payments are often made at the end of the loan, retiring the loan early; but can be made at other times during the term of the loan. |
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Term
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Definition
| The deed makes no guarantees as to the condition of the title, but unlike the Quit Claim Deed, the grantor implies some actual interest in the property. |
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Term
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Definition
| This loan amount is set based on the median home price in a county. |
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Term
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Definition
| An east-west line which intersects the meridian and creates a point from which land can be measured under the government or rectangular survey method. |
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Term
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Definition
| A finance term meaning a yield of 1/100th of 1% annually. 100 basis points = 1%. |
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Term
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Definition
| An interest rate quoted that would require a charge to the borrower. |
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Term
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Definition
| The lender under a Trust Deed & note. |
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Term
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Definition
| A gift of personal property given in a will. |
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Term
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Definition
| A contract wherein a promise is exchanged for a promise, thus making the contract binding on both parties. |
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Term
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Definition
| Evidence of transfer of ownership of personal property. |
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Term
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Definition
| Monday through Saturday except holidays. |
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Term
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Definition
| A loan that uses two or more parcels of real property as security. |
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Term
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Definition
| An advertisement which fails to indicate that the advertiser is a real estate brokerage or that sales agents or brokers are selling their own property. |
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Term
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Definition
| The illegal practice of inducing panic selling in a neighborhood by starting rumors involving minorities moving in. |
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Term
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Definition
| The body to which one would appeal in order to obtain a variance to do something contrary to the current zoning law. |
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Term
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Definition
| The body of appeal if you think your property tax appraisal is too high. |
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Term
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Definition
| Personal property or money needed to make up a difference in value when exchanging real property. |
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Term
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Definition
| Any remote operation of the main real estate office which will be in operation more than 12 months and must be registered with the Real Estate Division. |
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Term
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Definition
| A short term loan to help the buyers have up-front funds to get into their new home, when the sale on the old one is going to close later than the closing to purchase the new one. |
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Term
| BROKER PRICE OPINION (BPO) |
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Definition
| A broker's written opinion of the value of a particular property that may not be used in connection with the originating a federally related loan; not an appraisal. |
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Term
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Definition
| An area established by the zoning and planning commission to separate commercial and industrial areas from residential. Its purpose may be safety or economics. |
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Term
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Definition
| Rules set by government to establish minimum standards of construction. |
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Term
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Definition
| All rights and interests that can be legally held in real property. They are separated into Possession, Use & Control, Quiet Enjoyment and Disposition. |
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Term
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Definition
| A written overview that reveals the basic philosophy and strategy for an investment property. |
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Term
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Definition
| A financial technique in which a borrower is able to obtain a lower interest rate by paying discount points at the time the loan is originated. 1 point =1% of the loan amount. |
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Term
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Definition
| A broker who represents the buyer an a fiduciary capacity. |
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Term
| BUYING YOUR HOME, SETTLEMENT COSTS AND HELPFUL INFORMATION. |
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Definition
| This booklet must be provided to the borrower within 3 days of application. |
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Term
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Definition
| The abbreviation given to restrictions and requirements created in the Uniform Declaration of Restrictions for condominiums. |
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Term
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Definition
| the borrower/co-borrowers' ability to repay the loan. |
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Term
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Definition
| Total value of assets. This term is sometimes used to refer to the amount actually paid as down papment and closing costs, as in "the borrower's capital in the transaction". Also used to refer to the total value of an investment as in "CAP Rate (Rate of return on capital invested or purchase price)." |
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Term
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Definition
| The taxable profit derived from the sale of a capital asset, such as real property. |
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Term
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Definition
| Markets (including informal markets as well as organized markets and exchanges) in which mortgage backed securities are bought and sold. |
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Term
| CAPITALIZATION RATE OR CAP RATE |
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Definition
| The ratio created when the net operating income is divided by the value of the property. It is also called the rate of return. |
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Term
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Definition
| The philosophy that says "Let the buyer beware." |
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Term
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Definition
| Comprehensive Environmental Response, Compensation & Liability Act, which is also known as the Superfund Act. |
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Term
| CERTIFICATE OF ELIGIBILITY |
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Definition
| Endorsement from the Veterans Administration indicating the right of a veteran to obtain a VA loan and the amount of his eligibility |
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Term
| CERTIFICATE OF REASONABLE VALUE |
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Definition
| The document required for a VA loan that verifies the value of property being used as security for the VA loan (VA appraisal). |
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Term
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Definition
| The document given to the individual who successfully bids and purchases a property at a Sheriff's Sale. It does not convey title to the property. |
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Term
| CHAIN OF TITLE OR ABSTRACT OF TITLE |
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Definition
| A historical record of land ownership and liens or encumbrances against the property. |
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Term
| CHANGE, CYCLE OF OR NEIGHBORHOOD CYCLE |
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Definition
| This appraisal principle involves activity which goes from growth or integration to equilibrium to disintegration and perhaps to growth again. |
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Term
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Definition
| Bankruptcy with all debts cancelled. |
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Term
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Definition
| Bankruptcy with a payment plan. |
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Term
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Definition
| A synonym for personal property. It comes from the word "cattle." |
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Term
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Definition
| A loan secured by personal property. |
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Term
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Definition
| A loan with a specific balance set at the beginning, and the balance cannot be increased during the term of the loan. |
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Term
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Definition
| When any loan funds are received from the lender(s) and the applicable documents are recorded. This comes after the settlement. |
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Term
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Definition
| A term that refers to any kind of lien or encumbrance against the title. |
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Term
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Definition
| Standards for ethical conduct which have been systematized for a group of professionals. |
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Term
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Definition
| An addition or change to an existing will. |
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Term
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Definition
| A term that refers to security used for a loan. It may be real or personal property. |
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Term
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Definition
| To all outward public appearance, or from a document that seems to be valid, the possessor of the property would seem to have ownership. |
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Term
| COMBINED LOAN TO VALUE RATIO (CLTV) |
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Definition
| The ratio of all financing (first and junior mortgages) to the value of the property. |
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Term
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Definition
| A classification of real estate that includes income-producing property such as office buildings, gasoline stations, restaurants, shopping centers, hotels, and motels, parking lots, and stores. |
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Term
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Definition
| A broker puts personal funds in excess of $500 into real estate trust account. |
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Term
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Definition
| One entity of the Division of Real Estate composed of five people, one of whom is a chairman. |
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Term
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Definition
| A member of a state regulatory real estate commission, board, or division. |
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Term
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Definition
| The one member of the Commission that is from the general public. |
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Term
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Definition
| Land or improvements in a condominium developments designated for the use and benefits of all residents, property owners, and tenants. |
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Term
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Definition
| The process of notifying the offeror that the offer has been accepted. |
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Term
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Definition
| A form of ownership between husband and wife where each has an equal interest in property obtained during their marriage. The only way either can hold separate property is to obtain it before marriage, after the marriage is ended, or during the marriage by gift or inheritance. |
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Term
| COMPARATIVE MARKET ANALYSIS (CMA) |
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Definition
| A method of valuing homes that looks not only at recent home sales but also at homes presently on the market plus homes that were listed but did not sell. |
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Term
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Definition
| A condition that allows an underwriter to overlook negative underwriting information. |
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Term
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Definition
| The ability to understand the terms of a contract and to make a rational decision as to whether or not to enter into it. |
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Term
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Definition
| An appraisal principle: When a particular use of property is bringing a high return, others enter into the same business or purchase property of the same purpose. |
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Term
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Definition
| Filing this document with the court initiates foreclosure under a mortgage. |
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Term
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Definition
| Interest is paid on earned interest as well as on the principal. It is used in savings accounts. |
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Term
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Definition
| Process by which government exercises the power to transfer ownership of property from private to public use. See Eminent Domain. |
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Term
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Definition
| One owns the air space of one's own unit and an undivided interest in the common area. |
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Term
| CONDOMINIUM OWNERSHIP ACT |
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Definition
| The act which governs ownership and related issues when one owns airspace and undivided interest in the common area. |
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Term
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Definition
| An appraisal principle which states that because all homes in a particular area are harmonious in design and value, their value is sustained and tends to increase over time. |
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Term
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Definition
| See Conventional Conforming loan |
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Term
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Definition
| The maximum loan amount permitted by Fannie Mae on a single family residence. |
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Term
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Definition
| The process wherein each party to a contract makes a sacrifice and each party receives a benefit. It is an essential element of any contract. |
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Term
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Definition
| Decreases the total money supply. This is designed to "cool" the economy by increasing interest rates which slows investment in an effort to control inflation. |
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Term
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Definition
| A provision in a contract that requires the completion of a certain act or the happening of a particular event before that contract is binding. |
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Term
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Definition
| An open ended loan funded in installments as various portions of the work are completed. |
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Term
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Definition
| The process of transferring a deed from the grantor to the grantee by recording the deed at the county recorder's office. |
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Term
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Definition
| When the landlord violates the terms of the lease by not keeping the property livable or habitable, the tenant can legally vacate the property and not be held liable for further rent payment. |
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Term
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Definition
| A party misrepresents innocently, with no evil intention, but that misrepresentation could have been avoided with reasonable care. |
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Term
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Definition
| Sometimes known as a "subject to" clause, it requires completion of certain acts before the contract is fully binding. |
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Term
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Definition
| A requirement for licensees to complete a specified number of educational offerings as a prerequisite to license renewal or reinstatement. |
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Term
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Definition
| An agreement between two or more parties to do or not to do certain things. It may be in oral or in writing. |
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Term
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Definition
| The appraisal principle which states that an improvement to a property must add its cost to the value. |
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Term
| CONVENTIONAL CONFORMING LOAN |
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Definition
| A loan that does not exceed the monetary limits set by FNMA and FHLMC, and which is not a FHA or VA loan. |
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Term
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Definition
| A broker who assists another broker in the sale of real property. Usually, the cooperating broker is the (selling) broker who found the buyer who offers to buy a piece of property that is listed with another (listing) broker. |
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Term
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Definition
| A form of ownership in multiple unit housing where the owner purchases shares of stock in the entire development, then obtains exclusive use of a unit by means of a proprietary lease. |
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Term
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Definition
| A legal person. It cannot die or go to jail. |
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Term
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Definition
| SOMETHING THAT IS PHYSICAL OR TANGIBLE, SUCH AS LAND OR BUILDINGS. |
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Term
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Definition
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Term
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Definition
| What you paid for the product or property when you bought it. |
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Term
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Definition
| An approach to appraisal which considers the price of resources necessary to build the same or a similar property. It is the only approach which places a separate value on the land. |
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Term
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Definition
| A contract where payment is for material and labor, with a profit factor added. |
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Term
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Definition
| An income tax deduction allowed on investment property to treat the improvements as through they will waste away in a certain number of years. It cannot be applied to raw land or a personal residence. Also known as depreciation. |
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Term
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Definition
| A response to an offer wherein the offeree changes one or more of the terms of the contract, becomes the offeror, and sends the offer back to the original offeror. |
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Term
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Definition
| This state jurisdiction differentiates base loan limits for conforming loans. |
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Term
| COVENANT AGAINST ENCUMBRANCES |
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Definition
| This covenant in a deed assures the grantee that the title has no liens or encumbrances except those that have been revealed by the grantor. |
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Term
| COVENANT OF FURTHER ASSURANCE |
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Definition
| In the event someone makes a claim against the property, the grantor has the full responsibility to defend the title against the claimant. This includes producing poper documents to substantiate the ownership of the grantee, and going to court if necessary. |
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Term
| COVENANT OF QUIET ENJOYMENT |
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Definition
| IN a deed, the guaranteed right of an owner or lessee legally in possession of property to uninterrupted use without interference from any third party claiming superior title. |
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Term
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Definition
| This covenant in a deed guarantees the grantor holds title to the property and has the right to convey it to a grantee. |
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Term
| COVENANT OF WARRANTY FOREVER |
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Definition
| If the grantor were to lose in defense of the title, this covenant guarantees payment for the defense of the title and for damages caused the grantee, including buying the property back from the grantee if necessary. |
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Term
| COVENANTS, CONDITIONS & RESTRICTIONS |
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Definition
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Term
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Definition
| An amount of money which will reduce what the buyer has to bring to closing, or increase the amount the seller gets at closing. |
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Term
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Definition
| Under the Cost Replacement Approach, this method determines the cost per unit of volume and then multiplies it by the number of units of volume. It is most often used with warehouses. |
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Term
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Definition
| A money adjustment ordered by the court for actual lasses suffered. |
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Term
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Definition
| An amount of money which will increase what the buyer brings to close, or will reduce what the seller gets at closing. |
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Term
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Definition
| The sum of all contractual payments including hosing compared to gross income know as the back end ratio. |
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Term
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Definition
| Loan payments of principle and interest. |
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Term
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Definition
| A Private individual's gift of property for public use. It may be voluntary (giving land for a public park) or statutory (subdivider giving land for roads) |
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Term
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Definition
| Items which the IRS allows to be subtracted from your gross taxable income in order to determine your taxable income. |
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Term
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Definition
| The document that serves as evidence of ownership of real property, as well as the document of conveyance. |
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Term
| DEED IN LIEU OF FORECLOSURE |
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Definition
| The defaulting borrower conveys title to the property to the lender. In return, the lender forgives the loan on the property. |
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Term
| DEFEASIBLE FEE ESTATE (DETERMINABLE FEE ESTATE) |
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Definition
| A fee simple estate which has conditions attatched, the violation of which could cause the grantee to lose title. If written in the deed with the words "so long as," it automattically reverts back to the grantor or his heirs if the conditions are violated. It may also be referred to as "Fee Simple Qualified." |
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Term
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Definition
| A clause in most loans written in favor of the borrower. It requires the lender to reconvey all interest in the property after the loan has been paid off. |
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Term
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Definition
| When physical deterioration is repairable, but hasn't yet been taken care of. |
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Term
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Definition
| A judgment of obtained when a foreclosure sale fails to completely pay off a debt. |
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Term
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Definition
| The process of the grantor giving the deed to the grantee. |
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Term
| DEPT. OF HOUSING AND URBAN DEVELOPMENT (HUD) |
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Definition
| A government entity which oversees mortgage lending, community planning and development, fair housing, public housing, and lead based paint compliance. |
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Term
| DEPARTMENT OF VETERANS' AFFAIRS (VA) |
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Definition
| A government entity which oversees such issues and loans, health care, and education for those who have been in the military. |
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Term
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Definition
| A loss of value in real property, regardless of the reason for the loss. Also an accounting process used for investment property taxation, reffered to by the IRS as cost recovery. |
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Term
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Definition
| The laws by which the court determines ownership of property of a person who has died intestate, but who has heirs. |
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