PrepAgent Vocabulary Worksheet PDF

Keyword Outline PrepAgent.com Bundle of Rights Right & interest of having title such as possession, control, exclusion, sell, and of enjoyment Real Property - goes with th...

Keyword Outline PrepAgent.com Bundle of Rights Right & interest of having title such as possession, control, exclusion, sell, and of enjoyment Real Property - goes with the property - Generally immovable Personal Property - goes with the person - Generally movable Chattel Real cows moove - personal property Fixture - was personal and is now real - MARIA Method, Adaptability, Relationship, Intention, Agreement Trade Fixture - personal because it goes with a business Riparian Rights river - moving body of water Littoral Rights Lake - body of water standing still Accretion additional of land Avulsion tearing away of land Reliction gradual recession of water leaving land permanently uncovered. Appurtenances Runs with the land Freehold Estate no fixed duration of ownership. Fee Simple Estate - highest possible ownership.. - also know as fee simple absolute Fee Simple Defeasible Possesses the property as a fee simple subject to a condition Life Estate ownership of land for the duration of a person's life Copyright © 2019 PrepAgent.com All rights reserved. No reproduction of this material is allowed without written permission of PrepAgent Less than Freehold Estate limited period of time Estate for Years - defined period of time - for example 6 months or july 3rd - september 8th Periodic Tenancy - period to period such as month to month Estate at Will end at any time Estate at Sufferance landlord is suffering as tenant is in possession passed agreed upon time. Lease - possession but not ownership from lessor to lessee - considered personal property Percentage Lease based on a percentage of gross receipts Net Lease tenant pays taxes, insurance and maintenance Gross Lease tenant pays fixed amount Sandwich Lease primary party is lessee and a lessor Tenant Improvement Al- allowance to customize generally for business purposes. lowance Abandonment Subleases Grants possession but not responsibility Assignment Grants possession and responsibility Surrender agreement to return the property to the owner (landlord) before the lease ends. Constructive Eviction landlord fails to do something that he/she has a legal duty to provide. Deeds evidence of transfer A Grant Deed transfer of real property from one person or entity to another person or entity. Each party transferring an interest in the property, or "grantor", is required to sign it. A Quitclaim Deed Deed releasing a person's interest with no warranties. Typically in non-sale situa- tions Warranty deed deed that guarantees a clear title to the buyer of real property. Special Warranty Deed Seller only warrants or guarantees the title against defects that may have arisen dur- ing the period of ownership of the property. General Warranty Deed Seller warrants or guarantees the title against defects that may have arisen during the entire life of the property. Copyright © 2019 PrepAgent.com All rights reserved. No reproduction of this material is allowed without written permission of PrepAgent Title ownership Chain of Title history of ownership which shows conveyances and encumbrances. Abstract of Title summary Cloud on Title Defect in title ie.. single women married A Quiet Title Action lawsuit in order to establish a party's title Alienation of Title capacity of property or a property right to be sold or transferred Title Insurance Ensure clear and marketable title Standard Policy of Title In- Standard coverage includes: surance - Defects that are found in public records - Forged documents - Incompetent grantors - Incorrect marital statements - Improper delivery of deeds ALTA Policy of Title Insur- Protects real property owners and mortgage lenders against losses from defects in ance titles. Extended Policy of Title In- Includes everything in a standard policy plus defects found in a property inspection. surance Which would include unrecorded rights of parties in possession, examination of sur- vey. unrecorded liens, not known by a policy holder. Severalty sole ownership Concurrent Estate ownership with others Joint Tenancy TTIP right of survivorship Tenancy in Common unity of possession Encumbrances Limitation Easement Right to cross dominant tenement Gaining the benefit of the easement servient tenement Suffers the burden of an easement. Easement by Prescription granted after used the property in a hostile, continuous and open manner for a statutorily prescribed number of years Appurtenant Easement right to use adjoining property that transfers with the land Copyright © 2019 PrepAgent.com All rights reserved. No reproduction of this material is allowed without written permission of PrepAgent Easement in Gross no dominent tenament Government Powers PETE - Police Power, Escheat, Taxation, Eminent Domain Police Power States ability to regulate for the betterment of the health, safety, morals, and general welfare of community. Zoning Police power that divides and into areas for designated uses Variance Exception to the roll Down Zoning Commercial to residential Grandfather Clause exempt from new rule, Nonconforming Use A type of zoning variance where a parcel of land may be given an exception from current zoning ordinances due to improvements made by a prior owner or before the current zoning ordinances made the desired use non-conforming under local law. Building Codes protect public health, safety and general welfare Escheat Reversion of property to the state when the owner dies without heirs. Intestate no will Testate has a will Probate executor for the estate of a deceased person sells property in order to divide the property among the beneficiaries. Holographic Will written by hand Taxation financial charge by a state to fund various public expenditures Marginal tax rate percentage taken from your next dollar of taxable income 1031 Tax Deferred Exchange - Defer taxes - identify 45 days, acquire within180 days of closing previous property. Boot Fair market value of other Property received in an exchange Ad Valorem Latin for according to value Copyright © 2019 PrepAgent.com All rights reserved. No reproduction of this material is allowed without written permission of PrepAgent Eminent Domain Government ability to take private property for public use Condemnation Process of compensating a person when property is taken by eminent domain. Inverse Condemnation Sueing the government for just compensation when property is taken Encroachment When a structure is built in part on a neighbor's property. Liens money owned General Liens lien against all personal property Specific Liens lien that is on a single property Voluntary Lien lien that exists because of an action taken by a debtor Involuntary Lien Liens that were imposed on a individual. i.e... taxes and judgment liens Mechanics Lien Lien on behalf of those who have supplied labor or materials that improve the prop- erty. Judgement Lien Lien placed by the court Lis Pendis lawsuit pending involving either the title to the property or a claimed ownership in- terest in it. Injunctions Court order that compels a party to do or refrain from specific acts. Constructive Notice Signifies that a person should have known as a reasonable person would have. Actual Notice Personally given to somebody Escrow neutral third party Debit money owed Credit money received Short Rate A higher periodic rate for a shorter term than what was originally contracted Impounds Money set aside by a lender to pay for reoccurring costs that take priority over the loan such as taxes and insurance. Copyright © 2019 PrepAgent.com All rights reserved. No reproduction of this material is allowed without written permission of PrepAgent RESPA Eliminating kickbacks and referral fees which add unnecessary costs to settlement services. TILA - Inform use of consumer credit - Require disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed. Fair Housing Act 1968 act banning refusal to sell or rent a dwelling to any person because of race, color, religion, sex, or national origin. Jones vs. Mayer 1968 court case that bared all racial discrimination, private as well as public, in the sale or rental of property based on the thirteenth amendment. Sherman Anti-Trust Act bans anti competitive behavior such as price fixing Americans with Disabilities 1990 act prohibiting discrimination against people with disabilities in employment, Act transportation, public accommodation, communications, and governmental activi- ties. Material Fact a fact that, if known, might have caused a buyer or seller of real estate to make a different decision Steering buyers - You should live by “those” people Blockbusting sellers - You better sell because you do not want to live by “those” people Panic Selling sellers - You better sell because you do not want to live by “those” people Panic Peddling sellers - You better sell because you do not want to live by “those” people Redlining denying services such as a loan, either directly or through selectively raising prices, to residents of certain areas based on race or ethnicity. Misrepresentation the action or offense of giving a false or misleading account of the nature of some- thing. Actual Fraud fraud committed with the actual intent to deceive and thereby injure another Constructive Fraud - person gained an unfair advantage over another by unfair methods. - Intent does not need to be shown Commingling mixing of funds Puffing gross exaggeration of facts Caveat Emptor latin for buyer beware Copyright © 2019 PrepAgent.com All rights reserved. No reproduction of this material is allowed without written permission of PrepAgent Essentials of a Valid Contract Mutual consent, lawful object, consideration, capable parties Void Contract Lacks one of the 4 essential elements Voidable Contract Option to rescind Bilateral Contract promise for a promise example would be a exclusive listing Unilateral Contract promise for a act example would be a open listing or a option contract Executed Contract a contract that has been fully performed Executory Contract a contract that has not yet been fully performed The Statute of Frauds states what contracts must be in writing Statute of Limitations States time frames for certain contracts Novation latin for new as it relates to contracts Codicil amendment Agency ACOLD Accountability Care Obedience Loyalty Disclosure Fiduciary A position of trust, good faith and honesty Actual Authority Expressly conferred by a principal to an agent to act on the principal's behalf. Ostensible Authority Authority granted by acceptance of action on the princeiples behalf. Dual Agent buyer & seller have the same BROKER General Agent - authorized to perform any and all acts associated with the job. - A real estate licensee acting in the capacity of a property manager. Special Agent - Limited authority granted to him or her through a principal. - Relationship with the principal is not expected to be continuous. - Listing contract creates a special agency. Estoppel prevents asserting something contrary to what is implied by a previous action or statement. Listing bileteral employment contract Copyright © 2019 PrepAgent.com All rights reserved. No reproduction of this material is allowed without written permission of PrepAgent Exclusive Listing - one broker can be paid - no need to show procuring cause in order to be compensated. Exclusive Agency Listing - Owner sells agent gets nothing - You need to show your are the procuring cause in order to be compensated Exclusive Authorization and Broker gets paid if property sold regardless of procurance cause Right to Sell Listing Open listing - Seller can hire multiple brokers - Broker that proves procuring cause would be compensated Net Listing Money received above and beyond a designated amount Protection Period Clause Compensated after listing expires if you can prove your are the procuring cause (Safety Clause) Contingency Clause defines a condition or action that must be met in order for a real estate contract to become binding Hold Harmless Clause - also known as a liability waiver - agreement whereby parties agree not to hold the other party responsible for any loss, damage, or legal liability that may arise under the agreement. Interim Occupancy Agree- Staying after sale ment Deposit Placing something of value to show that you are serous about your offer. Value What a willing buyer will pay on the open market Essential Elements of Value STUD - Scarcity Transferability, Utility, Demand Principle of Substitution no prudent person would pay very a property when another one readily available that has the same use, design and income for less. Principle of Contribution How much does an item contribute to the net income of a property? Principle of Regression The value of a more expensive home placed in a neighborhood of less expensive homes will drop in value. Principle of Progression Progression states that the value of less expensive properties will increase when placed in the area of more expensive properties. Principle of Highest and Best - How much of a net return you can get by building on the property? use - If the use is temporary, it would then be considered the Interim use Plottage 1+1 =3 Copyright © 2019 PrepAgent.com All rights reserved. No reproduction of this material is allowed without written permission of PrepAgent Appraisal Estimate of value Narrative Appraisal A comprehensive appraisal report is a “complete” appraisal. Market Data (Comparison) - Examination and comparison of actual sales of comparable properties. Approach - Best used to find values of houses and vacant lots. Cost (Replacement) Ap- - Finding out how much would it cost to replace the building brand new proach - Better for new buildings not old. Capitalization (Income) Ap- - Converts Income into value. proach - A property that can prove to bring in more income will increase the value. - Most appropriate for a shopping center. Gross Multipliers price divided by rent Cap rate Higher Cap rate represents higher risk Acre 43,560 Depreciation loss in value to any cause Physical Deterioration wear and tear Functional Obsolescence poor planning Economic Obsolescence outside causes mortgage a voluntary, specific lien Mortgage brokers - Intermediary between consumers and lenders. - Mortgage broker originates loans while the mortgage lender funds loans. mortgage banker A direct mortgage lender. Interest rent on money Leverage borrowed capital to increase the potential return of an investment Amortization the paying off of debt Negative Amortization interest paid but debt increases Balloon Loan loan that does not fully amortize over its term Appreciation increase in value over time Construction Loan short-term loan used to finance the building of a property. Obligatory Advances Money given during a construction loan at agreed upon stages. participation loan A loan that requires interest plus a portion of the profits as payment. Copyright © 2019 PrepAgent.com All rights reserved. No reproduction of this material is allowed without written permission of PrepAgent Interim Loan short term financing Take-Out Loan - Long-term loans replace interim financing, such as a short-term construction loan. - Usually mortgages with fixed payments that are amortizing. Subject To seller liable, buyer not liable Assume relieves seller, buyer is liable Hypothecate Pledging an asset as collateral for a loan while retaining ownership Subordination Clause Current debts will take priority over debts made in the future. Prepayment Clause provision that permits a borrower to satisfy a debt before it is due date. Prepayment Penalty regulates what the borrower is allowed to pay off and when. Due-on-sale clause Balance of the loan may be called to repay in full upon sale Primary Mortgage Market Where Lenders make mortgage loans directly to borrowers Secondary Mortgage Market resale marketplace Insurance companies (as a - Prefer income producing properties and long term large industrial projects. - - Fre- lender) quently demand to be able to do a participation loan savings and loan association A state or federally-chartered financial intermediary that accepts deposits from the public and invests those funds primarily in residential mortgage loans FHA - Small downpayment required - insures the lender, does not make loans. - unconventional loan because they are backed by the government. - no pre-payment penalty - Single family homes, one to four units owner occupied VA Loan - Does not require a down payment, however the lender can require one. - owner occupied house, condominium, or townhouse GNMA A governmental part of the secondary market that deals primarily in recycling VA and FHA mortgages. FNMA federally sponsored private corporation which provides a secondary market for housing mortgages. Copyright © 2019 PrepAgent.com All rights reserved. No reproduction of this material is allowed without written permission of PrepAgent