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Real Estate

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bjtmeyer's version from 2017-04-14 01:06

Section

Question Answer
TitleRights to the Real Estate
DeedDocument that transfers rights to the Real Estate
Personal PropertyNot attached to the house
ChattelCan be moved
Bill of SaleUsed to transfer personal property
SeveranceGoing from real to personal property. Ex would be chopping down a tree to move. The tree would become personal property.
FixtureItem goes from being personal to real property by becoming attached to property (ceiling fan)
Trade FixturesPersonal property that the tennant could take with them at the end of the lease. If not taken, they would become the property of the landlord and the end of the lease
Government RightsFor the good of the entire community
Eminent DomainThe RIGHT of the government to take private property for PUBLIC GOOD. The property owner is paid compensation for the property.
CondemnationThe PROCESS used to take property when the government exercises the right of Eminent Domain
EscheatThe right of government to take private property upon the owner dieing INTESTATE and has NO HEIRS and abandonment
IntestateNo will
AbandonmentOwner left property and quit paying taxes
EstateThe degree, quantity, nature and extent of ownership interest in real property - POSSESSORY RIGHTS
Freehold EstatesWhat we usualy think of as OWNERSHIP. There is no definite ending date and it is for at least a lifetime.
Leasehold EstatesWhat we usually think of as RENTING or LEASING. It is for a definite period of time.
Fee EstatesInheritable
Fee Simple AbsoluteMaximum rights or complete ownership. It is the highest possible ownership interest that can be held in real property.
Life EstatesDeeded to someone for life or life of another. Non-Inheritable
Estate in ReversionReverts back. (Grantee -> Grantor)
Estate in RemainderGoes to third party remainderman
DowerA wife's rights
CurtesyA husband's rights
SeveraltyOne person or company owns the property solely
Tenancy in CommonIndividual interests in group ownership. Interests are unequal.
Suit to PartitionLawsuit that is a court action to force a sale.
Joint TenancyUnity of Ownership all on one deed with equal rights and present when property was bought. No heirs.
TimeThey were all there when property was bought.
TitleEqual rights
InterestAll on one deed
PossessionShared
Tenancy by the EntiretiesHusband and wife
Estate for yearsHas a beginning and end date
Periodic TenancyMonth to Month. Either party can cancel with a 30 day notice.
Tenancy at WillProperty tenure that can be terminated at any time by either the tenant or the landlord. There is nothing in writing.
Tenancy at SufferanceTenant holds over or stays without permission. There is nothing in writing.
Encumbrancesomething that burdens or limits title or rights held by someone else
EasementGives someone else the right to use a part of your property while you still retain the ownership rights. There are no possessory rights, just the right of ingress and egress. It is an interest in property but not an estate (non-possessory).
Appurtenant EasementGiven for the benefit of the particular land. If the land is sold to another, the easement runs with the land. It can not be sold separate from the land.
Easement in GrossNOT tied to any land but are own by a person or company. (ex Utilities)
Easement by prescriptionLegal use of someone else's property. (for hunting)
Seizin (General Warranty Deed)Seller (grantor) claims ownership of the property
Special Warranty Deedthe seller only warrants or guarantees the title against defects in clear title that may have arisen during the period of its tenure or ownership of the property.
Bargain and Sale DeedThis is a deed "for which the grantor implies to have or have had an interest in the property but offers no warranties of title to the grantee.
Quitclaim DeedThe entity transferring its interest is called the grantor, and when the deed is properly completed and executed, it transfers any interest the grantor has in the property to a recipient, called the grantee. The owner/grantor terminates (“quits”) any right and claim to the property, thereby allowing the right or claim to transfer to the recipient/grantee. Usually used between family members as gifts or divorce.
Words of ConveyanceMust be contained in order for the deed to be valid. (I convey and warrant this property to you.)
Delivery and AcceptanceWhen the title passes and when the buyer gets possession.
Purpose of Recording a DeedEstablishes priority and provides constructive notice
Title InsuranceInsuring your rights and insures against title defects
Standard policy (title insurance)Recorded documents are only covered
Extended policy (title insurance)Schedule of exceptions of what is not covered.
Schedule of exceptionsList of things not insured in the policy
Ad ValoremValue
Buffer ZoneSeparating two unlike areas
Non-Comforming UseBuilding before zoning
VarianceBuilding after zoning has been established (Must get permission from city first)
Promissory NoteA promise to repay
Mortgage, Trust Deed, Security DeedPledging property for the debt. The debt was created by signing the promissory note.
RedemptionThe borrower has a time period to buy the property back.
Equitable redemptionBefore going to foreclosure
Statutory RedemptionAfter foreclosure
The purpose of a mortgagePledge the property as collateral
ARREARSAre paid at the end
Straight NoteInterest only and almost always with short term loans
Balloon paymentOne lump sum that pays off entire loan amount
Partially Amortized NotePrincipal and interest that is partially paid down.
Amortizedperiodic payments
Fully Amortized NoteWhen you make enough payments of principal and interest that is pays off the loan with no balloon payment.
Adjustable Rate Mortgage (ARM)Based on market indexes that the buyer agrees to upfront.
Pre-payment clauseThe lender charges a penalty if the loan is paid off early
Acceleration clause (Due on default clause)A mortgage clause that states that the mortgage is due and payable upon certain conditions, such as a non-payment.
Alienation clause (due on sale clause)If you sell your property, your loan is due.
Subordination clause (changes priority)Two lenders switch lien positions
Defeasance clause (null and void clause)It voids the security (mortgage) when the loan is paid off.
Purchase Money MortgageOwner financing. The seller takes back a mortgage and a note and helps the buyer with the down payment.
Blanket mortgageCovers more than one piece of property.
Partial Release clauseThe bank will release one of the properties once once of the properties is sold and loan is partially paid.
Package mortgageUses real and personal property as collateral.
Reverse annuity mortgageA loan that is paid off wither by the sale of the property or death of the borrower.
Discount pointsIncreases the bank's effective yield
Loan Origination feeA fee the bank charges to write and process the loan.
Installment contractThe buyer pays the seller monthly payments. The seller retains the deed.
Equitable titleBuyer receives this once the contract is signed by the seller
Legal titleSeller retains this until final payment from buyer. Buyer then receives.
Truth in Lending Act (regulation Z)The lender must tell the truth about loan costs.
Real Estate Settlement Procedures Act(RESPA)To inform borrowers of TOTAL CLOSING COSTS
TILA-RESPA Integrated DisclosureCombines both TILA and RESPA
Home Loan Toolkit (RESPA)Given to borrower whithin 3 business days of loan application
The Loan Estimate (RESPA)Estimate of loan costs within 3 business days of loan app
The Closing Disclosure3 business days before closing
Special AgentSomeone who represents someone else in a transaction. One time, one area like our relationship with the seller.
General AgentSeveral areas on an ongoing basis.
ExpressedClearly stated in writing
ImpliedOral. Nothing in writing
FiduciaryLoyalty and trust
Client Level Fiduciary DutiesCare, Obedience, Accounting, Loyalty, Disclosure - Full, Confidentiality
Stigmatized propertySome adverse event has happened on the property that might reduce the value (murder, suicide, death, drive by shooting, rape, etc). Does not have to be disclosed.
Sherman Anti-Trust LawsPrice fixing such as a group of brokers setting a common commission rate.
Property Management AgreementBetween the property manager and the property owner. It has an expiration date.
Accrued prorationsDebt built up; not paid. (ex: Real Estate Taxes)
Pre-paid prorationsPaid in advance; not used up (ex: Homeowner's insurance, home warranty, HOA dues
LeasesReal Estate contract that gives an interest in Real Estate but not ownership
Gross leaseLandlord pays taxes, insurance, etc. Tenant pays one gross amount.
Escalation clauseWhere the landlord has a right to raise the rent due to significant increased costs.
Percentage leaseThe rent is based on the % of sales (towne west and east)
Ground leaselong term lease.
Non-disturbance clauseIf the landlord is foreclosed on or sold, neither one has an effect on lease. The owner and tenant must honor the lease.
Actual evictionLandlord would sue for an actual eviction. The sheriff does the eviction.
Constructive evictionTenant sues the landlord for constructive eviction.
OpenFor sale by owner. The owner does not want to list with any real estate company.
Exclusive agencyThe owner can sell the property with no assistance from the broker. The seller only wants one broker to come into the house.
Exclusive right to sellMost common type of listing. Takes listing for seller, lockbox on door, and on MLS.
Net listingillegal. Ex Seller wants $100,000 for property. Agent says he will sell for $150,000 and keep the $50k difference.
Termination of a listingExpiration date, when contract closes, condemnation, death of a seller, broker abandonment
Protective period clauseProtects listing brokers if negotiations pass expiration date.
Errors and omissions insuranceused if salesperson fails to perform
Hazard insurancehomeowner's insurance
General liability insurancebrokerage carries on property in case of injury
Exclusion on owner-occupied homeowner must have owned and lived in property for 2 of the past 5 years.
Deductible expensesDepreciation (investment properties only)
Competent partiesBuyers and sellers. All of legal age and sound mind. Have to be alive at the time of acceptance.
Offer and acceptanceWhen all buyers and sellers have signed a contract
ConsiderationSomething of value (ernest money). Buyers and sellers negotiate what that is.
Legal objectContract must be for a lawful purpose.
Writingto be an enforceable contract
Statute of Fraudsrequires that a sales contract be enforceable in writing
Bi-lateralPromise for a promise. Both parties are bound to a contract
Uni-lateralPromise for an action. Only one party is bound.
ExecutoryPromises have been made but waiting to be executed.
ExecutedDone, signed and delivered
Valid and enforceableAll essential elements of a contract. Must be in writing, signed by all parties, of legal age, sound mind, and alive at acceptance.
Voidno contract at all. Someone has been declared incompetent
VoidableAble to be voided. Significant difference between parties. Voidable if signed by minor, signed under duress (pressure), signed due to misrepresentation (false statement of a material fact).
Puffingsubjective opinion
Unenforceablean oral contact
Breachnot performing according to contract
Liquidated Damages ClauseIf buyer backs out with no legit reason, the seller can keep the ernest money.
AssignmentTransfer rights to a 3rd party. Changes the people or the buyer.
NovationA new contract take the place of an old contract
Addendum/amendmentChanges the term of the contract
Time is of the essence clauseSomething in a contract that requires the parties to satisfy any time frames.
Possibility ContractRight to buy at a later date. A definite time period.
OptionerMust sell if option exercised. Keeps option money paid for option.
OptioneeDoesnt have to buy, but loses option money.
Mortgage (financing) contingency clauseProtects the buyer from loss of earnest money
Due DiligenceThe time between the sales contract and the closing where the buyer is allowed to have inspections and can cancel for adverse conditions such as something showing up in the inspection.
Earnest MoneyGood faith money. Something of value that is negotiated between the buyer and seller.
ComminglingIllegal. Mixing escrow funds with personal or business funds. $100 is put into escrow account to cover service charges.
Conversionconverting other people's money for our own use.
Know this statementBrokers and sales people cannot draft legal documents, only fill in blank spaces on attorney approved forms.
Individual statesGovern documents and the recording of those documents.
Metes and boundsMust always begin and end at point of beginning.
Section640 acres
Acre43,560 sq feet
Sole proprietorshipIndividual proprietorship
SyndicationA group of people
Real Estate Investment Trust (REIT)You have to be a stockbroker to sell REITs. Also is governed by securities laws.
BlockbustingInducing owners to sell by telling them persons of protected class are moving into the neighborhood.
SteeringDirecting people to an area based on their class.
RedliningLenders and insurers refusing to loan or give insurance due to someone's class.
Handicapped personscan modify a rented property at their expense.
Familial statusIf you have children 17 and under, or pregnant, you cant tell a family no. Landlord can say no to an oversized family.
HUDs enforcementTime limit is 1 year.
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