Save
Busy. Please wait.
Log in with Clever
or

show password
Forgot Password?

Don't have an account?  Sign up 
Sign up using Clever
or

Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.


Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't know
Remaining cards (0)
Know
0:00
share
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Real Estate

TermDefinition
Voluntary lien lien placed with owner's consent, like mortgage or trust deed
Involuntary lien lien placed without consent of owner, like judgment
Judgment court's final decision of rights or obligations of involved parties - once filed creates general lien
Mechanics Lien lien placed on property based on work or furnished materials; filed for nonpayment of labor; takes priority over mortgage
Statutory Lien placed on property by law, like real estate property taxes or special assessments (pay for public improvements like sidewalks)
Equitable lien placed on property by written contract
Lis pendens "suit pending"; pending lawsuit, litigation has been recorded; foreclosure wipes this out
Deficiency judgment legal judgment given when deed is not enough to cover debt
Junior lien lien below or after senior lien (senior lien is paid first)
General lien lien on all property - real and personal
Specific lien lien directly tied to property
Trust arrangement where legal title is transferred from trustor to trustee
Progression value of less expensive properties will increase when placed in area of more expensive properties
4 elements of value scarcity, transferability, utility, demand (STUD)
Capitalization (cap) rate ratio between net operating income and its capital cost (original purchase price); rate of annual return
Tenancy by the entirety joint tenancy only for married couples, created by will or deed; cannot sell interest; in case of divorce becomes tenants in common (& right of survivorship disappears); free from dead spouse's creditors
Gross Rent Multiplier (GRM) purchase price of RE investment / annual rental income before expenses (taxes, insurance, utilities)
Economic Obsolescence social or external deterioration (abandoned gas station next door, etc. - outside control)
Functional Obsolescence functional problems or poor design (within control)
Financing pledge of property to lender as security for payment of debt (mortgagor = borrower)
Lien legal interest that creditor has in person's property
Lien theory state gives lender lien interest in property
Title theory lender holds title to property (lender owns property until debt is repaid)
Trust deed security document used in most title theory states (trustor (borrower) signs deed of trust and gives legal title to trustee (title company/attorney), who holds title for beneficiary (lender) - borrower retains equitable title
Equitable title right to possession with right to acquire legal title once a condition has been met
Reconveyance deed once borrower (trustor) has made all payments to lender, trustee (title co/attorney) issues reconveyance deed to trustor; used in conjunction with trust deed to clear title of any liens pertaining to Note & trust deed
Discount point = 1% of loan amount
Origination fee fee paid to lender for processing loan application
Conventional loan not part of gov't housing program; usually putting less than 20% down; may require PMI
Private mortgage insurance (PMI) insures lender in case of default
Amortization gradual reduction of loan debt thru periodic installment payments (full amortized = paid off at end of loan term; partially amortized = not fully paid off)
Promissory note written contract between borrower and lender, providing evidence of indebtedness
Fannie Mae (Fed. National Mortgage Assoc.) fed sponsored private corp. provides secondary market for housing mortgages
Ginnie Mae (Gov't National Mortgage Assoc.) gov't part of secondary market deals in recycling VA and FHA mortgages, especially ones highly leveraged
Mortgage Broker real estate financing professionals acting as intermediary between consumers and lenders during mortgage transactions; usually originates loans while lender funds them
Mortgage banker direct mortgage lender; no middlemen (= broker and lender in one)
Buy down obtaining a lower interest rate by paying additional points to the lender; results in lower payments which are easier to qualify for
Equity interest or value remaining after payments of all liens on property (money left over after you pay off debt (if house sells for $300k and you owe $200k = $100k equity))
Home equity line of credit (HELOC) usually has set limit, can be used like credit card; payments are usually interest only and principal amount is due at the end
Adjustable rate mortgage (ARM) mortgage with interest rate that changes over time in line with movements in the index; usually contains rate cap, which limits adjustments that can change over life of loan
Payment cap Maximum adjustment amount for payment
Adjustment period how often rate cap can be changed
Blanket mortgage covers more than one parcel in a lot; may be negotiated by a developer
Release clause provision found in blanket mortgage enabling mortgagor to obtain partial releases of specific parcels from the mortgage upon payment
Growing equity mortgage rapid payoff mortgage; monthly payments increase which applies directly to principal, reduces loan term
Graduated payment mortgage flexible payment plan; payments start low and increase each year for specific amount of years then level off for remaining term
Negative amortization increase in outstanding amount b/c monthly payment does not cover monthly interest due; debt increases as payments are made
Open mortgage borrower can pay off loan before end of term
Open end mortgage allows borrower to secure more funds under original loan w/out redoing paperwork; like a credit card; construction loan is example
Construction loan open end loan, receive money in series of draws, short term/interim loan; only for period of construction
Package mortgage real and personal property; to cover purchase of property and furnishings
Shared appreciation loan lender originates loan at a below market rate in return for share of appreciation once property is sold
Purchase money mortgage extension of credit by seller to buyer (but can refer to any type of financing for purchase of real estate)
Participation loan A) loan requiring interest + portion of profits as payment B) loan made/owned by more than one lender
Reverse mortgage loan for ages 62+; no income qualifications; no monthly payments; loan is repaid when borrower no longer lives at property; if no existing loan, owner can receive monthly payment guaranteed for rest of life while they live in the house; sum or credit line
Straight note mortgage where borrower pays interest due on principal during specified term; principal must be paid at end of term
Wraparound loan refinancing method, new mortgage placed in secondary/subordinate position; new mortgage includes unpaid principal of 1st + additional sums; doesn't disturb 1st mortgage
Sale lease back Simultaneous selling and leasing back of property
Acceleration clause entire debt is due immediately in case of default under contract terms
Alienation clause lender has option to require that balance of loan is immediately due and payable if property is sold or transferred; also called "due-on-sales" clause
Prepayment clause allows borrower to pay debt before due-date
Prepayment penalty charge imposed when borrower pays off loan early; cannot due so without paying fee - based on percentage of loan balance
Lock-in clause borrower cannot repay loan prior to specified date
Subordination clause rights of holder are secondary to future lien
Pyramiding borrowing against one property to invest in another
Arbitrage borrow money at one interest rate and lend at a higher interest rate
Syndication pooling money for investment purposes
Security joining with others for investments; profit is made from efforts of others; ex: stocks and bonds
General partnership all partners must participate in management and are liable
Limited partnership one general partner and other silent partners (only liable to their degree of investment)
Joint venture joining of 2+ ppl in business transaction
Bundle of rights right to: possession, control, enjoyment, exclusion, disposition
License personal privilege to use land of another; can be revoked
Inverse condemnation gov't fails to pay just compensation, owner then sues gov't
Escheat property reverts to state ownership when person dies intestate and w/out heirs
Emblements annual crops
Freehold estate ownership is for undefined length of time
Fee simple defeasible/determinable grantor places condition on fee simple estate in the deed
Life estate interest in real property held for duration of life of designated person
Leasehold estate/Less than freehold estate estate held by one who rents or leases
Reversionary right owner has right to regain possession of property after lease has expired
Assignment transfer of contract rights
Estate for years leasehold interest in land for fixed period of time; tenancy for years (defined end point)
Periodic tenancy estate from years to years- no fixed end point
Estate at will can be ended at any time
Estate in sufferance tenant wrongfully holds over; tenancy at sufferance
Gross lease standard - rental agreement for use of property where tenant pays fixed amount
Net lease tenant pays monthly fee + taxes, insurance and maintenance
Percentage lease rental based on percentage of monthly or annual gross sales made on premises
Lease option option to purchase property during term or at end of lease; owner is then optionor and tenant is optionee
Liquidated damage clause determines in advance the measure of damages if a party breaches agreement (e.g., EMD)
General warranty deed greatest protection, includes: seisin (right to convey title), against encombrances, quiet enjoyment, further assurance, warranty forever
Special warranty deed grantor received title and property was not encumbered while grantor held title
Bargain and sale deed grantor holds title and possession of property & no express warranties against encumbrances
Quitclaim deed least protection; no covenants or warranties; conveys whatever interest the grantor had when deed is delivered
Homeowners' insurance policy standardized package that covers fire, theft, public liability, and other common risks
Standard Title Coverage Insures against: hidden defects (forged docs), conveyances by incompetent, incorrect marital statements, improperly delivered deeds
Extended Title Coverage American Land Title Association (ALTA) includes: defects discovered by inspection, rights of parties in possession, examination of survey, unrecorded liens
Front Foot linear foot (width)
Torrens Title System Person acquires title only once registered; relies on physical title doc; owner submits written app to register title, app submitted to court clerk of county where RE located; once prove ownership, court enters order to register RE; issued cert of title
Valid Deed Needs grantor: legal competency, grantee name, consideration, granting clause, habendum clause, accurate legal des, exceptions, notarized signature of grantor, delivery of deed & acceptance by grantee
Created by: teddydesign
Popular Real Estate sets

 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards