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VA Real Estate
| Term | Definition |
|---|---|
| Concurrent license | brokers who work for more than one firm |
| Acre | 43,560 sq ft |
| Subrogate | Permitting action against the licensee to recover amount of claims paid due to licensee's misconduct |
| VA RE Transaction Recovery Fund | reimburses parties who suffer $ loss due to licensee's improper or dishonest conduct; $400K minimum balance or charge active/inactive agents proportional amount; none pay more than $20 in 2yrs; 45/30d to pay or suspension |
| VA Residential Property Disclosure Act | requires owner to give disclosure form to purchaser and refer buyer to VA RE board website for more info |
| Independent contractor | a licensee acting in a representative relationship (not agency) performing duties as stated in brokerage relationship agreement |
| Automatic survivorship | has to do with augmented estates; makes joint tenants tenants in common; abolished in VA |
| Easement by necessity | Easement allowed by law as necessary for full enjoyment of parcel of RE; right of ingress & egress |
| Easement by prescription | easement acquired by continuous, open & hostile use of property for 20 yrs, tacking allowed (like adverse possession but owner knows about it) |
| Estate | that owned by person, including: insurance, retirement benefits (not social sec), annuities, pension, compensation, employee benefits (same as "property") |
| Homestead exemption | householder of land occupied as family home entitled to certain amount of real & personal property exempt from unsecured debts |
| Intestate | person dies without will |
| Land trust | trust in which assets consist of real estate |
| Public offering statement | full and accurate disclosure of characteristics of condo/coop/time share |
| Resale certificate | seller must obtain certain docs from unit owners' association in event of resale |
| Tacking | combining successive periods of continuous uninterrupted use by dif parties |
| Tenancy by partnership | partner is co-owner with other partners of real property |
| Unsecured debts | not secured by real preoperty (like credit card debt) |
| Broker's lien | lien on rent paid by tenant in amount of commission agreed on by owner and broker |
| Landlord's lien | lien on tenant's property for satisfaction of unpaid rent or property damage |
| Principle of uniformity | All property shall be taxed at fair market value and shall be uniform upon same calss of subjects within territorial limits of authority of levying tax |
| Run with the land | owner must pay taxes for current tax year from date of purchase until end of year; buyer owns property on SETTLEMENT DATE |
| Succession tax | Tax on right to succeed property or an interest in it - not the right to transmit it |
| Vendor's lien | lien to vendor for unpaid purchase price of land |
| Writ of execution | court order to enforce a judgment of possession |
| Writ of possession | court ordered judgment where debtor's real property may be conveyed to sheriff |
| As-built survey | house location survey with all physical features of property shown (water, utility lines, fences, outbuildings, etc.) |
| Boundary survey | boundary or perimeter of parcel, corner stakes of physical landmarks appear |
| House location survey | boundary survey with location of house shown |
| Metes-and-bounds method | description of land by courses and distances with identifiable starting point; uses monuments; uses point of beginning and ending |
| Lot-and-block method | description of land by reference to a recorded map, plat, survey, deed, etc. |
| Parol evidence | evidence of facts & circumstances not included in deed or contract |
| Power of attorney | written doc authorizing attorney in fact |
| Statue of frauds | state law requires certain items like deeds, contracts, leases, to be in writing to be legally enforceable |
| Subdivision plat | map of each parcel of land, shows subdivided lots, streets, etc. |
| Deed of trust | doc used to create mortgage lien |
| Home affordable modification program (HAMP) | gives homeowners opportunity to refinance mortgage in order to make monthly payments affordable and avoid foreclosure |
| Judicial foreclosure | if mortgage is used instead of deed of trust, court action is required to foreclose |
| Nonjudicial foreclosure | trustee has right to sell property without going to court |
| Power-of-sale clause | allows for nonjudicial foreclosure |
| Short sales | way to avoid foreclosure, reach an agreement with lender to accept an amount less than what is really due on mortgage loan |
| Usury | charging interest higher than the max amount allowed by state law |
| VA Housing Development Authority (VHDA) | makes housing more affordable for those w/low or moderate incomes; self-supporting, funding comes thru private sector thru sales of VHDA bonds |
| 90-day letter | affidavit that there's been no improvements w/in 90 days of closing |
| Adverse possession | actual, open, notorious and continuous possession of another's land under claim of title (15 years, no tacking) |
| Correction deed | deed where errors are corrected (like erroneous legal description, misspelled name, etc.) |
| Consumer RE Settlement Protection Act (CRESPA) | persons who perform escrow, closing, or settlement services must comply with consumer protection safeguards |
| Grantor tax | tax seller pays to transfer property |
| Privity of estate | continuous succession of adverse possessors |
| Recordation tax | tax purchaser pays on transfer of property |
| Surety bond | a policy insuring one's personal and/or financial integrity; settlement agent must have one at least $100k; used to ensure project will be completed, contract performed, etc. |
| Testator | person who made valid will (female sometimes called testatrix) |
| Distress warrant | order to seize tenant property |
| Five-day pay / quit notice | landlord issues written notice giving tnenant 5 days to pay rent or vacate property |
| Prepaid rent | rent paid more than 1 month in advance of rent due date |
| Retaliatory action | landlord increases rent, decreases service or terminates lease |
| Unlawful detainer warrant | landlord may begin eviction after issuing this warrant; tenant still must pay rent |
| VA Residential Landlord and Tenant Act (VRLTA) | establishes single body of law relating to landlord and tenant relations through Commonwealth |
| Elderliness | ppl 55+ for purposes of fair housing law |
| VA Fair Housing Board | created by DPOR to administer and enforce state and federal Fair Housing Law |
| VA Fair Housing Office (VFHO) | investigative arm for Fair Housing Board and Real Estate Board |
| Fiduciary relationship | agent owes principal/client: Care, Obedience, Loyalty, Disclosure, Accounting, Confidentiality |
| Easement in gross | easement granted personally by owner to someone else - but doesn't run with the land |
| Encumbrance | any lien, easement, or restriction on the use of the land |
| Legal life estate | form of life estate established by state law (vs. voluntarily by the owner) |
| Prior appropriation | water ownership in which landowner's right to use water is based on gov't-administered permit system |
| Pur autre vie | "for the life of another" life estate measured by someone else's life |
| Reversionary interest | remnant of estate grantor holds after granting life estate to another person |
| Base line | imaginary line running east and west crossing principal meridian at definite point; used by surveyors |
| Datum | horizontal plane from which heights and depths are measured |
| Benchmarks | permanent reference marks or points established for use by surveyors in measuring elevation |
| Plat map | map of town, section, or subdivision indicating location and boundaries |
| Principal meridians | imaginary line running north and south crossing base line at definite point; used by surveyors |
| Ranges | strip of land 6 miles wide, extending north & south & numbered east & west according to distance from principal meridian |
| Rectangular (gov't) survey system | est. in 1785 by fed gov't provides for surveying land by reference to principal meridians and base lines |
| Sections | portion of township under rect gov't survey system; township divided into 36 sections, section is square w/mi-long sides & area of 640 acres (1 sq mi) |
| Survey | process by which boundaries are measured |
| Township lines | all lines in rect system that run east and west, parallel to base line - 6 mi apart |
| Townships | principal unit of rect system; square with 6-mile sides and area of 36 square miles |
| Township tiers | township lines that form strips of land and are designated by consecutive numbers north or south of base line |
| Mile | = 5,280 feet |
| Square mile | = 640 acres |
| Assessment | imposition of a tax |
| Ad valorem tax | tax according to value, also called general tax |
| Attachment | act of taking person's property into legal custody by writ or judicial order to hold it for application to person's debt to creditor |
| Equalization factor | factor by which assess value of a property is multiplied to arrive at value for property in line w/statewide tax assessments (ad valorem based on this adjusted value) |
| Tax sale | court-ordered sale of real property to raise money for delinquent taxes |
| Estate tax | fed tax on decedent (deceased person) real and personal property) |
| Mill | 1/10 of one cent (.001) - sometimes used to calculate tax |
| Redemption | right of defaulted property owner to recover property by curing default |
| Real estate tax | property tax; this and special assessments take priority |
| Alienation | act of transferring property; involuntary (eminent domain or adverse possession), voluntary (gift or sale) |
| Torrens system | provides certificate of title verified by county clerk; not used in VA |
| Certificate of reasonable value (CRV) | form indicating appraised value of property financed with VA loan |
| Community Reinvestment Act (CRA) | 1977; financial institutions expected to meet deposit and credit needs of communities |
| Equal Credit Opportunity Act (ECOA) | fed law prohibits discrimination in extension of credit based on: race, color, religion, national origin, sex, age, marital status, dependence on public assistance |
| Federal Deposit Insurance Corporation (FDIC) | independent fed agency insures deposits in commercial banks |
| Freddie Mac (Federal Home Loan Mortgage Corp) | gov't-sponsored, purchases conventional mortgage loans in secondary market |
| Index | objective economic indicator to which interest rate for ARM is tied |
| Interest-only mortgage | interest paid off over period of time then principal is due at end of term (or straight loan) |
| Margin | premium added to index rate representing lender's cost of doing business |
| Regulation Z | implements Truth in Lending Act; applies to residences, lenders have to inform true cost of getting credit; 3 day right of rescission |
| Truth in Lending Act | consumers must be fully informed of all finance charges and true interest rate (fed gov't regulates) |
| Gross lease | lease of land only (tenant may own building) |
| Nondisturbance clause | mortgage clause stating mortgagee/lender agrees not to terminate tenancies in event of foreclosure |
| Constructive eviction | passive aggressive eviction - landlord makes it uninhabitable so tenant leaves without liability |
| Multiperil policies | insurance covering fire, hazard, public liability, casualty, etc. |
| Tenant improvements | alterations to interior of building to meet functional demands (also called build-outs) |
| Conformity | appraisal principle- greater similarity among properties = better they hold their value |
| Economic life | # of years an improvement will add value to land |
| Gross income multiplier (GIM) | 5+ units (commercial): sales price/annual gross income |
| Gross rent multiplier (GRM) | 1-4 residential units: purchase price of RE investment / monthly gross rent before expenses (taxes, insurance, utilities) |
| Law of diminishing returns | point at which add. improvements do not increase income or value |
| Law of increasing returns | $ spent on improvements increases income or value |
| Plottage | increase in value or utility from assemblage (combining 2+ lots) |
| Regression | opposite of progression; presence of crappy property negatively affects better quality property |
| Replacement cost | cost to create same function as original (not exact duplicate) |
| Reproduction cost | cost to create exact duplicate of property |
| Federal Interstate Land Sales Full Disclosure Act | regulates interstate sales of unimproved lots in subdivisions of 25 or more, 20 acres or less |
| Blockbusting | inducing owners to sell based on entry/prospective entry of certain race or national origin into neighborhood |
| Civil Rights Act | 1866; upheld in court in 1968, no racial discrimination |
| Fair Housing Amendments Act | 1988 adds families w/children and physical/mental disabilities to Act; administered by HUD, created equal housing opp poster |
| Redlining | lender denies loan based on certain areas of community |
| Steering | channeling home buyers to particular areas either to maintain homogeneity or change character |
| Title 8 of Civil Rights Act | 1968; no discrimination based on race, color, religion, national origin; prohibits steering, blockbusting, redlining |
| Housing and Community Development Act | 1974; adds sex to list of protected classes |
| Fair Housing Act exemptions | rentals in owner-occupied buildings 4- units; private clubs w/limit occupancy; sale by owner of single-family home when owner owns 3- houses & no discriminatory advertising; 80% 55+ or 62+ only |
| Megan's Law | sex offenders must register location |
| Comprehensive Environmental Response, Compensation & Liability Act | 1980; fed law admin by EPA; identifies ppl who pollute and forces them to clean up toxic sites |
| Superfund Amendments and Reauthorization Act (SARA) | amendatory statute that contains stronger cleanup standards for contaminated sites |
| Impound account | most mortgage lenders require borrowers to have this for funds to pay future real estate taxes and insurance premiums |
| Mortgage Disclosure Improvement Act (MDIA) | 2009; timeliness of disclosures affects closing dates; 3-7-3 |
| Boot | $ or property given to make up difference in value or equity between 2 properties in an exchange |
| Capital gain | profit earned from sale of asset |
| Cost recovery | IRS term for depreciation |
| Equity buildup | portion of loan payment directed toward principal vs interest = gain in property value due to appreciation |
| Leverage | use of borrowed $ to finance investment |
| RE mortgage investment conduit (REMIC) | tax entity issues multiple classes of investor interests backed by pool of mortgages |
| Taxpayer Relief Act | 1997; rules for holding periods of taxability of depreciation for real property, depreciation set by statute (currently 27.5yrs; 39 for commercial) |
| Hypothecation | pledge property as security for a loan without giving up possession |
Created by:
teddydesign
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