Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
43 Cards in this Set
- Front
- Back
- 3rd side (hint)
Truth in Lending Act |
Consumer protection act intended to force lenders to be truthful in their advertising; implemented by Regulation Z |
|
|
Physical Characteristics of real estate |
Immobility, Indestructibility, Uniqueness (non homogeneity) |
|
|
Negligent Representation |
Misrepresentation occurring when the broker should have known that the statement about a material fact was false. |
|
|
Bundle of Legal Rights |
Ownership of legal rights: control, possession, use, disposition, enjoyment |
|
|
Replacement Cost |
Current cost to reconstruct a building to serve the same function but not an exact duplicate of the original. |
|
|
Real Property |
Interests, benefits, and rights inherent in real estate ownership. |
Land plus property plus bundle of rights |
|
Condominiums |
Ownership of the airspace of a unit, plus undivided interest in common elements. |
|
|
Cooperatives |
Multi-tenant building owned by trust or corporation; tenants own share of stock and proprietary lease. |
|
|
Economic Characteristics of Real Estate |
Scarcity, Improvements, Permanence of Investment, Area Preference (location) |
|
|
Planned Unit Development (PUD) |
Planned combination of diverse uses, such as housing, recreation, and shopping in one planned subdivision or development. |
|
|
Annexation |
Change personal property to real property, such as mixing sand, stone, and cement to make a sidewalk. |
Not like the Mashantuckets |
|
Price Fixing |
Brokers conspiring to set fixed compensation rates |
|
|
Indemnification |
In a listing, a clause that states that the seller and broker will not sue each other for any incorrect information supplied by one to the other |
|
|
Market |
Place where goods are bought and sold, price is established |
|
|
Capital Gain |
Profit earned from the sale of an asset |
|
|
Improvement |
Man-made attachment to the land, such as building, streets, utilities |
|
|
Brokerage |
Bringing together parties interested in a real estate transaction |
|
|
Lien |
Right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by court sale |
|
|
Affidavit of Title |
Written statement made under oath, that grantor identifies himself and marital status, certifies that there are no new defects on title |
|
|
Fraud |
Intentional misrepresentation of a material fact in order to harm or take advantage of another person |
|
|
Multiple Listing Service (MLS) |
Marketing organization in which brokers share information and commission with other brokers; Sellers gain because of greater exposure to larger market |
|
|
Rules and Regulations |
Licensing authority to provide for administering the law and set operating guidelines for licensees. Have the same force and effect as any law. |
|
|
Marketable Title |
Good or clear title, reasonably free from risk of litigation over possible defects |
|
|
Good Faith Estimate (GFE) |
Settlement costs that borrower is likely to incur; must be given within three business days after loan application; should be pretty accurate. |
|
|
Principal |
One who hires; broker (principal) hires salespeople, seller (principal) hires the broker/agent, or buyer (principal) hires broker/agent |
|
|
Usury |
Charging interest in excess of the maximum rate; often residential first mortgage loans are exempt from such laws |
|
|
Acknowledgment |
Formal declaration (by someone like a notary public) that a signature is both voluntary (no force) and genuine (no forgery) |
|
|
Adverse Possession |
Possession of another's land, as if the owner, for a statutory period which may lead to acquiring title |
|
|
Bilateral vs Unilateral Contract |
Bilateral: both parties are legally bound to act as promised (lease, purchase agreement) Unilateral: only one party is bound to act (option, promissory note) |
|
|
Assignment |
Transfer in writing of interest in a bond, mortgage, or lease |
|
|
Ginnie Mae |
HUD division, corporation without stock; administers special assistance programs and works in tandem with Fannie Mae by guaranteeing payments |
|
|
Discount Point |
Unit of measurement used for various loan charges; one point equals one percent of the loan amount |
|
|
Standard Homeowner's Insurance |
Insurance package that covers residential property owner against financial loss from fire, theft, public liability, etc |
|
|
Property Management |
Management of another's property for compensation |
|
|
National Flood Insurance Act |
Requires flood insurance when financing with federally related loans on properties located in flood-prone areas |
|
|
Severance |
Changing of real to personal property, such as cutting down a tree or removing a stained glass window |
|
|
Intestate |
Person dies without a valid will; his or her property will pass to heirs as provided in the state law of descent |
|
|
Subdivision |
Splitting a single property into smaller parcels |
|
|
Abstract of Title |
Certification by abstractor that condensed history of title to a particular parcel of real estate, including conveyances and encumbrances, is correct |
|
|
Adjustable Rate Mortgage (ARM) |
Loan that has a fluctuating interest rate, usually one tied to a cost of funds index; the cost of doing business is the margin that stays fixed and is added to the base rate |
|
|
Acceleration Clause |
Clause in mortgage or deed of trust that can be enforced to make the entire debt immediately if borrower defaults |
|
|
Statute of Frauds |
State law requires certain instruments, such as deeds, real estate contracts, and certain leases to be in writing to be legally enforceable |
|
|
Quiet Enjoyment Covenant |
Clause in deed guaranteeing that the grantee's title will be good against third parties who might bring court action. |
|