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Term	Definition
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
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 Allowance	allowance to customize generally for business purposes.
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 situations
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 during 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.
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 Insurance	Standard coverage includes:

	- Defects that are found in public records

	- Forged documents

	- Incompetent grantors

	- Incorrect marital statements

	- Improper delivery of deeds
ALTA Policy of Title Insurance	Protects real property owners and mortgage lenders against losses from defects in titles.
Extended Policy of Title Insurance	Includes everything in a standard policy plus defects found in a property inspection. Which would include unrecorded rights of parties in possession, examination of survey. 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
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
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 property.
Judgement Lien	Lien placed by the court
Lis Pendis	lawsuit pending involving either the title to the property or a claimed ownership interest 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.
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 Act	1990 act prohibiting discrimination against people with disabilities in employment, transportation, public accommodation, communications, and governmental activities.
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 something.
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
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
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 Right to Sell Listing	Broker gets paid if property sold regardless of procurance cause
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 (Safety Clause)	Compensated after listing expires if you can prove your are the procuring cause

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 Agreement	Staying after sale
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 use	- How much of a net return you can get by building on the property?

	- If the use is temporary, it would then be considered the Interim use
Appraisal	Estimate of value
Narrative Appraisal	A comprehensive appraisal report is a “complete” appraisal.
Market Data (Comparison) Approach	- Examination and comparison of actual sales of comparable properties.

	- Best used to find values of houses and vacant lots.
Cost (Replacement) Approach	− Finding out how much would it cost to replace the building brand new

	− Better for new buildings not old.
Capitalization (Income) Approach	- Converts Income into value.

	− 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.
Take-Out Loan	- Long-term loans replace interim financing, such as a short-term construction loan.
Take-Out 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 lender)	- Prefer income producing properties and long term large industrial projects. - - Frequently 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.
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.
Interim Loan	short term financing
Commingling	mixing of funds
Puffing	gross exaggeration of facts
Caveat Emptor	latin for buyer beware
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