Real Estate Terms and Concepts for PSI REAL ESTATE EXAM 2023, Exams of Nursing

Download Real Estate Terms and Concepts for PSI REAL ESTATE EXAM 2023 and more Exams Nursing in PDF only on Docsity! Colorado Law and Practice - PSI REAL ESTATE EXAM 2023 Abandonment - Answer Non-payment of taxes Abstract of title - Answer A history of the ownership of parcel of land which lists transfers of title, rights, and liabilities. Acceleration Clause - Answer Upon default, all the principal installments come due to immediately Accesion - Answer owner of land is entitled to all the soil produces or all that is added to the land either intentionally or by mistake. Trade fixtures not removed are "assessed" by the owner of the property. Accretion - Answer Refers to land which is accumulated by the gradual washing or motion of water Accrued - Answer An accumulation Acknowledgement - Answer A formal declaration made by the grantor conveying the property to the grantee - a necessary element for validity of a deed. Acre - Answer A measure of land equal to 43,560 square feet Action to quiet Title - Answer The lawsuit filed by a person to remove or clear the claims against property. Actual Notice - Answer The actual knowledge that a person has about the existence of a particular fact. Ad Valorem - Answer A prefix meaning "based on value". Most local governments levy this type of tax on property. Adverse Possession - Answer A method of acquiring original title to property by open, notorious, and hostile possession for a statutory period of time; also referred to as prescription. POACH Agency - Answer A relationship in which one party (the principle) authorizes another party (the agent) the act as the principle's representative in dealing with third parties Agent - Answer One who acts for and in place of a principle for the purpose of affecting the principle's legal relations with third persons. Air rights - Answer The eight to use, control and occupy the space above a particular parcel of land Alienation Clause - Answer A provision in a mortgage requiring full payment of the debt upon the transfer of the title to the property, due on sale. Prevents loan assumptions. Colorado Law and Practice - PSI REAL ESTATE EXAM 2023 Allodial - Answer The free and full ownership of rights in land by individuals, which is the basis of real property in the united states Amortization - Answer The repayment of a financial obligation over a period of time in a series of periodic installments. In a level-payment mortgage, this is the portion of the debt service that reduces the principle. Amortized Loan - Answer A financial debt that is paid off over a period of time by a series of periodic payments. A loan can be fully amortized of partially amortized requiring a balloon payment to satisfy the debt at the end of the term. Annual Percentage Rate (APR) - Answer The yearly cost of credit. interest rate plus finance charge. Appraisal - Answer An opinion or estimate of value performed by a person licensed to do so. Appreciation - Answer An increase in Value Appurtenance - Answer Any right of privilege which belongs to and passes with land. Arms-Length Transaction - Answer Transaction which occurs between willing buyer and willing seller with each party completely knowledgeable about the market. Not a purchase of a property between relatives (father & Son) Arrears - Answer Not on time; Late in making payments or completing work. Interest can be paid like this. As is - Answer A phrase which disclaims any promises or warranties. A person purchasing real estate in this form, takes it in exactly the condition in which it is found. Seller cannot hide latent defects. Assembledge - Answer Bringing two or more lots together under one ownership. Assessed Value - Answer The value placed on property, by tax assessor, for the purpose of determining the property tax. Assignment - Answer 1) the means by which a person transfers contract rights; 2) occurs when the lessee parts with the entire estate, retaining no interest Attachment - Answer The process of taking a person's property into legal custody by a court order call writ of attachment. Property is Frozen. Attestation - Answer The act of witnessing a person's signing of an instrument by a notary public. Attorney in Fact - Answer A person given the authority to act on behalf of another under a power of attorney. Colorado Law and Practice - PSI REAL ESTATE EXAM 2023 Closing Costs - Answer The expenses incurred and paid at the time of settlement in the transferring of property. Cloud on Title - Answer Any claim affecting the property Co-Insurance - Answer Coinsurance is a common clause or provision in building insurance policies under which the insured agrees to maintain insurance on his or her property in an amount equal to at least 80% of the replacement cost. If the property is not insured the that amount and a loss is incurred the insurance company will make the insured share in the loss on a pro-rata basis. Collateral - Answer Property which has been pledged as security for a loan. Color of Title - Answer Adverse Possession Commercial Banks - Answer The largest financial intermediary directly involved in the financing of real estate. Their primary real estate activity involves short-term loans. Commingling - Answer Illegally mixing deposits or monies, collected from a client, with one's personal or business account. Taking Money out too soon or putting it into escrow too late (10 banking days). Common Elements - Answer Property jointly owned on a pro-rata basis with other unit owners in condominium regime. Common Law - Answer (1) a body of legal rules derived from accepted customs and procedures in England. Serves as the foundation for most laws in every state except Louisiana, which uses the system of civil law; (2) system of judge-made law ("case law") as opposed to codified or statutory law. Community Property - Answer Any property acquired in certain states by purchase, or as compensation by either spouse during the period of marriage, is considered to be owned in an undivided half interest by each. Comparable - Answer Comparable property recently sold which is used in the market data approach Comparative Analysis - Answer A method of determining the value of property in which the selling prices of similar properties are used as the basis for estimating the value of subject property. Competent Parties - Answer Those who are legally capable of entering into contracts Condemnation - Answer The process of exercising eminent domain through court action. Colorado Law and Practice - PSI REAL ESTATE EXAM 2023 Consideration - Answer Anything of value offered to induce someone to enter into a contractual agreement. For example, sale price, earnest money, a promise for a promise. Constructive Eviction - Answer Occurs when the tenant's use of the premises is substantially disturbed or interfered with by the landlords actions or failure to act where there is a duty to act. The tenant is effectively forced to move out and terminate the lease without further liability for further rent. Constructive Notice - Answer The knowledge that the law presumes a person has about about a particular fact irrespective of whether the person knows about the fact or not. (Recording). Contract - Answer An agreement resulting from the objective expression of mutual assent by competent parties, which the law recognizes in some way as a duty, and the breach of which the law gives a remedy. Contract for a Deed - Answer A means by which the seller passes possession but retains title to the property until the total or substantial portion of the purchase price is paid. Installment contract. The two Parties here are the vendor (owner) and the Vendee (buyer). Conveyance - Answer The transfer of title to land from one party to another. Cooperative - Answer A form of property ownership in which a corporation is established to hold title in property and to lease the property to shareholders in the corporation. Own stock. Cost Approach - Answer A method of estimating value based on the economic principle of substitution; the value of a building cannot be greater than the cost of purchasing a similar site and constructing a building of equal utility without undue delays. Counteroffer - Answer A rejection of an offer to buy or sell, by a seller or buyer, with a simultaneous substitute offer. Covenant - Answer Included in a deed; a guarantee Covenant Against Encumbrances - Answer The assurance that no encumbrances other than those specified in the deed exist. Covenant of Further Assurance - Answer A promise that the grantor will preform further acts of reasonably necessary to correct any defects in the title of in the deed instrument Covenant of Quiet Enjoyment - Answer A promise that no one has superior or paramount title to that of the grantor; assures the grantee of peaceful possession without fear of being ousted by a person with superior claim to the property. Colorado Law and Practice - PSI REAL ESTATE EXAM 2023 Covenant of Seisen - Answer Gives the assurance that the grantor has the exact estate in the quantity and quality which is being conveyed. "I own and have the right to sell it". Curable Depreciation - Answer Depreciation is considered curable if the cost of the repair is less than what the repair adds to the value of property Curtesy - Answer The rights that a husband acquires in the wife's property upon her death. Debit - Answer Money owed. (debt) The opposite of a credit. Decree - Answer Court order Deed - Answer A written instrument, usually under seal, which contains an agreement to transfer some property in order to eliminate the need for a foreclosure. Deed in Lieu of Foreclosure - Answer Used by the mortgage (borrower) who is in default to convey the property to the mortgage (lender) in order to eliminate the need for a forclosure. Deed of Release - Answer Given by lien holders, remainder-men or mortgages to relinquish their claims on the property. Deed of Trust - Answer A deed to real property, which serves the same purpose as a mortgage, involving three parties instead of two. The third party hold naked title for the benefit of the lender. Beneficiary (lender), Trustor (borrower), Trustee (third party) Defeasance Clause - Answer A necessary mortgage clause in title theory states. When the debt is satisfied, this clause causes title to pass automatically back to the borrower. Satisfaction of mortgage; Release from records. Defeasible Fee Simple - Answer FEE SIMPLE DEFEASABLE- Ownership with conditional restrictions which, if broken, can result in title to the property reverting back to the grantor or his heirs. Defect in Title - Answer Any lien, claim or encumbrance, on a particular piece of real estate, that has been properly recorded in the public records. Recorded defects impair clear title and may result in the title being unmarketable. Deficiency Judgement - Answer A personal claim based on judicial order against the debtor. This occurs when the property fails to bring in a price at the foreclosure sale which covers the mortgage amount. Depreciation - Answer A decrease in value due to physical deterioration, functional or economic obsolescence. Colorado Law and Practice - PSI REAL ESTATE EXAM 2023 Estate for Years - Answer A conveyance of realty for a definite stated period of time. The term may be one year, one month, one week, or even one day. No notice needed to terminate. Estate from Period to Period - Answer a leasehold, which is automatically renewed for the same term as in the original lease; also referred to as a periodic tenancy or an estate from period to period. Month to month rental. No notice needed to terminate. Estate in Fee - Answer The maximum possible estate one can possess in real property; also referred to fee simple or fee simple absolute. Exclusive Agency Listing - Answer The owner employs only one broker but retains the right to personally sell the property, and thereby not pay a commission. However, if any other real estate company sells the property the listing broker is still entitled to the commission stipulated. Exclusive Right to Sell Listing - Answer Under this listing arrangement, the broker employed is entitled to a commission no matter who sells the property during the listing period. Executed Contract - Answer One in which the obligations have been performed on both sides of the contract and nothing is left to be completed. (Closed Deal) Executor - Answer A person appointed in the will to carry out the instructions of the testator, pay the debts of the estate, and dispose of the property as instructed. Express Contract - Answer An agreement formed through the oral or written words of the parties. Fair Market Value - Answer The price negotiated for a parcel of real estate in a competitive market where both the buyer and seller are free to act under no undue pressure. Federal Deposit Insurance Corporation (FDIC) - Answer A federal agency established to insure the deposits in member commercial banks. The current maximum insurance per account is $100,000.00. Federal Fair Housing Act of 1968 - Answer An act prohibiting discrimination in the sale or rental of housing on the basis of race, color, religion or national origin sex, handicap and familial status. Federal Home Loan Bank System - FHLBB - Answer Federal Home Loan Mortgage Corporation (FHLMC) - Answer Federal Housing Administration- (FHA) - Answer Colorado Law and Practice - PSI REAL ESTATE EXAM 2023 Federal National Mortgage Association (FNMA) - Answer Commonly known as "Fannie Mae", this quasi-private corporation is the largest buyer of existing mortgages in the secondary mortgage market. Federal Reserve System (FRS) - Answer Fee Simple Absolute - Answer First Lien - Answer Government National Mortgage Association (GNMA): - Answer - Answer Purchaser or donee receiving title to property. Grantor - Answer Owner making conveyance of title or interest in property. Gross Income - Answer The actual income received from property before the deduction for any expenses. Gross Income Multiplier (GIM): - Answer A method of appraising income-producing property based on a multiple of the annual gross income; also called a gross rent multiplier. Gross Rent Multiplier (GRM): - Answer A method of appraising single family or duplexes based on the monthly gross income. Habendum clause - Answer Highest and Best Use - Answer Housing and Urban Development (HUD) - Answer An agency of the federal government which oversees many federal housing programs. Hypothecate - Answer Immobility - Answer Implied Contract - Answer Income Approach - Answer Good Title - Answer Increasing and Decreasing Returns - Answer Incurable Depreciation - Answer Elements of a structure which are neither physically possible nor economically feasible to correct. Colorado Law and Practice - PSI REAL ESTATE EXAM 2023 Independent Contractor - Answer One whose time and effort are regulated by the individual and are not under the direction or control of others. Inheritable - Answer An interest in land which can be passed to a relative upon the death of the owner. Index Lease - Answer The rental is tied to some commonly agreed to price index such as the Consumer Price Index or the Wholesale Price Index. Installment Land Contract - Answer See Land Contract. Interest - Answer (1) the sum paid for the use of money (2) the degree of rights in the ownership of land. Interest Rate - Answer The cost of using money expressed as a percent per period. Intestate - Answer Dying without a will. Irrevocable - Answer Irrevocable Invalid - Answer Without legal force. Joint Tenancy - Answer A form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivorship. Must have equal shares, right to partition. Judgment Lien - Answer The charge upon the land of a debtor, resulting from the decree of a court, entered in the judgment docket. Lawsuit Joint Venture - Answer An agreement by two or more individuals or entities to engage in a single project or undertaking. Junior Lien - Answer An encumbrance, second in priority, to a previously recorded lien or to a lien to which the encumbrance has been subordinated. Land Contract - Answer The seller accepts a down payment on a parcel of land but title to the property does not pass until the last principal payment has been received. This is referred to as an installment sales contract or a contract for a deed. Landlocked - Answer Completely shut in by adjoining parcels of land with no access to public roads. Lease - Answer An agreement by which a landlord gives the right to a tenant to use, and to have exclusive possession, but not ownership of realty, for a specified period of time, in consideration for the payment of rent. Latent Defect - Answer A defect which cannot be discovered by ordinary inspection. Colorado Law and Practice - PSI REAL ESTATE EXAM 2023 Minor - Answer An infant; one who has not attained majority in a state and does not have legal capacity to be bound by most contracts. (Voidable contracts) Millage Rate - Answer A tax rate stated in tenths of a cent. For example, a millage rate of 150 mills on property assessed at $100,000 would result in a property tax of$1,500 ($100,000 x .150). Misrepresentation - Answer An innocent or negligent mis-statement of a material fact, detrimentally relied upon by the other party. Month-to-Month Tenancy - Answer A lease which has a term of one month but renewable for successive months at the option of both parties. Mortgage - Answer A legal document used to secure the performance of an obligation, in which the borrower or mortgagor agrees to pledge property to secure the debt represented by the promissory note. (A contract). Monument - Answer Physical evidence of a point- of- beginning established by surveyors for use in locating parcels of land. Mortgage Banker - Answer A financial middleman who, in addition to bringing the borrower and the lender together, makes loans, packages them, and sells the packages to both primary and secondary investors. Also services loans. Mortgagee - Answer A lender who receives a pledge of property to secure a debt. Mortgage Broker - Answer A person who brings together the user of capital (borrower) and the supplier of capital (lender). For this service, a finder's fee is usually paid by the borrower. Mortgagor - Answer A borrower who pledges property through a mortgage to secure a debt. Multiple Listing - Answer Marketing service in which many brokers pool all of their listings and establish procedures for sharing commissions. Mutual Assent - Answer An offer and acceptance which together form the terms of a contract. Net Listing - Answer The broker agrees to sell the property in order to achieve a net price to the owner, and anything which is received above the net price is the broker's commission. A net listing is prohibited by the licensing law in many states. Net Income, Net Operating Income - Answer Gross income less all operating expenses. Is used in the income approach to value. Non-resident - Answer One whose primary residence is in another state. Colorado Law and Practice - PSI REAL ESTATE EXAM 2023 Notary Public - Answer A person with the authority to take oaths and acknowledgments. Nonconforming Use - Answer A pre-existing use of land which does not conform to the zoning ordinance but which may legally remain. Note - Answer A signed instrument acknowledging the existence of a debt and the promise to pay. Null and Void - Answer Invalid and unenforceable. Novation - Answer Occurs when the person in a contract, to whom the duty was owed, expressly agrees to substitute the delegate, or new obligor, for a consideration, and agrees to discharge the old obligor from the obligations under the contract. For example, loan assumptions. Open Listing - Answer An agreement between an owner and many brokers. If a broker produces a ready willing, and able buyer, a commission is due. However, the owner still has the right to sell his/her property and is not obligated to pay a commission to anyone. Offer and Acceptance - Answer The necessary elements of mutual assent; for example, an agreement of one party to buy and another party to sell. Open-end Mortgage - Answer A loan containing a clause which allows the mortgagor to borrow additional money without rewriting the mortgage. Option - Answer A right which is given for consideration to a party (optionee) by a property owner (optionor) to purchase or lease property within a specified time, at a specified price and terms. An option is irrevocable by the optionee and will not be extinguished by death or insanity of either party. Optionor - Answer The seller of the option. Optionee - Answer The holder of the option. Buyer Ordinance - Answer A statute enacted by the legislative branch of a local government. Outbuilding - Answer An accessory structure other than the main structure on land. Owner's Title Policy - Answer A policy insuring the owner of real estate against certain defects of title. Ownership - Answer The right to hold, possess, control and dispose of property. Ownership in Severalty - Answer Individual ownership. Colorado Law and Practice - PSI REAL ESTATE EXAM 2023 Package Mortgage - Answer A mortgage, used in the purchase of new residential property which, in addition to real property, covers certain personal property items and equipment. (Washer, dryer, drapes, refrigerator, stove) Participation Mortgage - Answer Periodic Tenancy - Answer Planned Unit Development (PUD) - Answer Points - Answer Prescription - Answer - Answer An amount usually expressed in terms of money paid for property. Purchase Money Mortgage - Answer Rate of Return - Answer Obsolescence - Answer A loss in value due to reduced desirability and usefulness of a structure because its design and construction have become obsolete. A loss due to a structure's becoming old fashion, not in keeping with today's standards or needs, with consequential loss of income. Real Estate Commission - Answer Real Property - Answer REALTOR® - Answer Receiver - Answer Parol Evidence Rule - Answer Partial Release Clause - Answer Partially Amortized Mortgage - Answer Redlining - Answer Rent - Answer Reversion - Answer Right of Survivorship - Answer Sale-leaseback - Answer Colorado Law and Practice - PSI REAL ESTATE EXAM 2023 Unity of Time - Answer States that the joint tenancy interests of the joint tenants must have been acquired at the same moment. Universal Agent - Answer Has the authority to do all acts that can be lawfully delegated to a representative. (Power of attorney-attorney in fact) Unencumbered Property - Answer Property that is free and clear of any liens. Unsecured Loan - Answer A loan made on the signature and credit of the borrower, not secured by collateral. Credit card. (Debenture) Usury - Answer Charging more than the legal rate of interest for the use of money VA mortgage - Answer (GI Mortgage) Mortgage guaranteed by Veterans Administration. Valid Contract - Answer A binding agreement containing all the essential legal elements. Valuable Considerations - Answer Anything of value offered as an inducement. (money, Ring, Boat) Variable Interest Rate Mortgage (VRM) - Answer The interest rate charged by the lender varies according to some index not controlled by the lender. Variance - Answer A type of safety valve to allow property owner, who is unfairly burdened by zoning restrictions, to find relief. Vendee - Answer Purchaser in a contract for a deed. Vendee's Lien - Answer Held by the purchaser for the purchase paid if the seller defaults on the delivery of the deed. Vendor - Answer Seller in a contract for deed. Veterans Administration (VA) - Answer Vendor's Lien - Answer The amount of the purchase price still due to the seller. Voidable Contract - Answer Voluntary Alienation - Answer Voluntary Lien - Answer Warranty Deed - Answer Colorado Law and Practice - PSI REAL ESTATE EXAM 2023 Water Rights - Answer Water Table - Answer Wear and Tear - Answer Writ of Execution - Answer Zoning Ordinance - Answer