Colorado Law and Practice – PSI REAL ESTATE EXAM

Abandonment
Non-payment of taxes

Abstract of title
A history of the ownership of parcel of land which lists transfers of title, rights, and liabilities.

Acceleration Clause
States that upon default, all the principal installments come due to immediately

Accesion
The idea that the 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
Refers to land which is accumulated by the gradual washing or motion of water

Accrued
An accumulation

Acknowledgement
A formal declaration made by the grantor conveying the property to the grantee – a necessary element for validity of a deed.

Acre
A measure of land equal to 43,560 square feet

Action to quiet Title
The lawsuit filed by a person to remove or clear the claims against property.

Actual Notice
The actual knowledge that a person has about the existence of a particular fact.

Ad Valorem
A prefix meaning “based on value”. Most local governments levy ad valorem tax on property.

Adverse Possession
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
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
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
The eight to use, control and occupy the space above a particular parcel of land

Alienation Clause
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.

Allodial
The free and full ownership of rights in land by individuals, which is the basis of real property in the united states

Amortization
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
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)
The yearly cost of credit. interest rate plus finance charge.

Appraisal
An opinion or estimate of value performed by a person licensed to do so.

Appreciation
An increase in Value

Appurtenance
Any right of privilege which belongs to and passes with land.

Arms-Length Transaction
Occurs between willing buyer and willing seller with each party completely knowledgeable about the market. A purchaser of a property between relatives (father & Son) would not be an “arms length transaction”.

Arrears
Not on time; Late in making payments or completing work. Interest paid in arrears.

As is
A phrase which disclaims any promises or warranties. A person purchasing real estate “as is” takes it in exactly the condition in which it is found. Seller cannot hide latent defects.

Assembledge
Bringing two or more lots together under one ownership.

Assessed Value
The value placed on property, by tax assessor, for the purpose of determining the property tax.

Assignment
1) the means by which a person transfers contract rights; 2) occurs when the lessee parts with the entire estate, retaining no interest

Attachment
The process of taking a person’s property into legal custody by a court order call writ of attachment. Property is Frozen.

Attestation
The act of witnessing a person’s signing of an instrument by a notary public.

Attorney in Fact
A person given the authority to act on behalf of another under a power of attorney.

Attorney’s Opinion of Title
A statement issued by an attorney after analyzing an abstract as to quality of title.

Avulsion
Occurs in cases where there is sudden loss of land through natural influences; i.e Storms

Bad Title
Title with defects making it unmarketable

Balloon Payment
The remaining balance, at maturity, on a loan that has not been completely repaid through periodic payments. Once paid, the outstanding balance is Zero. Partially amortized loan.

Bargain and Sale Deed
An instrument conveying title which recites a valuable consideration and commonly uses the words “bargain and sale” or words of similar import.

Bench Mark
A bronze disk permanently placed and precisely identified by government survey teams.

Bilateral Contract
A contract in which a promise is given for the promise of another. It becomes binding when mutual promises are communicated. (A real estate contract)

Bill of Sale
A document used to transfer ownership of personal property.

Blanket Mortgage
A mortgage which covers more than one piece of real estate. Often used by a developer in the financing of undeveloped lots. Contains partial release clause.

Block A
Means of subdividing large tracts of land into smaller sections, each of which is numbered for example, Lot 4, Block 8.

Blockbusting
Any activity which attempts to drive prices down for the purpose of causing transition from one ethnic group to another. This is a violation of Federal Fair Housing Laws. Also called “panic selling”.

Bounds
Refers to boundaries; used with the word “metes” in the method of land description

Breach of Contract
A failure to preform, as promised, at the time the performance was due.

Buffer Zone
A means by which planners use space to separate two adjoining districts which have incompatible uses. A buffer zone consists of uses which are compatible with uses in each adjoining district.

Building Code
Ordinances passed by local governments with special minimum standards of construction for new buildings. They also apply to major additions to old construction.

Bundle of Rights
The rights of an owner to possess, control, enjoy, sell, lease, mortgage, and dispose of the property.

Bylaws
Legal documentation in a condominium regime which provides the establishment of the home-owners association; provides the powers and authority given to the board of directors; indicates various rights and responsibilities of the unit owners.

Capital Gains
The tax profit realized from the sale of property. (A “tax free” exchange is a deferment of capital gains).

Capitalization
Used in the income approach to value. To capitalize income means to convert future income into current present (current) value.

Capitalization Rate
The rate of return considered to be a reasonable return on investment – given the risk.

Caveat Emptor
Means “Let the buyer beware”

Certificate
The first thing a veteran should request if attempting to purchase a property using VA eligibility.

Certificate of Eligibility Certificate
Given to veterans bearing evidence of their qualifications for a VA mortgage loan

Certificate of Reasonable Value (CPR)
Issued by the Veterans Administration to certify the value of property secured by a VA mortgage Appraisal.

Certificate of Title
A document given by the title examiner stating the quality of title the seller possesses.

Chain of Title
A history of ownership affecting title to a parcel of land

Chattel Mortgage
One in which personal property is pledged to secure a note.

City Planning
The effort on the part of the city to coordinate, direct and control the type of development taking place, so as to ensure maximum benefits to the populace.

Civil Rights Act of 1866
A law which prohibits discrimination in all real estate transactions based on race – commercial and residential.

Closing Costs
The expenses incurred and paid at the time of settlement in the transferring of property.

Cloud on Title
Any claim affecting the property

Co-Insurance
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
Property which has been pledged as security for a loan.

Color of Title
Adverse Possession

Commercial Banks
The largest financial intermediary directly involved in the financing of real estate. Their primary real estate activity involves short-term loans.

Commingling
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
Property jointly owned on a pro-rata basis with other unit owners in condominium regime.

Common Law
(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
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
Comparable property recently sold which is used in the market data approach

Comparative Analysis
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
Those who are legally capable of entering into contracts

Condemnation
The process of exercising eminent domain through court action.

Consideration
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
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
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
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
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
The transfer of title to land from one party to another.

Cooperative
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
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
A rejection of an offer to buy or sell, by a seller or buyer, with a simultaneous substitute offer.

Covenant
Included in a deed; a guarantee

Covenant Against Encumbrances
The assurance that no encumbrances other than those specified in the deed exist.

Covenant of Further Assurance
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
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.

Covenant of Seisen
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
Depreciation is considered curable if the cost of the repair is less than what the repair adds to the value of property

Curtesy
The rights that a husband acquires in the wife’s property upon her death.

Debit
Money owed. (debt) The opposite of a credit.

Decree
Court order

Deed
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
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
Given by lien holders, remainder-men or mortgages to relinquish their claims on the property.

Deed of Trust
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
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
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
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
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
A decrease in value due to physical deterioration, functional or economic obsolescence.

Descent
Refers to any passage of title to property, upon intestacy to those heirs, related by blood or marriage, whom the law designates.

Devise
Transferring title to real property by means of a will

Discount Points
A fee charged by the lender at settlement that results in increasing the lender’s effective yield on the money borrowed. One discount point equals one percent of the loan amount.

Dominant Estate
The Tract of land in an easement appurtenant which benefits from the easement.

Dower
The rights that a wife acquires in her husband’s fee simple property.

Down Payment
The amount paid by the purchaser, which when added to the mortgage amount, equals the total sales price. At time of closing this referred to as equity

Due-on-Sale Clause
A clause, included in many mortgages, permitting the lender to require the borrower to repay the outstanding balance when the property is sold. Prevents loan assumption.

Duress
Involves the use of force or improper actions, against a person or property, in order to induce a party to enter into a contract.

Earnest Money
A sum of money given to bind an offer or agreement.

Easement
A right to limited use or enjoyment by one or more persons in the land of another.

Easement Appurtenant
An easement created to benefit adjacent land.

Easement by Implicaation
Occurs because of necessity, such as the conveyance of a land-locked property.

Easement in Gross
A personal right to use the land of another.

Economic Life
The time period over which an improvement to land earns more income than the cost incurred in generating the income. Profitability.

Economic Obsolescence
A loss in value due to factors outside the subject property, such as changes in competition or surrounding land use. Also referred to as External obsolescence.

Economic Rent
The amount of rental which a building would receive, if set by the market, as opposed to contract rent set by lease.

Effective Age
The difference between the theoretical economic life of a structure and its actual remaining economic life. Maintaining the property.

Effective Gross Income
The anticipated income resulting from the estimated potential gross income from a rental property less an allowance for vacancy and bad debts.

Emblements
Refers to crops which require annual planting.

Eminent domain
The right of government to acquire property, for public purpose, after paying just compensation.

Encroachment
The extension of some improvement or object across boundary of an adjoining tract. (off sides)

Encumbrance
An interest in or claim on, the land of another, which in some manner burdens or diminishes the value of the property.

Equal Credit Opportunity Act (ECOA)
A federal act, which prohibits discrimination by lenders on the basis of sex or marital status in any aspect of a credit transaction.

Equitable Lien
Created when justice and fairness would require a court of equity to declare such a lien exists or when conduct of parties would imply that a lien was intended.

Equity
Value of real estate less any liens against it.

Escalation Clause
(1) in finance, permits the lender to raise the interest rate upon occurrence of certain stipulated condition, (2) in leasing, permits the lessor to raise lease payments upon the occurrence of certain stipulated condition.

Escheat
The right of the government to ownership of property, which is left by a deceased property owner who leaves no will, and died without descendants.

Escrow
The deposit of funds with a neutral third party who is instructed to carry out the provisions of an agreement.

Estate
A legally recognized interest in the use, possession, control and disposition that a person has in land, and defines the nature, degree, extent, and duration of a person’s ownership in land.

Estate at Sufferance
Retention of possession without the consent of the landlord after the lease has expired; also referred to as tenancy at sufferance.

Estate at Will
An occupation of space, for an indefinite period, which can be terminated by either the lessor or lessee at any time. Also referred to as tenancy at will.

Estate for Years
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
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
The maximum possible estate one can possess in real property; also referred to fee simple or fee simple absolute.

Exclusive Agency Listing
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
Under this listing arrangement, the broker employed is entitled to a commission no matter who sells the property during the listing period.

Executed Contract
One in which the obligations have been performed on both sides of the contract and nothing is left to be completed. (Closed Deal)

Executor
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
An agreement formed through the oral or written words of the parties.

Fair Market Value
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)
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
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

Federal Home Loan Mortgage Corporation (FHLMC)

Federal Housing Administration- (FHA)

Federal National Mortgage Association (FNMA)
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)

Fee Simple Absolute

First Lien

Government National Mortgage Association (GNMA):

Grantor
Owner making conveyance of title or interest in property.

Gross Income
The actual income received from property before the deduction for any expenses.

Gross Income Multiplier (GIM):
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):
A method of appraising single family or duplexes based on the monthly gross income.

Habendum clause

Highest and Best Use

Housing and Urban Development (HUD)
An agency of the federal government which oversees many federal housing programs.

Hypothecate

Immobility

Implied Contract

Income Approach

Good Title

Increasing and Decreasing Returns

Incurable Depreciation
Elements of a structure which are neither physically possible nor economically feasible to correct.

Independent Contractor
One whose time and effort are regulated by the individual and are not under the direction or control of others.

Inheritable
An interest in land which can be passed to a relative upon the death of the owner.

Index Lease
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
See Land Contract.

Interest
(1) the sum paid for the use of money (2) the degree of rights in the ownership of land.

Interest Rate
The cost of using money expressed as a percent per period.

Intestate
Dying without a will.

Irrevocable
Irrevocable

Invalid
Without legal force.

Joint Tenancy
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
The charge upon the land of a debtor, resulting from the decree of a court, entered in the judgment docket. Lawsuit

Joint Venture
An agreement by two or more individuals or entities to engage in a single project or undertaking.

Junior Lien
An encumbrance, second in priority, to a previously recorded lien or to a lien to which the encumbrance has been subordinated.

Land Contract
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
Completely shut in by adjoining parcels of land with no access to public roads.

Lease
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
A defect which cannot be discovered by ordinary inspection.

Lease Purchase Agreement
An arrangement whereby part of the rent payment is applied to the purchase price, and when the prearranged total amount has been paid, title is transferred.

Legal Description
A written description of a parcel of land which locates it precisely and will hold up in court. (Does not include address.)

Leasehold
The interest that the tenant has created by a lease.

Less than Freehold Estate
Estates in possession generally referred to as leaseholds. Considered to exist for a definite period of time, or successive periods, of time until terminated by notice; also know as non-freehold estates.

Lessee
Tenant

Lessor
Landlord

Leverage
Using borrowed capital to finance the purchase of real estate or other assets. (No money down)

License
A personal privilege to go upon the land of another; not considered an interest in land. Permission only to use.

Lien
A legally recognized right to enforce a claim or charge on the property of another for payment of some debt, duty or obligation.

Lien Theory State
The mortgage merely creates a lien right on the mortgagee with the mortgagor retaining the title.

Life Estate Pur Autre Vie
A life estate in one person with another person serving as the measuring life.

Life Estate
An interest which only lasts for the term of a life, or lives, of one or more persons. Death terminates.

Life Tenant
The holder of a life estate.

Limited Partnership
An entity with one or more general partners and one or more passive investors, called limited partners.

Liquidated Damages
An agreed-to sum, which will be paid if the contract is breached.

Liquidity
The ease with which an asset may be converted into cash.

Lis Pendens
A notice filed for he purpose of serving constructive notice that title, or some matter involving particular real property, is in litigation.

Listing Contract
An employment agreement between an owner and broker defining the duties and rights of both parties. (Unilateral contract)

Loan-to-Value Ratio
The relationship between the amount borrowed and the appraised value of the property. (Purchase price 100,000-Loan 80,000-LTV 80%)

Loyalty
The duty owed by an agent, to avoid conflicts of interest or any activity which is detrimental to a principal.

Lot and Block
A method of land description frequently used after land has been subdivided into building lots; also referred to as the recorded plat method. (Must have a plat map to find the property)

Management Agreement
An employment contract between the owner of real estate and a property management firm that agrees to oversee the management of the property.

Market
economic function of bringing buyers and sellers together through the price mechanism.

Market Value
The price at which a willing buyer and a willing seller will agree upon, where neither is under any undue pressure, and both are negotiating at arms length with complete knowledge of the market.

Market Data Approach
A means of estimating value by comparing similar properties. Used when there is an active market and where comparables can be identified. Also called comparable sales approach.

Marketable Title
One which is free from reasonable doubts or objections, and which the courts would compel a purchaser to accept under the terms of a sales contract.

Master Plan
A program for the future development of a community which serves as the guideline for capital expenditures.

Metes and Bounds
A method of land description which involves identifying distances and directions and makes use of both the physical boundaries and measurements of the land.

Mechanic’s Lien
A statutory lien levied on property by a person who is wrongfully not compensated after providing labor (mechanic) or material (material-man) for the improvement to land. (Only on the specific property where the work was complete.) Not on personal property.

Mill
A mill is equal to one-tenth of one cent and is used to state the property tax rate. (.001)

Minor
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
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
An innocent or negligent mis-statement of a material fact, detrimentally relied upon by the other party.

Month-to-Month Tenancy
A lease which has a term of one month but renewable for successive months at the option of both parties.

Mortgage
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
Physical evidence of a point- of- beginning established by surveyors for use in locating parcels of land.

Mortgage Banker
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
A lender who receives a pledge of property to secure a debt.

Mortgage Broker
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
A borrower who pledges property through a mortgage to secure a debt.

Multiple Listing
Marketing service in which many brokers pool all of their listings and establish procedures for sharing commissions.

Mutual Assent
An offer and acceptance which together form the terms of a contract.

Net Listing
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
Gross income less all operating expenses. Is used in the income approach to value.

Non-resident
One whose primary residence is in another state.

Notary Public
A person with the authority to take oaths and acknowledgments.

Nonconforming Use
A pre-existing use of land which does not conform to the zoning ordinance but which may legally remain.

Note
A signed instrument acknowledging the existence of a debt and the promise to pay.

Null and Void
Invalid and unenforceable.

Novation
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
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
The necessary elements of mutual assent; for example, an agreement of one party to buy and another party to sell.

Open-end Mortgage
A loan containing a clause which allows the mortgagor to borrow additional money without rewriting the mortgage.

Option
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
The seller of the option.

Optionee
The holder of the option. Buyer

Ordinance
A statute enacted by the legislative branch of a local government.

Outbuilding
An accessory structure other than the main structure on land.

Owner’s Title Policy
A policy insuring the owner of real estate against certain defects of title.

Ownership
The right to hold, possess, control and dispose of property.

Ownership in Severalty
Individual ownership.

Package Mortgage
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

Periodic Tenancy

Planned Unit Development (PUD)

Points

Prescription

Purchase Money Mortgage

Rate of Return

Obsolescence
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

Real Property

REALTOR®

Receiver

Parol Evidence Rule

Partial Release Clause

Partially Amortized Mortgage

Redlining

Rent

Reversion

Right of Survivorship

Sale-leaseback

Salesperson

Satisfaction of Mortgage

Satisfaction Piece

Scarcity

Second Mortgage

Seisin

Situs
Refers to the economic location of real estate.

Special Agent

Statute of Frauds

Subrogation
The substitution of a third person in place of a creditor to whose rights the third person succeeds in relation to the debt. (Title company)

Sublease
The transfer when the original lessee retains a reversion. Primary liability remains with the original lessee.

Subordination Clause
A clause in which the holder of a mortgage permits a subsequent mortgage to take priority. Subordination is the act of yielding priority.

Steering
The channeling of prospective home purchasers or renters, by real estate brokers or salespersons, into racially homogeneous neighborhoods, and actively discouraging them away from neighborhoods of different racial or ethnic composition.

Straight Note
A promissory note evidencing a loan in which payments of interest only are made periodically during the term of the note, with the principal payment due in one lump sum upon maturity. A straight note is usually a nonamoritized note made for a short term, such as two to 4 years, and is renewable at the end of the term. A mortgage that secures a straight note is a term mortgage or straight-term mortgage.

Statutory Period of Redemption
The time within which property may be redeemed after a foreclosure sale.

Tax Rate

Tenancy by the Entireties (Entirety)
A special joint tenancy between a lawfully married husband and wife, which places all title to property (real or personal) into the marital unit, with both spouses having an equal undivided interest in the whole property. In essence, each spouse owns the ENTIRE estate.

Tenancy at Will
An occupation of space for an indefinite period which can be terminated by either the lessor or lessee at any time.

Tenancy at Sufferance
A tenancy which is created when one is in wrongful possession of realty, even though the original possession may have been legal.

Syndicate
An arrangement to raise equity capital for real estate purchases or for other types of investments.

Tax Base
The total tax-assessed value of all real property in a particular jurisdiction.

Taxation
The rate, normally stated in units of $100, multiplied by the assessed value of property to determine the amount of the property tax due.

Tenancy from Period to Period

Trade Fixtures
Personal property used in business which has been annexed to real property and is removable by the owner. (Tenant) If it is not taken by the tenant it becomes the property of the landlord.

Title Theory States
States in which a mortgage actually conveys title subject to a condition.

Topography
A description of surface features of land.

Township
A 6-by-6 mile area containing 36 sections each 1 mile square. A division of land in the rectangular survey method of land description.

Title
The legally recognized evidence of a person’s right to possess property.

Title Insurance
A policy that protects the insured against loss or damage due to defects in title.

Undue Influence

Unity of Title
States that the joint tenancy interests were created in a single conveying instrument.

Unities
Joined in one; for example, in order for a joint tenancy to exist four unities are necessary (1) time, (2) title, (3) interest and (4) possession. (TTIP)

Unity of Possession
The right of each tenant to the possession and use of the whole property. (Joint tenants and tenants in common.)

Unity of Time
States that the joint tenancy interests of the joint tenants must have been acquired at the same moment.

Universal Agent
Has the authority to do all acts that can be lawfully delegated to a representative. (Power of attorney-attorney in fact)

Unencumbered Property
Property that is free and clear of any liens.

Unsecured Loan
A loan made on the signature and credit of the borrower, not secured by collateral. Credit card. (Debenture)

Usury
Charging more than the legal rate of interest for the use of money

VA mortgage
(GI Mortgage) Mortgage guaranteed by Veterans Administration.

Valid Contract
A binding agreement containing all the essential legal elements.

Valuable Considerations
Anything of value offered as an inducement. (money, Ring, Boat)

Variable Interest Rate Mortgage (VRM)
The interest rate charged by the lender varies according to some index not controlled by the lender.

Variance
A type of safety valve to allow property owner, who is unfairly burdened by zoning restrictions, to find relief.

Vendee
Purchaser in a contract for a deed.

Vendee’s Lien
Held by the purchaser for the purchase paid if the seller defaults on the delivery of the deed.

Vendor
Seller in a contract for deed.

Veterans Administration (VA)

Vendor’s Lien
The amount of the purchase price still due to the seller.

Voidable Contract

Voluntary Alienation

Voluntary Lien

Warranty Deed

Water Rights

Water Table

Wear and Tear

Writ of Execution

Zoning Ordinance