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GA Real Estate Vocab
Georgia Real Estate Exam
| Question | Answer |
|---|---|
| Abstract of Title | Summary of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title |
| Acceleration Clause | Condition giving lender power to declare all sums owed to lender immediately due and payable upon happening of an event |
| Acceptance | Agreement or consent to terms. Also "meeting of the minds". |
| Accession | Addition to property through the efforts of man or by natural forces. |
| Accretion. | Accession by natural forces (e.g., alluvium) |
| Acknowledgement | Formal declaration made before an authorized person such as notary, by a person who has executed an instrument stating that the execution was an act of free will. |
| Actual Eviction | Removal of tenant by landlord because tenant breached condition of lease or rental contract |
| Actual Notice | Express or implied knowledge of a fact. |
| Addendum | Additional pages of material that are added to and become part of a contract. |
| Adverse Possession | Method of acquiring title to real property through possession of the property for a statutory period under certain conditions by a person other than owner of record. |
| Agency | Relationship between principal and principal's agent, which arises out of a contract, wherein agent is employed by the principal to do certain acts dealing with a third party. |
| Agreement of Sale | Written agreement between seller and perchaser in which they reach a "meeting of minds" on the terms and conditions of the sales. The parties concur and are in harmonious opinion. |
| Air Rights | Rights in real property to the reasonable use of the air space above the surface of the land. |
| Alienation Clause | Clause in a contract giving the lender certain rights in the event of a sale or other transfer of mortgaged property. |
| Alluvium | Gradual increase of the earth on a shore of an ocean or bank of a stream resulting from the action of water. |
| Amortization | The liquidation of a financial obligation on an installment basis. Refer to amortization table. Monthly mortgage = amoritization factor x (loan amount/$1000) |
| Amortized Loan | Loan to be repaid, interest and principal, by a series of regular payments that are equal or nearly equal, without any special balloon payment prior to maturity. |
| Appraisal | Opinion of value. Estimate of the value of property after analysis of facts about the property. |
| Appraiser | One qualified by education, training, and experience who is hired to estimate the value of real and personal property based on experience, judgment, facts, and use of formal appraisal process |
| Appreciation | Monetary gain resulting from the increase in the market value of an investment, excluding additions of capital. For example, a house which is sold five years after it was purchased for 20% more than the purchase price |
| Asbestos | A naturally occurring mineral fiber sometimes found in older homes. It is hazardous to health when a possibility exists of exposure to inhalable fibers. |
| Asbestosis | A chronic lung disease caused by inhaling asbestos fibers |
| Assessed Value | A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property |
| Assessing Unit | A city, county, town or village with the authority to value real property for purposes of taxation |
| Assessments | A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer |
| Assignment | The transfer to another of any property in possession or in action, or of any estate or right therein. A transfer by a person of that person’s rights under a contract. |
| Assignment of Rents | A provision in a mortgage or deed of trust under which the lender may, upon default by the trustor, take possession of the property, collect income from the property and apply it to the loan balance and the costs incurred by the lender |
| Assumption of Mortgage | The taking of a title to property by a grantee wherein the grantee assumes liability for payment of an existing note secured by a mortgage or deed of trust against a property, becoming a co-guarantor for the payment of a mortgage or deed of trust note |
| Avulsion | A sudden and perceptible loss of land by the action of water as by a sudden change in the course of a river |
| Bargain and Sale Deed | Any deed that recites a consideration and purports to convey the real estate; a bargain and sale deed with a covenant against the grantor’s act is one in which the grantor warrants that grantor has done nothing to harm or cloud the title. |
| Base and Meridian | Imaginary lines used by surveyors to find and describe the location of private or public lands. In government surveys, a base line runs due east and west, meridians run due north and south, and are used to establish township boundaries. |
| Beneficiary | The lender on the security of a note and deed of trust. |
| Bilateral Contract | A contract in which each party promises to do something. |
| Blanket Mortgage | A type of loan used to fund the purchase of more than one piece of real property. A blanket mortgage is often used for subdivision financing. |
| Blockbusting | The unscrupulous practice that includes panic selling of homes at prices below market value, especially by exploiting the prejudices of property owners in neighborhoods in which the racial make-up is changing or appears to be on the verge of changing |
| Building Code | A systematic regulation of construction of buildings within a municipality established by ordinance or law. |
| Building Envelope | Maximum three-dimensional space on a zoning lot within which a structure can be built, as permitted by applicable height, setback and yard controls. One of the main goals of a zoning analysis is to determine the building envelope. “Bulk” of a building. |
| Bundle of Rights | All of the legal rights incident to ownership of property including rights of use, possession, encumbering and disposition |
| Buydown | Obtaining a lower interest rate by paying additional points to the lender |
| Buyer Agent | An agent who represents the buyer in a real estate transaction. |
| Capital Expense | Expenditures creating future value. Incurred when a property owner spends money to upgrade a building in an effort to add value and/or extend the useful life of the building |
| Capital Gains | At resale of a capital item, the amount by which the net sale proceeds exceed the adjusted cost basis (book value). Usually taxed at lower rates than ordinary income. |
| Capital Reserve Budget | Money set aside by a property owner for long-term capital expenditures to a property |
| Capitalization Rate | The rate of interest which is considered a reasonable return on the investment, and used in the process of determining value based upon net income. Capitalization Rate = Net Operating Income (NOI) / Purchase Price |
| Certificate of Occupancy | A document issued by a local government agency after satisfactory inspection of a structure authorizing that the structure can be occupied. |
| Certificate of Title | A written opinion by an attorney that ownership of a particular parcel of land is as stated in the certificate |
| Chain of Title | A history of conveyances and encumbrances affecting the title from the time the original patent was granted, or as far back as records are available, used to determine how title came to be vested in current owner |
| Chattel | Goods or every species of property movable or immovable which are not real property. Personal property |
| Chloro-flouro Carbons (CFCs) | A fluid, containing hydrocarbons, that absorbs heat from a reservoir at low temperatures and rejects heat at higher temperatures. When emitted into the atmosphere, CFCs cause depletion of the stratospheric ozone layer |
| Closing | Process by which all the parties to a real estate transaction conclude the details of a sale or mortgage. The process includes the signing and transfer of documents and distribution of funds. |
| Cloud on Title | A claim, encumbrance or condition which impairs the title to real property until disproved or eliminated as for example through a quitclaim deed or quiet title legal action |
| Commingling | The illegal mixing of personal funds with money held in trust on behalf of a client |
| Community Property | Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse. Each spouse has equal rights of management, alienation and testamentary disposition of community property |
| Comparative Market Analysis | An analysis of the competition in the marketplace that a property will face upon sale attempts |
| Condemnation | The act of taking private property for public use by a political subdivision upon payment to owner of just compensation |
| Construction Loan | A loan secured by real estate which is for the purpose of funding the construction of improvements or building(s) upon the property. |
| Constructive Eviction | Any disturbance of the tenant’s possession of the lease premises by the landlord whereby the premises are rendered unfit or unsuitable for the purpose for which they were leased. |
| What is the difference between actual eviction and constructive eviction? | In an actual eviction, tenant has broken terms of the rental contract. In a constructive eviction, the tenant's possession of the lease premises has been disturbed by the landlord whereby the premises is deemed unfit or unsuitable for the purpose leased. |
| Constructive Notice | Notice of the condition of title to real property given by the official records of a government entity which does not require actual knowledge of the information |
| Conventional Loan | A mortgage securing a loan made by investors without governmental underwriting, i.e., which is not FHA insured or VA guaranteed. This type of loan is customarily made by a bank or savings and loan association. |
| Conversion | The unlawful appropriation of another’s property, as in the conversion of trust funds |
| Corporation | An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it. A corporation is a creature of having certain powers and duties of a natural person. |
| Corrective Maintenance | A maintenance task performed to identify, isolate, and rectify a problem with a property so that the property can be restored to an acceptable condition |
| Cost Approach | An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land. |
| Covenants, Conditions, and Restrictions (CC&Rs) | Rules establishing the rights/obligations of owners of real property within subdivision in relation to other owners within the same subdivision. Think HOA rules. |
| Deed | A written instrument which when properly executed and delivered conveys title to real property from one person (grantor) to another (grantee). |
| Deed in Lieu of Foreclosure | A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender |
| Defeasance Clause | The clause in a mortgage that gives the mortgagor the right to redeem the mortgagor’s property upon the payment of the mortgagor’s obligations to the mortgagee |
| What is the difference between the mortgagor and the mortgagee? | The mortgagor is the borrower. The mortgagee is the lender. To remember borrow is spelled with "o" (mortgagOr) and lend is spelled with "e" (mortgagEE) |
| Deficiency Judgment | A judgment given by a court when the value of security pledged for a loan is insufficient to pay off the debt of the defaulting borrower |
| Devise | A gift or disposal of real property by last will and testament |
| What is the difference between the devisee and devisor? | Devisee receives a gift of real property by will and a devisor disposes of real property by will. Devisee receive. Devisor dispose. |
| Discount Points | The amount of money the borrower or seller must pay the lender to get a mortgage at a stated interest rate. One point = 1% of mortgage amount ($1,000 for every $100,000). |
| Dominant Tenement | A parcel of real property that has an easement over another piece of property (the servient estate). |
| Easement Appurtenant | An easement that benefits the dominant estate and “runs with the land”. In other words, an easement appurtenant generally transfers automatically when the dominant estate is transferred. Appurtenance is another word for "accessory". |
| Easement by Condemnation | An easement created by the government or government agency that has exercised its right under eminent domain |
| Easement by Grant | The creation of an easement by one party expressly transferring the easement to another party |
| Easement by Implication | An easement that is not created by express statements between the parties; but as a result of surrounding circumstances that dictate that an easement must have been intended by the parties |
| Easement by Necessity | Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access |
| Easement by Prescription | Implied easements granted after the dominant estate has used the property in a hostile, continuous, and open manner for a statutorily prescribed number of years. |
| Easement in Gross | An easement that benefits an individual or legal entity, rather than a dominant estate |
| Emblements | The crops and other annual plantings considered to be personal property of the cultivator |
| Eminent Domain | The right of the government to acquire property for necessary public or quasi-public use by condition; the owner must be fairly compensated |
| Equitable Lien | A lien on property imposed by a court in order to achieve fairness, particularly when someone has possession of property which he/she holds for another |
| Escalation | The right reserved by the lender to increase the amount of the payments and/or interest upon the happening of a certain event |
| Escheat | The reverting of property to the State when heirs capable of inheriting are lacking |
| Estate (Tenancy) at Sufferance | An estate arising when the tenant wrongfully holds over after the expiration of the term. The landlord has the choice of evicting the tenant as a trespasser or accepting such tenant for a similar term. |
| Estate at Will | The occupation of lands and tenements by a tenant for an indefinite period, terminable by one or both parties |
| Estate For Years | An interest in lands by virtue of a contract for the possession of them for a definite and limited period of time. May be for a year or less. A lease may be said to be an estate for years |
| Exclusive Agency Listing | Listing agreement employing a broker as the sole agent for the seller under the terms of which broker is entitled to a commission if property is sold through any other broker, but not if a sale is negotiated by the owner without the services of an agent |
| Exclusive Right to Sell Agreement | Listing agreement employing a broker to act as agent for seller under the terms of which broker is entitled to a commission if property is sold during the duration of the listing through another broker or by the owner without the services of an agent. |
| What is the difference between Exclusive Agency and Exclusive Right to Sell | Broker under exclusive agency receives a commission if property sold by another broker but not by owner without use of agent. Exclusive right to sell, broker receives commission regardless of who sells the property. |
| What is the difference between an Executed Contract and an Executory Contract? | Executed - both parties have completed contractual obligations Executory - one or both parties have not completed performance of their contractual obligations |
| Express Agency | An agency relationship created by oral or written agreement between principal and the agent |
| Express Contract | A contract that has been put into words, either spoken or written |
| Federal Home Loan Mortgage Corporation (FHLMC) (Freddie Mac) | An independent stock company which creates a secondary market in conventional residential loans and in FHA and VA loans by purchasing mortgages |
| Federal National Mortgage Association (FNMA) (Fannie Mae) | A public NY stock exchange company operating under a federal charter. Nation’s largest source of financing for home mortgages. Fannie Mae works to ensure that mortgages are affordable, by purchasing mortgages from lenders |
| Fee Simple Absolute | An inheritable estate in land providing the greatest interest of any form of title. |
| Fee Simple Determinable | An estate that will end automatically when the stated event or condition occurs. The interest will revert to the grantor or the heirs of the grantor |
| Fee Simple Estate | The greatest interest that one can have in real property. An estate that is unqualified, of indefinite duration, freely transferable and inheritable |
| FHA-Insured Loan | A mortgage loan in which payments are insured by the Federal Housing Administration |
| Fixtures | Appurtenances attached to the land or improvements, which usually cannot be removed without agreement as they become real property; examples – plumbing fixtures, store fixtures built into the property, etc |
| Floor Area Ratio (FAR) | Bulk regulation (Gross Floor Area/Buildable Lot Area) = FAR [(1st Floor + 2nd Floor + etc.)/Buildable Lot Area] |
| General Agent | An agent with full authority over one property of the principal, such as a property manager |
| General Lien | A lien on all the property of a debtor |
| Government National Mortgage Association (GNMA) (Ginnie Mae) | A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD) that guarantees securities backed by mortgages that are insured or guaranteed by other government agencies. Popularly known as “Ginnie Mae”. |
| Government Survey | A method of specifying the location of parcel of land using prime meridians, base lines, standard parallels, guide meridians, townships and sections |
| Graduated Lease | A lease which provides for a varying rental rate, often based upon a future determination; sometimes rent is based upon the result of periodic appraisals; used largely in long-term leases |
| Grant Deed | A limited warranty deed using the word “grant” or like words that assures a grantee that the grantor has not already conveyed the land to another and that the estate is free from encumbrances placed by the grantor. |
| Gross Lease | A lease in which the lessor pays all costs of operating and maintaining the property and real estate taxes |
| Ground Lease | An agreement for the use of land only, sometimes secured by improvements placed on the land by the use |
| Group Boycott | An agreement between members of a trade to exclude other members from fair participation in the trade |
| Habendum Clause | The “to have and to hold” clause which may be found in a deed |
| Highest and Best Use | Appraisal phrase meaning that use which at the time of an appraisal is most likely to produce the greatest net return to the land and/or buildings over a given period of time. This is the starting point for an appraisal |
| Hypothecate | To pledge a thing as security without the necessity of giving up possession of it. |
| Implied Agency | Agency that exists as a result of actions of the parties. |
| Implied Contract | An agreement that has not been put into words, but is implied by the actions of the parties |
| Income (Capitalization) Approach | Appraisal method applied to income producing properties, involving three-step process. Find net annual income, set cap rate. Divide net income by cap rate to find market value. Value = NOI/cap rate |
| Insured Value | The value of an asset or asset group that is covered by an insurance policy; can be estimated by deducting cost of non-insurable items (e.g. land value) from market value |
| Interest Only Loan | A straight, non-amortizing loan in which the lender receives only interest during the term of the loan and principal is repaid in a lump sum at maturity (balloon payment) |
| Intestate | A person who dies having made no will, or one which is defective in form, is said to have died intestate, in which case the estate descends to the heirs at law or next of kin |
| Investment Value | The specific value of an investment to a particular investor or class of investors based on individual investment requirements; distinguished from market value, which is impersonal and detached |
| Involuntary Alienation | The transfer of title to real property as a result of a lien foreclosure sale, adverse possession, the filing of a petition in bankruptcy, or condemnation, or upon the death of the titleholder, to the State when there are no heirs |
| Involuntary Lien | A lien imposed against property without consent of an owner |
| Joint Tenancy | Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship |
| Judgment Lien | – A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have the property sold for payment of the amount of the judgment |
| Junior Mortgage | A mortgage recorded subsequently to another mortgage on the same property or made subordinate by agreement to a later recorded mortgage |
| Land Trust | A legal agreement where a trustee is appointed to maintain ownership of a piece of real property for the benefit of another party |
| Leasehold Estate | A tenant’s right to occupy real estate during the term of the lease. This is a personal property interest |
| Legal Description | A land description recognized by law; a description by which property can be definitely located by reference to government surveys or approved recorded maps |
| Letter of Intent (LOI) | – Generally an agreement to agree. It outlines the terms between parties who have not formalized an agreement into a contract. LOIs are generally not binding and unenforceable. |
| Leverage | The use of borrowed capital (mortgage) to increase the potential return of an investment |
| Life Estate | – An estate or interest in real property, which is held for the duration of the life of some certain person. It may be limited by the life of the person holding it or by the life of some other person |
| Life Tenant | The owner of a life estate |
| Limited Liability Company (LLC) | A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation |
| Listing | An employment contract between principal and agent authorizing the agent to perform services for the principal involving the latter’s property; listing contracts are entered into for the purpose of securing persons to buy, lease, or rent property |
| Littoral Rights | The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on |
| Living Trust | An agreement where the trustee holds the legal possession of an asset (e.g. real estate) that belongs to another person, the beneficiary, and it is created while the person is alive |
| Loan to Value Ratio (LTV) | The percentage of a property’s value that a lender can or may loan to a borrower. LTV = loan amount/value |
| Equity | Market Value - Loan Balance |
| Lot and Blocks | A legal description of land used for plotted properties, stating the number, lot, and block in a particular sub-division |
| Market Allocation | An agreement between members of a trade to refrain from competition in specific market areas |
| Marketable Title | Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept |
| Master Plan | Long-term planning document. Establishes framework and key elements of a site. It synthesizes civic goals and the public’s aspirations, and defines a realistic plan for implementation, including subsequent approvals by public agencies |
| Mechanic’s Lien | A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property |
| Metes and Bounds | Sets forth all the boundary lines together with their terminal points and angles. Metes (length or measurements) and Bounds (boundaries) description is often used when a great deal of accuracy is required |
| Mortgage Insurance Premium (MIP) | The amount paid by a mortgagor for mortgage insurance on an FHA-insured loan |
| Net Lease | A lease requiring a lessee to pay charges against the property such as taxes, insurance and maintenance costs in addition to rental payments |
| Net Listing | A listing which provides that the agent may retain as compensation for agent’s services all sums received over and above a net price to the owner. |
| Novation | The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties |
| Open Listing | An authorization given by a property owner to a real estate agent wherein said agent is given the nonexclusive right to secure a purchaser. Provides the least protection for an agent. |
| Operating Budget | An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively |
| Opinion of Title | An attorney’s written evaluation of the condition of the title to a parcel of land after examination of the abstract of title |
| Ostensible Agency | – A person who has been given the appearance of being an employee or acting (an agent) for another (principal), which would make anyone dealing with the ostensible agent reasonably believe he/she was an employee or agent. |
| Package Mortgage | A method of financing in which the loan that finances the purchase of a home also finances the purchase of personal items such as a washer and dryer, refrigerators, stove, and other specified appliances. |
| Partition | A division of real or personal property or the proceeds therefrom among co-owners |
| Partnership | An arrangement in which two or more individuals share the profits and liabilities of a business venture |
| Percentage Lease | Lease on the property, the rental for which is determined by the amount of business done by the lessee; usually a percentage of gross receipts from the business with provisions for a minimum rent |
| Periodic Estate | An interest in land where there is no definite termination date but the rental period is fixed at a certain sum per week, month, or year. Also called an estate from period to period. |
| What is the difference between Pre-Qualification and Pre-Approval? | A pre-qualification is a tentative estimate of how much a lender is willing to lend. A pre-approval is a step beyond that, an evaluation of the potential borrower that determines whether borrower is qualified for a loan and the maximum amount lent. |
| Principle of Anticipation | Affirms that value is created by anticipated benefits to be derived in the future |
| Principle of Change | Holds that it is the future, not the past, which is of prime importance in estimating value. Change is largely the result of cause and effect |
| Principle of Conformity | Holds that the maximum of value is realized when a reasonable degree of homogeneity of improvements is present. Use conformity is desirable, creating and maintaining higher values |
| Principle of Contribution | A component part of a property is valued in proportion to its contribution to the value of the whole. Holds that maximum values are achieved when the improvements on a site produce the highest (net) return, commensurate with the investment |
| Principle of Progression | The worth of a lesser valued residence tends to be enhanced by association with higher valued residences in the same area |
| Principle of Substitution | – Affirms that the maximum value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property, assuming no costly delay is encountered in making the substitution |
| Private Mortgage Insurance (PMI) | Mortgage guaranty insurance available to conventional lenders on the first, high risk portion of a loan |
| Probate | The official proving of a will. The legal process wherein the estate of a decedent is administered. |
| Quitclaim Deed | A deed to relinquish any interest in property which the grantor may have, without any warranty of title or interest |
| Real Estate Settlement Procedures Act (RESPA) | A federal law requiring the disclosure to borrowers of settlement (closing) procedures and costs by means of a pamphlet and forms prescribed by the United States Department of Housing and Urban Development |
| Reconciliation | The final stage in the appraisal process where the appraiser reviews the data andestimates the subject property’s value |
| Redlining | An illegal lending policy of denying real estate loans on properties in older, changing urban areas, (minority), because of alleged higher lending risks without due consideration being given to the credit worthiness of the individual loan applicant |
| Remainder | An estate which takes effect after the termination of the prior estate, such as a life estate. A future possessory interest in real estate |
| Remainderman | A person who inherits or is entitled to inherit property upon the termination of the estate of the former owner |
| Rescission | The cancellation of a contract and restoration of the parties to the same position they held before the contract was entered into |
| Reversionary Interest | The interest which a person has in lands or other property, upon the termination of the preceding estate. A future interest |
| Riparian Rights | The right of a landowner whose land borders on a stream or watercourse to use and enjoy the water which is adjacent to or flows over the owner’s land provided such use does not injure other riparian owners |
| Sales Comparison Approach | A valuation method which compares a subject property’s characteristics with those of comparable properties which have recently sold in similar transactions |
| Section | Section of land is established by government survey, contains 640 acres and is one mile square |
| Severalty Ownership | Real property that is owned by only one person. Sole ownership |
| Servient Tenement | A parcel of real property that is encumbered by an easement of a dominant estate |
| Sheriff’s Deed | A deed given by court order in connection with the sale of a property to satisfy a judgment |
| Sherman Anti-Trust Act | Federal legislation including imposition of civil and punitive damages for antitrust activities |
| Short Sale | A seller’s attempt to sell the real estate whereby the liens are greater than the value of the property |
| Special Agent | An agent with limited authority to act on behalf of the principal, such as created by a listing contract |
| Special Assessment | An assessment made against a property to pay for a public improvement by which the assessed property is supposed to be especially benefited |
| Special Warranty Deed | A deed in which the grantor warrants or guarantees the title only against defects arising during the grantor’s ownership of the property and not against defects existing before the time of the grantor’s ownership |
| Specific Lien | A lien that attaches to one specific property only |
| Statutory Lien | A charge or claim upon property that arises by virtue of specific statutes that address the relationship between the property owner and the party given the ability to place the lien |
| Steering | The practice in which real estate brokers guide prospective home buyers towards or away from certain neighborhoods based on their race. Steering is highly illegal |
| Straight Line Depreciation | A method of depreciation under which improvements are depreciated at a constant rate throughout the estimated useful life of the improvement. Purchase Price - Land Value = Home Value Home value/27.5 years = Deductible amount for depreciation |
| Straight Note | A note in which a borrower repays the principal in a lump sum at maturity while interest is paid in installments or at maturity |
| Subordination Agreement | An agreement by the holder of an encumbrance against real property to permit that claim to take an inferior position to other encumbrances against the property |
| Tax-Deferred Exchange | The trade or exchange of one real property for another without the need to pay income taxes on the gain at the time of trade |
| Tenancy by the Entireties | Under certain state laws, ownership of property acquired by a husband and wife during marriage, which property is jointly and equally owned. Upon death of one spouse it becomes the property of the survivor |
| Tenancy in Common | Co-ownership of property by two or more persons who each hold an undivided interest, without right of survivorship; interest need not be equal |
| Testamentary Trust | A trust which arises upon the death of the testator, and which is specified in his or her will |
| Testator | One who makes a will |
| Tie-in Arrangement | A contract where a transaction depends upon another |
| Title Insurance | Insurance to protect a real property owner or lender up to a specified amount against certain types of loses, e.g., defective or unmarketable title |
| Townships | n the survey of public lands of the United States, a territorial subdivision six miles long, six miles wide and containing 36 sections, each one mile square, located between two range lines and two township lines |
| Trust | A legal relationship under which title to property is transferred to a person known as a trustee |
| Trustee | The third party under a deed of trust; A person who holds title to property for the benefit of another called a beneficiary |
| Trustor | One who borrows money from a trust deed lender, then deeds the real property securing loan to a trustee to be held as security until trustor has performed the obligation to the lender under terms of a deed of trust |
| Truth-in-Lending Act (TILA) | The name given to the federal statutes and regulations (Regulation Z) which are designed primarily to ensure that prospective borrowers and purchasers of credit receive credit cost information before entering into a transaction |
| Uniform Commercial Code | Establishes a unified and comprehensive method for regulation of security transactions in personal property, superseding the existing statutes on chattel mortgages, conditional sales, trust receipts, assignment of accounts receivable etc. |
| Universal Agent | The agent who has complete authority over any activity of the principal; for example, power of attorney |
| Usury | On a loan, claiming a rate of interest greater than that permitted by law |
| Variance | The authorization to improve or develop a particular property in a manner not authorized by zoning |
| Voluntary Alienation | Transfer of title to an asset with the consent of the owner |
| Warranty Deed | A deed used to convey real property which contains warranties of title and quiet possession, and the grantor thus agrees to defend the premises against the lawful claims of third persons |
| Wrap-around Mortgage | form of secondary financing for the purchase of real property. The seller extends to the buyer a junior mortgage which wraps around the existing in addition to any superior mortgages already secured by the property |
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