2024 Comprehensive Real Estate Vocabulary Flashcards Flashcards

2024 Comprehensive Real Estate Vocabulary Flashcards Flashcards involuntary liena lien obtained through an action of law without the owner's consent familyan individual or two or more people related by blood, marriage, or adoption living in the same dwelling; a group of up to three people who are not related by blood, marriage, or adoption living together as a single housekeeping unit nonconforming useany property use that is inconsistent with the land use controls for that area, regardless of legality loan-to-value ratiothe amount of money being loaned compared to the value of the property variancepermission granted by the government so that property may be used in a manner not allowed by the current zoning lead agencythe agency responsible for evaluating the environmental impact of a proposed project or activity master plana written document created by the local planning board to guide the future growth and development of a community lis pendensa document recording at the courthouse giving notice that a lawsuit is pending on a particular piece of property census tracta relatively small, geographical area defined through use of statistics by the U.S. Census Bureau Mortgage Insurance Premium (MIP)borrower-paid insurance required for FHA loans; insures lender in case of borrower default/foreclosure restrictive covenanta type of provision in a deed limiting the use of the property and prohibiting certain uses mechanic's liena type of involuntary, specific lien that a mechanic or materialman can impose upon a property if the property owner fails to pay for materials or work done on the property primary mortgage marketthe arena in which borrowers and lenders meet up for the purposes of negotiating the loan terms of a mortgage transaction loan flippinga mortgage fraud scheme that involves an inflated appraisal and a straw buyer buydownthe paying of money upfront to reduce a loan's interest rate and monthly payments mortgagea legal agreement between a creditor and borrower in which the creditor lends money with interest to the borrower for the purchase of property with the condition that the creditor takes ownership of the title if the borrower defaults in repayment of the loan

blueprinta technical drawing that details building plans and guides architectural construction and engineering design graduated-payment mortgagea blanket term for a family of loans characterized by low initial payments that increase (or "graduate") at set intervals and by set amounts during the term of the loan Amortizationthe process of paying off a debt/mortgage in regular installments based on a fixed payment schedule usuryillegally lending money at unfair interest rates tax liena lien that is imposed against a property if the property owner becomes delinquent in the payment of taxes Federal Housing Administration (FHA)government agency charged with insuring mortgages specific liena lien that applies to a certain property only building permita legal document from a local authority that authorizes a construction or remodeling project setbackthe distance from the curb or other established line, within which no buildings may be erected defaultfailure to fulfill an obligation by duty, contract, or law infrastructurethe basic, foundational systems that support a community, such as schools, waste management, and water police powerthe government right to regulate and restrict land use in order to protect the public; right includes the power to enforce zoning and building codes blanket mortgagea loan for which more than one collateral property acts as security straight mortgagea loan that is fully due on a specific date (aka a term mortgage or a straight line mortgage) wraparound mortgagean arrangement in which the seller of a property extends a mortgage to a buyer; the seller maintains their original loan and continues to pay it while also receiving mortgage payments from the buyer use variancea variance that permits the use of land which is proscribed by the zoning regulations mortgageethe organization or person who lends the money in a loan (the lender) group homea dwelling in a residential zone legally occupied by three or more unrelated people; examples include foster homes, halfway homes, or rehabilitation centers package mortgagea loan that includes the real estate as well as all personal property and appliances installed on the premises deed restrictiona provision in a deed that restricts the land use of a property reverse annuity mortgagea financial arrangement where a homeowner pledges equity to a lender in exchange for periodic payments of the pledged equity; essentially selling off equity in their home in exchange for monthly payments

subordination agreementa contract that gives a mortgage recorded at a later date priority over a previously recorded mortgage promissory notea negotiable financial instrument that is evidence of a debt and a promise to pay that debt; aka note zoning ordinancea local law that controls how land is used and what structures can be built in a designated district condemnationthe legal process through which the government seizes land from a property owner satisfaction of mortgagewhen a mortgage loan is fully paid off partial release clausea clause that explains how a piece of collateral can be released (from a blanket loan) pledged account mortgagea loan program in which the borrower sets up a dedicated savings account with the purpose of paying their mortgage conventional loanany loan that is neither insured by the government nor guaranteed by the government surveythe process and physical product of finding and measuring the boundaries of a piece of real estate, including the location of improvements, encroachments, and easements general liena lien for which the real estate AND personal property may be sold to satisfy the debt secondary mortgage marketthe environment in which mortgage lenders sell home loans they originate to government agencies or investment bankers home equity loana loan in which funds are borrowed using the homeowner's equity for collateral; the funds can be used for any purpose plot plana diagram showing the layout of a property site, including the position of buildings, roads, and utility runs abuttingsharing at least one common boundary with another property eminent domainthe power of government to seize private property for public use; government must pay property owner just compensation for exercising power payment capthe maximum monthly payment a borrower can be charged bridge loana short-term loan used to transition from one loan to another; can connect borrower from construction loan to eventual mortgage loan (or current home to their new home) mortgage factor charta tool for figuring out a borrower's monthly payment amount accessory useuse of property that is secondary or incidental to the principal use of the property air rightsthe right to use the airspace above the surface of land lifetime cap/ceilingthe maximum increase of interest over the life of the loan due-on-sale clausea clause stating that if a property is sold, then the mortgage must be repaid in full

subprime loana mortgage with an interest rate higher than prime mortgages due to the higher risk associated with a less qualified borrower mortgagorthe person who takes out the loan (the borrower) Regulation Zthe part of the Truth in Lending Act (TILA) that seeks to protect consumers by requiring proper disclosures and fair lending practices accessory apartmenta second dwelling unit located on the same property as a single-family home that is usually smaller in size than the primary residence discount pointsfees that the lender charges to lower the lending rate; one point is 1% of the loan amount certificate of occupancya document issued by a code enforcement officer that states that the building is ready and fit for occupancy Equal Credit Opportunity Act (ECOA)a fair lending law that aims to bar discriminatory lending practices private mortgage insurance (PMI)insurance that protects the lender if a borrower defaults on a conventional loan; usually required when the borrower has less than 20% equity balloon mortgagea type of loan, at the end of which the (often large) remaining balance of the mortgage is due as a lump sum area variancea variance that permits the use of land in a manner that is not allowed by the dimensional or physical requirements of the applicable zoning regulations moratoriumthe temporary banning of an activity margina fixed percentage above the index which the borrower will pay shared equity mortgagea loan in which a lender (often a family member) contributes to a buyer's financing in exchange for a share of the profit from a property's eventual sale acceleration clausea clause in a security instrument (mortgage/deed of trust) that makes the entire loan amount due immediately upon default rate capthe stopping point for the interest on an ARM State of New York Mortgage Association (SONYMA) a state agency that was created in 1970 to help low- and moderate-income buyers in New York State easementan interest in, or a right to use, another individual's land or property, generally for a specific, limited purpose cul-de-saca dead-end street that typically ends with a circular turnaround Truth in Lending Act (TILA)legislation that educates and protects consumers against inaccurate and unfair credit billing and credit card practices by requiring lenders to standardize how costs associated with borrowing are calculated and disclosed