Stringham Real Estate Vocab. - Utah Flashcards

Stringham Real Estate Vocab. - Utah Flashcards ACTUAL DELIVERYTransferring a deed from the grantor to the grantee by handing the deed to the grantee or sending it by certified mail.ANNUAL PERCENTAGE RATE (APR)The interest rate plus any other charges for the loan, including such things as discount points and origination fees; computed as a yearly percentage rate. It is used for comparing loans.BALLOON PAYMENTSRequired payments larger than the regular payment. These payments are often made at the end of the loan, retiring the loan early; but can be made at other times during the term of the loan.APPRECIATIONA percentage of increase in the value of the property over its value when it was originally purchased.BOARD OF EQUALIZATIONThe body of appeal if you think your property tax appraisal is too high.BUSINESS PLANA written overview that reveals the basic philosophy and strategy for an investment property.BLOCKBUSTINGThe illegal practice of inducing panic selling in a neighborhood by starting rumors involving minorities moving in.12 HOUR NEW AGENT COURSEThe continuing education course required by the Utah Division of Real Estate for a new licensee's initial renewal period.CAPACITYThe borrower/co-borrowers' ability to repay the loan.BALLOON MORTGAGEA loan with a balloon payment at the end of its term. It could be a partially amortized or a straight loan or note.ADDENDUMAdditions or changes incorporated into the REPC by reference.BUYDOWNA financing technique in which a borrower is able to obtain a lower interest rate by paying discount points at the time the loan is originated. (1 point = 1% of the loan amount).AGENCY BY STATUTEThe law has given rise to the agency, such as a Sheriff appointed by the court to be the agent of the owner in a foreclosure sale.AMERICANS WITH DISABILITIES ACT (ADA)An act designed to eliminate discrimination against handicapped persons in employment, government services, and all facilities and services offered to the public.BASE LOAN AMOUNTThis loan amount is set based on the median home price in a county.CERCLAComprehensive Environmental Response, Compensation & Liability Act, which is also known as the Superfund Act.

ASSIGNMENT OF LEASEA contract that substitutes a new tenant in the lease. The assignee becomes liable for the remaining term of the lease. Unless prohibited by the lease contract, this can be done without the approval of the lessor, but the original lessee retains secondary liability.AMORTIZATION SCHEDULEA schedule of payments toward principal and interest and loan balance after each payment through the life of a loan.ALLODIALA socio-economic system that allows for private ownership of real property.BROKER PRICE OPINION (BPO)A broker's written opinion of the value of a particular property that may not be used in connection with the originating a federally related loan; not an appraisal.ATTORNEY'S OPINIONA lawyer's examination and evaluation of the history of title.It includes a brief summary of all recorded instruments which affect the title, including records of taxes, special assessments, judgments, mortgages and trust deeds.CAPITAL MORTGAGE MARKETMarkets (including informal markets as well as organized markets and exchanges) in which mortgage backed securities are bought and sold.AGENCY BY RATIFICATIONThe agency is created by implication, or actions, and the principal approves it by agreeing after the agency service has been performed to compensate the agent.BELOW PARAn interest rate quoted that would require a charge to the borrower.ACTUAL EVICTIONThe legal process by which a lessor evicts the lessee and regains possession of the property.BILATERAL CONTRACTA contract wherein a promise is exchanged for a promise, thus making the contract binding on both parties.APPRAISAL FRAUDInflation or materially overstating the value of a property with the intention of obtaining a higher loan or even cash-out.AGENTThe person hired by a principal to act for and in behalf of, or to represent the principal, always acting in the principal's best interest.BLANKET MORTGAGEA loan that uses two or more parcels of real property as security.CAPITALTotal value of assets. This term is sometimes used to refer to the amount actually paid as down payment and closing costs, as in "the borrower's capital in the transaction". Also used to refer to the total value of an investment as in "CAP Rate (Rate of return on capital invested or purchase price)."

ADDENDUM TO LEASE AGREEMENT WITH OPTION

FOR PURCHASE

This form is used for any additional terms the buyer or seller wish to include in the agreement.

ASSIGNMENT OF INTEREST ADDENDUMShould be used when a contract was entered into between Seller and Buyer #1. Before closing, Buyer #1 wishes to assign his/her position in the contract to Buyer #2.BUSINESS DAYMonday through Saturday except holidays.AFFILIATED BUSINESS ARRANGEMENT (AfBA)A financial interest in a business that could provide services to a borrower in a loan transaction. The lender is required to disclose such affiliations to the borrower and may not require that the borrower use the affiliate.Disclosure is also required when it is the policy of the lender to share private information of borrowers with its affiliates. The borrower may refuse permission to share information by returning the notice indicating that they Opt Out of the companies sharing policy.BASIS POINTA finance term meaning a yield of 1/100th of 1% annually.100 basis points = One percent.

BUYING YOUR HOME, SETTLEMENT COSTS AND

HELPFUL INFORMATION

This booklet must be provided to the borrower within 3 days of application.ABANDONMENTWhen a tenant leaves a property before the expiration of the lease agreement.BUNDLE OF RIGHTSAll rights and interests that can be legally held in real property. They are separated into Possession, Use & Control, Quiet Enjoyment and Disposition.AGENCY BY ESTOPPELThe principal seeks to deny an agency relationship, but the court stops him from denying the agency, and thereby confirms it.ADJUSTED COST BASISCost basis plus improvements, minus depreciation claimed during the years the property was owned.ADVERSE POSSESSIONThe process whereby a non-owner can gain ownership of property by occupying it in hostile, continuous, open, and notorious possession, and in Utah, paying the property taxes for the statutory period of time (7 years in Utah).ACCELERATION CLAUSEAllows a loan to become due and payable immediately if certain requirements are not met, such as making payments, maintaining the physical condition of the property or paying property taxes and hazard insurance.BILL OF SALEEvidence of transfer of ownership of personal property.ALIENATION OF TITLEA change of ownership. May be voluntary (sold the property) or involuntary (foreclosure sale).CAVEAT EMPTORThe philosophy that says "Let the buyer beware." AD VALOREM TAXA tax levied according to the value of the property.ASSIGNMENT OF CONTRACTOne party in a contract substitutes another party in his place. The original party retains secondary liability for the performance of the contract. It does not require the agreement of the other original party in the contract.

BEQUEST OR LEGACYA gift of personal property given in a will.ABOVE PARAn interest rate quoted that would give a credit to the borrower.BARGAIN AND SALE DEEDThis deed makes no guarantees as to the condition of the title, but unlike the Quit Claim Deed, the grantor implies some actual interest in the property."AS IS" CLAUSEThe clause in the Real Estate Purchase Contract that stipulates the buyer is buying the property in its current condition and with the faults that have been disclosed.ANNUAL PERCENTAGE YIELD (APY)The effective interest rate based on the frequency of interest payments paid on deposits.CERTIFICATE OF ELIGIBILITYEndorsement from the Veterans Administration indicating the right of a veteran to obtain a VA loan and the amount of his eligibility.BANK RESERVE REQUIREMENTSThe amount of funds that a depository institution must hold in reserve against specified deposit liabilities or other risks.CC&R'SThe abbreviation given to restrictions and requirements created in the Uniform Declaration of Restrictions for condominiums.CERTIFICATE OF SALEThe document given to the individual who successfully bids and purchases a property at a Sheriff's Sale. It does not convey title to the property.ASSOCIATE BROKERA person with a broker's license who works under the supervision of an employing principal broker.ACKNOWLEDGEThe legal process of having the signature on a contract or other legal document verified by a notary public.ADJUSTMENT PERIODLengthen of time between interest rate adjustments on an adjustable rate loan.BENEFICIARYThe lender under a Trust Deed & Note.BUFFER ZONEAn area established by the zoning and planning commission to separate commercial and industrial areas from residential. Its purpose may be safety or economics.APPURTENANTAttached to the land (such as a house) or the deed (such as a recorded easement).AIR SPACEIn condominium ownership, what is actually owned by the unit owner (in addition to tenancy in common for common areas).CERTIFICATE OF REASONABLE VALUEThe document required for a VA loan that verifies the value of property being used as security for the VA loan (VA appraisal).ATTACHMENTThe legal process when real or personal property is seized by the court and held as security for satisfaction of a judgment.BRANCH OFFICEAny remote operation of the main real estate office which will be in operation more than 12 months and must be