appurtenance
a right, privilege, or improvement belonging to; "runs with the land
appurtenant easement
an easement that is annexed to the ownership of one parcel and allows the owner the use of the neighbor's land
assignment
the transfer in writing of interest in a bond, mortgage, lease, or other instrument
attachment
the act of taking a person's property into legal custody by writ or other judicial order to hold it available for application to that person's debt to a creditor.
BRRETA
the law that governs the law of agency in Georgia
brownfields
defunct, derelict, or abandoned commercial or industrial sites; many have toxic wastes
Certificate of Reasonable Value (CRV)
a form indicating the appraised value of a property being financed with a VA loan
coinsurance clause
placed into insurance properties covering real property that requires the policyholder to maintain fire insurance coverage generally equal to at least 80% of the property's actual replacement cost
common elements
parts of a property necessary to the existence, maintenance, and safety of a condominium or are normally in common use by all the condominium residents. Each condo owner has an undivided ownership interest in the common elements.
community property
system of property ownership based on the theory that each spouse has an equal interest in the property acquired by the efforts of either spouse during marriage.
Comprehensive Enviromental Response, Compensation, and Liability Act (CERCLA)
Federal law by EPA that establishes process for identifying parties responsible for creating hazardous waste sites, forcing liable parties to clean up toxic sites, bringing legal action responsible parties, and funding the abatement of toxic sites.
comprehensive plan
a plan to guide the long term physical development of a particular area. also called a master plan.
CLO (Computerized Loan Origination)
electronic network for handling loan applications through remote computer terminals linked to various lenders' computers
conditional-use permit
written governmental permission allowing a use inconsistent with zoning but necessary for the common good, such as locating an emergency medical facility in a predominantly residential area
condemnation
judicial or administration proceeding to exercise the power of eminent domain.
conditional-use permit
written governmental permission allowing a use inconsistent with zoning but necessary for the common good, such as locating an emergency medical facility in a predominantly residential area.
conformity
the appraisal principle that holds that the greater the similarity among properties in an area, the better they will hold their value.
construction loan
a short-term loan usually made during the construction phase of a building project. Also known as interim financing.
Constructive notice
given to the world by recorded documents. all people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possess
unilateral contract
only one party is bound to act
bilateral contract
all parties to the instrument are legally bound to act
contract
legally enforceable promise or set of promises that must be performed and for which, if a breach of the promise occurs, the law provides a remedy.
contribution
appraisal principle that states that the value of any component of a property is what it gives to the value of the whole or what its absence detracts from that value.
conventional loan
loan that requires no insurance or guarantee (PMI)
cooperative
residential multiunit building whose title is held by a trust or corporation that is owned by and operated for the benefit of people living within the building who are the beneficial owners of the trust or shareholders of the corporation, each possessing
cost approach
process of estimating the value of a property by adding to the estimated land value the appraiser's estimate of the reproduction or replacement cost of the building, less depreciation
convenants, conditions, and restrictions (CCRs)
private agreements that affect the land use. They may be enforced by an owner of real estate and included in the seller's deed to the buyer.
customer
third party or nonrepresented consumer for whom some level of service provided
deed
written instrument that. when executed and delivered, conveys title to or an interest in real estate.
deed in lieu of foreclosure
a deed given by the mortgagor to the mortgagee when the mortgagor is in default under the terms of the mortgage. This is a way for the martgagor to avoid foreclosure.
deed of trust
instrument used to create a mortgage lien by which the borrower conveys title to a trustee, who holds it as a security for the benefit of the note holder (lender). Also called a trust deed in trust.
deed restrictions
clauses in a deed limiting the future uses of the property. Deed restrictions may impose a vast variety of limitations and conditions.
deed to secure debt
voluntary, specific lien discussed in the previous paragraph as a "mortgage" is called the security deed
defeasance clause
used in leases and mortgages and cancels a specified right upon the occurrence of a certain condition, such as cancellation of a mortgage upon repayment of the mortgage loan
deficiency judgement
personal judgement levied against the borrower when a foreclosure sale does not produce sufficient funds to pay the mortgage debt in full.
depreciation
a loss of value to a property to any cause, including physical deterioration, functional obsolence, and external obsolence.
designated agency
process that accomodates an inhouse sale in which two different agents are involved.
devise
gift of real property by will. the donor is the devisior, and the recipient is the devisee
economic life
number of years during which an improvement will add value to the land
emblements
growing crops, such as corn, that are produced annually through labor and industry; also called fructus industriales
encroachment
a building or some portion of it- a wall or fence- that extends beyond the land of the owner and illegally intrudes on some land of an adjoining owner or a street or alley.
encumbrance
anything- such as a mortgage, tax, or judgement lien, an easement; a restriction on the use of the land; or an outstanding dower right- that may diminish the value or use and enjoyment of a property
Equal Credit Opportunity Act (ECOA)
The federal law that prohibits discrimination in the extension of credit because of race, color, religion, national origin, sex, age, or marital status
equalization factor
number by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with statewide tax assessments. Ad velorem tax would be based on this adjusted value
equitable lien
lien that arises out of common law, in contracts to a statutory lien, which is imposed on property by statute.
equitable right of redemption
right of a defaulted property owner to recover the property prior to its sale by paying the appropriate fees and charges
equitable title
interest held by a vendee under a contract for deed or an installment contract; the equitable right to obtain absolute ownership to property when legal title is held in another's name
estate at sufferance
tenancy of a lessee who lawfully comes into a possession of a landlord's real estate but who continues to occupy the premises improperly after his or her lease rights have expired. tenancy at sufferance
estate at will
an estate that gives the lessee the right to possession until the estate is terminated by either party; term of the estate is indefinite. also called tenancy at will
estate for years
interest for a certain, exact period of time in property leased for a specific consideration. also called tenancy for years
estate from period to period
interest in leased property that continues from period to period- week to week, month to month, year to year etc- also called tenancy from period to period
estate in land
degree, quantity,nature and extent of interest a person has in real property
estate tax
federal tax on a decendants real and personal property
exclusive- agency listing
listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property, on the owner's stated terms for a commission. The owner reserves the right to sell without paying anyo
exclusive-right-to-sell listing
listing contract under which the owner appoints a real estate broker as his or her property on the owners stated terms and agrees to pay the broker a commission when the property is sold, whether by the broker, the owner, or another broker
executory contract
contract under which something remains to be done by one or more of the parties
express agency
agency relationship based on a formal agreement between the parties
express contract
oral or written contract in which the parties state the contracts terms and express their intentions in words. Verbal
external obsolence
incurable depreciation caused by factors not on the subject property, such as environmental, social, or economic factors
Fannie Mae
government-sponsored enterprise established to purchase any kinds of mortgage loans in the secondary mortgage market from the primary lenders
fee simple
highest interest in real estate recognized by the law; the holder in entitled to all rights to the property
fee simple absolute
maximum possible estate or right of ownership of real property; continuing forever
fee simple defeasible
a qualified fee estate that is subject to the occurence or nonoccurence of some specified event
fee simple determinable
a fee simple estate qualified by a special limitation. words used to describe the limitation can be so long as, while, or during.
fee simple subject to a condition subsequent
if an estate is no longer used for the purpose conveyed, it reverts to the original grantor by the right of reentry
FHA Loan
loan insured by the Federal Housing Administration and made by an approved lender in accordance with their regulations
fixture
item of personal property that has been converted to real property by being permanently affixed to the realty
Freddie Mac
government sponsored enterprise established to purchase primarily conventional mortgage loans in the secondary mortgage market
freehold estate
estate in land which the ownership is for an indeterminate length of time . contrast to a lease-hold estate.
functional obsolence
loss of value to an improvement to real estate arising from functional problems, often caused by age or poor design
future interest
persons present right to an interest in real property that will result in possession or enjoyment until some time in the future, such reversion or right of re-entry
general agent
one who is authorized by a principal to represent the principal in specific range of matters
general lien
the right of a creditor to have all of a debtors property- both real and personal-sold to satisfy a debt
general partnership
typical form of joint venture in which each general partner shares in the administration, profits, and losses of the operation.
general warranty deed
grantor fully warrants good, clear title to the premises. used in most real estate deed transfers, a general warranty deed offers
grantee
person who receives a transfer of real property from the grantor (giver)
granting clause
words in a deed of conveyance that state the grantor's intention to convey the property at the present time. This is usually worded as "convey and warrant"; "grant"; or "grant, bargain, and sell
gross lease
lease of property according to which a landlords pays all property charges regularly incurred through ownership such as repairs, taxes, insurance, and operating expenses.
ground lease
a lease of land only on which the tenant usually owns a building or is required to to build as specified in the lease. Usually long-term net leases and the tenants rights and obligations continue until the lease expires or is terminated through default
growing-equity mortgage
a loan in which the monthly payments increase annually with the increased amount of being used to reduce directly the principal balance outstanding and thus shorten the overall term of the loan
habendum clause
part of a deed beginning the words "to have and to hold" following the granting clause and defining the extent of ownership the grantor is conveying.
headrights
property description system used in eastern Georgia that depends on natural boundaries and markings, such as rocks and trees. these parcels are irregular in shape
highest and best use
possible use of a property that would produce the greatest net income and therefore develop the highest value
holdover tenancy
tenancy whereby a lessee retains possession of leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant's continued occupancy as defined by state law.
home equity loan
a loan (or line of credit) under which a property owner uses his residence as collateral and can then draw funds up to a percentaged amount against the property
homestead
land that is owned and occupied as the family home. In many states, a portion of the area or value of this land is protected or exempt from judgement for debts
hypothecation
to pledge property as security for an obligation or loan without giving up possession of it.
implied agency
based on the actions of the parties that imply they have mutually consented to an agency relationship
implied contract
contract under which the agreement of the parties is demonstrated by their acts and conduct
impound account
an account that most mortgage lenders require borrowers to have for funds to pay future real estate taxes and insurance premiums. escrow
improvement
any structure, usually privately owned, erected on a sight to enhance the value of a property. ex: building or a fence
income approach
process of eliminating the value of an income-producing property through capitalization of the annual net income expected to be produced by the property during its remaining useful life.
intestate
condition of a property owner who dies without leaving a valid will. Title to the property will pass to the decendant's heirs as provided in the state law of the descent.
involuntary alienation
act of involuntary transferring property to another, as through eminent domain or adverse possession
involuntary lien
placed on a property without the consent of the property owner
joint tenancy
ownership of real estate between two or more parties who bave been named in one conveyance as joint tenants.
right of survivorship
upon death of a joint tenant, the descendant's interest passes to the surviving joint tenant or tenants
judgement
formal decision of the courth upon the respective rights and claims of the parties to an actions or suit. Once this is entered and recorded with the county recorder, it usually becomes a general lien on the property of the defendant
latent defect
hidden structural defect that could not be discovered by ordinary inspection and that threatens the property's soundness or the safety of its inhabitants. Some states impose on sellers and licensees a duty to inspect for a disclose hidden defects
law of diminishing returns
applies at the point where additional improvements do not increase income or value
law of increasing returns
applies as long as money being spent on improvements produces an increase in income or value
leasehold estate
tentants rights to occupy real estate during the term of a lease, generally considered to be a personal property interest
life estate
interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons
lis pendens
recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or a federal court
littoral rights
landowner's claim claim to use water in large navigable lakes and oceans adjacent to his property; ownership rights to land bordering these bodies of water up to the high-water mark
lot-and-block system
method of describing real property that identifies a parcel of land by reference to recorded plat numbers within a subdivision
market value
most probable price property would bring an arm's length transaction under normal conditions on the open market
marketable title
good or clear title, reasonable free from the risk of litigation over possible defects
mechanic's lien
statutory lien created in favor of contractors, laborers, and materialmen who have performed work or furnished materials in the erection or repair of a building
metes-and-bounds description
legal description of a parcel of land that begins at a well-marked point and follows the boundaries, using directions and distances around the tract, back to the place of beginning
mill
one-tenth of one cent.
month-to-month tenancy
the tenant rents for one month at a time. in the absence of a rental agreement, its typically considered this
monument
fixed natural or artificial object used to establish real estate boundaries for a metes-and-bounds description.
net lease
lease requiring the tenant to pay not only rent but also costs incurred in maintaining the property, including taxes, insurance, utilities, and repairs.
nonagent
intermediary between a buyer and a seller, or a landlord and a tenant, who assists one or both parties with a transaction without representing, also know as facilitator, transaction broker, transaction coordinator, and contract broker
nonconforming use
use of property that is permitted to continue after a zoning ordinance prohibiting it has been established for the area
nonhomogeneity
lack of uniformity; dissimilarity
novation
substituting a new obligation for an old one or substituting new parties to an existing obligation
package loan
real estate loan used to finance the purchase of both real property and personal property
partition
division of cotenants' interests in real property when the parties do not all valountraily agree to terminate the co-ownership; takes place through court procedures
partnership
regarded under the law as a group of individuals rather than a single entity who carry on a continuing business from profit as co-owners
percentage lease
commonly used for commercial property where the rental is based on the tenant's gross sales at the premises; typically stipulates a base monthly rental plus a percentage of any gross sales above a certain amount
items
chattels
personal property
items that do not fit into the definition of real property, movable objects
physical deterioriation
reduction in a property value resulting from a decline in physical condition; can be caused by action of the elements or by ordinary wear and tear
plottage
increase in value or utility resulting from the consolidation of two or more adjacent lots into one larger lot.
principal meridian
main imaginary line running north and south and crossing a base line at a definite point; used by surveyors for reference in locating and describing land under the rectangular survey systems of legal description
option
agreement to keep open for a set period an offer to sell or purchase property
progression
appraisal principle that states that between dissimilar properties, the value of the lesser-quality property is favorably affected by the presence of the better quality property
promissory note
financing instrument that states the terms of the underlying obligation, is signed by the maker, and is negotiable or transferable to a third party
puffing
exaggerated or superlative comments or opinions
quitclaim deed
conveyance by which the grantor transfers whatever interest he or she has in the real estate, without warranties or obligations
reciprocity
relationship between states that allows licensees from one state to practice real estate in another state
reconveyance deed
used by trustee under a deed of trust to return title to the trustor
rectangular survey system
system established in 1785 by the federal government, providing for surveying and describing land by reference to principal meridians and base lines
redemption
right of the defaulted property owner to recover his or her property by curing the default
Regulation Z
Implements the Truth in Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit
release deed
also known as a deed of reconveyance, that transfers all rights given a trustee under a deed of trust loan back to the grantor after the loan has been fully repaid
remainder interest
remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a prior estate, such as when an owner conveys a life estate to one party and the remainder to another
reversionary interest
remnant of an estate that the grantor holds after granting a life estate to another person
reversionary sight
return of rights of possession and quiet enjoyment to the lessor at the expiration of a lease
revocation
cancelling or annulling licensed privileges or rights
right of survivorship
method by which, upon the death of a joint tenant, the decendent's interest passes to the surviving joint tenant or tenants
riparian rights
owner's rights in land that borders on or includes a stream, river, or lake. Including access to and use of the water
sell-and-leaseback
transaction in which an owner sells his or her improved property and, as part of the same transaction, signs a long-term lease to remain in possession of the premises
section
square with mile-long sides and one square mile, 640 acres. portion of township under the rectangular survey system divided into 36 sections, numbered 1 through 36
severalty
ownership of real property by one person only. also called sole ownership
severance
changing an item of real estate to personal property by detaching it from the land (ex: cutting down a tree)
situs
personal preference of people for one area over another, not based on objective facts and knowledge (area preference)
special warranty deed
deed in which the grantor warrants or guarantees the title only against defects arising during the period of his or her tenure and ownership of the property and not against defects existing before that time. Generally uses the language "by, through, or un
specific lien
lien affecting or attaching only to a certain parcel of land or piece of property
state-certified general real property appraiser
may appraise any type of property for any purpose in Georgia
state-certified residential real property appraiser
may perform any appraisal that is not to be used in a federally related financial transaction and may perform appraisals for use in a federally related financial transaction without regard to transaction value
state-licensed real property appraiser
may perform any appraisal that is not to be used in a federally related financial transaction and may perform appraisals for use in a federally related financial transaction that does not exceed $1 million
statutory lien
imposed on property by statute-a tax lien, for example- and does not arise out of common law
straight loan
loan in which only interest paid during the term of the loan, with the entire principal amount due with the final interest payment (term or balloon loan)
subject to
buyer takes title of property and makes payments on the existing loan but is not personally obligated to pay the debt in full. Original seller might continue to be liable for debt.
sublease
leasing of premises by a lessee to a third party for part of the lessee's remaining term.
subordination agreement
written agreement between holders of liens on a property that changes the priority of mortgage, judgement, and other liens under certain circumstances
suit for specific performance
if the seller breaches a real estate sales contract, the buyer may sue, asking the court to force the seller to go through with the sale and convey the property and previously agreed
suit to quiet title
court action to establish or settle the title to a particular property, especially when there is a cloud on the title
tenancy by the entirety
joint ownership, recognized in some states, of property acquired by husband and wife during marriage. Upon the death of one spouse, the survivor becomes the owner of the property.
tenancy in common
form of co-ownership by which each owner holds an undivided interest in real property as if each were sole owner. Each individual owner has the right to partition. Tenants have right of inheritance
testate
having made and left a valid will
testator (women=testatrix)
person who has made a valid will.
title
right or evidence of ownership of land
township
principal unit of the rectangular survey system. A square with 6 mile sides and an area of 36 square miles
township lines
all lines in a rectangular survey system that run east and west, parallel to the base line six miles apart
trade fixture
article installed by a tenant under the terms of lease and removable by tenant before the lease expires
trust
fiduciary arrangement wherby property is conveyed to a person or institution (trustee) to be held and administered on behalf of another person (beneficiary).
trustor
borrower in a deed of a trust loan transaction; one which places property in a trust. Grantor or settler
unilateral contract
one-sided contract where one party makes a promise to induce a second party to do something. The second party is not legally bound to perform; however if the second party does not comply, the first party is obligated to keep the promise.
universal agent
person empowered to do anything the principal could do personally
usury
charging interest at a higher rate than the maximum rather established by state law (ex: credit cards)
VA loan
mortgage loan on approved property made to a qualified veteran by an authorized lender and guaranteed by the Department of Veteran Affairs in order to limit the lender's possible loss
variance
permission obtained from zoning authorities to build a structure or conduct a use that is expressly prohibited by the current zoning laws. Exception from the zoning ordinances
voluntary alienation
act of voluntary transferring property to another, such as by gift or sale
voluntary lien
placed on property with the knowledge and consent of the property owner (mortgage)
will
written document, properly witnessed, providing for the transfer of title to property owned by the deceased (testator)
wraparound loan
method of refinancing in which the new mortgage is placed in a secondary, or subordinate, position; the new mortgage includes both the unpaid principal balance of the first mortgage and whatever additional sums are advanced by the lender. (an additional m
year's support
In Georgia. a surviving spouse and/or minor children can petition the probate court to have real and/or personal property set aside from the estate to provide for 12 months' support from the date of the decendent's death. Petition must be made within 24 m
zoning ordinance
exercise of police power by a municipality to regulate and control the character and use of property