Promissory note
Provides evidence that a loan has been made
Mortgagor (deed of trust)
borrower in a mortgage loan clause
Trustor (deed of trust)
Borrowers legal status in a deed of trust
Beneficiary
Lenders legal status on a deed of trust
Trustee (deed of trust)
Third-party who holds the deed as security for the loan
Land contract
A trans action in which the sales price is paid into two or more installments over two or more years. If the sale meet certain requirements, a taxpayer can postpone reporting such income until future years by paying tax each year only on the proceeds rece
Purchase money mortgage
A note secured by a mortgage or deed of trust given by a buyer, as a borrower, to a seller, as lender, as part of the purchase price of the real estate
Construction loan
A short-term loan usually made during the construction phase of a building project. Often referred to as interim financing
Defeasance Clause
A clause used in lease and mortgages that cancels a specific right upon the occurrence of a certain condition, such as cancellation of a mortgage upon repayment the mortgage loan.
Audit
An investigation to determine the need for insurance and types of insurance required
Surety bond
And owners protection against financial losses due to employees criminal acts
Multiperil
Insurance policies that offer a package of standard coverages
Casualty
Insurance policies that provide coverage against theft, burglary, and vandalism, specific, not all-inclusive
Consequential loss
Insurance that covers the revenue a business loses due to a disaster
Four alternative risk management techniques
Transfer, control, avoid, retain
3 types of maintenance necessary to keep a property in good condition
Preventative, corrective, and routine.
Assemblage
Merging two separately owned lots under one owner.
Plottage
The increase in value or utility resulting from the Consolidation of two or more adjacent lots into one larger lot
Substitution
The principle that the maximum value of the property tends to be set by how much it would cost to purchase an equally desirable property
Sales comparison
The approach that estimates value by comparing the subject property with recently sold similar properties
Cost approach
An estimate of value made by determining the value of the land as if it were vacant, plus the current cost of constructing improvements, minus the accrued depreciation
Reproduction cost
The cost of constructing an exact duplicate of the subject property at current prices
Replacement cost
The current price of constructing a property similar to the subject property using current construction methods
Economic life
The period during which a property is expected to remain useful for its original intended purpose
Title XI of FIRREA requires that all residential property be appraised by federally licensed or certified appraiser
False.
It requires that residential property valued at $250,000 or more in a federally related transaction be appraised by state licensed or certified appraiser
External obsolescence is always in curable
True.
Comprehensive plan
Creates the broad general framework for community
Includes plans for orderly growth, including energy conservation to reduce energy consumption and to promote the use of renewable energy sources.
Zoning ordinances
Defined the details and implements the plan for a community
Incentive zoning
Ensures that certain types of uses are incorporated into developments
Comprehensive plan
Device by which local governments establish development goals
Certificate of occupancy
Document issued by a building inspector after a newly constructed building is found satisfactory
Zoning ordinances
Local laws that implement a comprehensive plan and regulate the control of land and structures within districts
Enabling acts
The legal means by which states for zoning powers on local governments
Buffer zones
Areas such as Parks used to screen residential and nonresidential areas
Bulk zoning
A special type of zoning used to control density by imposing restrictions, such as setbacks or limiting new construction
Nonconforming use
A lot or improvements that is not in harmony with the current zoning, because it existed prior to then act meant or amendment of the zoning
Conditional use permit
The device by which a day care center might be permitted to operate in a residential neighborhood
Variance
A form of permitted use, despite being prohibited by zoning, that is granted to an owner because of unique hardship caused by the regulation
Building permit
An item that a property owner must obtain from municipal officials before constructing a new building
Plat
A detailed map that illustrates the geographic boundaries of individual lots in the subdivision
Density zoning
Ordinances that restrict the average maximum number of houses per acre
Planned unit development (PUD)
A development where land is set aside for mixed-use purposes, such as residential commercial and public areas
Interstate land sales full disclosure act
Law that requires developers to file statements with HUD before the developer can market unimproved lots interstate
ADA
A law that requires accessibility to employment, goods, and services for individuals with disabilities
Metes and bounds system
System of legal description that defines a parcel of land by it's perimeter
Designated brokerage
Is addressed in the office policy manual
CBS1 residential
Used when working with 1 to 4 family residential property
CBS2 income residential
Must be used for residential units five or more.
Could be used with 1 to 4 family residential properties.
CBS3 commercial contract
Used for improved nonresidential investment property. In the case of a mixed-use investment property with residential improvements the residential addendum must be attached to the CBS3
CBS4 land contract
Used for vacant land with no residencies or with residencies.
if residential improvements exist the residential addendum must be attached to CVS4
Improvement survey plat
A comprehensive survey with the property is staked, and improvements are shown on the drawing
Improvement location certificate
A drawing of the property showing improvements and does not verify the site boundaries
Survey plat
Use when there are no improvements on the property. Also a staked survey.