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Ch.9-12 Florida real estate definitions

Terms

undefined, object
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abstract of title
condensed history of title to real property consisting of a summary of the links in the "chain of title" extracted from documents bearing on the title status.
acknowledgement
formal declaration before an authorized official, by the person who executed the instrument, that it is a free act.
actual notice
information a person has actually learned by reading, seeing, or hearing.
adverse possession
a purpose in the opposition to the interest of another party( as, for example, with a buyer and a seller).
alienation
the act of transferring ownership,title, or an interest or estate in real property.
chain of title
a successive listing of all previous holders of title (owners) back to an acceptable starting point.
condemnation
the taking of private real property for a public purpose under the right of eminent domain for a fair price.
construction lien
a claim based on the principle of "unjust enrichment"; favor parties who have performed labor or delivered materials or supplies for the repair or building of an improvement to real property.
constructive notice
the recording of a document or an instrument in the public records designed to give adequate notice to all.
deed
A type of conveyance; a written instrument to transfer title to real property from onr party to another.
deed restriction
provision placed in deeds to control future uses of the property.
easement
a right, privilege, or interest in real property that one individual has in lands belonging to another; a legal right to trespass; right-of-way authorizing access to or over land.
easement appurtenant
an easement that runs with the land and benefits an adjacent parcel of land.
easement by necesity
an easement created by a court of law in cases where justice and necessity dictate it, such as when property is landlocked.
easement by prescription
a right acquired by an adverse user to use the land of other, created through a court of law after longtime uninterrupted use.
easement in gross
a type of easement that benefits an individual or business entity and is not related to a specific adjacent parcel, for example, utility easements.
eminent domain
the constitutional right given to a unit of government to take private property involuntarily if taken for public use and a fair price is paid to the owner.
encroachment
unauthorized use of another person's property.
escheat
reversion of property tot eh state when an owner dies without leaving a will or any known heirs.
further assurance
a provision in a deed containing a covenant or warranty to perform any further acts the grantee (buyer) might require to perfect title to the property.
general lien
a claim that may affect all of the properties of a debtor.
general warranty deed
an instrument of conveyance containing the strongest and most comprehensive promises of further assurance possible for a grantor (seller)to convey to a grantee (buyer).
grantee
party who receives a deed or grant; buyer
granting clause
the provision in a deed that specifies the names of the parties involved, the words of conveyance, and a description of the property.
grantor
party who signs and gives a deed; seller.
gross lease
an agreement for the tenant to pay a fixed (base) rent and the landlord pays all of the expenses associated with the property.
ground lease
an agreement for the tenant to lease the land only and erect a building on the land.
habendum clause
a provision in a deed to real property that stipulates the estate or interest the grantee is to receive and the type of title conveyed.
interstate
Without a will.
lender's policy
title insurance issued for the unpaid mortgage amount to protect the lender against title defects.
lien
a claim on property for payment of some obligation or debt.
lis pendens
a pending legal action.
net lease
an agreement or contract to sell or rent a property for a specific minimum net amount for the owner.
opinion of title
a formal statement by an attorney regarding the status of a title after examination of the chain of title.
owner's policy
title insurance issued for the total purchase price of the property to protect the new owner against unexpected risks.
percentage lease
an agreement for the tenant to pay rent based on the gross sales received by doing business on the leased property.
police power
the authority of government to protect the property, life, health, and welfare of its citizens.
quiet enjoyment
a provision in a deed guaranteeing that the buyer may enjoy possession of the property in peace and without disturbance by reason of other claims on the title by the seller or anyone else.
quitclaim deed
a type of deed that will effectively convey any present interest, claim, or title to real property that the seller (grantor) may own.
restrictive covenants
conditions placed by developers that affect how the land can be used in an entire subdivision.
seisin
a covenant in a deed that warrants that the grantor (seller) holds the property by virtue of a fee simple title and has a complete right to dispose of same. also known as a seizen clause.
specific liens
claims that affect only the property designated in the lien instruments or agreements.
testate
having left a will.
title insurance
a policy of insurance that protects the holder from any loss resulting from defects in the title.
title search
an examination of all of the public records to determine whether any defects exist in the chain of title.
variable lease
an agreement for the tenant to pay specified rent increases based on a predetermined index (CPI) at set future dates.
warranty forever
a provision in a deed guaranteeing that the seller will for all time defend the title and possession for the buyer.
base lines
imaginary lines running east and west and crossing a principal meridian at a definite point; used by surveyors for reference in locating and describing land under the government survey system.
government survey system
a type of land description, developed by the federal government for subdividing lands utilizing surveying lines.
legal description
a serious of boundary lines on earth's surface.
lot and block
a type of legal description of land.
metes-and-bounds description
a method of legal description that identifies a property by specifying the shape and boundary dimensions of the parcel. a metes-and-bounds description starts at the point of beginning and follows the boundaries of the land by compass direction and linear measurements and returns to the point of beginning.
monument
man-made or natural object used to establish boundaries of land.
patent
the instrument that conveys real property from the state or federal government to an individual.
point of beginning (POB)
the starting (and ending) place in a land survey using the metes-and-bounds method of property description.
principal meridians
imaginary lines 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 government survey system
range
in the government survey system of land description, a vertical strip of land six miles wide located between two consecutive submeridians or range lines.
section
one of the primary units of measurements in the government survey system of land description. a section is one mile square and contains 640 acres.
township
a square tract of land measuring six miles on each side and including 36 sections (formed by the crossing of range and township lines).
assignment
written instrument that serves to transfer the rights or interests of one person to another.
bilateral contract
an agreement wherein both parties are legally obligated to each other to perform.
buyer brokerage agreement
an employment contract with a purchaser.
competent
a party to a contract who possesses the legal capacity to enter a binding contract.
contract
an agreement between two or more competent parties to do, or not do, some legal act for a legal consideration.
exclusive-agency listing
employment contract given to one real estate broker as the sole agent for the sale of an owner's property.
exclusive-right-of-sale listing
an employment contract given to one real estate broker as the sole agent for the sale of an owner's property, with the commission going to that broker regardless of who actually sells the property during the employment contract period.
good consideration
a promise that cannot be measured in terms of money, such as love and affection.
liquidated damages
the amount of valuable consideration specified in an agreement as a penalty for default.
meeting of the minds
the point where two people, thinking of the same thing, reach an agreement through an offer and acceptance.
mutual assent
refers to the making and acceptance of an offer.
net listing
an agreement or contract to sell or rent a property for a specified minimum net amount for the owner.
novation
the substitution of a new party and/or new terms to an existing obligation.
open listing
an employment contract given to any number of brokers who work simultaneously to sell the owner's property.
parol contract
an agreement that is not in writting.
statute of frauds
an act that requires that certain real estate instruments and contracts affecting title to real property be in writing in order to be enforceable.
statute of limitations
an act that prescribes specific time restrictions for enforcement of rights by action of law.
unenforceable
a contract that was valid when made but either cannot be proved or will not be upheld by a court.
unilateral contract
an agreement in which only one party promises to perform without receiving a reciprocal promise to perform from the other party.
valid
sufficient to be legally binding; enforceable.
valuable consideration
the money or a promise of something that can be measured in terms of money.
vendee
the buyer or purchaser of real property under an agreement of sale.
vendor
the seller of real property in an agreement of sale.
void
invalid; without force; no longer effective.
voidable
a contract that because of the manner or method in which it was brought about, one of the parties is allowed to avoid his or her contractual duties.
acceleration clause
stipulation in a mortgage that the entire unpaid balance of the debt may become due and payable if a default of expressed conditions should occur.
adjustable-rate mortgage (ARM)
a financing technique in which the lender can raise or lower the interest rate according to the set index.
amortized mortgage
a loan characterized by payment of a debt by regular installment payments.
assignment of mortgage
a legal instrument that states that the mortgage assigns (transfers) the mortgage and promissory note to the purchaser.
balloon payment
a single, large payment made at maturity of a partially amortized mortgage to pay off the debt in full.
blanket mortgage
one debt instrument covering two or more parcels.
contract for deed, Land contract, installment sale contract, agreement for deed
a financing technique wherein the seller agrees to deliver the deed at some future date and the buyer takes possession while paying the agreed amount.
deed in lieu of foreclosure
a friendly foreclosure (nonjudicial procedure) in which the mortgagor gives title to the mortgagee
defeasance clause
a provision in a mortgage that specifies the terms and conditions to be met in oder to avoid default and thereby defeat the mortgage.
due-on-sale clause
a provision in a conventional mortgage that entitles the lender to require the entire loan balance to be paid in full if the property is sold.
equity of redemption
the right of a mortgagor, before a foreclosure sale, to reclaim forfeited property by paying the entire indebtedness.
estoppel certificate
a written statement that bars the signer from making a claim in consistent with the instrument. (commonly used with a mortgage assumption)
home equity loan
a mortgage secured by a personal residence. it provides a line of credit available for draws when needed by the homeowner. it is sometimes used as a home improvement loan.
hypothecation
to pledge real or personal property as security for a debt or obligation without giving up possession of the property.
loan-to-value (LTV) ratio
relationship between amount borrowed and appraised value 9or sale price) of a property.
mortgage
a written agreement that pledges property as security for paymetn of a debt.
mortgage insurance premium (MIP)
Fee paid by FHA borrowers to obtain a loan ( up-front and annual).
mortgagor
a borrower who gives a mortgage on his or her property in order to obtain a loan from a lender.
note
legal evidence of a debt that must accompany a mortgage in Florida; a legally executed pledge to pay a stipulated sum of money.
package mortgage
a loan covering both real and personal property.
partial release clause
Stipulates the conditions under which the mortgagee will grant freeing building lots from a mortgage lien upon payment of a certain amount of money.
prepayment clause
a provision in a mortgage that allows the mortgagor to pay the mortgage debt ahead of schedule without penalty.
prepayment penalty
the amount set by the creditor that the debtor is charged for retiring the debt early.
purchase-money mortgage (PMM)
any new mortgage taken as part of the purchase price of real property by the seller.
receivership clause
a provision in a mortgage, related to income-producing property, that is designed to require that income derived shall be used to make mortgage payments in the event the mortgagor (borrower) defaults.
satisfaction of mortgage
a certificate issued by the lender when the debt obligation is paid in full.
subordination clause
a provision in a mortgage in which the lender voluntarily permits a prior subsequent mortgage to take priority over the lender's otherwise superior mortgage; the act of yielding property.
wraparound mortgage
a financing technique in which the payment of the existing mortgage is continued (by the seller) and a new, higher interest rate mortgage, which is larger than the existing mortgage, is paid by the buyer-borrower.

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