WASHINGTON Real Estate Terms Questions and Answers

WASHINGTON Real Estate Terms Questions and Answers Lien The right by mortgagee to take hold or sell the property of a debtor as security or payment for a debt Real Estate Valuation Reconciliation Appraisers analyze reports to give accurate estimate of property value Equity The value of the property remaining beyond the mortage debt Eminent Domain Power of a government to take private property for public use. Wetlands Protected by government Commitment Document from a mortgage lender stating that they will lend buyer necessary funds Agency by Estoppel Implied agency without official agreement Depreciation Loss of property value Easement Right of way Right of way Non-possesive interest in someone's land for use or restriction of use held by government Freehold Estate Ownership of real property for an undetermined length of time Executory Contract Contract with terms to be completed on a later date CO Certification of occupancy Certification of Occupancy Building inspector approved occupancy safety Blanket Mortgage A mortgage covering more than one piece of real estate often used by developers financing undeveloped lots Partial Release Clause Part of a mortgage that enables release of part of the property upon payment of a certain amount of the mortgage Qualified Home Primary home used for mortgage interest deduction Property Manager Manages real estate of another for compensation Corrective Maintenance Repairs on property Long Term Capital Gain Profit on assets that were held for 3 years Short Term Capital Gain Profit on assets that were held for less than 1 year Express Agency Agency relationship based on formal agreement between the parties (written) Implied Agency Agency relationship based on actions with no formal agreement 1988 Amendment added to Fair Housing Act Protected people with mental and physical disabilities Fiduciary Duty (Accountability) Agent must properly handle funds recieved by principal Appraisel Estimation of property value Principal Prospective Buyer Fiduciary Duty Duties owed to all parties Fiduciary Duty (Reasonable Care) Act with care Fiduciary Duty (Honesty) Honesty to all parties Fiduciary Duty (Disclosure of All Material Facts) All facts known by agent and not by other parties provided Fiduciary Duty (Presenting all Written Communications) All written offers provided Fiduciary Duty (Providing a Pamphlet on Agency Law) All parties must recieve pamphlet listing Real Estate Brokerage Relationships Act Fiduciary Duty (Disclosing Agency Relationship) Relationship between agent and principal in writing Adjustable-Rate Mortgages Mortgage with an interest rate that changes based on market conditions Adverse Possession Taking possession and use of another's property Affiliated License Member of agency Alienation Clause Mortgage provision requiring payment of the debt upon transfer of title to the property, due on sale. Consumer Protection Act laws and organizations designed to ensure the rights of consumers as well as fair trade competition and the free flow of truthful information in the marketplace. Competitive Market Analysis Method of estimating market value of home by comparing to other homes that area Truth in Lending Act Requires creditors to provide buyers with the terms and cost of credit Contingencies Events with uncertain outcomes that might result in liabilities Dividends Earnings distributed to stockholders FICO Bureau Scores Credit score Income Taxation Taxes based on annual gross income FIRPTA Foreign Investment in Real Property Tax Act of 1980 Income Ratio The basis for dividing net income and net loss Fee Simple Estate/Fee Simple Absolute infinite and highest ownership Life Estate Freehold estate limited to life of owner Life Tenant Holder of a life estate Measuring Life Length of life determines length of estate hold Pur Autre Vie Life Estate Lease Rent Types of Leasehold Estates 1) Estate for Years 2) Periodic Tenancy 3) Estate at Will 4) Tenancy at Sufferance Estate for Years Tenancy with defined termination and consistent payment schedule Periodic Tenancy Tenancy without defined termination but consistent payment schedule Estate at Will Tenancy can be terminated by either party and without notice Tenancy at Sufferance Tenancy that exceeds limit but keeps paying Methods of Holding Title 1) Ownership in Severalty 2) Concurrent Ownership Ownership in Severalty Solitary ownership Concurrent Ownership Joint ownership Concurrent Ownership (Types) 1) Tenancy in Common 2) Unequal Interests 3) Death of a Tenant in Common Unequal Interests Tenants in Joint Ownership can pay different interest amounts Tenancy in Common Joint Ownership: Each has ability to own entire property Death of a Tenant in Common Tenant in Joint Ownership can will portion to anyone Joint Tenancy Joint ownership by two or more Community Property Jointly Ownership: Property obtained during marriage Tenancy by the Entireties Joint tenancy by married couple Open Listing The broker who sells home first gets commission from owner. Closing Costs Fees and charges associated with the purchase of a property Cloud on Title Any claim affecting property marketability Collateral Anything of value used as security for debt Commingling Mixing money of agent and principal APR Annual Percentage Rate Acceleration Clause Buyer pays entire loan immediately if payment is missed Acquisition Clause The amount of money required for a down payment on a property Acre 43,560 sq ft Ad Valorem Latin: According to value Affiliated Licensees Individual real estate agents working under brokerage Involuntary Alienation A transfer of title to real property without the owner's consent