Welcome to our new concept to create a picture/video enhanced glossary as opposed to a text based one. The pictures have been chosen and the videos created to help you remember each concept. We're adding terms every day so check back often for new material. If you just want to see videos, search for keyword "video". This is a work in progress so you can always submit a comment or make a suggestion for something you'd like included.
Todd (Renegade) Thornton
© Copyright 2010
ALL
A |
|---|
Appraisal Video: | |
|
Appraisal Video (Part Two): | |
|
Appraisal Video (Three): |
D |
|---|
Deed and Title Video:(Flash video) |
E |
|---|
Environmental Video: | |
|
F |
|---|
Flood Insurance Video:(Flash video) |
Foreclosure Video: | |
|
L |
|---|
Leases and Property Managment Video: | |
|
P |
|---|
Property Management Video: | |
|
R |
|---|
Real Property Video: | |
|
W |
|---|
What are amenities?: Extra features or upgrades that enhance usability or the desirability of property. A common misconception is that amenities always add value. An example would be an in-ground pool. While the cost to add to the home would be substantial, the total value (depending on climate) may not be any more with the pool than without. A good rule of thumb is to add amenities for your enjoyment, not for resale value. |
What are antitrust laws?: State or Federal laws that as designed today try to preserve competition in business and discourage cartels and monopolies from developing through artificial or unfair means. In many parts of the world, the laws are more commonly referred to as "competition laws" and might cover anything that could interfere with the normal flow of goods and services in a particular marketplace. A basic premise behind the legislation today is that consumers suffer when they don't have choices and future innovation will be stifled. The Sherman Antitrust Act of 1890 (Introduced by Senator John Sherman of Ohio) has since been amended several times particularly as it relates to jail time or fines for noncompliance. Businesses found guilty of violations can now be fined up to $100 million dollars or individuals may be fined up to $1 million dollars. The following activities are prohibited by anti-trust laws. 1-Price fixing 2-Group boycotting 3-Allocation of customers 4-Allocation of markets 5-Tie-in Agreements |
What are blue sky laws?: Federal and/or state specific securities laws designed to protect investors from someone promising some type of securities/investment that's too good to be true. (promising the sky) Most investment securities sold would need to be registered with the regulators and sold by someone with a securities license. Also, any potential buyer must be provided with a prospectus which includes pertinent facts and levels of risk concerning the investment. These laws deal with securities not real estate although real estate could be the underlying asset. For instance, a partnership or syndication could be formed to hold real estate as it's primary asset. Investments in the syndication or partnership could be sold (similar to buying stock/portion of the company/entity) only by adhering to all applicable blue sky laws. A real estate license does not give the holder the ability/right to sell securities. |
What are bundle of legal rights?:
Some believe the origins of the terminology "bundle of legal rights" can be traced back to the middle ages when an owner of property would sometimes give the new owner a bundle of sticks from a tree on the property that would symbolize the transfer of ownership. When a buyer receives property, they generally receive all the previous rights held by the seller less any rights reserved or limitations on all owners. An example of reserved rights could be a seller who wants to retain the right to fish periodically in a lake on the land while a limitation on future owners could be a seller stipulating that the lake and several acres around it must never be destroyed or used for commercial development. |
What are closing costs?: Extra expenses associated with a sale. In general, for a buyer these fees are mainly associated in getting a new loan. For sellers, fees might include deed or title work. Who pays these fees will be determined by the contract between the buyer and seller although local customs would dictate normal practices in each area. A buyer would normally be expected to pay for items in connection with obtaining a loan (origination fees, appraisal, etc.) but could request in their offer the seller pay a set amount of fees. (Seller to pay up to $4,000 in closing costs) This allows the buyer to purchase with less money out of pocket. |
What are common elements?: Parts of a condominium complex that are owned and/or used by all residents. Each individual owner has an "undivided ownership" interest that allows them to use items like the clubhouse, pool, elevators, etc. The term undivided is used because you can't split these items into pieces. (I.E.- You can use the pool, but you can't say a corner of the pool is for your exclusive use.) The upkeep and maintenance for these items are typically paid for by a monthly assessment on each owner paid to the homeowners association. |
What are comparables?: In appraising, the term for properties that have sold recently similar in size, location, and/or condition to the property being appraised. The appraiser will raise or lower the sales price of the comparables to adjust for any minor differences to try and achieve an estimated market value for the home being appraised. |
What are demographics?: The study and subsequent description of a population into smaller more understandable groups. Information such as age, race, income, family size, education level, and employment status are collected every 10 years by the US Census and the results are made available to anyone. (Estimates are provided in between survey time frames) Marketers sometimes use this information to create a "target market". For instance, if a company wanted to randomly send out a direct mail brochures about a retirement community in Florida it wouldn't make sense to send the material to a neighborhood where the average person was 29 years old, married, and had one child. |
What are emblements?: Any annually harvested or cultivated crop. Examples include corn, soybeans, wheat, etc. The Latin term is "fructus industriales" or "fruits of industry." In general, the crops are considered to be the "personal property" of the person that planted or cultivated them as opposed to trees or perennial plantings (shrubs, flowers, etc.) that belong to the owner of the property. In the case of farmland that's sold, it's common for any farmer leasing the land to be granted future access to cultivate and retrieve their crops when they are ready for harvesting. The other alternative would be for the new owner to work out an arrangement to pay the farmer outright for the crops so development of the land could occur immediately. |
What are interest rate caps?: A limit on how much an interest rate can change on an adjustable rate loan. The rate can move up or down up to the maximum stated in the original loan documentation. Typically there are two caps on interest rates. 1) The amount the rate can move up (or down) during any one adjustment period. (2% is common) 2) The total amount the rate can move up or down over the life of the loan. (6% is common) |