G
General Lien -
A lien that attaches to all property owned by an individual. Real and
personal.
General Warranty Deed -
Contains covenants in which the grantor formally guarantees that good
and marketable title is being conveyed. Highest deed - 5 covenants.
Good Title -
One which is free from encumbrances such as liens, pending litigation
and other such defects.
Government National Mortgage Association
(GNMA) - Commonly known as
"Ginnie Mae," this agency of HUD operates in the secondary mortgage
market. It is involved with special government financing programs.
Government Survey -
A method of land description based on townships and sections.
(Rectangular survey system).
Graduated Lease Provisions -
This lease provides for periodic step
increases in the rental payments.
Graduated Payment Mortgage (GPM)
- A new financing technique for
residential real estate in which monthly payments start at a lower rate
and increase periodically over the life of the mortgage; FHA 245.
Grandfather Clause -
Creating an exemption from application of a new law due to previously
existing circumstances; non-conforming use.
Grant
- Transferring real estate by means of a deed.
Grantee
- Purchaser or donee receiving title to property.
Grantor
- Owner making conveyance of title or interest in property.
Gross Income -
The actual income received from property before the deduction for any
expenses.
Gross Income Multiplier (GIM) -
A method of appraising
income-producing property based on a multiple of the annual gross
income; also called a gross rent multiplier.
Gross Rent Multiplier (GRM) -
A method of appraising single family or
duplexes based on the monthly gross income.
H
Highest and Best Use -
The legal use of a parcel of land, which
when capitalized, will generate the greatest net present value of
income. The first thing an appraiser should determine.
Housing and Urban Development (HUD) -
An agency of the federal government which
oversees many federal housing programs.
Hypothecate
- process of pledging something (house) as security, but retaining
possession of it.
I
Immobility -
Incapable of being moved; fixed in
location, such as land.
Implied Contract -
contract formed through the acts or conduct of the parties.
involved.(Ostensible)
Income Approach -
A traditional means of appraising property based on the assumption that
value is equal to the present worth of future rights to income.
Increasing and Decreasing Returns -
This economic principle states that the
addition of more factors of production will add higher amounts to new
income up to a certain point, which is the point where the maximum value
of the asset has been reached; any further addition of factors of
production will do nothing to increase the value.
Incurable Depreciation -
Elements of a structure which are neither physically possible nor
economically feasible to correct.
Independent Contractor -
One whose time and effort are regulated by the individual and are not
under the direction or control of others.
Index Lease -
The rental is tied to some commonly agreed to price index such as the
Consumer Price Index or the Wholesale Price Index.
Inheritable
- An interest in land which can be passed to a relative upon the death of
the owner.
Installment Land Contract
-
see
Land Contract.
Interest
- (1) the sum paid for the use of money (2) the degree of rights in the
ownership of land.
Interest Rate -
The cost of using money expressed as a percent per period.
Intestate
- Dying without a will.
Invalid
- Without legal force.
Irrevocable
- Not capable of being changed or terminated.
J
Joint Tenancy -
A form of concurrent ownership, which
occurs when two or more persons own a single estate in land, with right
of survivorship. Must have equal shares, right to partition.
Joint Venture -
An agreement by two or more individuals or entities to engage in a
single project or undertaking.
Judgment Lien -
The charge upon the land of a debtor, resulting from the decree of a
court, entered in the judgment docket. Lawsuit
Junior Lien -
An encumbrance, second in priority, to a previously recorded lien or to
a lien to which the encumbrance has been subordinated.
L
Land Contract -
The seller accepts a down payment on a
parcel of land but title to the property does not pass until the last
principal payment has been received. This is referred to as an
installment sales contract or a contract for a deed.
Landlocked
- Completely shut in by adjoining parcels of land with no access to public
roads.
Latent Defect -
A defect which cannot be discovered by ordinary inspection.
Lease
- An agreement by which a landlord gives the right to a tenant to use, and
to have exclusive possession, but not ownership of realty, for a
specified period of time, in consideration for the payment of rent.
Lease Purchase Agreement -
An arrangement whereby part of the rent
payment is applied to the purchase price, and when the prearranged total
amount has been paid, title is transferred.
Leasehold
- The interest that the tenant has created by a lease.
Legal Description -
A written description of a parcel of land which locates it precisely and
will hold up in court. (Does not include address.)
Less than Freehold Estate -
Estates in possession generally referred to as leaseholds. Considered to
exist for a definite period of time, or successive periods, of time
until terminated by notice; also know as non-freehold estates.
Lessee
- Tenant.
Lessor
- Landlord.
Leverage
- Using borrowed capital to finance the purchase of real estate or other
assets. (No money down)
License
- A personal privilege to go upon the land of another; not considered an
interest in land. Permission only to use.
Lien
- A legally recognized right to enforce a claim or charge on the property
of another for payment of some debt, duty or obligation.
Life Estate -
An interest which only lasts for the term of a life, or lives, of one or
more persons. Death terminates.
Life Estate Pur Autre Vie -
A life estate in one person with another
person serving as the measuring life.
Life Tenant -
The holder of a life estate.
Limited Partnership -
An entity with a general partner, and one or more passive investors,
called limited partners.
Liquidated Damages -
An agreed-to sum, which will be paid if the contract is breached.
Liquidity
- The ease with which an asset may be converted into cash.
Lis Pendens -
A notice filed for he purpose of serving constructive notice that title,
or some matter involving particular real property, is in litigation.
Listing Contract -
An employment agreement between an owner and broker defining the duties
and rights of both parties. (Unilateral contract)
Loan-to-Value Ratio -
The relationship between the amount borrowed and the appraised value of
the property. (Purchase price 100,000-Loan 80,000-LTV 20,000)
Lot and Block -
A method of land description frequently
used after land has been subdivided into building lots; also referred to
as the recorded plat method. (Must have a plat map to find the property)
Loyalty
- The duty owed by an agent, to avoid conflicts of interest or any
activity which is detrimental to a principal.
Member, National Association of Realtors
®
