The Real Estate License Professor

This is the amount of money that would be paid for a property offered on the open market for a reasonable period of time with both buyer and seller knowing all the uses to which the property could be put and with neither party being under pressure to buy or sell.

The Federal National Mortgage Association (FNMA).

A federal corporation that insures deposits in commercial banks (FDIC).

A district bank of the Federal Home Loan Bank System that lends only to savings and loan associations who are members.

A federal corporation that provides savings and loan associations with a secondary mortgage money market for loans. It is also known as Freddy Mac.

An agency of the federal government that insures mortgage loans.

A federal corporation that provides lenders with a secondary mortgage money market.

The federal banking system of the United States under the control of a central board of governors (Federal Reserve Board). It involves a central bank in each of 12 geographical districts with broad powers in controlling credit and the amount of money in circulation.

A federal corporation that insures deposits in savings and loan associations.

An estate of inheritance in real property for life.

An estate in real property by which the owner has the greatest possible power over the title. In modern use it expressly establishes the title of real property with the owner without limitation or end. He or she may dispose of it by sale trade or will as he or she chooses. In modern estates the terms Fee" and "Fee Simple" are substantially synonymous."

The highest estate known at law. A freehold estate of indefinite duration incapable of being defeated by conditions or limitations. Sometimes simply called fee or fee estate.

A fee simple estate to which certain conditions or limitations attach such that the estate may be defeated or terminated upon the happening of an act or event. Also called a fee simple subject to a condition subsequent estates.

A fee simple defeasible estate that requires the holder of the future interest to act promptly to terminate the present interest in order for that interest to be terminated.

A person in a position of trust or confidence as between principal and broker; broker as fiduciary owes certain loyalty which cannot be breached under the rules of agency.

The duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation concealment duress or pressure.

The instrument filed to perfect the security agreement and give constructive notice of the security interest thereby protecting the interest of the secured parties. (See Security Agreement; Security Interest; and Secured Party.) The security interest in personal property. It is analogous to a mortgage on real property except that it secures personal property. Under the U.C.C. it may be filed in Sacramento with the secretary of state.

Money paid to a person for finding someone interested in selling or buying property. To conduct any negotiations of sale terms the finder must be a licensed broker or he violates the law.

The final covering on the floor such as wood linoleum cork or carpet.

A solid tight closure of a concealed space placed to prevent the spread of fire and smoke through the space.

The constitutional amendment guaranteeing freedom of speech press assembly and religion.

A document pledging collateral for a loan (See mortgage") that has the first priority over all other claims against the property except taxes and bonded indebtedness. That mortgage superior to any other."

A document pledging collateral for a loan (See trust deed") that has first priority over all other claims against the property except taxes and bonded indebtedness. The trust deed superior to all others."

An item of personal property that has been so attached to real property as to be considered part of that real property.

Items that were originally personal property but that have become part of the real property usually because they are attached to the real property more or less permanently. Examples: Store fixtures built into the property and plumbing fixtures.

Sheet metal or similar material used to protect a building form water seepage.

The base or bottom of a foundation wall pier. or column.

Wrongful retention of property by actual or constructive force.

Entry into property without the consent of the owner by acts that constitute more than mere trespass.

A legal proceeding to enforce a lien on such as a mortgage or deed of trust. The process by which secured property is seized and sold to satisfy a debt. A mortgage or involuntary lien must be sold by a court-ordered sale; a sale under a deed of trust may be either by court action or through a private trustee's sale.

Loss of a legal right interest or title by default.

A will signed by the testator in the presence of two or more witnesses who must themselves sign the will.

That part of a structure or wall wholly or partly below the surface of the ground that is the base or support including the footings.

The constitutional amendment that directs that no state can deprive a person of life liberty or property without due process or equal protection of the law.

Deception that deprives another person of his her rights or injures him or her. False representation or concealment of material facts that induces another justifiably to rely on it to his detriment.

An estate of fee. An estate in real property that is either a life estate or an estate in fee.

Property measurement for sale or valuation purposes. The property measurement is along the street line and each front foot extends to the depth of the lot. It is usually used in connection with commercial property.

The depth of frost penetration in the soil.

Fruits crops and other plants. If the vegetation is produced by human labor such as crops it is called fructus industrials; vegetation growing naturally is called fructus naturales.

Strips of wood or metal fastened to wall to even it form air space or to give the wall greater thickness.

Future (additional) loans made by a lender and secured under the original deed of trust. The advances may be either optional or obligatory but the deed of trust or mortgage must provide in the security instrument that it will cover any such future advances.

An estate that does not or may entitle one to possession or enjoyment until a future time.