Terms Beginning With - J
Property Development & Investment Glossary, Terms & Definitions
Louvers are made of glass and can be put in doors or windows to control how much light and air come in or to keep rain out.
A vertical surface that lines the opening in the wall that has been left for a door or window.
Joint and several liability
If more than one person is responsible for a debt or obligation, the creditor has the ability to collect compensation from one or more of those people individually or in conjunction with each other. General partners, as well as the grantee and grantor, are equally and severally accountable for any unpaid common expenses in the sale of a condominium unit, as are the partners' debts and obligations. So that the individual who is required to repay the obligation can try and collect equal amounts from those who are also liable, a right of contribution exists among persons who are jointly and severally responsible.
When two or more parties agree to repay a debt, all or any of the parties are bound to do so.
The likelihood of two or more occurrences occurring concurrently. The likelihood of both events A and B occurring equals the probability of A occurring multiplied by the probability of B occurring if A happens. This relationship is known as the multiplicative law of probability.
A type of co-ownership in which two or more owners own equal shares and have equal rights of possession. The interests of a deceased partner are divided among the remaining partners.
An interest in real estate held by more than one natural person, each of whom has an equal portion and the right to succeed to the estate if one of the owners passes away. The fundamental concept of joint tenancy is that all owners jointly comprise one person, a fictional entity, and the title is held in their name. When a shared tenant dies, the number of people who share ownership of the unit is reduced by one. By right of survivorship, the remaining joint tenants inherit the interest of the deceased joint tenant. This means that the decedent's interest cannot be transmitted by will or succession, and so cannot be inherited. Following the death of a co-tenant, the surviving co-tenants inherit the interest of the deceased. At death, the survivor's children and other relatives are entitled to the entire estate.
Most states recognise some sort of joint tenancy, while others have chosen to eliminate the right of survivorship as a differentiating feature. Even though it's referred to as the "poor man's will," the fact that you're a joint tenant on property doesn't exclude you from drafting a will. However, a formal probate action is avoided by a joint tenancy.
Joint tenancy traditionally requires four unities: unity of title, unit of time, unit of interest, unit of possession. A single deed, completed and delivered at the same time, must impart equal interests to all grantees, who have undivided possession of the property as joint tenants, and only then can the title be considered complete.
There can be no joint tenancy without a deed of transfer (purchase) or a will, and no joint tenancy can be created by law. A shared tenancy agreement must be signed by the grantees or devisees. If a deed or will is not specified concerning the tenancy of grantees or beneficiaries, the parties will be treated as tenants in common in most states. Joint tenants may be described as Morton Charles and Seymour Berkowitz, and the survivor of them, as well as his or her heirs and assigns as joint tenants and not as tenants in common.
It is possible for multiple parties to have an interest in the same piece of land. Tenancy in common, for example, is the relationship between two joint tenants if A and B hold title to an undivided one-half while C and D hold title to the other undivided half as tenants by the entirety.
By mutual agreement or by one of the parties selling his or her portion in the joint tenancy, a joint tenancy can be dissolved by mutual consent. Suppose A, B, and C have title to farmland as joint tenants and A transfers his interest to D; then D has an undivided one-third interest and B and C remain joint tenants with an undivided two-thirds interest. D and B and C are joint tenants of the farm, which D holds as a tenant in common.
It is also possible that the joint tenants' rights will be terminated by a court order, such as when a receiver is appointed in bankruptcy or when the property is sold to settle a judgment. A mortgage is a transfer of land to the lender in title-theory states. A joint tenant in such states who mortgages her stake without the other joint tenants joining the mortgage therefore breaks the current joint tenancy by withdrawing her interest from the joint tenancy. The land is then liable to being reconveyed upon payment of the debt.
Joint tenancy does not have a dower under several state laws. This means that business partners don't have to join in a transfer in order to forgo dower and/or homestead rights to hold title to a piece of real land as joint tenants. It's impossible for a corporation to be a joint tenant because a corporation, by definition, never dies.
Creditors can't hold joint ownership of property to shield debtors from their debts. Forcing a partition of jointly-owned property is entirely within the rights of a creditor. But if the joint tenant dies before the creditor may acquire the interest of that tenant, the creditor loses his interest since the successor tenant takes the property free from claims by creditors who have died. Creditors of the surviving joint tenant, on the other hand, have significantly strengthened their protection.
When a joint tenancy is established, a surviving joint tenant becomes the only owner of the property, avoiding the need for costly and time-consuming probate proceedings. Probate fees are based on the overall worth of the estate, not the current value of the property. Aside from that, the survivor is free of the deceased joint tenant's debts and the claims of any successors who might be interested in the property.
It is not possible to utilize estate planning to reduce estate taxes since joint tenants give up the power to dispose of their separate interests by will. Joint tenancies are not subject to probate, but they are liable to gift, income, and inheritance taxes, as well as federal estate taxes, despite the fact that they are not legally binding. Buying real estate in joint tenancy has tax implications that should be discussed with a tax professional before making a final decision. People who have children from a previous marriage may find joint tenancy or tenancy by the entire family unsuitable.
By transferring to herself and another as joint tenants, a property owner in several states can form joint tenants without the need to impart through a third person (called a straw man). One can acquire title in real estate without having to create a joint tenancy through two separate legal documents, as long as this exception is provided by statute.
The Uniform Simultaneous Death Act, in effect, classifies all joint tenants as equal tenants in common if all of them die in a common calamity. However, rather than avoiding probate, the unintended impact would be to increase the number of probate cases.
If one of the joint tenants dies, the surviving joint tenants should file an affidavit of death and a death certificate with the county recorder as a matter of good title practice. In many states, inheritance tax rules mandate this as a condition for obtaining a tax clearance. It is necessary to alter the certificate of title if it is registered in Torrens in light of the death of the holder.
Joint property ownership is when two or more people accept joint title to a piece of property for the rest of their lives. Survivors inherit the decedent's stake in the property after he or she dies.
An estate held jointly by two or more people under the same title, with each having the same degree of interest and right of possession. The right of the surviving tenant(s) to take title to a decedent's stake is frequently implied by joint tenancy (right of survivorship).
Under joint tenancy, parties have equal and undivided interests.
When two or more people have equal shares of something.
A partnership formed by two or more people or businesses to carry out a single commercial endeavor. A commercial partnership created in real estate between a lender and a developer or investor to build or acquire a specific property or properties.
When two or more people or companies work together to complete a project or business.
A partnership formed by two or more businesses or individuals to embark on a single profitable business venture.
An agreement between two or more individuals to collaborate on a project.
The collaboration of two or more people in the creation of a specific business venture, such as a condominium project or a shopping complex. The parties may combine their resources (such as money, expertise, property, or equipment). There must be an express or inferred agreement to share in the venture's losses or profits. Joint ventures are a type of business partnership that is taxed as a partnership. The fundamental distinction between the two is that a joint venture is a one-time combining of the parties for a specific project with no intention of the parties entering into a long-term partnership relationship (a "one-shot partnership"). When the joint parties combine their efforts on multiple projects, the relationship resembles a general partnership rather than a joint venture. Furthermore, while a partner can bind the partnership to a contract, only one party to a joint venture agreement can bind the other joint venturers to a contract.
When a husband dies, the wife gets a freehold land estate for as long as she lives. This is called a life estate in lieu of dower. If an intended wife agrees to a jointure or any other financial arrangement made for her benefit instead of her dower, she loses her right to her dower.
A large horizontal piece of wood to which floor boards or ceiling laths are affixed. To build the floor support, joists are put edgewise.
A court order establishing the amount of an indebtedness and the persons involved.
A court's formal judgment on the rights and claims of the parties to an action or suit. A judgment entered and recorded with the county recorder normally constitutes a general lien on the defendant's property.
A court has found the person or group responsible for paying a fee. This can happen when someone doesn't pay their debts on time, which lenders see as more serious.
The sale of a defaulting debtor's property under conditions set by the court.
A debtor's general statutory lien on his or her real and personal possessions. When a creditor intends to expand the lien coverage outside the county in which the judgment was issued, notices of the lien must be filed in other counties. Writ of execution is issued by the court to direct the sheriff to confiscate and sell as much of the debtor's property as necessary to satisfy the debt plus the costs of selling it to pay for it. Because no specific piece of land is pledged as security for a judgment lien when the debtor-creditor relationship is established, this is how a judgment lien differs from a conventional mortgage loan.
Priority of liens is determined by the laws of the state where the property is located. The date the judgment was entered by the court, the date the judgment was filed for record in the recorder's office, or the day an execution was issued are the dates on which a judgment takes priority as a lien on the property of the debtor. By issuing an execution, a sheriff can sell the debtor's property, whether it's real or personal. A satisfaction judgment, which is recorded with the clerk of court or, in some states, the recorder of deeds, should be requested by the debtor when property is sold in order to satisfy a debt.
A claim on a debtor's property that leads to a judgment.
Having no money or property to pay a money judgment. In many states, a person who was scammed by a real estate licensee can only get money from the real estate recovery fund if they can prove that the licensee can't be sued.
A sampling strategy that considers individual observations to be representative of the underlying universe in terms of specific properties.
A deed obtained through a court-ordered procedure.
The process of putting delinquent debtors' property to a public auction through judicial proceedings. The proceeds of the foreclosure sale are utilized to pay off the borrower's creditors to the greatest degree feasible.
A way to take back real estate through a sale that is overseen by the court. In a judicial foreclosure, an appraisal is done, and then the court sets a sale price below which no offers to buy will be accepted.
When co-owners are unable to agree on terms for the sale or physical partition of jointly owned real estate, a court process is initiated to dissolve the cotenancy arrangement.
A legal word that refers to the standards established by previous court rulings (called case law). Lower courts must follow past decisions of higher courts under the idea of "stare decisis."
A home mortgage loan that is bigger than the loan amounts that Freddie Mac and Fannie Mae will buy. They may have higher interest rates and ask for a bigger down payment. They are also called "nonconforming loans." Because of this, they have to be sold to underwriters in a different way.
Nonconforming loans that exceed the limit loan amount for acquisition by Fannie Mae or Freddie Mac. Because these loans cannot be acquired by one of the GSEs, they normally have a somewhat higher interest rate.
A mortgage that is formally subordinate to another (higher-ranking) mortgage.
A mortgage, like a second mortgage, that comes after another mortgage on the same property in terms of rights or lien priority. When a house goes into foreclosure, the second and third mortgage loans are paid back only if there is money left over after the first mortgage is paid. Most of the time, they have a higher interest rate because they are riskier.
Most of the time, the foreclosure of a senior lien wipes out all junior liens, but the foreclosure of a junior lien has no effect on a senior lien. This means that the person who buys the property at the junior foreclosure sale takes on the senior lien. The number of junior mortgages that can be put on a property is not limited by law, but there is a practical limit. A lender would never want the loan amount to be more than what the borrower has in the property that is being used as collateral.
A second mortgage that is secured by a first mortgage lien.
A word used to describe securities that aren't considered investment-grade.
The part of an affidavit written at the bottom by a notary public that says when, where, and in front of whom the affidavit was signed.
The power or authority to act, such as a court's ability to hear and deliver a judgment binding on both parties. Real estate problems are typically handled by the county court in which the property is located. In most states, a state real estate commission or department has authority over the licensing and conduct of real estate salesmen and brokers.
Payment to a property owner for property taken in condemnation procedures, typically the market worth of the property taken by the government.
A sum of money that a party will get in exchange for their property being taken by the government under the power of eminent domain. Both the federal and state constitutions say that private property can't be used for public purposes without first getting a fair amount of money from the court. In condemnation proceedings, figuring out what is fair compensation is probably the hardest part. A person who has been sentenced to jail can usually take the money that is offered or ask for a court hearing to figure out how much money is fair.