[
Dictionary of Terms ]
 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
U
UNDERIMPROVED
LAND A particular land use that, due to the fact the land is
not being used to its highest and best use, does not generate
the maximum level of income that could be generated from the
land.
UNDERINSURANCE
Insurance coverage for an amount less than the value of the property
being insured.
UNDERWRITER
Someone, such as an employee of a lending institution or mortgage
banking company, who reviews an application for a loan and makes
a recommendation to a loan committee as to the desirability and
risk of the institution making the loan. The underwriting process
is an integral part of the lending process.
UNDEVELOPED
LAND Land that has not had improvements made either to the land
or on the land. The term raw land is sometimes used to refer
to this type of land.
UNDISCLOSED
AGENCY A situation in which a person is dealing with a third
person, but does not notify or inform the third person that an
agency relationship exists.
UNDISCLOSED
PRINCIPAL A situation in which a third person is not advised
of the existence of an agency relationship and, thus, is unaware
that a principal-agent relationship exists. The unknown person
for whom the agent is acting is referred to as an undisclosed
principal. If an undisclosed principal exists, the agent is personally
liable under the contract.
UNDIVIDED
INTEREST The legal interest of co-owners in property in which
the individual interest of each individual is indistinguishable.
UNDUE
INFLUENCE Any action or urgency by a person in a fiduciary capacity
or in a position of authority that causes someone else to act
in a way contrary to what would have been done had the party
been free of the influence. The essence of undue influence is
mental coercion by one person over another. Contracts induced
by undue influence are voidable at the option of the injured
party.
UNENCUMBERED
PROPERTY Property that is free and clear of any legal claims
or liens.
UNENFORCEABLE
CONTRACT An agreement in which something prevents a court of
law from hearing disputes regarding the enforceability of the
agreement.
UNIFORM
VENDOR AND PURCHASER RISK ACT A law adopted in many states that
addresses the question of who has legal title to property if
an event such as damage due to fire occurs prior to the time
of delivery and acceptance of the deed. Under common law when
a real estate sales contract is signed which is not subject to
any unfulfilled contingencies equitable conversion occurs and
equitable title passes to the purchaser. The result of this is
that the risk of loss also passes to the purchaser. If the subject
matter is destroyed before closing, the purchaser suffers the
loss. The Uniform Vendor and Purchaser Risk Act provides for
risk of loss to shift only if either legal title or possession
has been transferred. However, even with adoption of the act,
the purchaser and seller may specify in the contract who has
the risk of loss.
UNILATERAL
CONTRACT An agreement in which one party promises to pay consideration
for the performance of an act by another party. The party promising
to pay consideration is not legally obligated to act unless the
party promising to perform the agreed-to act actually performs.
An open or general listing is a unilateral contract. Under this
contract the property owner is only obligated to pay a commission
to the broker who is the efficient and procuring cause of the
sale. More than one broker may be employed and the owner is not
obligated to pay anyone a commission if the owner personally
sells the property.
UNILATERAL
MISTAKE A misunderstanding or mistake of a material fact made
by just one of the parties involved in a contractual agreement.
UNIMPROVED
LAND Land in which neither improvements to the land or on the
land have been made. Sometimes the term raw land is used to denote
land in which no improvements have been made.
UNINSURABLE
TITLE Title to real estate that is not marketable and one that
a title insurance company refuses to insure due to some existing
claim or encumbrance against the property.
UNIT
That portion of a condominium intended for the exclusive use
and possession of the individual unit owner. The individual arranges
for separate financing for his or her individual unit and has
fee simple title to the unit.
UNITY
OF POSSESSION The right of each tenant to the possession and
use of the whole property. This unity means that even though
one of the joint tenants owns 50 percent of the interest in the
property, he or she does not own a legally defined 50 percent
of the area. Unity of possession is one of the unity requirements
for the creation of a joint tenancy and is the only necessary
unity for the creation of a tenancy in common.
UNITY
OF TIME A requirement of a joint tenancy which states that all
interests of the joint tenants must have been acquired at the
same moment.
UNITY
OF TITLE One of the unity requirements of a joint tenancy which
states that the joint tenancy interests must be created in a
single conveying instrument. This means that if a joint tenant
sells his or her interest to a third party, the joint tenancy
is terminated in relationto the third party. If originally two
joint tenants owned the property and one of these conveyed his
or her interest to a third party, a tenancy in common would be
created. If there are more than two joint tenants, the conveyance
by one tenant of his or her interest would not terminate the
right of survivorship among the remaining tenants as to their
interest but would create a tenancy in common only insofar as
the purchaser was concerned.
UNIVERSAL
AGENT A type of agent characterized by having the authority to
do all acts that can be lawfully delegated to a representative.
Ordinarily, a universal agent is created by a power of attorney.
Anyone of legal capacity may be an attorney in fact, a position
created by the power of attorney. Care should be taken not to
confuse this status with an attorney at law, a person who must
be admitted to an appropriate bar. Power of attorney is useful
when a principal wishes to empower a broker to sell a house while
the principal must be out of the country and, thus, is unable
to personally sign appropriate documents to convey title. It
should be noted that power of attorney may be limited in authority
so that a universal agency is not necessarily created.
UNLAWFUL
DETAINER The unjustifiable retention or possession of land by
someone whose original entry and possession was legal.
UNMARKETABLE
TITLE Title to real estate that is not marketable and one a title
insurance company refuses to insure due to some existing claim
or encumbrance against the property.
UNRECORDED
INSTRUMENT Any legal document such as a mortgage or deed of trust
that has not been properly placed in the public records. Recordation
of the instrument gives the world constructive notice as to the
legal claims or interests in the property.
UNSECURED
LOAN A loan made only on the signature and credit of the borrower
and, thus, not secured by collateral. By definition, a loan in
which property is used to secure the debt is a secured loan.
UPLAND
Land bordering a body of water.
UP
RENT POTENTIAL The forecasted amount that rental rates can be
reasonably increased over a specified period of time. The ability
to forecast future income flows to rental property is contingent
on being able to estimate the up rent potential of the property.
UPSET
PRICE The lowest or minimum price as set by a court of law at
which property can be sold at public auction.
URBAN
DEVELOPMENT ACTION GRANT (UDAG) A federal funding program administered
through the Department of Housing and Urban Development (HUD)
for the purpose of making funds available to revitalize commercial
areas.
URBAN
LAND INSTITUTE (ULI) A nonprofit research and educational association
involved in providing information on intelligent land use. The
institute publishes numerous textbooks and research papers on
topics related to land use. The mailing address is 1090 Vermont
Avenue, N.W., Washington, D.C. 2OM5; (202) 289-3307.
URBAN
RENEWAL The process by which property is acquired by government
action for the purpose of redevelopment and upgrading of the
land use. Urban renewal projects include such land uses as public
housing, parks and recreational areas, public libraries, and
other such uses.
URBAN
SPRAWL The unplanned and often haphazard growth of an urban area
throughout a larger geographic area.
USEFUL
LIFE The period of time over which property is expected to have
utility.
USUFRUCTUARY
RIGHT The personal right to make reasonable use of someone else's
property such as the rights received through an easement.
USURY
The charging of more for the use of money than the legal rate
of interest. A number of states have laws which limit the interest
rate that can be charged to individuals borrowing money in that
state. These laws affect all lenders in a state regardless of
what federal or state agency issued their charter. It should
be noted that if there is a national economic emergency the federal
government may temporarily suspend state usury laws.
UTILITY
(UTILITIES) In appraisal theory, the term refers to the usefulness
or satisfaction one receives from a good or service. In development,
the term refers to the private or public service facilities such
as telephone, water, and sewer that are provided as part of the
development of the land.
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