MA Real Estate Vocab Flashcards
the best retail location within a community
100% Location
Office where salesperson pay a regular fee to the broker, but receive 100% of the commissions they earn.
100% Office
Voluntarily giving up possession of property or a claim or right
Abandonment
A legal action to stop a nuisance. Also can be a reduction of a property tax assessment.
Abatement
The rate at which new or vacant space (such as office space) will become occupied.
Absorption Rate
A condensation of a court judgment. When recorded, the judgment becomes a general lien on the property of the debtor within the county where recorded.
Abstract of Judgment
A history of every recorded document dealing with a property. It is examined to determine whether there is marketable title.
Abstract
A means of obtaining land value by deducting the value of improvements from the total property value.
Abstractive Method
Any method of depreciation for tax purposes that gives greater initial depreciation than the straight-line method. Accelerated depreciation is no longer allowed.
Accelerated Depreciation
A provision in a note making all payments due on the happening of a certain event (such as missing a payment or selling the property).
Acceleration clause
An act or agreement that forms a contract.
Acceptance
Obtaining title as a result of attaching or joining property to other property.
Accession
A third person (cosigner) who signs a negotiable instrument agreeing to be personally liable to the payee.
Accommodation Party
The act of accepting a different consideration than agreed; for example, if there is a dispute as to performance, and one party accepts less than what was bargained for originally.
Accord and satisfaction
A professional designation awarded to a management company by the Institute of Real Estate Management
Accredited Management Organization (AMO)
A professional designation for resident property managers awarded by the Institute of Real Estate Management
Accredited Resident Manager (ARM)
A gradual buildup of soil by action of water or wind.
Accretion
Depreciation to date; measured by the difference between the replacement cost new and the present value.
Accrued depreciation
A declaration customarily made before a notary, certifying that the signing of an instrument is the signer’s own free act.
Acknowledgment
Acre
43,560 square feet
A legal action against a person. When recorded, a judgment from such an action is a general lien against all of a debtor’s property in the county where recorded.
Action in personam
A legal action against property. When recorded, a judgment from such an action is a specific lien against the particular property involved in the action.
Action in rem
Personal knowledge of an interest or instrument
Actual notice
A tax according to value; real property taxes are considered to be ad valorem taxes.
Ad valorem
Disposal of property by a testator before death. It defeats the rights of a specific beneficiary under the will. (The beneficiary is not entitled to the sale proceeds or value).
Ademption
A mortgage bearing a rate of interest subject to change (based on a particular index) during the term of the loan. ARMs generally have caps on the interest that can be charged.
Adjustable-rate mortgage (ARM)
Acquisition cost less depreciation plus cost of improvements. The adjusted basis is deducted from the sales price to determine gain or loss.
Adjusted basis
Gross income adjusted for a vacancy factor and collection loss.
Adjusted gross income
The adjustment of a comparable property’s sale price to account for differences in features and amenities of a property under appraisal (using the market comparison approach).
Adjusted market price
A man appointed by a probate court to administer the estate of a deceased.
Administrator; a female is administratrix.
A lender agreement to provide permanent financing upon completion of a construction project.
Advance commitment
A means of obtaining title from another by open, hostile, and continuous use for a statutory period of time. In some states, it also requires payment of taxes.
Adverse Possession
Zoning for conformance appearance such as architectural style requirements.
Aesthetic zoning
A statement sworn to under oath or by affirmation before a notary.
Affidavit
A formal declaration as to the truthfulness of a statement; made by a person whose religious beliefs prohibit swearing under oath.
Affirmation
An easement that allows the easement holder a right of use over the land of another.
Affirmative easement
An index of the National Association of REALTORS that measures the median family income ability to support a mortgage for the median price home. An index of 100 means that the median income is equal to the amount necessary to afford the median price home.
Affordability index
An interest acquired by a grantor after he or she has conveyed property. Under some deeds, it is said to pass to the grantee.
After-aquired interest
Appraisal tables that indicate the economic life for various types of structure
Age-life tables
An agency created when the principal’s words or conduct lead another to believe in the agency and thereby act to the other’s detriment.
Agency by estoppel
An agency created by a principal approving an unauthorized act of another.
Agency by ratification
An irrevocable agency under which the agent has an interest in the subject matter of the agency.
Agency coupled with an interest
A contractual relationship in which one person (an agent) represents another (a principal).
Agency
A person representing and acting in behalf of another.
Agent
A described airspace over a property that is subject to being transferred.
Air lot
The rights of property owners to the reasonable use of the airspace over their property. They are considered to be real property, and can be separately leased or conveyed.
Air rights
A transfer of property or property rights.
Alienation
Soil added gradually to land by action of water or wind (accretion). The soil belongs to the land it is added to by this accretion process.
Alluvion
Modification of a contract or note by one party without the consent of the other. This voids the contract.
Alteration
A change in the escrow instructions after they have been signed. The signatures of both buyer and seller are required to amend the instructions.
Amend escrow instructions
Features of the property that enhance the satisfaction and use of the property; for example, an extra bath, a flower garden, or matured shade trees.
Amenities
A type of title insurance policy providing extended coverage to the lender. the same extended coverage also may be available for the buyer.
American Land Title Association (ALTA)
Increased capital gains for high income tax payers.
American Taxpayer Relief Act of 2012
Provides for handicapped accessibility for places of public accommodation.
Americans with Disabilities Act (ADA)
A loan that is liquidated by equal payments.
Amortized loans
A bolt that ties the mudsill (the lowest board in a house) to the foundation
Anchor bolt
A major tenant, usually located at one end (or both ends)of a shopping center. Lesser shops benefit by being between or close to them.
Anchor tenant
A probate for real property located in a state other than the domicile of the deceased.
Ancillary probate
Adding to something, personal property can become real property by being joined to it.
Annexation
An interest rate expressed in simple interest considering all finance charges.
Annual percentage rate (APR)
Value changes based on anticipated future use and income.
Anticipation
An action or a statement of a party before the performance due date that indicates the party will breach the contract. The other party can bring a suit upon this without waiting for actual breach.
Anticipatory breach
A clause in a mortgage that prevents loss of lien priority should the lien-holder receive a deed. Otherwise, a deed in lieu of foreclosure would convey title subject to later liens.
Antimerger clause
Organization responsible for the Uniform Standards of Professional Appraisal Practice (USPAP).
The Appraisal Foundation
An estimate of market value
Appraisal
A right, benefit, or attachment that transfers with real property; for example buildings, easement rights, and water rights.
Appurtenance
Taking advantage of the interest rate differential by buying at one interest rate, and selling at a higher interest rate by either land contract or the use of a wraparound loan
Arbitrage
A nonjudicial process for the resolution of disputes whereby the parties agree to abide by a decision made by a third person.
Arbitration
A bargain freely entered into without duress, undue influence, or collusion (deceit).
Arm’s-length transaction
Filed with the state, they set forth the activities a corporation may engage in.
Articles of incorporation
A surveyor point for metes-and-bounds descriptions that is man-made, such as an iron stake, a fence, or a canal.
Artificial monument
A phrase intended to mean that the seller does not warrant a property’s condition. Such a phrase, however, does not protect the seller in cases of concealment or fraud. Some courts hold that it applies to only readily observable defects, not to known, but undisclosed latent defects.
As is
A mineral formerly used for insulation and in housing products. It’s dust is a hazardous material.
Asbestos
The act of bringing adjacent parcels of land under one ownership; the opposite of subduing. This usual results in an increase in value.
Assemblage
Value placed by the tax assessor.
Assessed value
The process of valuing a property for taxation purposes.
Assessment
Property owned by or owed to a business or person
Assets
A mortgage clause that allows the mortgage to collect rents during the foreclosure period. Could also be a transfer of rents to a third party.
Assignment of rents
The complete transfer of one person’s rights to another. The assignee takes over the rights and duties of the assignor.
Assigment
Person who has met real estate broker requirements, but works for a broker in a salesperson capacity.
Associate broker
The act of taking over the responsibilities for an obligation, and agreeing to be liable personally for the obligation. A deficiency judgement might be possible against this party.
Assumption
The legal seizure of a property under court order before a judgment when there is belief that the property will not be available after judgment.
Attachment
the act of witnessing; to attest is to bear witness. Formal wills require witnesses.
Attestation
A person operating as an agent (not an attorney-at-law) under the power of attorney
Attorney-in-fact
An agreement between owner and sublessee that the owner will recognize the sublease, and the sublessee will pay the owner should the sublessor’s interests be foreclosed.
Attornment
A doctrine holding the owner of land liable for injury to children due to the unsafe condition of property where property is likely to attract children as trespassers.
Attractive nuissance
The sudden tearing away or lose of real property by action of water, such as river’s changing course.
Avulsion
City growth along transportation routes from the city center (resembles the spokes of a wheel).
Axial growth
The ratio of gross income to loan payments (PITI) plus long-term installment debt payments. Used to qualify buyers.
Back-end ratio
Giving possession of personal property to another, but retaining title; for example, storing goods in a warehouse, renting a trailer, giving existing mortgages to a lender as security for a loan.
Bailment
A financial statement showing assets and liabilities. This shows net worth.
Balance sheet
A final installment of a unamortized loan that exceeds the previous payments
Balloon payment
Interest based on a 30-day month and a 360-day year
Banker’s interest
A legal procedure to eliminate unsecured debts. To eliminate secured debts. the security must be surrendered.
Bankruptcy
A deed for consideration that uses the terms bargain and sale. It contains no warranties other than the implied interest by the grantor.
Bargain and sale deed
The principal east and west surveyor lines established by government survey.
Base line
A molding placed against the wall on the floor around the room.
Baseboard
Cost plus improvements less depreciation. Used to determine profit to tax purposes on sale.
Basis
Wood strips used to cover joints; used in board-and-batten siding.
Batten
A horizontal structural member giving support to a structure.
Beam
A negotiable instrument made out to cash or bearer that can be transferred without endorsement.
Bearer paper
A wall with a footing under it that bears the load of the structure.
Bearing wall
A marker placed by a government surveyor showing elevation above sea level, and used by surveyors as a reference point.
Benchmark
The person receiving payments under a deed of trust; similar to a mortgagee.
Beneficiary
A deed that does not take effect until death of a grantor (allowed in several states).
Beneficiary deed
A statement of a lender of the balance due on a loan.
Beneficiary statement
to give personal property by will.
Bequeath
Personal property that is given by will.
Bequest
An actual improvement (not a repair) to real estate.
Betterment
A mutual exchange of promises whereby each promise is consideration for the other promise.
Bilateral contract
A written agreement transferring title to personal property
Bill of sale
Insurance coverage given by an agent before the issuance of a policy or payment of a premium
Binder
A mortgage covering more than one property
Blanket mortgage
A refinance rate that is less than the current market rate but is more than the old rate.
Blended mortgage rate
An advertisement that fails to indicate that the advertiser is a real estate agent.
Blind advertising
A syndicate in which the property to be purchased will be selected after the money has been raised.
Blind pool
The act of inducing panic selling for gain by exploiting the fear of loss in value because minority members are moving in an area. This is ILLEGAL under the Civil Rights Act of 1968.
Blockbusting
Security registration requirements to protect consumers against investments in fraudulent schemes.
Blue-sky laws
A unit of lumber measurement equal to 144 cubic inches (1’ 1’ 1”)
Board foot
Cost plus improvements less depreciation taken; the value assigned an asset for book keeping purposes.
Book value
