Modern Real Estate book vocabulary Flashcards
(102 cards)
1
Q
abstract of title
A
the condensed history of the recorded ownership of a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate
2
Q
accelerated cost recovery system (ACRS)
A
method for claiming tax deductions for certain property purchased before 1987 in which it was possible to claim greater deductions in the early years of ownership, gradually reducing the amount deducted in each year of useful life.
3
Q
acceleration clause
A
the clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the borrower defaults on an installment payment or other obligation
4
Q
accession
A
acquiring title to additions or improvements to real property as a result of the annexation of fixtures or the accretion of alluvial deposits along the banks of streams
5
Q
accretion
A
the increase or addition of land by the deposit of sand or soil washed up naturally from a river, lake, or sea
6
Q
accrued depreciation
A
loss in a property’s value resulting from physical deterioration, external depreciation, and functional obsolescence
7
Q
accrued items
A
on a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property
8
Q
acknowledgment
A
a formal declaration made before a duly authorized officer, usually a notary public, by a person who has signed a document
9
Q
acre
A
a measure of land equal to 43,560 square feet, 4,840 square yards, 4,047 square meters, 160 square rods, or 0.4047 hectares
10
Q
acre (feet)
A
43,560 square feet
11
Q
acre (yards)
A
4,840 square yards
12
Q
acre (meters)
A
4,047 square meters
13
Q
acre (rods)
A
160 square rods
14
Q
acre (hectares)
A
0.4047 hectares
15
Q
action to quiet title
A
a court action that establishes ownership when ownership cannot be traced through an unbroken chain of title
16
Q
actual eviction
A
the legal process that results in a tenant’s being physically removed from leased premises
17
Q
actual notice
A
express information or fact; that which is known; direct notice
18
Q
ad valorem tax
A
a tax levied according to value, generally used to refer to real estate tax. also called the general tax
19
Q
addendum
A
any provision added to an existing contract without altering the content of the original. must be signed by all parties
20
Q
adjustable-rate mortgage (ARM)
A
a loan characterized by a fluctuating interest rate, usually one tied to a bank or savings and loan association cost-of-funds index
21
Q
adjusted basis
A
the new basis
22
Q
administrative law judge (ALJ)
A
the official who presides over a hearing involving a government agency and someone affected by a decision of that agency. The ALJ hears evidence, including the testimony of witnesses, and renders a decision
23
Q
administrator
A
a court-selected person who assists with the settlement of an estate of a person who died without leaving a will. a woman might be called an administratrix although administrator is the term used most often to refer to either a man or a woman
24
Q
adverse possession
A
the actual, open, notorious, hostile, and continuous possession of another’s land under a claim of title.
25
affidavit of title
a written statement, made under oath by a seller or grantor of real property and acknowledged by a notary public, in which grantors (1) identify themselves and indicate marital status, (2) certify that since the examination of the title, on the date of the contract no defects have occurred in the title, and (3) certify that they are in possession of the property (if applicable)
26
affiliated business arrangement (ABA)
practice of one company offering a package of services to consumers
27
agency
the relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions
28
agency by ratification
an agency relationship created after the fact
29
agent
one who acts or has the power to act for another. a fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be his or her agent. A prospective property buyer may authorize a real estate broker to act as the buyer's agent ot find a suitable property
30
air lots
designated airspace over a piece of land. an air lot, like surface property, may be transferred
31
air rights
the right to use the open space above a property, usually allowing the surface to be used for another purpose
32
alienation
the act of transferring property to another. alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession
33
alienation clause
the clause in a mortgage or deed of trust stating that the balance of the secured debt becomes immediately due and payable at the lender's option if the property is sold by the borrower. in effect, this clause prevents the borrower from assigning the debt without the lender's approval
34
allodial system
a system of land ownership in which land is held free and clear of any rent or service due to the government; commonly contrasted to the feudal system. land is held under the allodial system in the United States
35
amendment
a change to the existing content of a contract (i.e., if words or provisions are added to or deleted from the body of the contract). must be initialed by all parties
36
American Land Title Association (ALTA)policy
a title insurance policy that protects the interest in a collateral property of a mortgage lender who originates a new real estate loan
37
Americans with Disabilities Act (ADA)
act addresses rights of individuals with disabilities in employment and public accommodations
38
amortized loan
a loan in which the principal, as well as the interest, is payable in monthly or other periodic installments over the term of the loan
39
annexation
process of converting personal property into real property
40
annual percentage rate (APR)
the relationship of the total finance charges associated with a loan. this must be disclosed to borrowers by lenders under the Truth in Lending Act
41
anticipation
the appraisal principle holding that value can increase or decrease based on the expectation of some future benefit or detriment produced by the property
42
antitrust laws
laws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition. most violations of antitrust laws in the real estate business involve either price-fixing (real estate professionals conspiring to set fixed compensation rates) or allocation of customers or markets (real estate professionals agreeing to limit their areas of trade or dealing to certain areas or properties)
43
appointed agency
designated agency
44
appraisal
an estimate of the quantity, quality, or value of something. the process through which conclusions of property value are obtained; also refers to the report that sets forth the process of estimation and conclusion of value
45
appraisal report
an opinion of a property's market value given to a lender or client with detailed market information
46
appraiser
an independent person trained to provide an unbiased estimate of value
47
appraiser independence requirements (AIR)
regulations issued by Fannie Mae that must be followed by appraisers to ensure accurate and objective appraisals
48
appreciation
an increase in the worth or value of a property due to economic or related causes, which may prove to be either temporary or permanent; opposite of depreciation
49
appurtenance
a right, privilege, or improvement belonging to, and passing with, the land; "runs with the land"
50
appurtenant easement
an easement that is annexed to the ownership of one parcel and allows the owner the use of the neighbor's land
51
area
a level surface or piece of ground; the size of a surface; the amount of a two-dimensional object
52
area preference
people's desire for one are over another, based on a number of factors such as history, reputation, convenience, scenic beauty, and location
53
asbestos
a mineral once used in insulation and other materials that can cause respiratory diseases
54
assemblage
the combining of two or more adjoining lots into one larger tract to increase their total value
55
assessed value
the value set on property for taxation purposes
56
assessment
the imposition of a tax, charge, or levy, usually according to established rates
57
assessment equalization factor
a factor (number) by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with statewide tax assessments. The ad valorem tax would be based on this adjusted value. An equalization factor may be applied to raise or lower assessments in a particular district or county.
58
assigned agency
designated agency
59
assignment
the transfer in writing of interest in a bond, mortgage, lease, or other instrument
60
associate license
a licensed real estate salesperson who is employed by or associated with the broker to perform brokerage activities on behalf of or for the broker
61
assumption of mortgage
acquiring title to property on which there is an existing mortgage and agreeing to be personally liable for the terms and conditions of the mortgage, including payments
62
attachment
the act of taking a person's property into legal custody by writ or other judicial order to hold it available for application to that person's debt to a creditor
63
attorney's opinion of title
an abstract of title that an attorney has examined and has certified to be, in the attorney's opinion, an accurate statement of the facts concerning the property's ownership
64
automated underwriting
computer systems that permit lenders to expedite the loan approval process and reduce lending costs
65
automatic extension clause
a listing agreement clause stating that the agreement will continue automatically for a certain period of time after its expiration date. in many states, use of this clause is discouraged or prohibited
66
avulsion
the sudden tearing away of land, as by earthquake, flood, volcanic action, or the sudden change in the course of a stream.
67
balance
the appraisal principle stating that the greatest value in a property will occur when the type and size of the improvements are proportional to each other as well as the land
68
balloon payment
a final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized
69
bargain and sale deed
a deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. the grantor may add warranties to the deed
70
base line
the main imaginary line running east and west and crossing a principal meridian at a definite point; used by surveyors for reference in locating and describing land under the rectangular (government) survey system of legal description
71
basis
the financial interest that the internal revenue service attributes to an owner of an investment property for the purpose of determining annual depreciation and gain or loss on the sale of the asset. if a property was acquired by purchase, the owner's basis is the cost of the property plus the value of any capital expenditures for improvements to the property, minus any depreciation allowable or actually taken. this new basis is called the adjusted basis
72
benchmarks
permanent reference marks or points established for use by surveyors in measuring differences in elevation
73
beneficiary
1) the person for whom a trust operates or in whose behalf the income from a trust estate is drawn 2) a lender in a deed of trust loan transaction
74
binder
an agreement that may accompany an earnest money deposit for the purchase of real property as evidence of the purchaser's good faith and intent to complete the transaction
75
blanket loan
a mortgage covering more than one parcel of real estate, providing for each parcel's partial release from the mortgage lien upon repayment of a definite portion of the debt
76
blockbusting
the illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of persons of a particular race or national origin into the neighborhood
77
blue-sky laws
common name for those state and federal laws that regulate the registration and sale of investment securities
78
boot
money or property given to make up any difference in value or equity between two properties in an exchange
79
boycott
when individuals or businesses withhold their patronage to a business as a protest or to reduce competition
80
branch office
a secondary place of business apart from the principal or main office from which real estate business is conducted. a branch office usually must be run by a licensed real estate professional
81
breach of contract
violation of any terms or conditions in a contract without legal excuse; for example, failure to make a payment when it is due
82
bring down
a second title search that is made after the closing and before any new documents are filed
83
broker
one who acts as an intermediary on behalf of others for a fee or commission.
84
broker protection clause
clause in a contract that protects a broker from losing a commission in the event a transaction is not completed or is intentionally delayed until after the listing expires
85
brokerage
the bringing together of parties interested in making a real estate transaction
86
broker's price opinion (BPO)
an opinion of real estate value commissioned by a bank or an attorney and provided by a broker
87
brownfields
defunct, derelict, or abandoned commercial or industrial sties; many have toxic wastes
88
budget comparison statement
compares actual results with the original budget, often giving either percentages or a numerical variance of actual versus projected income and expenses
89
buffer zone
a strip of land, usually used as a park or designated for a similar use, separating land dedicated to one use from land dedicated to another us (e.g., residential from commercial)
90
building code
an ordinance that specifies minimum standards of construction for buildings to protect public safety and health
91
building permit
written governmental permission for the construction, alteration, or demolition of an improvement, showing compliance with building codes and zoning ordinances.
92
building-related illness (BRI)
an illness due to air quality problems, typically toxic substances or pathogens; a clinically diagnosed condition. symptoms include asthma, allergies, and hypersensitivity
93
bulk transfer
uniform commercial code
94
bundle of legal rights
the concept of land ownership that includes ownership of all legal rights to the land - possession, control within the law, enjoyment, exclusion, and disposition
95
buydown
a financing technique used to reduce the monthly payments for the first few years of a loan. funds in the form of discount points are given to the lender by the builder or the seller to buy down or lower the effective interest rate paid by the buyer, thus reducing the monthly payments for a set time
96
buyer representation agreement
a principal-agent relationship in which the real estate professional acts on behalf of the buyer, usually as an agent, with fiduciary responsibilities to the buyer
97
buyer's agent
a real estate professional who is under contract to locate property for a buyer and represent the buyer's interests in a transactions
98
buyer's broker
a residential real estate professional who represents prospective buyers exclusively
99
buyer's representative
a residential real estate professional who represents the prospective purchaser in a transaction, often through a sales associate of the broker. the buyer's representative who acts as a buyer's agent owes the buyer-principal the common-law or statutory agency duties
100
capital gain
profit earned from the sale of an asset
101
capitalization
a mathematical process for estimating the value of a property using a proper rate of return on the investment and the annual net operating income expected to be produced by the property. the formula is expressed as follows: income / rate = value
102
capping
the process of laying two to four feet of soil over the top of a landfill site and then planting grass on it to enhance the aesthetic value and prevent erosion
