Terms Flashcards
1
Q
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate.
A
Brokerage
2
Q
A person or an organization acting as the agent for others in negotiating the purchase and sale of real property or other commodities for a fee.
A
Real Estate Broker
3
Q
A person performing any of the acts included in the definition of real estate broker but while associated with and supervised by a broker.
A
Real Estate Salesperson
4
Q
A type of property that includes one to four dwelling units.
A
Residential Property
5
Q
Property that produces rental income or that is used in business. Properties with five or more dwelling units are considered commercial property.
A
Commercial Property
6
Q
Property that is used by companies or persons for manufacturing, warehousing, or the assemblage of components.
A
Industrial Property
7
Q
A category of real property created as a result of combining the land and its improvements for a single highest and best use.
A
Special Purpose Property
8
Q
Any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections.
A
Mixed-use Property
9
Q
Changes or additional made to a property, such as walls and roads. These typically increase the value of a property, except in some cases of over improvement.
A
Improvements
10
Q
A physical characteristic of land describing that land as a unique commodity.
A
Non-homogeneity
11
Q
The present worth of future benefits.
A
Value
12
Q
The amount a purchaser agrees to pay and a seller agrees to accept under the circumstances surrounding a transaction.
A
Price
13
Q
The total dollar expenditure for labor, materials, and other items related to construction.
A
Cost
14
Q
The amount of goods offered for sale within a given market at a given price during a given time period.
A
Supply
15
Q
The amount of goods consumers are willing and able to buy at any given price during any given time period.
A
Demand
16
Q
The study of the social and economic statistics of a community.
A
Demography
17
Q
A person authorized to act on behalf of another.
A
Agent
18
Q
The employer of an agent.
A
Principal
19
Q
The party the agent brings to the principal as seller or buyer of the property.
A
Customer
20
Q
An agent with full authority over one property of the principal, such as a property manager.
A
General Agent
21
Q
An agent with limited authority to act on behalf of the principal, such as created by a listing.
A
Special Agent
22
Q
A contract in which a property owner employs a real estate broker to market the property described in the contract.
A
Listing Contract
23
Q
That 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.
A
Fiduciary Duty
24
Q
A person in a position of trust and confidence, as between principal and broker; broker as fiduciary owes certain loyalty which cannot be breached under the rules of agency.
A
Fiduciary
25
Let the buyer beware. The buyer must examine the goods or property and buy at his or her own risk.
Caveat Emptor
26
An evaluation of a property’s value based on a given point in time that is performed by a professional appraiser during the mortgage origination process.
Appraised Value
27
A means of comparing similar type properties, which have recently sold, to the subject property. Commonly used in comparing residential properties.
Market Comparison Approach
28
An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land.
Cost Approach
29
One of the three methods of the appraisal process generally applied to income producing property, and involves a three-step process – (1) find net annual income, (2) set an appropriate capitalization rate or “present worth” factor, and (3) capitalize the income dividing the net income by the capitalization rate.
Income Approach
30
A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.
Assessed Value
31
The cost of replacing a structure completely destroyed by an insured hazard.
Insured Value
32
The basis of a depreciable asset used to compute the taxable gain from its sale; the basis is acquisition cost plus capital improvements less accrued depreciation.
Depreciated Value
33
The material of the earth, whatever may be the ingredients of which it is composed, whether soil, rock, or other substance, and includes free or unoccupied space for an indefinite distance upwards as well as downwards.
Land
34
The rights of an owner of a freehold estate to possession, enjoyment, control, and disposition of real property.
Bundle of Rights
35
The landowner’s ability to take minerals from the earth or to sell or lease this right to others.
Mineral Rights
36
The rights in real property to the reasonable use of the air space above the surface of the land.
Air Rights
37
Land and everything permanently attached to land.
Real Estate
38
The aggregate of rights, powers, and privileges conveyed with ownership of real estate.
Real Property
39
All property that is not land and is not permanently attached to land; everything that is movable.
Personal Property
40
Personal property.
Chattel
41
The crops and other annual plantings considered to be personal property of the cultivator.
Emblements
42
Personal property that has become real property by having been permanently attached or adapted to real property.
Fixtures
43
Items that are installed by a commercial tenant and are removable upon termination of the tenancy.
Trade Fixtures
44
A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property.
Condominium
45
A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease.
Cooperative
46
A form of cluster zoning providing for both residential and commercial land uses within a zoned area.
Planned Unit Development (PUD)
47
Any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections.
Mixed-use Property
48
A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation systems.
Mobile Home
49
A license or contractual or membership right of occupancy in a project which is not coupled with an estate in the real property.
Time-Share
50
The profit realized from the sale of real estate or other investment. Capital loss occurs when an investment property or another type of investment is sold at a loss.
Capital Gain
51
An insurance policy protecting against a variety of hazards.
Homeowners Policy
52
The insured is covered and reimbursed for the actual cost of replacing the damaged property.
Replacement Costs
53
An acronym denoting that a mortgage payment includes, principal, interest, taxes, and insurance.
PITI
54
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate.
Brokerage
55
A person who is licensed to buy, sell, exchange, or lease real property for others and to charge a fee for these services.
Real Estate Broker
56
The relationship between the principal and the principal’s agent which arises out of a contract, either expressed or implied, written or oral, wherein the agent is employed by the principal to do certain acts dealing with a third party.
Agency
57
A person authorized to act on behalf of another.
Agent
58
The employer of an agent.
Principal
59
The party the agent brings to the principal as seller or buyer of the property.
Customer
60
That 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.
Fiduciary Duty
61
A contract in which a property owner employs a real estate broker to market the property described in the contract.
Listing Contract
62
An agent with full authority over one property of the principal, such as a property manager.
General Agent
63
An agent with limited authority to act on behalf of the principal, such as created by a listing.
Special Agent
64
An agency relationship created by oral or written agreement between principal and the agent.
Express Agency
65
Agency that exists as a result of actions of the parties.
Implied Agency
66
A person in a position of trust and confidence, as between principal and broker; broker as fiduciary owes certain loyalty which cannot be breached under the rules of agency.
Fiduciary
67
Reimbursement or compensation paid to someone for a loss already suffered.
Indemnification
68
The exaggeration of the good points of a product, or real property, and the prospects for future rise in value, profits, and growth.
Puffing
69
The intentional and successful employment of any cunning, deception, collusion, or artifice, used to circumvent, cheat or deceive another person whereby that person acts upon it to the loss of property and to legal injury.
Fraud
70
Let the buyer beware. The buyer must examine the goods or property and buy at his or her own risk.
Caveat Emptor
71
A federal law that prohibits all discrimination on the basis of race.
Civil rights act of 1866
72
A law that prohibited discrimination on the basis of race, sex, color, national origin, or gender in any housing program receiving federal money.
Civil Rights Act of 1964
73
A federal prohibition on discrimination in sale, rental, financing, or appraisal of housing on the basis of race, color, religion, gender, national origin, handicap, or familial status.
Fair Housing Act of 1968
74
A federal law protecting the rights of individuals with physical or mental impairments
Americans with Disabilities Act (ADA)
75
The channeling of home seekers to a particular area, or areas, on the basis of race, religion, country of origin, or other protected class either to maintain the homogeneity of an area, or to change the character of an area in order to create a speculative situation.
Steering
76
The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry, or prospective entry of minority persons into the neighborhood.
Blockbusting
77
The practice of refusing to make loans or otherwise denying financial assistance for housing in a particular area.
Redlining
78
Anyone younger than 18 being domiciled with a parent or other person having legal custody of such individual, or the designee of such parent or other person having such custody, with the written permission of the parent.
Familial Status
79
Any medical disorder, condition, disfigurement or loss affecting one of the body systems, such as neurological, musculoskeletal, special sense organs, respiratory, cardiovascular, reproductive, digestive, genitourinary, immune, circulatory, hemic, lymphatic, skin, and endocrine.
Physical Impairment
80
Any mental or psychological disorder, such as intellectual disability, organic brain syndrome, emotional or mental illness, and specific learning disabilities.
Mental Impairment
81
Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers.
Testers
82
Moral principles that govern a person’s or group’s behavior.
Ethics
83
An exact way of describing real estate in a contract, deed, mortgage, or any other document that will be accepted by a court of law.
Legal Description
84
The process of precisely determining the area, dimensions, and location of a piece of land.
Survey
85
A term used in describing the boundary lines of land, setting forth all the boundary lines together with their terminal points and angles.
Metes and Bounds
86
A monument used to establish the elevation of the point, usually relative to Mean Sea Level, but often to some local datum.
Bench Mark
87
A fixed object and point established by surveyors to establish land locations.
Monument
88
A method of specifying the location of a parcel of land using prime meridians, base lines, standard parallels, guide meridians, townships and sections.
Government Survey System
89
Imaginary north-south lines which intersect base lines to form a starting point for the measurement of land.
Principal Meridians
90
Imaginary east-west lines which intersect meridian lines to form a starting point for the measurement of land.
Base Lines
91
A strip or column of land six miles wide, determined by a government survey, running in a north-south direction, lying east or west of a principal meridian.
Range
92
A series of government survey lines running north and south at six-mile intervals starting with the principal meridian and forming the east and west boundaries of townships.
Range Lines
93
In the survey of public lands of the United States, a territorial subdivision six miles long, six miles wide and containing 36 sections, each one mile square, located between two range lines and two township lines.
Township
94
The Mean Sea Level at New York Harbor
Datum
95
Equal to 16-1/2’ or 5-1/2 yards.
Rod
96
Equal to 66’-0” in length or 4 rods
Chain
97
Equal to 5,280’ or 320 rods.
Mile
98
Equal to 43,560 sq.ft. or 160 rods.
Acre
99
Established by a government survey and contains 640 acres and is one mile square.
Section
100
Equal to 12”x12” or 144 sq.in..
Square Foot
101
Equal to 3’x3’ or 9 sq.ft..
Square yard
102
Equal to 3’x3’x3’ or 27 cubic feet.
Cubic yard
103
A voluntary, legally enforceable promise between two legally competent parties, to perform some legal act in exchange for legal consideration.
Contract
104
A contract that has been put into words, either spoken or written.
Express Contract
105
An agreement that has not been put into words, but is implied by the actions of the parties.
Implied Contract
106
A contract in which a property owner employs a real estate broker to market the property described in the contract.
Listing Contract
107
A contract in which each party promises to do something.
Bilateral Contract
108
When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it; the contract is formed only if the other party does perform the requested act.
Unilateral Contract
109
A contract that has been fully performed
Executed Contract
110
A contract in which something remains to be done by one or both of the parties.
Executory Contract
111
A contract that complies with all of the essential elements of a contact, and is enforceable and binding on all parties.
Valid Contract
112
To have no force or effect; that which is unenforceable.
Void Contract
113
That which is capable of being adjudged void, but is not void unless action is taken to make it so.
Voidable
114
Anything given or promised by a party to induce another to enter into a contract, ex: personal services or even love and affection. It may be a benefit conferred upon one party or a detriment suffered by the other.
Consideration
115
A condition of a contract expressing the essential nature of performance of the contract by a party in a specified period of time.
“Time is of the essence”
116
A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract.
Assignment
117
One who assigns or transfers property.
Assignor
118
Those to whom property or interests therein shall have been transferred.
Assignee
119
The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties.
Novation
120
An action to compel performance of an agreement, ex: sale of land as an alternative to damages or rescission.
Specific Performance
121
A violation of the terms or conditions of a contract without a legal excuse.
Breach of Contract
122
Damages benefiting the non-defaulting party as a result of a default of a contract.
Liquidated Damages
123
A law establishing the time period within which certain lawsuits may be brought.
Statute of Limitations
124
A contract by which a buyer and seller agree to the terms of a sale.
Sales Contract
125
A response to an offer to enter into a contract, changing some of the terms of the terms of the original offer. A counter offer is a rejection of the offer (not a form of acceptance), and does not create a binding contract unless accepted by the original offeror.
Counter Offer
126
An interest in real estate such that a court will take notice and protect the owner’s rights.
Equitable Title
127
A down payment made by a purchaser of real estate as evidence of good faith.
Earnest Money Deposit
128
To mingle or mix, for example, a client’s funds in the broker’s personal or general account.
Commingling
129
The unlawful appropriation of another’s property, as in the conversion of trust funds.
Conversion
130
The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public.
Police Power
131
A right of the government to acquire property for necessary public use by condemnation; the owner must be fairly compensated.
Eminent Domain
132
Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain.
Condemnation
133
The reversion of the State of property in event the owner thereof abandons it or dies, without leaving a will and has no distributes to whom the property may pass by lawful descent.
Escheat
134
An estate of indeterminable duration, e.g., fee simple or life estate.
Freehold Estate
135
Absolute ownership of real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person’s life and descending to the person’s heirs or distributees.
Fee simple estate
136
An inheritable estate in land providing the greatest interest of any form of title.
Fee simple absolute
137
An estate that will end automatically when the stated event or condition occurs. The interest will revert to the grantor or the heirs of the grantor.
Fee simple determinable
138
A person who inherits or is entitled to inherit property upon the termination of the estate of the former owner.
Remainderman
139
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate.
Life estate
140
The owner of a life estate.
Life Tenant
141
Property or estate ownership that reverts back to the grantor after a temporary ownership period.
Estate in Reversion
142
An estate which vests after the termination of the prior estate.
Estate in Remainder
143
The interest which a person has in lands or other property, upon the termination of the preceding estate. A future interest.
Reversionary Interest
144
One who disposes of real property by will.
Devisor
145
One who receives a gift of real property by will.
Devisee
146
A legal life estate in land that is owned and occupied as a family home.
Homestead
147
A claim, charge, or liability that attaches to, and is binding on real estate.
Encumbrance
148
A limitation on the use of real property.
Restriction
149
A claim against a property that provides security for the repayment of a debt or an obligation of the property owner.
Lien
150
A right acquired by one party to use the land of another party for a special purpose.
Easement
151
A right of use in the adjoining land of another that moves with the title to the property benefiting from the easement.
Easement Appurtenance
152
Exists when a landowner has no access to roads and is landlocked.
Easement by Neccessity
153
A right of use in the land of another without the requirement that the holder of the right own adjoining land.
Easement in Gross
154
Obtained by use of the land of another for the legally prescribed length of time.
Easement by Prescription
155
A grantor conveys the right to use the grantor’s land to a grantee for the purpose of ingress and egress.
Easement by voluntary grant
156
Land encumbered by an easement.
Servient Tenement
157
Land benefiting from an easement appurtenant.
Dominant Tenement
158
Any lien placed on property with consent of, or as a result of, the voluntary act of the owner.
Voluntary lien
159
A lien imposed against property without consent of an owner (ex: taxes, special assessments, federal income tax liens, etc.).
Involuntary lien
160
A lien on all the property of a debtor.
General Lien
161
A lien that attaches to one specific property only.
Specific Lien
162
The order in which liens are given legal precedence or preference.
Priority of Lien
163
An agreement by the holder of an encumbrance against real property to permit that claim to take an inferior position to other encumbrances against the property.
Subordination Agreement
164
A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.
Assessed Valuation
165
A form of action taken to impose a tax.
Tax Levy
166
The amount of money needed by a municipality to meet budgetary requirements divided by the taxable assessed and nonexempt value of all real property within that jurisdiction.
Tax Rate
167
An encumbrance against a property filed by the taxing jurisdiction for delinquency in paying real property taxes.
Tax Lien
168
A specific lien that gives security to persons or companies who perform labor or furnish material to improve real property.
Mechanic’s Lien
169
A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have the property sold for payment of the amount of the judgment.
Judgment Lien
170
The process by which real or personal property of a party to a lawsuit is seized and retained for payment of an existing note secured by a mortgage or deed of trust against the property, becoming a co-guarantor for the payment of a mortgage or deed of trust note.
Attachment
171
The rights of a landowner or land occupier to use flowing water (such as a river) that is adjacent to the land.
Riparian Rights
172
The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on.
Littoral Rights
173
An addition to property through the efforts of man or by natural forces.
Accession
174
The increasing in land area resulting from the deposit of soil by the natural action of the water.
Accretion
175
The gradual increase of earth on a shore of an ocean or bank of a stream resulting from the action of the water.
Alluvium
176
Increased soil, gravel, or sand on a stream bank resulting from flow or current of the water.
Alluvion
177
A sudden and perceptible loss of land by the action of water as by a sudden change in the course of a river.
Avulsion
178
The eating away of a coastline or land by the action of water, ice, and/or wind, or wearing away of a surface by corrosion or traffic.
Erosion
179
Water under the earth’s surface, below the saturation point.
Ground Water
180
The rights in real property to the reasonable use of the air space above the surface of the land.
Air Rights
181
Owned by one person only. Sole ownership.
Severalty Ownership
182
An ownership of realty by two or more persons, each of whom has an undivided interest, without the “right of survivorship”.
Tenancy in Common
183
Two or more natural persons own that comes with a special benefit called the right of survivorship.
Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship, i.e., the right to share equally with other surviving joint tenants in the interest of a deceased joint tenant.
Joint Tenancy
184
The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant; the distinguishing feature of a joint tenancy.
Right of Survivorship
185
Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse. Each spouse had equal rights of management, alienation, and testamentary disposition of community property.
Community Property
186
A division of real or personal property or the proceeds therefrom among co-owners.
Partition
187
A legal device whereby one person transfers ownership of property to someone else to hold or manage for the benefit of a third party.
Trusts
188
one entitled to the benefit of a trust.
Beneficiary
189
An agreement where the trustee holds legal possession of a fund or assets that belong to another person, the beneficiary, and it is created while the person is alive.
Living Trust
190
An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it. A corporation is a creature of law having certain powers and duties of a natural person. Being created by law it may continue for any length of time the law prescribes.
Corporation
191
An association of two or more people who operate a business as co-owners and share in the business profits and losses.
Partnership
192
An arrangement by which partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnership’s obligations.
General Partnership
193
A partnership consisting of a general partner or partners and limited partners in which the general partners manage and control the business affairs of the partnership while limited partners are essentially investors taking no part in the management of the partnership and having no liability for the debts of the partnership in excess of their invested capital.
Limited Partnership
194
A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.
Limited Liability Company (LLC)
195
A contract in which a property owner employs a real estate broker to market the property described in the contract.
Listing Contract
196
A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract.
Exclusive Agreement (Exclusive Right to Sell Listing Agreement)
197
A listing given to only one broker (exclusive) who is entitled to the commission if the broker or any agent of the listing broker effects a sale but imposes no commission obligation on the owner who sells the property to a person who was not interested in the property by efforts of the listing broker or an agent of the listing broker.
Exclusive Agency Agreement
198
A listing given to one or more brokers in which the broker procuring a sale is entitled to the commission but imposes no commission obligation on the owner when the owner sells the property.
Non-Exclusive Listing (Open Listing)
199
A listing which provides that the agent may retain as compensation for agent’s services all sums received over and above a net price to the owner.
Net Listing
