terms are in definition first order Flashcards
(500 cards)
1
Q
abstract of title
A
An abbreviated history of a property, including information on any transfers,
grants, wills, conveyances, liens, and encumbrances
2
Q
acceleration clause
A
a clause in a security instrument which makes the entire loan amount due
immediately upon default
3
Q
accession
A
is the right to all that one’s own property produces, including that which is added, either naturally or by human action, to the property already owned.
4
Q
accretion
A
The process that results in the gradual increase in land area through deposits
of soil by natural forces
5
Q
acre
A
a measurement of land equal to 43,560 square feet
6
Q
actual eviction
A
the legal process by which someone is expelled from a property and
prevented from re-entry
7
Q
actual notice
A
When an individual actually knows of a fact
8
Q
ad valorem taxes
A
A tax calculated according to the assessed value of a piece of real estate
9
Q
Adjustable rate mortgage (ARM)
A
A mortgage with an interest rate that can be adjusted based on fluctuations in
the cost of money
10
Q
adverse possession
A
Involuntary transfer of title from an owner who does not use or inspect their
land for a number of years to another person who has some claim to the land and takes possession
11
Q
agency agreement
A
a mutual binding understanding between two parties that authorizes another
party to act on their behalf
12
Q
agent
A
an individual with authority to act on behalf of another; a state license is
required to operate as an agent in real estate
13
Q
air rights
A
the right to use the airspace above the surface of land
14
Q
air space
A
The area above ground that is owned along with a property. Could include space above a piece of land, or the space owned inside a condominium unit.
15
Q
alienation
A
The transfer of ownership (title) to real property. Alienation may be voluntary
or involuntary.
16
Q
Americans with Disabilities Act
A
a federal civil rights law passed in 1990 which prohibits discrimination against
and create standards for people with disabilities
17
Q
amortization
A
The process of paying off a debt/mortgage in regular installments based on a
fixed payment schedule
18
Q
Annual percentage rate (APR)
A
how much the borrower will pay in interest over the course of a year
19
Q
antitrust laws
A
Laws designed at preventing unfair or anti-competitive practices such as price
fixing, collusion, monopolies, etc.
20
Q
appraised value
A
an estimation of property’s value as of a specific date, performed by a
certified appraiser
21
Q
appreciation
A
The increase in value of a property
22
Q
appurtenances
A
Rights that run with real property ownership; most often transferred with the
property, but possible to sell separately
23
Q
arrears
A
A payment that occurs at the end of a period to compensate for charges
accrued during that time.
24
Q
asbestos
A
a naturally occurring mineral fiber that is commonly used in insulation but if
airborne or inhaled, can cause severe respiratory health issues
25
assemblage
The combining of multiple contiguous pieces of real property into a single
tract of land, often resulting in an increase in value
26
assessed value
The value placed on a property by a governmental unit for use in calculating
property taxes
27
assessment
the determination of the value of a property for tax purposes
28
asset
item of value
29
assignment
The transference of rights and obligations in a contract from one party to
another
30
associate broker
an individual who meets the licensure requirements to be a real estate broker
but provides real estate brokerage services as an independent contractor to a real estate broker
31
avulsion
the sudden loss of land by flood or when a stream or river changes course.
32
balloon payment
A payment at the end of a loan period which includes the total outstanding
balance of the loan.
33
bargain and sale deed
a deed without any covenants or warranties against encumbrances that only
implies the grantor has possession of the property and holds the right to convey title
34
base line
an imaginary line of latitude used in the rectangular survey system of land
description to identify townships in relation to proximity to a principal meridian
35
benchmark
permanent markers of known location and elevation above sea level as
established by a government survey team (such as the USGS)
36
beneficiary
The recipient of advantage or gain from an act or instrument such as a trust,
will, or insurance policy
37
bilateral contract
a contract wherein both parties are obligated to perform in an exchange of
promises
38
binder
A preliminary agreement for the sale of a property secured by a valuable
deposit from the potential buyer, which binds the seller to a good faith agreement to sell the subject property, provided that a sale contract meeting the conditions determined is executed within the prescribed period; also known as a *letter of intent (LOI)*
39
blanket mortgage
a loan for which more than one collateral property acts as security
40
block and lot system
a system of legal land description that identifies a piece of platted property by
referring to the section, lot, and block numbers in a subdivision; a.k.a. the recorded plat method
41
blockbusting
```
the illegal act of causing owners to sell their homes by creating fear that
members of a protected class are moving into the area
```
42
branch office
any office that is geographically separate from the main or home office
43
bridge loan
short-term loan used to transition from one loan to another; can connect
borrower from construction loan to eventual mortgage loan (or current home to their new home)
44
broker
A person who is licensed to represent one of the parties in a real estate transaction in exchange for a commission or other valuable consideration
45
brownfield
real property, the expansion, redevelopment, or reuse of which may be
complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant
46
building code
a set of regulations pertaining to building design, materials, safety, sanitation,
and structure
47
bundle of rights
Ownership of land with all of the legal rights of possession, control, quiet
enjoyment, exclusion, transfer, and encumber
48
buydown
the paying of money upfront to reduce a loan's interest rate and monthly
payments
49
buyer's market
Any market that is experiencing an excess of sellers or supply, creating more
favorable conditions for buyers.
50
capital expenditure
an expense paid in order to improve a property
51
capital improvement
any upgrade or improvement to a property that falls outside the scope of normal repair and maintenance, usually with the intention of increasing value
52
capitalization rate
a rate of return that calculates the percentage of expected annual income
earned over a property's value; the present value for expected future income earned
53
carbon monoxide
an odorless, colorless gas that occurs as a by-product due to incomplete combustion when burning such fuels as wood, oil, and natural gas
54
cash reserve
a portion of funds allocated to pay for variable expenses
55
CERCLA
the Comprehensive Environmental Response, Compensation, and Liability
Act, aka the Superfund
56
certificate of title
A document prepared by a title attorney detailing the chain of title and
offering an opinion on the marketability of the seller's title
57
chlordane
a chemical compound formerly used in pesticides that is dangerous to
human health
58
chloroflourocarbons (CFCs)
chemical compounds containing chlorine, fluorine, and carbon atoms that were once used in refrigerator coolant, air conditioners, and dehumidifiers
59
Civil Rights Act of 1866
a federal law that prohibits discrimination in housing based on race
60
cloud
Any claim to or encumbrance on the title to a property which affects transferability
61
certificate of occupancy (CO)
legal document from a local authority that authorizes a building to be
occupied; issued after the building has passed all required inspections
62
collateral
Property liened by a lender in order to assure payment of the loan and
protect the lender's investment
63
collusion
an unlawful agreement between competitors to monopolize a market,
disadvantage other competitors, or otherwise undertake activities in violation of fair trade laws
64
color of title
a title transfer that is defective in a way that is unknown to the new owner
65
commission
the regulatory body responsible for regulating the brokerage industry and
licensing real estate practitioners; formally known as the Georgia Real Estate
Commission (GREC)
66
common elements
Portions of a shared ownership property not controlled by any one owner or tenant. Examples include parking lots, lobbies, fitness centers, elevators, etc.
67
common law
the side of law which arises from judgements and decisions made in courts
rather than explicit legislation
68
community association manager
individual who provides administrative and operational services to a
community association in exchange for consideration; requires specific licensure
69
community property
a system of property co-ownership, most commonly applied to married
couples, which describes what is joint property and what is individual property
70
comparable
any property which has sold and is similar enough in features, location, and
proximity in time to inform the value of a subject property
71
comparative market analysis
A report that compares the prices of recently sold or listed homes
("comparables") in order to estimate the market value of a similar property
(the "subject property") located in the same area
72
condominium
Property where each owner has a separate interest in their own unit and
undivided interest in the common areas
73
consideration
Something of value exchanged by the parties as evidence of agreement to
the terms of a contract
74
construction mortgage
a temporary mortgage used to finance a construction project
75
constructive eviction
the termination of a lease in circumstances in which the landlord defaults and acts, or fails to act, in such a way that the premises become unusable
76
constructive notice
When a property's ownership is recorded publicly, so everyone can know the
contents of recorded documents
77
contingency
A provision within a contract that makes performance conditional upon the
occurrence of a stated event
78
contract
a legally enforceable and binding agreement between parties wherein a
promise to do or not do something is given in exchange for valuable consideration
79
contract for deed
a sales contract in which the buyer pays the seller for the property in multiple
installments for a predetermined length of time, and the seller holds the title until the property has been fully paid for; also known as an *installment sales contract* or *land contract*
80
contribution
improvement to the property; not necessarily the same as the cost of the
81
conventional life estate
is a life estate in which the measuring life is that of the life tenant; it is an estate created by a deed that lasts for the duration of the tenant's life
82
conventional loan
Any loan that is neither insured by the government nor guaranteed by the
government
83
conversion
Changing real property to personal property, and vice versa; also the illegal
84
cooperating brokerage
An agency arrangement in which two brokerages collaborate to achieve a
real estate transaction for a specific piece of property.
85
corrective maintenance
the repair or restoration of equipment after it has broken
86
cost approach
Method of estimating the value of a property by determining how much it
would cost to replace the building or other improvements, minus the cost of depreciation, plus the value of the land itself
87
counteroffer
A contract proposal submitted in response to a previous offer, modifying the terms of the original offer; considered a rejection of the original offer
88
covenant of seisin
a protection in which the grantor states they hold the title conveyed in the
deed, a.k.a. covenant of seizin
89
covenants, conditions, and
| restrictions (CCRs)
Private restrictions similar to deed restrictions that dictate what homeowner
may do with their property
90
credit report
contains information regarding an individual's credit history (loan payments, etc.) as well as the present credit status of all open credit accounts
91
credits
sum of money that is received
92
curtesy/dower
The right of a spouse to inherit property held in their spouse's name after that spouse dies; dower is the word used for women, curtesy for men.
93
customer
an individual with whom a license holder has no agency relationship nor
fiduciary duties but to whom fairness and honesty are still required
94
datum
a designated base reference point to elevation used by surveyors to
determine the elevations of land or property in an area
95
debits
sum of money that is owed
96
debt service
current debt obligations
97
debt service coverage ratio
used to evaluate income-producing properties; is calculated by dividing the
net operating income (cash flow after all expenses and debts are paid) by total debt service (current debt obligations)
98
debt-to-income ratio
used to measure a borrower's creditworthiness; calculated by dividing all debt
(monthly payment + other debt) by monthly income
99
deed in lieu of foreclosure
an alternative to foreclosure in which the defaulting borrower voluntarily
transfers the property title to the lender and the borrower cancels the foreclosure
100
deed in trust
a deed used to convey ownership interest to the trustee under a land trust
101
deed restriction
a provision in a deed that restricts the land use of a property
102
defeasance
a clause in a security document that indicates that the loan has been satisfied
and that either the title will be conveyed to the borrower or the lien on the borrower's title will be removed
103
demand
a measure of the general desire for an asset or commodity at a given time
104
density
the measure of the proportion of a given area used for residential purposes
105
```
Department of Housing and
Urban Development (HUD)
```
a department in the federal government which is in charge of enforcing
federal fair housing laws
106
depreciation
A reduction in value for any reason
107
laws of descent and distribution
a set of laws that sets out the process of passing an estate to heirs when the
owner dies intestate
108
designated agency
an agency arrangement wherein both parties to the transaction are
represented by their own agent, but both agents are employed by the same brokerage; by necessity each client enjoys an agency relationship exclusively with the named agent within the brokerage
109
devise
the transfer of real or personal property through a will
110
disability or handicap
a physical or mental impairment that substantially limits one or more major
life activities, the record of such impairment, or being regarded as having such an impairment
111
discount point
a loan fee used to decrease a loan's interest rate
112
discrimination
the unjust or prejudicial treatment of different categories of people, especially
on the grounds of race, color, sex, national origin, religion, disability, or other classifications
113
disintermediation
the process of money flowing out of banks
114
doctrine of laches
a legal principle used to bar dated claims; used in conjunction with an
115
doctrine of prior appropriation
doctrine granting a state the power to control and regulate all water
resources within its borders
116
Dodd-Frank Act
A law passed in response to the subprime mortgage crisis that created the
Consumer Finance Protection Bureau.
117
dual agency
An agency relationship wherein both the buyer and the seller are represented
by the same broker in an in-house real estate transaction; requires written consent from both parties
118
due dilligence
a legal term used to describe the reasonable steps a person must take in
order to satisfy a legal requirement
119
due on sale/alienation clause
a clause in the mortgage contract that triggers the right of the lender to
demand payment in full of the loan upon the sale or conveyance of the property
120
earnest money
Funds paid to confirm or commit to a contract
121
easement
for a specific, limited purpose.
122
easement by condemnation
Easement in which private property is taken for public use via eminent
domain; declaration that a structure must be closed or demolished because it is unfit for occupants
123
easement in gross
An easement that applies to the person or entity, not the specific land
124
ECOA
The Equal Credit Opportunity Act, a fair lending law that aims to bar
discriminatory lending practices.
125
economic life
the length of time for which an improvement on property is expected to
remain functional and useful
126
effective gross income (EGI)
the total annual income that a property produces; does not account for any
expenses
127
elective share
a statutory right in some states which allows the surviving spouse to claim an
interest in a decedent's real and personal property regardless of the provisions established by a will
128
electromagnetic field (EMF)
an invisible field of energy produced by electricity
129
emblements
plants or crops intended for harvest and treated as personal property
130
eminent domain
the power of government to seize private property for public use;
government must pay property owner just compensation for exercising power
131
encroachment
Physical property that crosses the boundary into a neighboring landowner's
property
132
encumbrance
Non-possessory interest in a property that burdens the title
133
enforceability
possessing the essential elements necessary to be legally binding and
obligate performance; used to describe the compelling nature of a valid contract
134
environmental assessment
a report prepared for a real estate holding that identifies potential or existing
environmental contamination liabilities
135
Environmental Protection
| Agency (EPA)
the agency charged with enforcing federal environmental protection laws
and taking other actions to protect the environment
136
equilibrium
a theoretical market condition in which levels of supply and demand are
balanced
137
equity
A lessee's right to possess a property without interference from lessor,
previous owner, or anyone else about the claim to the title
138
erosion
the gradual loss of land over time
139
escalation clause
a clause in a lease allowing payments to increase in relation to a specified
factor or index
140
escheat
without their consent if that individual dies without a will, a surviving spouse, lineal descendants, or other known heirs
141
escrow
A process in which funds and/or financial documents are held by a
disinterested third party on behalf of the other two parties in the real estate transaction until specific conditions are satisfied
142
estate
a possessory interest in real property
143
estate for years
A lease with a specific starting and ending date, also called a tenancy for
years
144
estoppel
the legal principle that prevents an individual from asserting something
contrary to that which was implied by previous words or deeds by that individual
145
ethics
standards of conduct agreed upon and recognized by a particular group or
culture
146
eviction
forced removal of a tenant due to a default under the terms of the lease
147
evidence of title
constructive or actual notice of real property ownership
148
exclusion
a right included in the bundle of legal rights to real property which empowers
the owner to allow or deny others' use of the property
149
exclusive agency listing
an agreement in which the seller has an exclusive relationship with a broker
but retains the right to sell the property to named prospects
150
exclusive right to sell agreement
an agreement in which the seller guarantees the named broker receives a
commission if the property is sold, regardless of who brings the buyer
151
executory contract
A contract that has not yet been fully performed (both sides have not yet
completed their obligations)
152
external obsolescence
Loss of property value caused by negative forces outside the property which
are beyond the control of the owner
153
Fair Housing Act of 1968
a federal law that prohibits discrimination in housing based upon race, color,
religion, or national origin and was amended to include sex, disability, and familial status
154
familial status
```
under the Fair Housing Act, a protected class composed of families who have
children under 18, pregnant women, and people in the process of obtaining legal custody of a child
```
155
Federal Deposit Insurance
| Corporation (FDIC)
Independent agency that provides deposit insurance to depositors in U.S.
banks
156
Federal Home Loan Mortgage
| Corporation (Freddie Mac)
A government-sponsored enterprise created in 1970 to further support the secondary mortgage market, and specifically, to support smaller thrift banks
157
Federal National Mortgage
| Association (Fannie Mae)
A government-sponsored enterprise created to act as a secondary mortgage market facility that could purchase, hold, and sell FHA-insured loans
158
fee simple absolute
an estate without restrictions that is freely given to heirs
159
fee simple condition subsequent
a defeasible fee estate that comes with specific requirements (or conditions)
160
fee simple defeasible
a property interest characterized by perpetual ownership on the condition that the property is used for a certain purpose or under specific conditions. Ownership reverts back to the original owner if these stipulations are violated.
161
fee simple determinable
a type of fee simple defeasible estate which causes the title to automatically
revert to the original owner if the deed requirements regarding property use are violated
162
fee simple estate
Maximum ownership of real property; also called a fee or a fee simple absolute and is of indefinite duration, freely transferable, and freely inheritable
163
FHA
The Federal Housing Administration; government agency charged with
insuring mortgages
164
FICO score
a credit scoring system created by the Fair Isaac Corporation
165
fiduciary
an individual upon whom is placed the highest levels of trust and confidence
when acting on behalf of another
166
fiduciary duties
the full sum of obligations owed to the client in an agency relationship that
ensure that the agent always acts in the best interest of the client
167
first substantive contact
the critical point at which agency disclosure is required by a license holder;
generally occurs at the first face-to-face meeting with the customer and prior to the sharing of any confidential information or initiation of any action in
regards to a specific property
168
fixity
refers to the fact that real estate exists in a fixed location and cannot be
moved; describes this truth about land from an economic viewpoint
169
fixture
an object that was once personal property but *is now firmly attached to the
land* in such a way that it is considered to be real property
170
fraud
wrongful or criminal deception intended to result in financial or personal gain
171
freehold estate
a form of ownership with an indeterminate length
172
freehold tenant
the owner of a freehold estate
173
freon
the trademarked name of a harmful chlorofluorocarbon found in older air
conditioning units
174
functional obsolescence
style or has been replaced by a more appealing or effective version
175
general agency
an agent who is authorized to manage all of a principal's affairs within certain
specified areas; enjoys broader authority than that of a special agent but less than that of a universal agent
176
general lien
A lien for which the real estate AND personal property may be sold to satisfy
the debt
177
general partnership
a business entity in which all co-owners actively share power, responsibilities,
and profit
178
general warranty deed, a.k.a. full covenant and warranty deed
the act of documenting any transfer or claim of interest in the title to real
property in public records per state law, a.k.a. full covenant and warranty deed
179
Government National Mortgage
| Association (Ginnie Mae)
a government-owned entity that supports the secondary mortgage market by
guaranteeing mortgage-backed securities (MBS) insured by the U.S. government
180
graduated lease
a lease in which the rental rate increases over time in specific increments
181
graduated-payment mortgage
a fixed-rate mortgage that has a lower initial interest rate in its first years, but
includes gradual increases each year
182
grantee
The person who receives a conveyance of real property in a transaction
183
grantor
The person who conveys real property in a real estate transaction
184
gross lease
Lease in which the tenant will be responsible for the payment of a fixed
monthly charge, while the landlord is responsible for paying all operating expenses, a.k.a. full service lease
185
gross rent multiplier
the ratio of the price of investment property to its annual rental income
before considering expenses like taxes and insurance, etc
186
ground lease
Also known as a land lease, it is the lease of bare, undeveloped land
187
groundwater
water held underground in the soil or in pores and crevices in rock
188
group boycott
an agreement between two or more competitors to not do business with
another competitor for the purpose of inducing the other competitor to change its business practices or fail altogether; considered an antitrust violation
189
habendum clause
a clause within a deed that clarifies the type and extent of interest conveyed
by the granting clause
190
highest and best use
the use of a property which is legal, physically possible, financially viable, and
produces the greatest yield
191
holographic will
a handwritten will created solely by the testator and not witnessed
192
home equity loan
collateral; the funds can be used for any purpose
193
homestead laws
laws which protect a homeowner from loss of their principal residence from
the claims of most creditors and require both spouses to execute any instruments of conveyance
194
hypothecation
the pledging of an asset as collateral to secure a loan without delivery of title,
possession, or other ownership rights
195
illiquidity
the relative difficulty of converting an asset to cash without loss of value
196
implied agency
agency that is created by the actions, conduct, and words of either or both
parties without ever being expressly requested
197
implied contract
a contract created by the actions of the parties rather than by express
agreement
198
improvement
any non-natural structure built on or affixed to land
199
income capitalization approach
method of estimating the value of a property by applying a rate of return to
the net income it produces
200
independent contractor
one who contracts to do work according to their own methods, and is
responsible to their employer only as to the results of that work
201
informed consent
the principle that a client or customer must understand and agree to certain
actions or agency relationships prior to implementation
202
interest
additional money paid to a lender for the use of their money
203
intermediation
the facilitation by a third party of a financial transaction between two parties
204
intestate
the name for conditions in which the owner of a property dies without having
left a valid will
205
investment
the purchase of an asset with the intention of profiting from it in the future
206
involuntary alienation
by operation of law
207
joint tenancy
Co-ownership in which the parties have an equal and undivided interest in the property; includes the right of survivorship rather than inheritance
208
joint venture
A business arrangement that a partnership uses when joining forces for a
single business objective achieved through one or a series of related projects;
this arrangement will not be of an ongoing nature
209
junior lien
A lien that has another (senior) lien superceding it in priority; also called an
inferior lien
210
land
the surface of the earth, including all permanently attached natural features, extending downwards to the center of the earth and upwards to infinity
211
landlocked
a piece of land which is is not accessible by any public means
212
land-use control
Regulations that specify how the owners of individual parcels of real estate in
a given area may use property
213
latent defect
any structural defects that cannot be detected by ordinary inspection
214
law of agency
the body of laws affecting agency that have come about as result of custom
and/or case law, as opposed to statutory law introduced at the state or federal level
215
lead
a naturally occurring mineral that has been used in the manufacturing of
paint and water pipes and is toxic to humans
216
lease
A contract in which one party conveys property to another for a specific predetermined period of time, generally in return for periodic payment
217
leasehold estate
An interest in the occupation of a property, established through a lease, a.k.a.
Non-freehold or less-than-freehold
218
legal description
A description of a property that is distinct and precise enough to distinguish it
from all other properties
219
legal life estate
any life estate created by a function of law as opposed to the actions or
desires of a property owner
220
legal title
complete legal ownership of real property and the bundle of rights associated
221
lessee
The party to whom the lease is granted, also known as the tenant
222
lessor
The party granting the lease, also known as the landlord
223
leverage
the use of a financial instrument or borrowed money to increase a return on
investment
224
liability
the state of being responsible for something
225
lien
the claim made by a creditor against real or personal property pledged by a
debtor as collateral
226
lien priority
the order in which liens against a property will be settled
227
lien theory state
states that employ security instruments allowing the borrower to retain title
while the lender places a lien on the property to secure the loan
228
life estate
a type of estate limited to a the duration of a measuring life
229
limited agency
(See special agency)
230
limited partnership
a business entity composed of both general and limited partners. the general partners manage the business and limited partners are passive investors.
231
liquid assets
assets that can be quickly converted to cash without losing their value
232
liquidated damages
damages established by the contract to be paid as compensation in the event
of default
233
lis pendens
A document recording at the courthouse giving notice that a lawsuit is
pending on a particular piece of property
234
littoral rights
Rights that govern lakefront or oceanfront property and usually allow the
property owner to use the water bordering their property
235
living trust
a trust established by a living trustor in order to convey legal title of property
to a trustee for the benefit of a named beneficiary
236
loan commitment
a lender's approval of a specific loan for a specific property; occurs upon
completion of final loan approval step
237
loan estimate
combines and replaces the Good Faith Estimate and the initial Truth-in-
Lending (TIL) statement; highlights the most important elements of the transaction
238
loan flipping
A mortgage fraud scheme that involves an inflated appraisal and a straw
buyer.
239
loan origination
the process through which a buyer obtains a mortgage loan from a lender
240
loan-to-value ratio
The amount of money being loaned compared to the value of the property
241
management agreement
a written contract between a property owner and a property manager to
establish all duties of the property manager, including operation and leasing activities
242
management proposal
a plan that a property manager creates for managing the property that
includes an analysis of the market along with the financial standing, operating budget, and other important factors of the property
243
marital status
refers to whether a person is married, single, divorced, or widowed
244
market
a theoretical construct that isolates the selling and purchasing of any one
particular commodity from the economy as a whole
245
market allocation
A violation of antitrust laws in which competitors agree to divide markets
amongst themselves
246
market value
The price for which a property will theoretically sell under typical conditions
247
marketable title
a title that is free from significant encumbrances or defects that might
otherwise prevent a purchaser from enjoying or eventually selling the property
248
marketing plan
A plan created to secure the other party needed to carry out a real estate
transaction that includes sales and advertising.
249
master deed
a deed used to convey land to a condominium developer
250
master plan
a written document created by the local planning board to guide the future
growth and development of a community
251
material fact
a fact that, if known, could cause someone to take a different course of action or make a different decision regarding the property to be purchased
252
mechanic's lien
A type of involuntary, specific lien that a mechanic or materialman can
impose upon a property if the property owner fails to pay for materials or work done on the property
253
meridian
an imaginary line of longitude used to identify a certain area of the earth's
surface along a north-south direction
254
metes and bounds
A land survey process in which a licensed land surveyor starts at a readily
identifiable point of beginning and defines the boundaries of a property in terms of distances and compass directions, finally returning to the point of beginning
255
ministerial acts
an action performed for another according to established procedures or guidelines and without the need for discretion or individual judgment
256
misrepresentation
A statement, written or spoken, that is false or misleading; can be actionable
if also found to be fraudulent
257
mold
a type of fungus found in damp building materials that can release toxins into
the environment
258
monument
a fixed landmark, whether natural or human-made, used as a reference point
in a metes and bounds legal description
259
mortgage
A legal agreement between a creditor and borrower in which the creditor
lends money with interest to the borrower for the purchase of property with the condition that the creditor takes ownership of the title if the borrower defaults in repayment of the loan
260
mortgage insurance premium
| MIP
a borrower-paid insurance required for FHA loans, in order to insure lender in
case of borrower default/foreclosure
261
mortgagee
The lender of the funds in a loan
262
mortgagor
The borrower of the funds in a loan
263
multiple listing service
A database in which local member brokers share listings so that fellow
member brokers can procure buyers for those properties and establish compensation for properties sold jointly
264
mutual consent
agreement by all parties to either create, amend, or terminate a contract
265
negative amortization
When a borrower's payment is not large enough to cover the interest due on
a loan, the unpaid interest is added to the principal balance
266
negotiable instrument
a note that is transferable and assignable
267
net lease
A lease in which the tenant pays a base rent rate plus all or part of the
operating expenses
268
net listing
an agreement in which the seller names an amount they will accept for a
property and if the sales price exceeds that amount, the broker receives the excess as commission; illegal
269
net operating income (NOI)
a property's annual income that remains after paying its operating expenses
270
non-conforming use
any property use with is inconsistent with the land use controls for that area,
regardless of legality
271
non-prorated expense
closing costs that are not split between the parties
272
notice of title
the duty of a real estate owner to make their claim or interest on a subject
property publicly accessible
273
null and void
lacking legal or binding force; invalid
274
nuncupative will
a will created verbally by a party directly before their death, a.k.a. oral will
275
obsolescence
a property's loss of value due to economic or functional factors
276
offer
a proposition made by an offeror to an offeree to agree to the terms of a
binding contract; becomes a contract upon acceptance
277
offer and acceptance
the mutual understanding and agreement of the parties of a contract to that
contract's terms; process that changes an offer into a contract when the offeree communicates acceptance to the offeror
278
open listing
a nonexclusive listing agreement that gives multiple brokers (and owners
themselves) the right to sell the property
279
operating budget
a budget created by using anticipated revenues and expenses for a property
over a period of one year
280
operating expense
an occasional or continuous expense required for the operation of an
income-producing property
281
option
gives one party the right to perform a non-obligatory action within a time
period (ex: terminating a contract or the right of first refusal)
282
origination points
fees pay for the cost of issuing the loan
283
parallel
a line of latitude
284
parol contract
an orally created contract or the oral modification of a written contract;
enforceability depends on circumstances surrounding creation
285
partition suit
legal action brought with the purpose of terminating the ownership interest
of a co-owner to real property
286
party wall
A wall shared by two separate
| properties; the owners on each side share the right of use, often as an easement
287
patent defect
any structural defects that are easily discoverable upon inspection
288
per se violations
acts that are considered inherently illegal
289
percentage lease
```
Type of (usually commercial) lease in which the tenant pays a base rent
amount and a percentage of their business profits to the landlord
```
290
performance
the fulfillment of an obligation, duty, or contract
291
periodic estate
a leasehold estate which automatically renews until canceled by either party, a.k.a. estate from period-to-period, periodic tenancy, estate from year to year
292
perolating water rights
laws that govern the use and ownership of underground water
293
personal property (a.k.a. chattel)
Any unattached, movable asset on the property not considered real estate
(land plus improvements); also known as personal property or personalty
294
physical deterioration
the loss of value caused by physical wear and tear over time
295
planned unit development (PUD)
a subdivision that includes residential dwellings along with nonresidential real
estate, departing from normal zoning and subdivision regulations; recreational facilities may be co-owned by PUD lot owners as tenants in common
296
plat
a map indicating the locations and dimensions of lots in a lot and block
system
297
plottage
An increase in overall value resulting from the successful assemblage of
multiple plots
298
pmi/private mortgage insurance
Insurance that protects the lender if a borrower defaults on a conventional loan; usually required when the borrower has less than 20% equity
299
point of beginning (POB)
the starting point for a metes and bounds legal description
300
police power
the government right to regulate and restrict land use in order to protect the public; right includes the power to enforce zoning and building codes
301
polychlorinated biphenyls (PCBs)
a group of human-made organic chemicals made of carbon, hydrogen, and chlorine atoms that were used in hundreds of industrial and commercial applications prior to 1979 and can cause a variety of adverse health effects
302
potential gross income (PGI)
the total rental income a property would receive if the property was 100%
leased
303
power of attorney
a legal instrument used to confer the right of one individual to act on behalf
of another
304
predatory lending
Imposing unfair and abusive loan terms on borrowers.
305
preventative maintenance
periodic, routine inspections to catch minor issues before they worsen and to
keep equipment and property in good working order
306
price fixing
Any effort made by competitors to jointly establish a fixed rate, price, or
commission; considered an antitrust violation
307
price mechanism
the manner in which a price is determined by a buyer and seller (a quantification of value) with respect to the forces of supply and demand
308
principal
the client of a broker in an agency relationship; the parties to a contract in a
real estate transaction (as opposed to license holders, lenders, escrow agents, etc.); also, the amount borrowed in a loan from which interest is accrued
309
principal meridian
a meridian used in reference to a baseline to identify ranges, tiers, and
townships in the rectangular survey method of land description
310
probate
a process by which courts determine and grant the appropriate ownership
interest of an estate to creditors, taxing entities, and heirs of an owner who dies intestate
311
promissory note
a negotiable financial instrument that is evidence of a debt and a promise to
pay that debt; often referred to as "the note"
312
property
any item which may be owned, including the rights associated with
ownership
313
property management
the vocation of renting or leasing someone else's real property on their
behalf in exchange for compensation and in accordance with a property management employee contract
314
property management report
a report that informs the property owner(s) of their property's expenses,
income, and disbursements; prepared by the property manager
315
property manager
someone who is hired by a property owner to market, maintain, and oversee the day-to-day operation of a property (usually a rental property)
316
proprietary lease
Long-term and exclusive lease given to resident and stock owner of a
cooperative
317
proration
The act of dividing or allocating expenses between buyers and sellers based
on the actual period of usage of the item or service
318
protection period
a limited time frame after an agency agreement ends where an agent can be
owed compensation *if* certain situations occur
319
pur autre vie
a life estate characterized by ownership lasting only for the duration of a
designated party's lifetime
320
purchase-money mortgage
or all of the purchase price
321
purchaser
a person who acquires or attempts to acquire an interest in land
322
quiet enjoyment
A lessee's right to possess a property without interference from lessor,
previous owner, or anyone else about the claim to the title
323
quiet title suit
a lawsuit brought with the purpose of removing any outstanding ownership
claim, title defect, or encumbrance on a property
324
quitclaim deed
a type of deed that conveys any interest, title, or right to a parcel of land the
grantor has at the time the deed is executed
325
radon
an odorless, radioactive gas produced by the decay of other radioactive materials in rocks under the surface of the earth; can cause lung cancer
326
range
the area of land between two consecutive range lines
327
ratification
an unauthorized action taken on behalf of a principal which is accepted and
legitimized after the fact by the principal
328
real estate
land plus all improvement made by man or nature
329
real estate appraiser
An individual who is trained and licensed to perform appraisals, which
estimate the value of real property
330
real estate investment trust (REIT)
A trust that invests in, owns, or acquires real property and is owned by
331
real estate owned (REO) property
bank-owned property that has been through the foreclosure process
332
real property
Land from the surface to the center of earth and upward into space,
including everything attached by man or nature as well as the bundle of legal rights of ownership
333
recording
the act of documenting any transfer or claim of interest in the title to real
property in public records per state law
334
rectangular survey system
a system of legal land description that uses the global lines of longitude and latitude to create a surveyed grid of meridians, base lines, townships, and ranges to describe a piece of land; a.k.a. the government survey system
335
redlining
the illegal act of a lender refusing to issue mortgages in a specific area
336
refinancing
The process of obtaining a new mortgage in an effort to reduce monthly
payments, lower interest rates, take cash out of a home for large purchases, or change mortgage companies
337
Regulation Z
The part of the Truth in Lending Act (TILA) that seeks to protect consumers
by requiring proper disclosures and fair lending practices
338
reliction
a gradual increase in land area when water gradually withdraws
339
remainder interest
the interest in an estate that will pass to another party (other than the grantor)
at the death of the person upon whom the life estate is base
340
replacement cost
The actual cost of replacement without regard to depreciation of the
property
341
reserve allowance
an amount of money allocated from a property's income to cover future
repair and maintenance costs, also called a replacement reserve
342
RESPA
The Real Estate Settlement Procedures Act, passed to eliminate kickbacks in
lending and disclose the costs of closing a loan.
343
reverse mortgage
a financial arrangement where a homeowner pledges equity to a lender in
exchange for periodic payments of the pledged equity; essentially selling off equity in their home in exchange for monthly payments
344
reversionary interest
the interest in an estate wherein, upon the death of the life estate owner, full ownership reverts back to the original fee simple owner (grantor)
345
revocation
The termination of an agreement by the person who granted it, such as
when as when a principal terminates an agency relationship or withdraws an offer
346
revolving debt
an ongoing line of credit, as with a credit card, where the amount of debt
can fluctuate as the borrower uses it to manage cash flow issues
347
right of survivorship
The statutory principle of survivorship tenancy that provides that when one co-owner dies, their ownership interest reverts to the surviving co-owners
348
riparian rights
Rights that govern the use of flowing water, such as rivers and streams that
pass through or border a property
349
routine maintenance
monitoring, assessing, and attending to the needs of a facilities most
necessary features
350
rule of capture (a.k.a. law of capture)
states that a landowner who drills a well for gas or oil on their land is entitled
to all that well produces, even if the gas or oil migrates from beneath a neighbor's property.
351
sales comparison approach
Property appraisal method that estimates value by comparing the subject property to the sales prices of similar properties in the same market area
352
sales contract
a contract used in the sale of real property that outlines the responsibilities of the parties and terms of the sale; also knows as a purchase agreement, purchase contract, or purchase and sale agreement.
353
salesperson
a real estate license holder who is associated with a licensed broker for the
354
SARA
the Superfund Amendments and Reauthorization Act
355
scarcity
the economic characteristic that informs the economic principle of supply
and demand
356
section
one of 36 equal square miles in a township
357
security
the collateral for a loan
358
seller financing
A loan provided by the seller to the purchaser of the property
359
seller's market
```
a market condition in which the number of properties for sale does not meet
the demand (number of people looking to buy)
```
360
senior lien
A lien that comes first on the priority of liens, often a tax lien; also called a
superior lien
361
servient tenement
Describes the parcel of land that must allow an adjacent owner to cross; an
easement appurtenant exists at the expense of this party
362
severalty
Undivided ownership of an estate, with an interest that is exclusive from other owners; often referred to as ownership in severalty or tenancy in severalty
363
severance
the act of converting real property into personal property
364
Sherman Antitrust Act
a landmark law passed in 1890 that prohibits the formation of trusts, or
monopolies, in the marketplace; this law governs business by regulating anti- competitive conduct to **promote fair competition on behalf of American consumers
365
single agency
An agency arrangement in which one agent represents one party in a real
estate transaction; the party may be either a seller or a buyer.
366
situs
the **economic significance of a property's location
367
sole proprietorship
ownership of a business by a lone individual
368
special agency
a form of agency relationship in which agents are limited in scope and are
only authorized to perform acts permitted by their principal
369
special assessment lien
a lien placed against property to collect taxes for a specific improvement
benefiting the property
370
special use permit
a variance that allows an out-of-zone use that benefits the community, and is
included as a permitted special use in a zoning ordinance
371
special warranty deed
a deed that only protects against defects that occurred while the grantor held
title
372
specific lien
A lien that applies to a certain property only
373
specific performance
A legal remedy that requires the party in breach of contract to perform in accordance with the terms of the contract (as opposed to paying damages)
374
square mile
a measurement of land equal to 640 acres
375
statute of frauds
A law which requires certain types of contracts, including those conveying
interest in real property, to be in writing to be enforceable
376
statute of limitations
a legal concept that establishes time limits for bringing certain kinds of legal
actions
377
steering
the illegal act of guiding prospective home buyers toward or away from certain neighborhoods because of their membership in a protected class
378
stigmatized property
property with suppressed market value unrelated to its physical condition or
features; frequently as result of death of an occupant, murder, suicide, or a belief the property is haunted
379
straight-line cost recovery
an accounting method in which depreciation expenses are deducted from a
property's income
380
subagency
An agency agreement in which Broker A (or their agent) is operating as the
381
subject to
this provision in a sales contract refers to the purchase of a property that is
*subject to* the existing mortgage; in such a sale, the title changes hands, so the buyer owns the house legally, but the seller's old mortgage stays in place
382
sublease
another person for a period of the lease term
383
subordination agreement
A contract that gives a mortgage recorded at a later date priority over a
previously recorded mortgage
384
subprime loan
a mortgage with an interest rate higher than prime mortgages due to the
higher risk associated with a less qualified borrower
385
substitution
an economic principle stating that the value of a good or service is affected
by the cost of getting a similar (substitute) item elsewhere
386
```
subsurface rights (a.k.a. mineral
rights)
```
Ownership rights to all that is found beneath the surface of the tract of land
owned, extending downward to the center of the earth
387
superior lien
a higher priority lien
388
supply
in real estate, the amount of properties that are vacant or are available for
sale or rent
389
surface rights
the rights to access the surface area of a parcel of real property
390
survey
The process and physical product of finding and measuring the boundaries of
a piece of real estate, including the location of improvements, encroachments, and easements
391
syndication
A style of investing in which investors combine their capital and employ an
expert to use that capital to obtain, manage, and sell an investment property for profit.
392
tax base
the total taxable assets available in a specific area
393
tax deed
a deed used to convey the title to a property sold in a tax foreclosure sale
394
tax district
an area in which a taxing entity is authorized by the government to levy taxes
395
tax rate
the percentage of the value that is taxed
396
tax sale
the forced sale or auction of a property to cover outstanding debts
397
taxable value
the value placed on a property by a governmental unit for use in calculating
property taxes, minus any exemptions
398
tenancy in common
Co-ownership with individual, undivided interest in the property; includes
rights of inheritance rather than survivorship
399
testate
the name for conditions in which the owner of a property dies having left a
valid will
400
testator
the party who makes a will, a.k.a. testatrix
401
tester
an individual who, without any bona fide intent to rent or purchase a home,
apartment, or other dwelling, poses as a prospective buyer or renter for the purpose of gathering information, which may indicate whether a housing provider is complying with fair housing laws
402
third party
any person involved in a real estate transaction who is not your client;
includes not only customers (the non-client principal in a transaction) but also all other non-client participants in a transaction such as title officers,
lenders, appraisers, etc.
403
tie-in agreement
a conditional agreement stipulating that a product or service desired by a
party will be offered only on the condition that the party also agree to purchase a second product or service; considered an antitrust violation
404
tier
the area of land between two consecutive baselines
405
time is of the essence
a phrase that communicates to parties of a contract that they must perform
their contractual duties by a specific date and time in order to avoid a breach of contract
406
timeshare
a form of co-ownership where each owner has use of the property at a
different prescribed period of time, also known as interval ownership
407
title
The actual ownership of a real property that includes the bundle of rights in which a party may own a legal or equitable interest; not an actual document
408
title insurance
a policy that protects homeowners (and likewise, lenders) from certain financial losses due to title issues, such as defects, encumbrances, and liens
409
title records
public records that catalogue all real estate information in the county,
including owners' names, liens, easements, encumbrances, etc.
410
title theory state
states that convey the title to the lender or, more commonly, to a third-party
trustee (operating on behalf of the lender) for the life of the loan
411
torrens system
a recording system used in some states in which the state holds all records of
land and title ownership, evidenced by a certificate of title
412
township
a square area of land with sides of 6 miles each, consisting of 36 square-mile
sections and identified in reference to a meridian and baseline in the rectangular survey system
413
transaction coordinator
a broker who facilitates a transaction absent of any agency relationship with
either party to the contract; has no fiduciary duties for ministerial acts performed; also known as a facilitator
414
transfer tax
one-time tax issued by the state that must be paid when a property is
transferred from one owner to another
415
triple-net lease
A type of lease requiring the tenant to pay a prorated portion of ALL the
operating expenses for the property.
416
trust
a legal entity where control of some asset or property is transferred by a
grantor (trustor) to a third party (trustee) to be held for the benefit of another
(beneficiary)
417
underground storage tanks
| USTs
tanks located in the ground underneath properties that store chemicals, fuels,
toxic wastes, and other potentially harmful substances
418
underwriting
the process of determining the level of risk a lender is willing to take in
extending a loan to a borrower
419
unilateral contract
a contract wherein one party makes a promise and is obligated to perform if
a second party chooses to accept the offer and perform in exchange for that which was promised
420
universal agency
the most broad type of agency; gives agents the power to act AND make
decisions on behalf of the principal in all business matters of concern; often granted via a power of attorney
421
urea-formaldehyde foam
| insulation (UFFI)
a human-made insulation material that becomes dangerous because of the
gases released from the material after it hardens
422
usury
illegally lending money at unfair interest rates
423
utility
the measure of the degree to which something performs a desired function;
serves as a component of the thing's value
424
VA entitlement
the amount of money that is guaranteed in a VA loan
425
validity
possessing accuracy and, in context of contractual status, being legally
binding and enforceable
426
value
the price for which a property will theoretically sell under typical conditions
427
variable expense
an inconsistent, irregular expense; dependent on factors such as the size,
condition, type, and age of the property
428
variance
Permission granted by the government so that property may be used in a
manner not allowed by the current zoning
429
void
lacking legal or binding force; used to describe a contract that is either illegal
or impossible to complete
430
void contract
A contract lacking legal or binding force; often used with phrase "null and
void"
431
voidable contract
a contract wherein the wronged party has the option to perform, enforce, or
void the contract
432
water rights
the right of a property owner on a waterfront to access and use that water
433
will
a written or verbal legal statement by an owner (testator) prescribes the
method of distribution of the owner's estate to heirs
434
wraparound mortgage
an arrangement in which the seller of a property extends a mortgage to a
buyer; the seller maintains their original loan and continues to pay it while also receiving mortgage payments from the buyer
435
written brokerage engagement
a written agreement between two parties where one party agrees to provide
a specified service to the other
436
zoning ordinance
local laws that control how land is used and what structures can be built in a
designated district
437
An abbreviated history of a property, including information on any transfers,
grants, wills, conveyances, liens, and encumbrances
abstract of title
438
a clause in a security instrument which makes the entire loan amount due
immediately upon default
acceleration clause
439
is the right to all that one's own property produces, including that which is added, either naturally or by human action, to the property already owned.
accession
440
The process that results in the gradual increase in land area through deposits
of soil by natural forces
accretion
441
a measurement of land equal to 43,560 square feet
acre
442
the legal process by which someone is expelled from a property and
prevented from re-entry
actual eviction
443
When an individual actually knows of a fact
actual notice
444
A tax calculated according to the assessed value of a piece of real estate
ad valorem taxes
445
A mortgage with an interest rate that can be adjusted based on fluctuations in
the cost of money
Adjustable rate mortgage (ARM)
446
Involuntary transfer of title from an owner who does not use or inspect their
land for a number of years to another person who has some claim to the land and takes possession
adverse possession
447
a mutual binding understanding between two parties that authorizes another
party to act on their behalf
agency agreement
448
an individual with authority to act on behalf of another; a state license is
required to operate as an agent in real estate
agent
449
the right to use the airspace above the surface of land
air rights
450
The area above ground that is owned along with a property. Could include space above a piece of land, or the space owned inside a condominium unit.
air space
451
The transfer of ownership (title) to real property. Alienation may be voluntary
or involuntary.
alienation
452
a federal civil rights law passed in 1990 which prohibits discrimination against
and create standards for people with disabilities
Americans with Disabilities Act
453
The process of paying off a debt/mortgage in regular installments based on a
fixed payment schedule
amortization
454
how much the borrower will pay in interest over the course of a year
Annual percentage rate (APR)
455
Laws designed at preventing unfair or anti-competitive practices such as price
fixing, collusion, monopolies, etc.
antitrust laws
456
an estimation of property's value as of a specific date, performed by a
certified appraiser
appraised value
457
The increase in value of a property
appreciation
458
Rights that run with real property ownership; most often transferred with the
property, but possible to sell separately
appurtenances
459
A payment that occurs at the end of a period to compensate for charges
accrued during that time.
arrears
460
a naturally occurring mineral fiber that is commonly used in insulation but if
airborne or inhaled, can cause severe respiratory health issues
asbestos
461
The combining of multiple contiguous pieces of real property into a single
tract of land, often resulting in an increase in value
assemblage
462
The value placed on a property by a governmental unit for use in calculating
property taxes
assessed value
463
the determination of the value of a property for tax purposes
assessment
464
item of value
asset
465
The transference of rights and obligations in a contract from one party to
another
assignment
466
an individual who meets the licensure requirements to be a real estate broker
but provides real estate brokerage services as an independent contractor to a real estate broker
associate broker
467
the sudden loss of land by flood or when a stream or river changes course.
avulsion
468
A payment at the end of a loan period which includes the total outstanding
balance of the loan.
balloon payment
469
a deed without any covenants or warranties against encumbrances that only
implies the grantor has possession of the property and holds the right to convey title
bargain and sale deed
470
an imaginary line of latitude used in the rectangular survey system of land
description to identify townships in relation to proximity to a principal meridian
base line
471
permanent markers of known location and elevation above sea level as
established by a government survey team (such as the USGS)
benchmark
472
The recipient of advantage or gain from an act or instrument such as a trust,
will, or insurance policy
beneficiary
473
a contract wherein both parties are obligated to perform in an exchange of
promises
bilateral contract
474
A preliminary agreement for the sale of a property secured by a valuable
deposit from the potential buyer, which binds the seller to a good faith agreement to sell the subject property, provided that a sale contract meeting the conditions determined is executed within the prescribed period; also known as a *letter of intent (LOI)*
binder
475
a loan for which more than one collateral property acts as security
blanket mortgage
476
a system of legal land description that identifies a piece of platted property by
referring to the section, lot, and block numbers in a subdivision; a.k.a. the recorded plat method
block and lot system
477
```
the illegal act of causing owners to sell their homes by creating fear that
members of a protected class are moving into the area
```
blockbusting
478
any office that is geographically separate from the main or home office
branch office
479
short-term loan used to transition from one loan to another; can connect
borrower from construction loan to eventual mortgage loan (or current home to their new home)
bridge loan
480
A person who is licensed to represent one of the parties in a real estate transaction in exchange for a commission or other valuable consideration
broker
481
real property, the expansion, redevelopment, or reuse of which may be
complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant
brownfield
482
a set of regulations pertaining to building design, materials, safety, sanitation,
and structure
building code
483
Ownership of land with all of the legal rights of possession, control, quiet
enjoyment, exclusion, transfer, and encumber
bundle of rights
484
the paying of money upfront to reduce a loan's interest rate and monthly
payments
buydown
485
Any market that is experiencing an excess of sellers or supply, creating more
favorable conditions for buyers.
buyer's market
486
an expense paid in order to improve a property
capital expenditure
487
any upgrade or improvement to a property that falls outside the scope of normal repair and maintenance, usually with the intention of increasing value
capital improvement
488
a rate of return that calculates the percentage of expected annual income
earned over a property's value; the present value for expected future income earned
capitalization rate
489
an odorless, colorless gas that occurs as a by-product due to incomplete combustion when burning such fuels as wood, oil, and natural gas
carbon monoxide
490
a portion of funds allocated to pay for variable expenses
cash reserve
491
the Comprehensive Environmental Response, Compensation, and Liability
Act, aka the Superfund
CERCLA
492
A document prepared by a title attorney detailing the chain of title and
offering an opinion on the marketability of the seller's title
certificate of title
493
a chemical compound formerly used in pesticides that is dangerous to
human health
chlordane
494
chemical compounds containing chlorine, fluorine, and carbon atoms that were once used in refrigerator coolant, air conditioners, and dehumidifiers
chloroflourocarbons (CFCs)
495
a federal law that prohibits discrimination in housing based on race
Civil Rights Act of 1866
496
Any claim to or encumbrance on the title to a property which affects transferability
cloud
497
legal document from a local authority that authorizes a building to be
occupied; issued after the building has passed all required inspections
certificate of occupancy (CO)
498
Property liened by a lender in order to assure payment of the loan and
protect the lender's investment
collateral
499
an unlawful agreement between competitors to monopolize a market,
disadvantage other competitors, or otherwise undertake activities in violation of fair trade laws
collusion
500
a title transfer that is defective in a way that is unknown to the new owner
color of title
