Vocab Flashcards
an area of land or a building has a common boundary with another.
Abutting
a contract provision that allows a lender to require a borrower to repay all of an outstanding loan if payments are not being made or there is a breach of contract.
Acceleration clause
the slow process of growth or acquisition of land, typically when soil is deposited by the natural action of water. Long term accretion can actually increase the size of a property.
Accretion
If you or your client sees a home listing with just “active” as their status, this indicates that the property is available for sale.
Active property
an intentional misrepresentation of fact; or in plain terms lying.
Actual fraud
The Latin phrase that means “according to value.”
Ad valorem
These mortgages have a flexible interest rate. They have a fixed period during which the initial interest rate remains the same, after that the interest rate adjusts at a pre-arranged frequency. The fixed-rate period can vary significantly anywhere from one month to 10 years.
Adjustable-rate mortgage (ARM)
the legal principle in which a person who does not have legal right to a property acquires legal ownership based on continuous occupation of the land without the permission of its real owner.
Adverse possession
one who speaks for or represents someone.
Agent
A form that states the buyer consents to purchase a property and the seller agrees to sell that property with the terms and conditions illustrated in from both parties.
Agreement of sale
the rights to use the space above the earth.
Air rights
the act of transferring title, ownership, an estate, or an interest in real estate from one party to another.
Alienation
he provision in a mortgage or deed of trust signed with the lender that states that the borrower must pay the mortgage in full before the borrower can transfer the property.
Alienation clause
Add on’s, or fixes to contracts.
Amendments
a useful feature or add on to a house that typically adds value to the property.
Amenities
when payments divide into equal amounts for the duration of the loan.
Amortization
a collection of federal and state government laws that regulate the conduct and organization of business corporations, normally to promote fair competition for the benefit of consumers.
Antitrust laws
an estimate of approximate worth of something.
Appraisal
Most big lenders or banks require the buyer to have an appraisal done to the property before the loan is granted. This is to ensure the house is worth somewhat close to the price of the accepted offer.
Appraisal contingency
any gain in the value of a property over time from any cause.
Appreciation
a noun; describing an item that is attached to something. In real estate, after something is installed onto a property, it can be called an appurtenance. Meaning it is passed on to a new owner if the property is sold.
Appurtenance
an adjective meaning it is attached to something. If something is appurtenant, it belongs to something else, either attached to or by law.
Appurtenant
a type of easement that “runs with the land.”
Appurtenant easement
the immediate action of adding or tearing away land by violent acts from natural causes. An example of this is a dam breaking or a hurricane.
Avulsion
a mortgage which does not fully amortize over the term.
Balloon loan
an individual for whom a trust works for. They “benefit” from the trust.
Beneficiary
an agreement between at least two people or groups. Most business and personal contracts fall into this category.
Bilateral contract
an illegal practice where real estate agents sell houses at a low price to one race then sell those same houses at a much higher price to a minority.
Blockbusting
the failure to complete an agreement per agreed terms.
Breach of contract
a space of land between two use districts such as a park, playground or a highway. The point of a this is to ease the transition from zone to zone.
Buffer zone
the rules and standards of properties for the protection of public safety and welfare.
Building code
When a person purchases property, he or she is given the rights to the property; these rights can be split up and given to different parties.
Bundle of rights
This contingency allows the buyer to cancel the contract if they are unable to sell their current home in a specified amount of time.
Buyer’s home sale contingency
If someone is in the market for a new home, they enlist ______. A _______ represents the buyer in a transaction in return for their services they receive a fee.
buyer’s agent
the profit from the sale or auction of property or investment.
capital gain
the conversion of assets or income into capital.
Capitalization
_____ used to indicate the rate of return that is expected to be generated on a property.
capitalization rate
____ is Latin for “Let the buyer or buyers beware”. The concept is that the buyer is responsible for checking the quality of a product before a purchase is made.
Caveat emptor
A Latin phrase meaning “other things equal” or in plain terms all things remaining constant.
Cetris peribus
Another word for personal property.
Chattels
a nonprofit corporation, complete with a board of directors, and each resident is a shareholder. Perhaps the largest distinction between a condominium and a _______ is that most _____ associations require that a prospective purchaser be approved by a committee composed of current ______ owners.
co-op
______ is when a title to one parcel of real estate is held by two or more individuals, those parties are called co-owners or concurrent owners. Individuals may co-own property as tenants in common, joint tenants, or tenants by the entirety or lastly community property.
co-ownership
The legal concept of a claim to title appearing to be legally valid, but in actuality, the claim is defective.
Color of title
Something of worth promised to a lender as security (mortgage) for an obligation.
Collateral
property that generates an income or salary.
commercial property
______ Laws are based on the idea that husband and wife are equal, separate, partners rather than one whole one like tenants by the entirety.
community property
Another word for properties sold in the same area seen on a property report.
comparables
Also known as The Superfund. The Superfund is a United States federal government program designed to fund the cleanup of sites contaminated with hazardous substances and pollutants.
Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA)
The procedure used by a public or private entity with the powers granted from eminent domain to take privately owned real estate.
condemnation
a type of living space which is similar to an apartment but which is independently sellable and therefore regarded as real estate.
condominium
____ occurs when two or more persons or entities conspire to restrict the ability of someone from competing. This unethical and highly illegal.
Conspiracy to boycott
a term used in the law of real property to describe a circumstance in which a landlord either does something or fails to do something that he has a legal duty to provide.
Constructive eviction
best described as ignorance, or lying without knowing you are lying.
Constructive fraud
____ means an offer for the property has been accepted but there is a condition or “contingency” that is written into the contract and it must be met before the sale can go through.
Contingent property
An agreement between two or more parties by law.
contract
_____ may be formed for profit or nonprofit purposes. A ____ is managed and operated by a board of directors. A _____ has certain rights, privileges, and liabilities beyond those of partnerships. Doing business as a _____ has its advantages and disadvantages.
corporation
A real estate appraisal method that states the price a buyer pays for a property should equal the cost to build an equivalent building on the property.
cost approach
A _____ is similar to a purchase agreement. If a ______ is made the original offer ceases to exist because legally the seller has rejected it.
counter offer
The set of data that equals heights and depths measured on a horizontal plane.
datum
Something owed or promised.
debt
a written legal document by which ownership of real estate is conveyed from one party to another.
deed
limitations to the use of the property imposed by a past or current owner and are usually legally binded forever.
deed restrcitions
A required contract provision that ensures that the title for the property is transferred to the buyer, once the mortgage is fully paid off.
Defeasance clause
Overdue taxes.
Delinquent taxes
The legal act of transferring ownership.
delivery
any loss in the value of a property over time from any cause.
depreciation
mortgage points are prepaid interest.
discount points
when competing brokers agree to split territories, and divide interests accordingly. This is a clear antitrust violation.
dividing territories
a parcel of real property that has an easement over another piece of property.
dominant estate
“”Double”” means two additional costs will be added to your base rent. Usually taxes and insurance costs are added to the monthly lease payment.
double net lease
the act of forcing an individual or business to do something against their will.
duress
occurs when one real estate agent represents both the buyer and seller in a transaction.
dual agency
A loan for a certified veteran through the Department of Veterans Affairs.
DVA loan
a right held by one person to use the land of another for a specific purpose, such as driving through someone else’s property.
easement
An easement used for entering and exiting a property.
Easement for ingress and egress
The right to exit a property.
Egress
Refers to the loss of property value due to external factors, meaning things off the property affecting the properties value.
Economic obsolescence
annual crops produced by cultivation legally belonging to the tenant with the implied right for its harvest, and they are treated as the tenant’s property.
emblements
The right of the government to take over privately owned real estate for public use.
eminent domain
intrusion on a person’s territory or property.
encroachment
an involuntary lien is on the property.
encumbrance
the federal agency responsible for dealing with environmental issues. The ____ was established in December 1970 by an executive order of United States President Richard Nixon.
Environmental Protection Agency (EPA)
A regulation that aims to give all legal individuals an equal opportunity to apply for loans. The act prohibits creditors and lenders from considering a consumer’s race, color, national origin, sex, religion or marital status in deciding whether to approve their credit application.
Equal Credit Opportunity Act (ECOA)
The interest held by one party to purchase property before closing.
equitable title
the difference between the market value of your home and the amount you owe the lender who holds the mortgage.
equity
The opposite of accretion, _____ is the wearing away of land or soil by the action of wind, water, currents, or ice. Long term erosion can decrease the size of a property.
errosion
Some but not all states require this form of insurance. It is a type of liability insurance that protects professionals against claims of inadequate work or negligent actions.
Errors and omissions insurance
When a property owner dies and leaves no proper documented inheritance plan, the property ownership reverts to the government. ____ ensures that property always has ownership.
escheat
