Vocabulary Letter A Flashcards Preview

Real Estate > Vocabulary Letter A > Flashcards

Flashcards in Vocabulary Letter A Deck (40):
1

Abstract of Judgement

The summary of a court judgment that creates a lien against a property when filed with the county recorder

2

Abstract of Title

historical summary of all of the recorded instruments and proceedings that affect title to a property.

3

Accelerated Cost Recovery System

A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property.

4

Acceleration Clause

a loan provision giving the lender the right to declare the entire amount immediately due and payable upon violation of another specific loan provision, commonly referred to as the Due on Sale Clause.

5

Acceptance

a buyers or sellers agreement to enter into a contract and be bound by the terms of the offer.

6

Accrued Interest

interest that has been earned but not paid.

7

Accumulated Depreciation

in accounting, the amount of depreciation expense that has been claimed to date.

8

Acknowledgment

a declaration by a person who has signed a document that such signature is a voluntary act, made before a duly authorized person.

9

Acquisition Cost

the price and all fees required to obtain a property.

10

Acquisition Loan

money borrowed for the purpose of purchasing a property.

11

Acre

a two dimensional measure of land equaling 4,840 square yards or 43,560 square feet.

12

Addendum

something added as an attachment to a contract.

13

Additional Principal Payment

Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan.

14

Adjoining

contiguous, attached, sharing a common border.

15

Adjustable Rate Mortgage (ARM)

a mortgage loan that allows the interest rate to be changed at specific intervals over the maturity of the loan, based on a monitored index.

16

Adjusted Cost Basis

The cost of any improvements the seller makes to the property. Deducting the cost from the original sales price provides the profit or loss of a home when it is sold.

17

Adjusted Tax Basis

the original cost or other basis of the property, reduced by depreciation deductions and increased by capital expenditures.

18

Adjustment Period

The amount of time between interest rate adjustments in an adjustable- rate mortgage.

19

Administrator

a person appointed by a court to administer the estate of a deceased person who left no will

20

Administrator's Deed

A legal document that an administrator of an estate uses to transfer property.

21

Adverse Possession

a means of acquiring title to real estate where an occupant has been in actual, open, notorious, exclusive and continuous occupancy of property for the period required by state law.

22

Affidavit

a written statement, sworn to or affirmed before an officer who is authorized to administer an oath or affirmation.

23

Agency

the legal relationship between a principal and his agent arising from a contract in which the principal engages the agent to perform certain acts on behalf of the principal.

24

Agreement for Deed

see Contract for Deed.

25

Alienation

to convey or transfer title and possession of property.

26

All Inclusive Trust Deed

This applies to states that use trust deeds instead of mortgages. It is the same as a wraparound mortgage.

27

Amortized Loan

loan that is repaid in a series of installments each of which contains a portion that is applied to reduce the principal amount of the loan and a portion that is applied to pay interest with each successive payment allocates a larger portion to principal reduction and a smaller portion to interest payment until the outstanding balance is ultimately reduced to zero.

28

Annual Cap

maximum amount the interest rate on an adjustable rate mortgage can be raised or lowered in the course of one twelve month period.

29

Annual Percentage Rate (APR)

effective rate of interest rate for a loan per year including fees and points, disclosure of which is required by the Truth-in-Lending Law

30

Anticipatory Breach

A communication that informs a party that the obligations of the original contract will not be fulfilled.

31

Appraised Value

opinion or estimate of a value of a property, values are determined by one of three methods: comparable sales (residential), replacement cost (insurance), or income approach (commercial).

32

Appreciation

an increase in the value of a property.

33

Arrears

mortgage payment includes interest for prior month, or overdue payments in default.

34

As-is

without guarantees as to condition.

35

Assessed Value

the value established for property tax purposes.

36

Assignee

the person to whom an agreement or contract is sold or transferred.

37

Assignment

the method by which a right or contract is transferred.

38

Assignor

the person who assigns or transfers an agreement or contract to another.

39

Assumable Mortgage

An existing mortgage which allows the next purchaser of a property to be liable for the payments and other obligations of the note and mortgage. Depending on the type of loan, the assumption of the obligation by this next purchaser may or may not require a qualification and approval process and may or may not release the original mortgagor (borrower) from further liability. A written release from the mortgagee (lender) is required to relieve the original mortgagor of responsibility.

40

Attornment

A tenant's formal agreement to be a tenant of a new landlord.