All Terms Flashcards
1
Q
A method of compensating salespeople where each salesperson pays the broker a monthly fee for the use of the office space, support services, and the broker’s name, and in return, the sales person keeps 100% of the commission.
A
100% Commission Plan
2
Q
A method estimating the value of lots with more than standard depth; a depth table.
A
4-3-2-1 Rule
3
Q
A decrease or reduction. (ex. Decrease of rent due to damage caused by a storm)
A
Abatement
4
Q
A grantor’s hand delivery of a deed to the grantee.
A
Absolute Delivery
5
Q
A condensed history of all conveyances, liens, encumbrances, judgements, and other court decisions affecting the property.
A
Abstract of Title
6
Q
Mortgage loan provision which permits the lender to demand the entire loan balance be immediately paid in full in the event of default.
A
Acceleration Clause
7
Q
A buyer whose offer is acceptable to the seller, though different from the terms in the broker’s listing agreement
A
Acceptable Buyer
8
Q
The acquisition of title by the owner of real property to those things attached to the property by others, such as tenants or trespassers or by nature.
A
Accession
9
Q
The gradual addition to land resulting from some natural force, such as the action of water or wind.
A
Accretion
10
Q
A process for recovery of investment in a building.
A
Return on Investment
11
Q
Past depreciation
A
Accrued Depreciation
12
Q
A formal declaration made by the grantor in the presence of an authorized official, usually a notary public, that the fraudulent inducement of a conveyance. Required in most states for recording but has no effect on validity.
A
Acknowledgement
13
Q
A measure of land area equal to 43,560 square feet.
A
Acre
14
Q
A court action to settle a title dispute or clear a title of defects.
A
Action to Quiet Title
15
Q
Status of an individual who has met all qualifications to practice real estate as a broker, associate broker, or salesperson; and such license is held by a broker, rather than by the Commission.
A
Active License
16
Q
The number of years a building has been in existence
A
Actual Age
17
Q
An agency established by agreement, either written or verbal.
A
Actual Agency
18
Q
Oral or written communication to the offer or that the offerer has accepted the offer.
A
Actual Communication
19
Q
A legal process to remove a tenant who holds over after the right of possession has ended, usually resulting from failure to pay rent.
A
Actual Eviction
20
Q
A deliberate misrepresentation of a material fact, made with the intent of inducing the other party to act upon it to one’s detriment. Can be done by words or silence.
A
Actual Fraud
21
Q
Knowledge that one acquires from what is heard, read or observed.
A
Actual Notice
22
Q
A tax assessed against real property based upon its value. Revenue from such taxes is used to pay for the general operational expenses of the taxing authority.
A
Ad Valorem Tax
23
Q
A page added to a form contract for the purpose of including essential terms or to provide supporting documentation such as plats or power of attorney.
A
Addendum
24
Q
Mortgage loan which allows the lender to periodically adjust the interest rate, up or down, to reflect changes in market rates.
A
Adjustable Rate Mortgage or ARM
25
The price put on a comparable property after adjustments have been made for differences between it and the subject property.
Adjusted Sales Price
26
The laws that are passed by elected legislatures.
Administrative Laws
27
A person appointed by a probate court to oversee distribution of property and to satisfy all debts out of the assets of the estate of a person who died without leaving a will or did not name an executor.
Administrator
28
A deed executed by an administrator to convey title to real property owned by a person who died intestate or did not name an executor.
Administrator's Deed
29
A method of acquiring title to real property by the unauthorized occupation of another person's land.
Adverse Possession
30
The contract a licensee signs when joining a broker or brokerage firm.
Affiliation Agreement
31
A principle of law which enables a prior grantee to automatically acquire title to real estate after a grantor has attempted to convey title, but in fact, did not have good title.
Doctrine of After Acquired Title
32
*A method of estimating accrued depreciation; also called straight line depreciation.
Age-life
33
Every relationship in which a real estate broker acts for or represents another by that person's express authority in a real estate transaction
Agency
34
*An agency in which the agent has a legal interest in the property of the principle. Cannot be revoked by the principal.
Agency Coupled with an Interest
35
A person authorized to act on behalf of another.
Agent
36
A designated air space over a parcel of land. In condominiums, each individual unit occupies a separate lot.
Air lot
37
The right to use and enjoy the air space above a parcel of land. Such rights may be leased or sold separately from the land.
Air Rights
38
Mortgage loan provision which allows the lender to demand the entire loan balance due if the property is sold.
Alienation Clause or Due on Sale Clause
39
An encumbrance created against land when the court is granted custody of the property to prevent the owner from conveying title while a suit for damages is being decided.
Attachment Lien
40
The act of witnessing a person's signing a document, such as a deed or will, and then signing the document as witness.
Attestation
41
Legal counsel for the state. Whenever the Commission believes a serious violation has occurred this person may bring an action in the name of the state to enforce compliance.
Attorney General
42
One who has the authority to act on behalf of another under a power of attorney.
Attorney-in-Fact
43
A provision in a listing agreement which allows the listing to automatically renew indefinitely until the property is either sold, or the agreement is canceled by the owner. Such provisions are not allowed in most states.
Automatic Renewal Clause
44
The loss of land caused by a sudden or violent change in the course of a river, stream, or other body of water.
Avulsion
45
A lump sum pay off of the unpaid balance of a loan, usually at the end of the loan term.
Balloon Payment
46
A deed which contains neither expressed nor implied warranties of title, but the grantor implies ownership of the property described in the deed.
Bargain and Sale Deed
47
Certain reference lines which run east and west used in the rectangular survey system to locate land.
Baseline
48
A permanent reference point of known location used by surveyors. May be established by a government survey team or a fixed monument such as a road right-of-way
Benchmark
49
One for whom title is held under a trust and is entitled to receive income from the trust. The lender when a trust deed is used in lieu of a mortgage.
Beneficiary
50
Personal property received by will.
Bequest
51
A contract in which the parties mutually exchange promises, binding both to perform.
Bilateral Contract
52
A document which conveys ownership to personal property.
Bill of Sale
53
A mortgage loan arrangement where several parcels of land are pledged as security; used primarily with subdivision.
Blanket Mortgage
54
An advertisement which does not not indicate the party offering to buy or offering to buy or offering to sell is licensed by the Commission. Such ads are prohibited.
Blind Ad
55
The illegal practice of inducing homeowners in a neighborhood to sell their property by calling attention to the possibility that minority families may be moving in, resulting in a lessening of property values, a decline in the quality of education, and an increase in crime.
Blockbusting
56
A state authority whose function is to apply equalization factors to assessed values of properties located in counties which use different assessment rates.
Board of Equalization
57
Failure without legal excuse to perform one's obligations under contract. Failure to perform duty.
Breach of Contract
58
An individual or legal entity licensed to act as the agent of another in the buying, selling, exchanging, renting, leasing, managing, or auctioning real estate for another.
Broker
59
Expressed contract where the client (principal) agrees to give the real estate broker valuable consideration upon the broker producing a seller, buyer, tenant, or landlord a ready, willing and able to sell, buy, or rent the property.
Brokerage Engagement
60
The relationship that is formed as a result of the parties entering into a brokerage engagement.
Brokerage Relationship
61
Mortgage loan in which monthly payments include not only principal and interest but also one-twelfth (1/12) of the annual cost for taxes and insurance.
Budget Mortgage
62
A parcel of land which separates other land used for different purposes.
Buffer Zone
63
Regulations, either local or state, which set construction standards for materials, methods and safety procedures.
Building Codes
64
All of the rights a person can have have in real property.
Bundle of Rights
65
The contract that creates an agency relationship between the buyer and a broker.
Buyer Brokerage Agreement
66
Covenants, conditions and restrictions which regulate the use of property held under condominium ownership.
C, C & R's ....codes, covenants and restrictions.
67
The compass direction and distance for each boundary line.
Call
68
The process of converting future income into present value. The income approach to value, considering net income and percentage of reasonable yield on the investment.
Capitalization
69
The rate of return an investor will demand from the investment in a property; increases with risk involved in a property.
Capitalization Rate
70
Let the buyer beware
Caveat Emptor
71
Disciplinary power of the Commission whereby it reprimands a licensee, usually for technical violations occurring for the first time.
Censure
72
The VA's official statement regarding the amount of entitlement available to a particular veteran.
Certificate of Eligibility
73
Authorization from a building inspector that construction has been completed in compliance with building codes and is ready for occupancy.
Certificate of Occupancy
74
An official VA appraisal of a specific property.
Certificate of Reasonable Valuable (CRD)
75
Issued to the successful bidder at a foreclosure sale if the state provides a statutory period of redemption to the defaulting owner. If the property i s not redeemed within the time allowed by law, a sheriff's deed is issued to the new owner.
Certificate of Sale
76
A title examiner's written opinion of the current condition of a property title based on a search of the public record dating back for a specified number of years.
Certificate of Title
77
A professional designation for one who has met all the education and experience requirements of the Institute of Real Estate Management.
CPM/Certified Property Manager
78
The recorded history of conveyances affecting a property's title beginning with the original patent or grant from the government and continuing to the current owner.
Chain of Title
79
Personal property
Chattel
80
The first federal legislation intended to prohibit racial discrimination in the sale or rental of all types of property
Civil Rights Act of 1866
81
Person who has entered into a contractual relationship with the broker.
Client/Principal
82
One which does not allow the borrower to pay off the loan before it matures
Closed Mortgage
83
The act of finalizing a transaction, in which title is conveyed to the purchaser.
Closing/Settlement
84
Prorated charges by the lender including costs of making the loan and a service charge can be paid by buyer or seller.
Closing Costs
85
The metes and bounds legal description must return to the point of beginning or the description is incomplete.
Closure
86
Any claim, lien, or encumbrance that impairs title to real estate.
Cloud on the Title
87
A broker who assists the listing broker in securing a buyer.
Co-broker
88
Participation of more than one broker in a real estate transaction
Co-brokering
89
A written instrument executed for the purpose of amending an existing will.
Codicil
90
Property pledge to a lender as security for a loan.
Collateral
91
An agreement to do or not to do a particular act or thing which is enforceable by law. For the agreement to be valid and enforceable it must contain the following elements: Legally competent parties, mutual assent, genuine assent, consideration, lawful purpose, and be in writing when required by law.
Contract
92
The amount of rent stated in a lease.
Contract Rent
93
Document used to transfer title (ownership)
Deed
94
In the deed- Who are the owners and what are their rights.
Title
95
Real state =
Land + Appurtenances (right or improvement attached.
96
Another name for personal property
chattel
97
Personal property is conveyed/transferred on...
bill of sale
98
Are disclosure forms required by law?
Best practice, but not required
99
Person property of tenant (business)
Trade fixture
100
A procedure where the local government divides its community into districts with each having a designated use.
Zoning
101
the interest earned by an investor on the investment (property)
Yield/return on investment
102
a court order directing the sheriff to seize and sell enough of a debtor's property to satisfy a judgement and to pay expenses for the sale.
Writ of execution
103
a junior mortgage which includes the amount of any existing loans PLUS the balance of the seller's equity after deducting the buyer's down payment. The second mortgage "takes over" the first or wraps around the first.
wraparound mortgage.
104
the level at which percolating water is found below the earth's surface
water table
105
willful misuse, destruction, or neglect of real estate
waste
106
a landowner's right to use and enjoy water adjacent to, underneath, or on the land.
water rights
107
a deed which guarantees good title through the expressed or implied covenant of seizin, covenant against encumbrances, covenant of quiet enjoyment, covenant or warranty forever, and the covenant of further assurances.
warranty deed
108
a loan correspondent's practice of holding mortgages in his/her own name until they can be assembled into a package of loans and sold to an investor.
warehousing
109
a lien recorded with the owner's consent. one created by agreement
voluntary lien
110
a transfer of title to real property initiated by the owner
voluntary alienation
111
a contract that appears valid and enforceable on its face, but is subject to recision by the party or parties acting under a disability
voidable contract
112
a contract which has no legal effect because one or more essential elements of a contract is not present. This type of contract never existed under the law.
void contract
113
a nonpossessory estate estate created when a fee simple owner grants a lesser estate and designates another person to take possession of the fee simple estate upon termination of the lesser estate
vested remainder
114
a seller is also known as a
vendor
115
a buyer's lien against the property of a seller who defaulted on a contract to sell.
vendee's lien
