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Real Estate > C Terms > Flashcards

C Terms Flashcards

1
Q

CAN-SPAM ACT

A

Protects consumers from unsolicited and misleading emails.

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2
Q

cap

A

A limit, usually on the interest rate or rate increases, on an adjustable-rate mortgage (ARM).

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3
Q

capital asset

A

A physical asset such as land, a building, and equipment, usually for a business or trade. Capital assets other than land may be depreciated.

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4
Q

capital gain

A

Profit from the sale of a business or an investment property. Capital gains held over one year are treated favorably for income tax purposes.

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5
Q

capital loss

A

Loss from the sale of a capital asset or other real property. For tax purposes, there is no deductible loss from the sale of a residence, although a gain is taxable.

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6
Q

capitalization method

A

An appraisal approach whereby the net income of an investment property is capitalized to determine its value (the net income is divided by a capitalization rate).

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7
Q

capitalization rate

A

A desired rate of return for an investment that is divided into the net income to determine a property’s value.

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8
Q

cash flow

A

The net spendable cash remaining after all cash outlays are subtracted from the gross income

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9
Q

certificate of occupancy

A

Frequently required before a new structure can be occupied; usually provided by the building inspector.

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10
Q

certificate of eligibility

A

Obtained by the veteran to be eligible for a VA loan. The veteran must submit discharge information.

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11
Q

caveat emptor

A

“Let the buyer beware.”

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12
Q

certificate of reasonable value (CRV)

A

An appraisal required for VA loans.

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13
Q

circuit breaker

A

Prevents fires by disconnecting electrical service when a circuit becomes overloaded (replaces fuse).

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14
Q

check

A

A 24-mile-by-24-mile area formed by guide meridians and parallels under government survey that corrects for the curvature of the earth.

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15
Q

chattels real

A

A personal property interest in real property, such as a lease, mortgage, trust deed, land contract, or share in a real estate syndicate.

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16
Q

chattel

A

An item of personal property.

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17
Q

chain

A

A surveyor measurement of 66 feet.

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18
Q

chattels mortgage

A

A mortgage of personal property; generally has been replaced by financing statements under the Uniform Commercial Code.

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19
Q

certificate of title

A

Evidence of title issued by a registrar under the Torrens Title System.

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20
Q

Certified Property Manager (CPM)

A

The highest designation awarded by the Institute of Real Estate Management.

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21
Q

cessation deed

A

A deed used to dedicate land to a public agency.

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22
Q

chain of title

A

The history of a property showing all conveyances from the original government conveyance (called the patent).

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23
Q

curtail schedule

A

A payment schedule that indicates principal reduction of a loan for each payment.

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24
Q

curtesy

A

A common-law right of a husband in the estate of his deceased wife. Some states have made this a statutory right to a life estate in the wife’s property, whereas other states grant undivided fee simple interest in a portion of the wife’s estate.

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25
Q

customer

A

The buyer or the seller not represented by the agent.

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26
Q

Civil Rights Act of 1866

A

Law that prohibits race discrimination in housing.

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27
Q

codicil

A

An amendment to a will that requires the same formalities as the will itself.

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28
Q

cluster zoning

A

Zoning allowing units to be placed close together but with green areas so the density is maintained.

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29
Q

cloud on title

A

A claim, document, or discrepancy that casts doubt on the marketability of a title.

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30
Q

closing statement

A

The final accounting showing all debits and credits in the sale of real property, or a business; also called a settlement statement.

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31
Q

Civil Rights Act of 1964

A

Law that prohibits discrimination in government- related housing.

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32
Q

Civil Rights Act of 1968

A

Title VIII of this act is called the Federal Fair Housing Act. It prohibits discrimination.

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33
Q

client

A

Principal that employs the agent.

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34
Q

close corporation

A

Corporation where stock is not actively traded and the majority stockholders actively manage the corporation.

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35
Q

coinsurance

A

A requirement that a property carry a minimum coverage (usually 80% of replacement cost) in order to collect 100% of the loss. If a person carries a lesser percentage of the amount required, that person receives only that percentage of the loss suffered.

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36
Q

common law

A

The unwritten law of England established by court precedent.

English common law is the basis for U.S. statutory real estate law.

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37
Q

common elements

A

Areas in a common interest subdivision owned in common with other owners and used by all of the owners.

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38
Q

commission

A

An agent’s fee or percentage for successfully completing a sale or lease.

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39
Q

commingling

A

The act of mixing personal funds and a principal’s funds; considered grounds for disciplinary action.

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40
Q

commercial acre

A

The amount left in an acre after deducting land for streets and walks; less than 43,560 square feet.

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41
Q

collateral

A

Property that secures a loan.

42
Q

color of title

A

Because of a defect, having only the appearance of title instead of true title; for example, a title under a forged deed.

43
Q

collaterally secured

A

Secured by other loans.

44
Q

Community Apartment Project

A

A residential tenancy in common with each owner having exclusive right of occupancy of a unit.

45
Q

comparables

A

Properties used to estimate the value of a property using the sales comparison method.

46
Q

company dollar

A

The broker’s share of the gross commission earned before expenses.

47
Q

compaction

A

The compressing of soil so that it will support a structure.

48
Q

Community Reinvestment Act

A

Requires federally regulated lenders to publicize lending availability to low-income borrowers.

49
Q

community property

A

Property acquired during marriage that is considered equally owned by both spouses. Presently, community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin, and Hawaii.

50
Q

comparative market analysis

A

An appraisal prepared by an agent adjusting recent comparable sales to indicate the likely sales price of a property.

51
Q

Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)

A

A Federal law that sets forth responsibility for environmental cleanup of hazardous sites.

52
Q

compound interest

A

Interest that compounds on interest as well as principal. Because interest is paid monthly on standard real estate loans, it is simple, not compound, interest.

53
Q

complete escrow

A

An escrow for which everything necessary to be done has been accomplished.

54
Q

compensatory damages

A

Money damages awarded to indemnify the injured party for a loss because of another’s wrongful act.

55
Q

comparative unit method

A

An appraisal method to determine replacement cost.

In general, the method is based on current price per square foot or cubic foot of similar construction.

56
Q

compensating balance

A

The requirement of a lender that a borrower keep a specified balance on deposit with the lender.

57
Q

computerized loan origination (CLO)

A

Requires disclosure of any fees and that fees can be saved by applying direct to lenders loan application through the Internet.

58
Q

condition subsequent

A

A transfer of title with the requirement that a specified condition be met. If the condition is breached, the grantor must declare a forfeiture and retake the property within a reasonable period of time.

59
Q

condition precedent

A

A condition that must happen before the vesting of title in another. Until the condition occurs, title remains with the grantor.

60
Q

condemnation

A

(1) The legal action to take property for public use by eminent domain. (2) The process of declaring property unfit for use.

61
Q

concurrent estates

A

More than one estate in the same real property at the same time (one person could have a fee simple interest and another, a leasehold estate).

62
Q

concentric circle growth

A

City growth in rings from the city center.

63
Q

conditional loan commitment

A

A promise to make a loan on a property to a buyer yet unknown, so long as the buyer otherwise qualifies for the loan.

64
Q

conservation easement

A

Negative easement requiring that land be kept in a natural or agricultural state.

65
Q

conformity

A

A property will have its maximum value when it is located in an area of similar properties.

66
Q

conforming loan

A

A loan that meets the purchase requirements of Fannie Mae or Freddie Mac.

67
Q

condominium

A

A vertical subdivision with common ownership of land and common areas and individual ownership of the units.

68
Q

conditional use permit

A

Special permission for a use not otherwise allowable under the zoning, but considered under special criteria in the zoning.

69
Q

conditional sales contract

A

A security sales agreement for the sale of personal property where title remains with the vendor (the vendee has possession). Title is transferred only when goods are paid for (has generally been replaced by financing statements).

70
Q

conservator

A

A person appointed by the probate court to manage and protect the assets of one who is unable to handle his or her own affairs.

71
Q

consideration

A

Something of value given or promised in exchange for a promise, an act, or property of another. A promise made without consideration is deemed void and unenforceable. Love and affection, although deemed good consideration, is not regarded as valuable consideration to support a promise or an act of another.

72
Q

constructive eviction

A

An act of a property owner that interferes with a tenant’s quiet possession, thus allowing the tenant to consider the lease at an end, and be free from further obligations.

73
Q

conversion

A

Taking property entrusted to you and converting it to your own use; a form of larceny.

74
Q

conventional loan

A

A loan made by a conventional lender without government guarantee or insurance.

75
Q

controlled business arrangement (CBA)

A

A company that offers a variety of services such as title insurance, property insurance, mortgage banking, home inspection, etc. (one-stop shopping), through firms where the broker has an ownership interest.

76
Q

constructive notice

A

The notice given by occupancy or recording to subsequent purchasers or lienholders of a prior interest in the property.

77
Q

contract

A

An agreement, enforceable by law, between two or more competent parties for consideration to perform or not to perform a legal act.

78
Q

contract of adhesion

A

A one-sided take- it-orleave-it contract.

79
Q

contour lines

A

Topographical lines on a map that follow elevations. Lines close together indicate a slope, and lines far apart indicate a relatively level area.

80
Q

contingent remainder

A

A remainder interest in property that will vest only if some specified contingency is met, such as the holder outliving a life tenant.

81
Q

Consumer Price Index (CPI)

A

An index that reflects by its changes the changes in the purchasing power of the dollar; widely used as a measurement of inflation.

82
Q

conveyance

A

The transfer of an interest or title to a property. Real estate is conveyed by a deed.

83
Q

curable depreciation

A

Depreciation that can be economically corrected.

84
Q

cumulative zoning

A

Zoning that allows the designated category of use, as well as less restrictive uses.

85
Q

cul-de-sac

A

A dead-end street having a rounded end. It is desirable for housing because there is no through traffic.

86
Q

cubage

A

The number of cubic feet in a structure.

87
Q

cripple

A

Vertical piece of 2-by-4-inch framing above or below an opening (window or door).

88
Q

creditor

A

One to whom something is owed.

89
Q

cooperating broker

A

A sales broker selling the listing of another.

90
Q

credit

A

A plus factor on a buyer’s or a seller’s closing statement.

91
Q

crawlspace

A

The space between the ground and the floor on a house not built on a slab or with a basement.

92
Q

covenant

A

A promise that runs with the land.

93
Q

counteroffer

A

An offer from the offeree that rejects the original offer and makes the original offeree an offeror.

94
Q

cost approach

A

A method of appraisal whereby the cost to replace the structure is calculated. Accrued depreciation is determined and deducted from the replacement cost; the land value is then added to determine property value.

95
Q

cooperative

A

An apartment structure owned by a corporation wherein each shareholder occupies a specific unit under a proprietary lease.

96
Q

corner influence

A

An increase in value of commercial property because of the additional traffic and exposure of being located on two streets.

97
Q

corporation

A

A separate legal entity whose shareholders are not liable personally for corporate debts.

98
Q

corporeal property

A

Tangible property (real or personal).

99
Q

correction line

A

Surveyor corrections to compensate for curvature of the earth.

100
Q

correlation

A

Interpreting value by combining two or more methods of appraisal; also called reconciliation.

Real Estate (18 decks)

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