MA Real Estate Vocab Flashcards
the best retail location within a community
100% Location
Office where salesperson pay a regular fee to the broker, but receive 100% of the commissions they earn.
100% Office
Voluntarily giving up possession of property or a claim or right
Abandonment
A legal action to stop a nuisance. Also can be a reduction of a property tax assessment.
Abatement
The rate at which new or vacant space (such as office space) will become occupied.
Absorption Rate
A condensation of a court judgment. When recorded, the judgment becomes a general lien on the property of the debtor within the county where recorded.
Abstract of Judgment
A history of every recorded document dealing with a property. It is examined to determine whether there is marketable title.
Abstract
A means of obtaining land value by deducting the value of improvements from the total property value.
Abstractive Method
Any method of depreciation for tax purposes that gives greater initial depreciation than the straight-line method. Accelerated depreciation is no longer allowed.
Accelerated Depreciation
A provision in a note making all payments due on the happening of a certain event (such as missing a payment or selling the property).
Acceleration clause
An act or agreement that forms a contract.
Acceptance
Obtaining title as a result of attaching or joining property to other property.
Accession
A third person (cosigner) who signs a negotiable instrument agreeing to be personally liable to the payee.
Accommodation Party
The act of accepting a different consideration than agreed; for example, if there is a dispute as to performance, and one party accepts less than what was bargained for originally.
Accord and satisfaction
A professional designation awarded to a management company by the Institute of Real Estate Management
Accredited Management Organization (AMO)
A professional designation for resident property managers awarded by the Institute of Real Estate Management
Accredited Resident Manager (ARM)
A gradual buildup of soil by action of water or wind.
Accretion
Depreciation to date; measured by the difference between the replacement cost new and the present value.
Accrued depreciation
A declaration customarily made before a notary, certifying that the signing of an instrument is the signer’s own free act.
Acknowledgment
Acre
43,560 square feet
A legal action against a person. When recorded, a judgment from such an action is a general lien against all of a debtor’s property in the county where recorded.
Action in personam
A legal action against property. When recorded, a judgment from such an action is a specific lien against the particular property involved in the action.
Action in rem
Personal knowledge of an interest or instrument
Actual notice
A tax according to value; real property taxes are considered to be ad valorem taxes.
Ad valorem
Disposal of property by a testator before death. It defeats the rights of a specific beneficiary under the will. (The beneficiary is not entitled to the sale proceeds or value).
Ademption
A mortgage bearing a rate of interest subject to change (based on a particular index) during the term of the loan. ARMs generally have caps on the interest that can be charged.
Adjustable-rate mortgage (ARM)
Acquisition cost less depreciation plus cost of improvements. The adjusted basis is deducted from the sales price to determine gain or loss.
Adjusted basis
Gross income adjusted for a vacancy factor and collection loss.
Adjusted gross income
The adjustment of a comparable property’s sale price to account for differences in features and amenities of a property under appraisal (using the market comparison approach).
Adjusted market price
A man appointed by a probate court to administer the estate of a deceased.
Administrator; a female is administratrix.
A lender agreement to provide permanent financing upon completion of a construction project.
Advance commitment
A means of obtaining title from another by open, hostile, and continuous use for a statutory period of time. In some states, it also requires payment of taxes.
Adverse Possession
Zoning for conformance appearance such as architectural style requirements.
Aesthetic zoning
A statement sworn to under oath or by affirmation before a notary.
Affidavit
A formal declaration as to the truthfulness of a statement; made by a person whose religious beliefs prohibit swearing under oath.
Affirmation
An easement that allows the easement holder a right of use over the land of another.
Affirmative easement
An index of the National Association of REALTORS that measures the median family income ability to support a mortgage for the median price home. An index of 100 means that the median income is equal to the amount necessary to afford the median price home.
Affordability index
An interest acquired by a grantor after he or she has conveyed property. Under some deeds, it is said to pass to the grantee.
After-aquired interest
Appraisal tables that indicate the economic life for various types of structure
Age-life tables
An agency created when the principal’s words or conduct lead another to believe in the agency and thereby act to the other’s detriment.
Agency by estoppel
An agency created by a principal approving an unauthorized act of another.
Agency by ratification
An irrevocable agency under which the agent has an interest in the subject matter of the agency.
Agency coupled with an interest
A contractual relationship in which one person (an agent) represents another (a principal).
Agency
A person representing and acting in behalf of another.
Agent
A described airspace over a property that is subject to being transferred.
Air lot
The rights of property owners to the reasonable use of the airspace over their property. They are considered to be real property, and can be separately leased or conveyed.
Air rights
A transfer of property or property rights.
Alienation
Soil added gradually to land by action of water or wind (accretion). The soil belongs to the land it is added to by this accretion process.
Alluvion
Modification of a contract or note by one party without the consent of the other. This voids the contract.
Alteration
A change in the escrow instructions after they have been signed. The signatures of both buyer and seller are required to amend the instructions.
Amend escrow instructions
Features of the property that enhance the satisfaction and use of the property; for example, an extra bath, a flower garden, or matured shade trees.
Amenities
A type of title insurance policy providing extended coverage to the lender. the same extended coverage also may be available for the buyer.
American Land Title Association (ALTA)
Increased capital gains for high income tax payers.
American Taxpayer Relief Act of 2012
Provides for handicapped accessibility for places of public accommodation.
Americans with Disabilities Act (ADA)
A loan that is liquidated by equal payments.
Amortized loans
A bolt that ties the mudsill (the lowest board in a house) to the foundation
Anchor bolt
A major tenant, usually located at one end (or both ends)of a shopping center. Lesser shops benefit by being between or close to them.
Anchor tenant
A probate for real property located in a state other than the domicile of the deceased.
Ancillary probate
Adding to something, personal property can become real property by being joined to it.
Annexation
An interest rate expressed in simple interest considering all finance charges.
Annual percentage rate (APR)
Value changes based on anticipated future use and income.
Anticipation
An action or a statement of a party before the performance due date that indicates the party will breach the contract. The other party can bring a suit upon this without waiting for actual breach.
Anticipatory breach
A clause in a mortgage that prevents loss of lien priority should the lien-holder receive a deed. Otherwise, a deed in lieu of foreclosure would convey title subject to later liens.
Antimerger clause
Organization responsible for the Uniform Standards of Professional Appraisal Practice (USPAP).
The Appraisal Foundation
An estimate of market value
Appraisal
A right, benefit, or attachment that transfers with real property; for example buildings, easement rights, and water rights.
Appurtenance
Taking advantage of the interest rate differential by buying at one interest rate, and selling at a higher interest rate by either land contract or the use of a wraparound loan
Arbitrage
A nonjudicial process for the resolution of disputes whereby the parties agree to abide by a decision made by a third person.
Arbitration
A bargain freely entered into without duress, undue influence, or collusion (deceit).
Arm’s-length transaction
Filed with the state, they set forth the activities a corporation may engage in.
Articles of incorporation
A surveyor point for metes-and-bounds descriptions that is man-made, such as an iron stake, a fence, or a canal.
Artificial monument
A phrase intended to mean that the seller does not warrant a property’s condition. Such a phrase, however, does not protect the seller in cases of concealment or fraud. Some courts hold that it applies to only readily observable defects, not to known, but undisclosed latent defects.
As is
A mineral formerly used for insulation and in housing products. It’s dust is a hazardous material.
Asbestos
The act of bringing adjacent parcels of land under one ownership; the opposite of subduing. This usual results in an increase in value.
Assemblage
Value placed by the tax assessor.
Assessed value
The process of valuing a property for taxation purposes.
Assessment
Property owned by or owed to a business or person
Assets
A mortgage clause that allows the mortgage to collect rents during the foreclosure period. Could also be a transfer of rents to a third party.
Assignment of rents
The complete transfer of one person’s rights to another. The assignee takes over the rights and duties of the assignor.
Assigment
Person who has met real estate broker requirements, but works for a broker in a salesperson capacity.
Associate broker
The act of taking over the responsibilities for an obligation, and agreeing to be liable personally for the obligation. A deficiency judgement might be possible against this party.
Assumption
The legal seizure of a property under court order before a judgment when there is belief that the property will not be available after judgment.
Attachment
the act of witnessing; to attest is to bear witness. Formal wills require witnesses.
Attestation
A person operating as an agent (not an attorney-at-law) under the power of attorney
Attorney-in-fact
An agreement between owner and sublessee that the owner will recognize the sublease, and the sublessee will pay the owner should the sublessor’s interests be foreclosed.
Attornment
A doctrine holding the owner of land liable for injury to children due to the unsafe condition of property where property is likely to attract children as trespassers.
Attractive nuissance
The sudden tearing away or lose of real property by action of water, such as river’s changing course.
Avulsion
City growth along transportation routes from the city center (resembles the spokes of a wheel).
Axial growth
The ratio of gross income to loan payments (PITI) plus long-term installment debt payments. Used to qualify buyers.
Back-end ratio
Giving possession of personal property to another, but retaining title; for example, storing goods in a warehouse, renting a trailer, giving existing mortgages to a lender as security for a loan.
Bailment
A financial statement showing assets and liabilities. This shows net worth.
Balance sheet
A final installment of a unamortized loan that exceeds the previous payments
Balloon payment
Interest based on a 30-day month and a 360-day year
Banker’s interest
A legal procedure to eliminate unsecured debts. To eliminate secured debts. the security must be surrendered.
Bankruptcy
A deed for consideration that uses the terms bargain and sale. It contains no warranties other than the implied interest by the grantor.
Bargain and sale deed
The principal east and west surveyor lines established by government survey.
Base line
A molding placed against the wall on the floor around the room.
Baseboard
Cost plus improvements less depreciation. Used to determine profit to tax purposes on sale.
Basis
Wood strips used to cover joints; used in board-and-batten siding.
Batten
A horizontal structural member giving support to a structure.
Beam
A negotiable instrument made out to cash or bearer that can be transferred without endorsement.
Bearer paper
A wall with a footing under it that bears the load of the structure.
Bearing wall
A marker placed by a government surveyor showing elevation above sea level, and used by surveyors as a reference point.
Benchmark
The person receiving payments under a deed of trust; similar to a mortgagee.
Beneficiary
A deed that does not take effect until death of a grantor (allowed in several states).
Beneficiary deed
A statement of a lender of the balance due on a loan.
Beneficiary statement
to give personal property by will.
Bequeath
Personal property that is given by will.
Bequest
An actual improvement (not a repair) to real estate.
Betterment
A mutual exchange of promises whereby each promise is consideration for the other promise.
Bilateral contract
A written agreement transferring title to personal property
Bill of sale
Insurance coverage given by an agent before the issuance of a policy or payment of a premium
Binder
A mortgage covering more than one property
Blanket mortgage
A refinance rate that is less than the current market rate but is more than the old rate.
Blended mortgage rate
An advertisement that fails to indicate that the advertiser is a real estate agent.
Blind advertising
A syndicate in which the property to be purchased will be selected after the money has been raised.
Blind pool
The act of inducing panic selling for gain by exploiting the fear of loss in value because minority members are moving in an area. This is ILLEGAL under the Civil Rights Act of 1968.
Blockbusting
Security registration requirements to protect consumers against investments in fraudulent schemes.
Blue-sky laws
A unit of lumber measurement equal to 144 cubic inches (1’ 1’ 1”)
Board foot
Cost plus improvements less depreciation taken; the value assigned an asset for book keeping purposes.
Book value
Money, personal property, or debt relief given to even off a trade. It is taxable to the person receiving it.
Boot
The breaking of law or contract.
Breach
A licensed agent employed by a principal for real estate transactions. Only they can employ a salesperson.
Broker
An income figure that does not consider a vacancy factor, collection costs, or management expenses.
Broker’s net income
Areas where soil has been contaminated by chemical discharges.
Brownfields
The unit of heat needed to raise one pound of water one degree Fahrenheit. This is used to rate the capacity of heating and air conditioning units.
BTU (British thermal unit)
A loan by which the borrower pays one-twelfth of the estimated property tax and insurance payment with each monthly payment
Budget mortgage
An area separating different land uses, often agree area.
Buffer zone
The setback from the lot line
Building line
Construction permit issued by local building inspector office.
Building permit
A part of the Uniform Commercial Code; requires recording and publication of sales not in the course of normal business. It applies to the sale of stock in trade when a business is sold. If the act is not complied with, the sale is void as to the vendor’s creditors, who can then treat the stock as if the vendor still owned it.
Bulk Sales Act
Zoning for density with height, setback, and open space requirements.
Bulk zoning
All rights incidental to ownership, such as rights to lease, use, encumber, sell, exclude, and so forth.
Bundle of rights
A business including stock, fixtures, and goodwill.
Business opportunity
A finance technique in which a seller makes a purchase more attractive by paying a lender points to lower the effective interest rate on a mortgage.
Buy down
A market condition characterized by more sellers than buyers, so buyers have a more commanding position.
Buyers’ market
The rules of how a corporation will be governed; sets forth the authority of its officers.
Bylaws
Protects consumers from unsolicited and misleading emails.
CAN-SPAM Act
A limit, usually on the interest rate or rate increases, on an adjustable-rate mortgage.
Cap
A physical asset such as land, a building, and equipment, usually for a business or trade. Other than land, these assets may be depreciated.
Capital asset
Profit from the sale of a business or an investment property. These held over one year are treated favorably for income tax purposes.
Capital gain
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.
Capital loss
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).
Capitalization method
A desired rate of return for an investment that is divided into the net income to determine a property’s value.
Capitalization rate
The net spendable cash remaining after all cash outlays are subtracted from the gross income.
Cash flow
“Let the buyer beware.”
Caveat emptor
Obtained by the veteran to be eligible for a VA loan. The veteran must submit discharge information.
Certificate of eligibility
Frequently required before a new structure can be occupied; usually provided by the building inspector.
Certificate of occupancy
An appraisal required for VA loans.
Certificate of reasonable value (CRV)
Evidence of title issued by a registrar under the Torrens Title System
Certificate of title
The highest designation awarded by the Institute of Real Estate Management
Certified Property Manager (CPM)
A deed used to dedicate land to a public agency.
Cessation deed
The history of a property showing all conveyances from the original government conveyance (call the patent).
Chain of title
A surveyor measurement of 66 feet.
Chain
A mortgage of personal property; generally has been replaced by financing statements under the Uniform Commercial Code.
Chattels mortgage
An item of personal property
Chattel
A personal property interest in real property, such as a lease, mortgage, trust deed, land contract, or square in a real estate syndicate.
Chattels real
A 24-mile-by-24-mile area formed by guide meridians and parallels under government survey that corrects for the curvature of the earth..
Check
Prevents fires by disconnecting electrical service when a circuit becomes overloaded (replaces fuse).
Circuit breaker
Law that prohibits race discrimination in housing
Civil Rights Act of 1866
Law that prohibits discrimination in government related housing.
Civil Rights Act of 1964
Title VIII of this act is called the Federal Fair Housing Act. It prohibits discrimination.
Civil Rights Act of 1968
Principal that employs the agent.
Client
Corporation where stock is not actively traded and the majority stockholders actively manage the corporation.
Close corporation
The final accounting showing all the debits and credits in the sale of real property, or a business; also called a settlement statement.
Closing statment
A claim, document, or discrepancy that casts doubt on the marketability of a title.
Cloud on Title
Zoning allowing units to be placed close together but with green areas so the density is maintained.
Cluster zoning
An amendment to a will that requires the same formalities as the will itself.
Codicil
A requirement that a property carries 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.
Coinsurance
Property that secures a loan
Collateral
Secured by other loans
Collaterally secured
Because of a defect having only the appearance of title instead of true title; for example, a title under a forged deed.
Color of title
The amount left in an acre after deducting land for streets and walks; less than 43,560 square feet.
Commercial acre
The act of mixing personal funds and a principal’s funds; considered grounds for disciplinary action.
Commingling
An agent’s fee or percentage for successfully completing a sale or lease
Commission
Areas in a common interest subdivision owned in common with other owners and used by all of the owners.
Common elements
The unwritten law of England established by court precedent. English common law is the basis for U.S. statutory real estate law.
Common law
A residential tenancy in common with each owner having exclusive right of occupancy of a unit.
Community Apartment Project
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.
Community property
Requires federally regulated lenders to publicize lending availability to low-income borrowers.
Community Reinvestment Act
The compressing of soil so that it will support a structure
Compaction
The broker’s share of the gross commission earned before expenses.
Company dollar
Properties used to estimate the value of a property using the sales comparison method
Comparables
An appraisal prepared by an agent adjusting recent comparable sales to indicate the likely sales price of a property.
Comparative market analysis
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.
Comparative unit method
The requirement of a lender that a borrower keep a specified balance on deposit with the lender.
Compensating balance
Money damages awarded to indemnify the injured party for a loss because of another’s wrongful act.
Compensatory damages
An escrow for which everything necessary to be done has been accomplished.
Complete escrow
Interest that compounds on interest as well as principal. Because interest is paid monthly on standard real estate loans, it is simple interest instead of this.
Compound interest
A Federal law that sets forth responsibility for environmental cleanup of hazard sites.
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
Requires disclosure of any fees and that fees can be saved by applying direct to lenders loan application through the internet.
Computerized loan origination (CLO)
City growth in rings from the city center.
Concentric circle growth
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).
Concurrent estates
(1) The legal action to take property for public use by eminent domain. (2) The process of declaring property unfit for use.
Condemnation
A condition that must happen before the vesting of title in another. Until the condition occurs, title remains with the grantor.
Condition precedent
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 amount of time.
Condition subsequent
A promise to make a loan on a property to a buyer yet unknown, so long as the buyer otherwise qualifies for the loan.
Conditional loan commitment
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 the goods are paid for (has generally been replaced by financial statements).
Conditional sales contract
Special permission for a use not otherwise allowable under the zoning, but considered under special criteria in the zoning.
Conditional use permit
A vertical subdivision with common ownership of land and common areas and individual ownership of the units.
Condominium
A loan that meets the purchase requirements of Fannie Mae or Freddie Mac
Conforming loan
A property will have its maximum value when it is located in an area of similar properties.
Conformity
Negative easement requiring that land be kept in a natural or agricultural state.
Conservation easement
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.
Conservator
Some of value given or promised in exchange for a promise, an act, or property of another. A promise made without this is deemed void and unenforceable. Love and affection, although deemed good, is not regarded as valuable to support a promise or an act of another
Consideration
An act of a property owner that interfere’s with a tenant’s quiet possession, thus allowing the tenant to consider the lease at an end, and be free from further obligations.
Constructive eviction
The notice given by occupancy or recording to subsequent purchasers or leinholders of a prior interest in the property.
Constructive notice
An index that reflects by its changes the changes in the purchasing power of the dollar; widely used as a measurement of inflation.
Consumer Price Index (CPI)
A remainder interest in property that will vest only if some specified contingency is met, such as the holder outliving a life tenant.
Contingent remainder
Topographical lines on a map that follow elevations. lines close together indicate a slope, and lines far apart indicate a relatively level area.
Contour lines
A one-sided take it or leave it contract
Contract of adhesion
An agreement enforceable by law, between two or more competent parties for consideration to perform or not perform a legal act.
Contract
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.
Controlled business arrangement (CBA)
A loan made by a conventional lender without government guarantee or insurance.
Conventional loan
Taking property entrusted to you and converting it to your own use; a form of larceny.
Conversion
The transfer of an interest or title to a property. This is done in real estate by a deed.
Conveyance
A sales broker selling the listing of another.
Cooperating broker
An apartment structure owned by a cooperation wherein each shareholder occupies a specific unit under a proprietary lease.
Cooperative
An increase in value of commercial property because of the additional traffic and exposure of being located on two streets.
Corner influence
A separate legal entity whose shareholders are not liable personally for corporate debts.
Corporation
Tangible property (real or personal)
Corporeal property
Surveyor corrections to compensate for curvature of the earth
Correction line
Interpreting value by combining two or more methods of appraisal; also called reconciliation.
Correlation
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 the property value.
Cost approach
An offer from the offer that rejects the original offer and makes the offer the offeror.
Counteroffer
A promise that runs with the land.
Covenant
The space between the ground and the floor on a house not built on a slab or with a basement
Crawlspace
A plus factor on a buyer’s or a seller’s closing statement.
Credit
One to whom something is owned.
Creditor
Vertical piece of 2-by-4 inch framing above or below an opening (window or door).
Cripple
The number of cubic feet in a structure
Cubage
A dead-end street having a rounded end. It is desirable for housing because there is no through through traffic.
Cul-de-sac
Zoning that allows the designated category of use, as well as less restrictive uses.
Cumulative zoning
Depreciation that can be economically corrected.
Curable depreciation
A payment schedule that indicates principal reduction of a loan for each payment.
Curtail schedule
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.
Curtesy
The buyer or the seller not represented by the agent.
Customer
A surveyor’s horizontal plane from which elevations and depths are measured.
Datum plane
A person who makes a regular part of his income by buying and selling property.
Dealer
A minus factor on a buyer’s or a seller’s closing statement.
Debit
Money raised by a business by borrowing through bonds or other debentures.
Debt capital
A formal procedure of recording a homestead declaration. It protects the homestead from unsecured creditors up to a statutory amount.
Declaration of homestead
A declaration of the restrictive covenants recorded by the subdivider. In each deed, the subdivider usually incorporates the restrictions by referencing the recording of a document.
Declaration of restrictions
The gift of real property to a government unit, usually by a subdivider, in order to gain approval. If it is given for a particular purpose, and the purpose is later abandoned, the land given may revert to the grantor.
Dedication
A deed from owner to lien holder. Unlike foreclosure, it may not wipe out junior encumbrances.
Deed in lieu of foreclosure
A deed given by the trustee to the trustor when the truster has paid the beneficiary in full. It is used for trust deeds to remove the lien in the same manner as a satisfaction is used to remove a mortgage.
Deed of reconveyance
The transfer of title from the truster (borrower) to a trustee (third party) as security for a note to a beneficiary (lender).
Deed of trust
A document that conveys title to real property from a grantor to a grantee.
Deed.
A mortgage provision that allows a junior lien holder to cure any default of a prior lien (and then foreclose on his or her own lien).
Default clause
The breach of a promise or an agreement.
Default
A mortgage provision that defeats (or cancels) the mortgage on the full payment as agreed.
Defeasance clause
An estate that can be lost should a certain event take place
Defeasible estate
Maintenance that has been postponed
Deferred maintenance
A judgment obtained when a foreclosure sale does not satisfy a debt. They are difficult to obtain in many states because of restrictions on them. In some states, they are not allowed at all.
Deficiency judgment
A measurement for angles, used in metes-and-bounds descriptions.
Degree
The actual transfer of an interest; requires the intent to make an irrevocable transfer.
Delivery
The transfer of a leasehold interest
Demise
Federal department that establishes rules and regulations concerning housing and real property in the United States.
Department of Housing and Urban Development (HUD)
A federal governmental organization dedicated to serving U.S. veterans.
Department of Veterans Affairs (VA)
A loss in property value from any cause.
Depreciation
An appraiser’s table that determines additional value attributable to additional depth.
Depth value
Land that is created by the recession of water. It belongs to the adjacent landowners. Also called reliction.
Dereliction
Hereditary succession by act of law when property does not pass by will.
Descent
An agency where one salesperson in the listing broker’s office is designated the agent of the owner. If the listing office sells the property, the selling salesperson is the agent of the buyer. Also called split agency.
Designated agency
The licensed broker who has direct responsibility for the real estate actives of the firm.
Designated broker
The office overhead cost per desk. It is determined by dividing overhead by the number of salespeople in an office.
Desk cost
A computer program developed by Fannie Mae that allows loan applications to be processed in a few minutes.
Desktop underwriter
An estate that would end on the happening of an event that may or may not happen.
Determinable fee
An appraisal method to determine land value where cost of development is deducted from estimated value after development.
Developmental method
The passing of real property by will.
Devise
The person receiving real property by will.
Devisee
The testator or testatrix who transfers real property by will upon his or her death.
Devisor
A point where additional improvements fail to increase value to cover the cost of improvements
Diminishing returns
A lender authorized to make FHA-insured loans without FHA prior approval.
Direct endorsement
Fee charged by mortgage provider to decrease the effective rate of interest.
Discount point
Rate charged by the Federal Reserve to discount banks for loans.
Discount rate
Selling a loan for less than its face value (common with second mortgages or loans bearing low interest)
Discounting a loan
The sudden withdrawal of savings from lending institutions, resulting in a tight money market.
Disintermediation
The apportionment and division of an estate in probate after debts and costs have been paid.
Distribution
Formerly a federal tax on real property conveyances that, when abandoned by the Federal government, was adopted in many states. Also called revenue stamps.
Documentary transfer tax
Protects consumers by regulating appraisers and lenders
Dodd-Frank Act
Probate in the deceased’s state of residence
Domiciliary probate
An estate using the land of another under an easement. The easement is an appurtenance to the them.
Dominant tenement
The use of one escrow to purchase and resell a property.
Double escrow
A wife’s common-law right in the estate of her husband should she survive him. In some states, it is a statutory right, such as one-third interest.
Dower
A change in zoning resulting in a lower-density use or lesser use.
Downzoning
A provision extending a mortgage to cover future obligations that may arise between the parties; used in an open end mortgage.
Dragnet clause
Report based on exterior viewing, area, and sales in area.
Drive-by appraisal report
An agency created when an agent acts for the buyer, as well as the seller in a transaction.
Dual agency
The process of investigation and evaluation expected of a reasonably prudent person under the circumstances.
Due diligence
A type of acceleration clause in a note that makes all future payments due when a property is sold. it prevents an assumption of the loan. Also called an alienation clause.
Due-on-sale clause
The use of force or threat to make a person act; makes a contract voidable.
Duress
A good-faith deposit made by an offeror with an offer
Earnest money
A beneficial easement that transfer with the land
Easement appurtenant
An easement created when one person’s words or actions lead another to believe in the existence of an easement, causing the second person to act to his own detriment. The person who made the assertion will be estopped by court action from denying the existence of the easement.
Easement by estoppel
An easement granted when there is no other possible access to property
Easement by necessity
An easement created by open, notorious, and hostile use of property for a prescribed period of time.
Easement by prescription
A personal easement to use land of another where there is no dominant tenement being benefited.
Easement in gross
Easement
The right of a person to use another’s land
That period for which improvements give a return attributable to the improvements alone.
Economic life
The rental value of a property in the marketplace
Economic rent
The savings possible by increasing production
Economics of scale
