Priciples Of Real Estate Flashcards
Abstract of Judgment
Document that summarizes the results of a legal action, which can be filed in any county where the judgement debtor owns a property.
Abstract of Title
Summation of all recorded transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title to show ownership continuity and signify any possible loss to title.
Acceleration Clause
Provision in a real estate financing instrument allowing the lender to declare the full debt due immediately if the borrower breaches any of the provisions of the loan agreement. Also referred to as a call provision.
Acceptance
(A)Agree to the terms of an offer to enter into a binding contract.
(B)Receive delivery of a deed from the grantor.
Accession
The process of manufactured or natural improvement or addition to property.
Accretion
A steady addition to dry land through the forces of nature as when waterborne sediments get deposited on waterfront property
Acknowledgement
Formal declaration made before an authorized person ( generally a notary public) by an individual who has executed a written instrument that it has been done voluntarily
Acquisition Cost
Amount of money required to acquire title to a property; it includes the purchase price as well as the closing costs, legal fees, escrow, service charges, title insurance, recording fees, and other such expenses.
Acre
Area of land measuring 160 square rods,
4,840 square yards, or
43,560 square feet; a track of about
208.71 feet square.
Actual Age
number of years since a building was completed; also called historical or chronological age
Actual Authority
Authority actually given to an agent by the principal. ( expressly or implication) .
Actual Eviction
Forcing someone physically off real property or preventing someone from re-entering property or using legal action to make someone leave the premises.
ADA
American with Disabilities Act
Addendum
A page containing additional provisions attached to a purchase agreement or any other contract.
Adjacent
Next to, nearby, bordering, or neighboring( not necessarily in a real contract)
Adjustable-rate mortgage (ARM):
Loan in which the interest rate increases or decreases to reflect changes in cost of money.
Adjusted basis
Purchase price of property plus cost of specified improvements, minus any depreciation deductions taken.
Adjustment Period
Time period between when the interest rate or monthly payment for an adjustable-rate mortgage is changed.
Administrative Agency
Government body administering a complicated area of law and policy, implementing and enforcing detailed regulations. Example , the Department of Real Estate is one.
Administrator
Individual appointed by the probate court to manage and distribute the estate of a deceased person if no executor is named in the will or there is no will.
Ad Valorem
Latin phrase meaning “according to value”
Referring to taxes assessed on the value of property.
Adverse possession
A way of acquiring title to real property belonging to someone else by occupying it without permission, and fulfilling other statutory requirements.
Affidavit
Acknowledged sworn statement in writing made before a notary public ( or any other official authorized to administer an oath)
Affiliated licensee
A real estate salesperson or associate broker employed by a broker
Affirm
(A)To confirm or approve
(B) To make a sincere declaration that is not under oath
After-acquired title
If a title is acquired by a grantor, only after a conveyance to a grantee, the deed to the grantee becomes effective at the time the grantor actually receives title.
Age of Mojority
Age of a person when he or she becomes legally competent ( usually 18 years old)
Agency Apparent
When the impression given to a third party is that someone who hasn’t been approved to represent another is that person’s agent, or the impression that an agent has been approved to perform acts which are actually beyond the capacity of his authority; also called ostensible.
Agency, Dual
An agency relationship where the agent represents two principals in their dealings with each other.
Agency, exclusive
Listing agreement that employs a broker as sole agent for a seller of real property for which the broker is entitled to compensation if the property is sold via any other broker, but not if a sale negotiated by the owner without the services of an agent.
Agency, Exclusive
Listing agreement that employs a broker as sole agent for a seller of real property for which the broker is entitled to compensation if the property is sold via any other broker, but not if a sale is negotiated by the owner without the services of an agent.
Agency, Ostensible
Also known as agency apparent
Agency confirmation statement
Written statement indicating the representation of a real estate agent of a party. It should be signed by both the buyer and the seller before they enter into a residential purchase agreement.
Agency disclosure form
Form explaining the duties of a seller’s agent, a buyers agent, and a dual agent -required to be signed by both the buyer and the seller before they enter into a residential purchase agreement
Agency law
Body of legal rules governing the relationship between agent and principal by imposing fiduciary duties on the agent as well as liability for the actions of the agent on the principal
Agent
Individual authorized to represent another ( known as the principal) in dealing with third party
Agents in production
Elements necessary to generate income and establish a value in real estate: labor, coordination, capital, and land
Air rights
The rights to unobstructed use and possession of the airspace over a parcel of land. This right may be transferred separately from the land
Alienation
The transfer of ownership or an interest in property from one person to another, in any way.
Alienation, Involuntary
Transfer of an interest in property against the will of the owner, or without any action by the owner( ensuing through operation of law, natural processes, or adverse possession).
Alienation, Voluntary
When an interest in property is voluntarily transferred by the owner to someone else( generally by deed or will)
Alienation Clause
A security instrument provision giving the lender the right to declare the full loan balance due immediately if the borrower sells or transfers the security property; also termed as due-on-sale clause.
