RE - Set 04 Flashcards
ACTUAL AGE
The real age of a building.
NET INCOME
Sometimes known as net operating income. The remaining income after operating expenses have been subtracted from the gross income of a property.
ECONOMIC LIFE
The estimated period over which an improved property may be profitably used to yield a return.
CAPITALIZATION
The process of calculating the present worth of a property on the basis of its capacity to continue to produce an income stream.
BOOK VALUE
The initial cost of the property plus the capital improvements and minus the total accrued depreciation.
VACANCY FACTOR
Lost income because of a vacant unit.
DEFERRED MAINTENANCE
Negligent care of a building.
CAPITAL IMPROVEMENTS
Any permanent improvement made to real estate for the purpose of increasing the useful life of the property or increasing the property’s value.
EFFECTIVE AGE
The years or age shown by the condition and utility of a structure, rather than its actual or chronological age.
CAP RATE
A term sometimes used to refer to capitalization rate.
VARIANCE
An exception granted to existing zoning regulations for special reasons.
ENVIRONMENTAL IMPACT REPORT
A study of how a development will affect the ecology of its surroundings.
CHAIN OF TITLE
A chronological history of a property’s ownership.
WARRANTY DEED
A deed used to transfer title to property, guaranteeing that the title is clear and the grantor has the right to transfer it; no longer used in California.
PUBLIC GRANT
The transfer of title by the government to a private individual.
SHERIFF’S DEED
A deed given to a buyer when property is sold through court action in order to satisfy a judgement for money or foreclosure of a mortgage.
GRANTOR
The person conveying, or transferring, the property.
AFTER ACQUIRED TITLE
Any benefits that come to a property after a sale must follow the sale and accrue to the new owner.
CONSIDERATION
Anything of value; one of the essentials of a valid contract.
GIFT DEED
Used to make a gift of property to a grantee who is usually a close friend or relative.
UNDUE INFLUENCE
Using unfair advantage to get agreement in accepting a contract.
MULTIPLE LISTING SERVICE
A cooperative listing service conducted by a group of brokers for the purpose of marketing listings.
CURTILAGE
The enclosed ground space surrounding a dwelling, such as the lawns or patio.
SUBLEASE
Transfer less than the entire leasehold, with the original lessee being primarily liable.
BLIND ADVERTISING
Advertising that fails to disclose that the party is a licensee acting as an agent.
