Real Estate Appraisal Flashcards
1 acre
A unit of area equal to 43,560 square feet
Abstract of title
A legal document listing the history and condition of title to a parcel of real estate.
Accession
Title to improvements or additions to real property is acquired as a result of the accretion of alluvial deposits along the banks of streams or as a result of the annexation of features.
Accretion
An increase or addition to land by deposit of sand or soil washed up naturally from a river, lake or sea.
Acknowledgement
A declaration made by a person to a notary public or another public official authorized to take acknowledgements that an instrument was executed by him or her as a free and voluntary act.
Ad Valorem
A Latin phrase meaning “according to value”.
Used to describe general property taxes that are levied on the basis of a property’s assessed value.
Adjustable Rate Mortgage (ARM)
The interest rate for ARM changes over the course of a loan at 5, 7 or 10 year intervals; fluctuating interest rates
Adverse Possession
The actual, visible, hostile, notorious, exclusive and continuous possession of another’s land under a claim to title.
Alienation
The act of transferring property to another
ALTA
American Land Title Association, the national trade association for the title insurance industry.
Amenities
Neighborhood facilities and services that enhance a property’s value; always outside of the property
Americans with Disabilities Act (ADA)
A federal law effective in 1992 designed to eliminate discrimination against individuals with disabilities
Annual Percentage Rate (APR)
The amount of interest charged on a loan each year.
Appraisal
The unbiased estimate of how much a property is worth.
Appurtenances
Something that goes along with ownership of real estate (ex: mineral rights or an easement)
As is
Is the condition of the property at the time the offer was written (seller is unwilling to perform any repairs)
Assignment
When the seller of a property signs over rights and obligations to that property, to the buyer before the official closing
Attorney-in-fact
The holder of a power of attorney
Avulsion
A sudden tearing away of land by the action of natural forces
Backfill
Soil or gravel used to refill the excavation surrounding the foundation walls
Balloon payment
The final payment of a mortgage loan that is considerably larger than the required periodic payments
Baseline
One of a set of imaginary lines running east to west and crossing a principal meridian at a definite point
Bilateral Contract
A contract in which each party promises to perform an act in exchange for the other party’s promise to perform.
Blockbusting
The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry, or prospective entry, of minority persons into the neighborhood
Board Foot
A unit of measurement for lumber, equivalent to 144 cubic inches
Bounds (monuments)
A natural or artificial object used as a reference point for land descriptions
British Thermal Units (BTUs)
A unit of measurement for heat
Bundle of rights
The theory that land ownership involves ownership of all legal rights to the land, such as possession, control within the law, and enjoyment, rather than ownership of the land itself
Capital Gains
ProfIt earned from the sale of an asset
Capital Improvements
The initial capital and long-term expenditures made to establish and maintain a business or investment property
Caveat Emptor
A Latin phrase meaning “let the buyer beware”
CC and Rs (Covenants, Conditions & Restrictions)
These are the rules and regulations placed on a real property by a HOA
Chain of Title
The documentation of all past ownership of a property, from the first owner to present owner (the Kelly Blue Book for homes)
Chattel
Personal property
Cloud on title
A claim or encumbrance that may affect the title to land
Codicil
a testamentary disposition subsequent to a will that alters, explains, adds to, or confirms the will, but does not revoke it
Commingling
The illegal act of a real estate broker who mixes other people’s money with that if their own
Community Property
Refers to property acquired by a married couple and owned equally by both spouses
Condemnation
A judicial or administrative proceeding or process to exercise the power of eminent domain
Consideration
Something of value that induces one to enter into a contract
Constructive Notice
Notice given to the world by recorded documents
Cripple Walls
With a pier and beam foundation, a perimeter wall enclosing the crawl space under the house to protect the piers from the weather
Freehold Estate
An estate that includes the title
Leasehold Estate
An estate that includes possession without the title
1 mile
Equal to 5,280 feet long
1 square acre
Equal to 208.71 feet on each side, generally rounded up to 209 feet.
1 square mile
Contains 640 acres
