Real Estate Glossary Flashcards
240 volt service
The type of electrical supply required by such household appliances as air conditioners, washers, and dryers. Usually separate from the normal household supply of 120 Volts
absorption
The consumption of available vacant property in a building or marker
abstract of title
a written, chronological record of the title records affecting rights and interests in a parcel of real property
acceleration
An increase in land caused by natural phenomena, for example a deposit of sand on a beachfront property due to a tropical storm
Active License
An active license means you work under a sponsoring broker.
Actual Notice
Knowledge given or received directly through demonstrable evidence. Actual notice of ownership: reading the bill of sale, inspecting a deed, searching title records
Ad calorem Tax
A real property’s annual tax levied by taxing entities according to the property’s assessed value
Adjustable Rate Mortgage
A mortgage loan having an interest rate that can be periodically raised or lowered in accordance with the movement of a financial index
Adjusted basis
The beginning basis, or cost, of a property plus the costs of capital improvements, minus all depreciation expense
Advance Fee
MEans a fee claimed, charged or received for a listing, advertisement or offer to sell or lease real estate issued primarily for promoting the sale or lease of real estate
Adverse Possession
The entry, occupation, and use of another’s property without the consent of the owner or where the owner took no action to evict the adverse possessor. May lead to loss of legal title if the adverse possessor fulfills certain requirements.
Agency
A fiduciary relationship between an agent and a principal where respective rights and duties are prescribed by laws of agency and by the agency agreement executed by the two parties.
Agent
The party in an agency relationship who is hired by the principal to perform certain duties. In so doing, the agent must also uphold fiduciary duties owed the principal
Aggregate Limit
A provision in an insurance contract limiting the maximum liability of an insurer for a series of losses in a given time period, such as the policy term.
Air Rights
Rights in real property as they apply to the property’s airspace, or all space above the surface within the parcel’s legal boundaries
Air Space
The air portion of real property. In a condominium unit, the freehold space enclosed by the unit’s outer alls, floor and ceiling
Alienation
A transfer of title to real property by voluntary or involuntary means
Allocation of Markets
An act of collusion where two or more competitors agree to limit competitive activity in portions of the market in exchange for reciprocal restrictions from others
Amortization
A partial or complete reduction of a loan’s principal balance over the loan term, achieved by periodic payments which include principal as well as interest
Amperage
A measure of the overall capability of the household supply. 100 amp service is the modern minimum standard
Annual Percentage Rate (APR)
The total cost of credit to a borrower inclusive of finance charges and the stated interest rate, expressed as an annual rate of interest
Antitrust Laws
Legislation aimed at preventing unfair trade practices and monopoly, including collusion, price fixing, and allocation of markets
Apprasial
An opinion of value of a property developed by a professional and disinterested third party and supported bdy data and evidence
Appraiser
A duly trained and licensed professional authorized to perform appraisals for other parties
Appreciation
An increase in the value of a property generally owing to economic forces beyond the control of the owner
Arrears
PAyment that occurs at the end of a payment term rather than at the beginning. Examples of items paid in arrears include taxes and interest
Asbestos
A fibrous mineral used for fireproofing, electric insulation, around heating pipes and ducts, also applied as a spray covering on walls and ceilings; now regarded as a hazardous substance subject to environmental regulations
Asphalt Shingle
Heavy felt impregnated with asphalt and coated with mineral granules; come in a range of colors; life span approximately 15 years
Assemblage
A combining of contiguous parcels of real estate into a single tract, performed with the expectation that increased value will result
Assessed Value
The value of a property is established by assessors for the purpose of ad valorem taxation
Assessment
A periodic charge payable by condominium owners for the maintenance of the property’s common elements
Asset
A tangible or intangible item of value
Asset Sale
A sale of a business involving the transfer of assets as opposed to the liabilities or stock
Assignment
A transfer of one’s entire interest in an item of real or personal property. The assignor transfers the interest to the assignee
Associate Broker
An individual who has qualified as an associate broker under this act is licensed by the commission under a responsible broker and does not have supervisory duties
Assumption
In a sale of real property, the transfer of the seller’s mortgage loan obligations to the buyer. REquires, in most cases, the approval of the lender
Auction
Noun: Method of sale at a predetermined date and time, by means of one or more exchanges between an auctioneer and prospective purchasers
Verb: any act or conduct done for compensation or the expectation thereof and designed, intended or expected to affect the bidding or results of a real estate auction, including but encouraging soliciting or receiving bids
Awning
A window hinged along the opt edge and designed to swing at the bottom
Balloon Frame
A house framing method in which studs extend from foundation to roof. Floor joists are hung on the studs. Generally replaced by platform framing after 1945
Balloon Payment
A lump sum payment on any loan which retires the remaining loan balance in full
Base Line
An imaginary latitude line within the rectangular survey system that is designated in relation to a principal meridian for purposes of identifying townships
Basement
An area below grade level, generally accessible from inside the house, with sufficient clearance that a person can stand up in it. A full basement covers the area of the entire first floor
Batting Insulation
Fibrous material, usually fiberglass, wadded together, backed with foil or paper, and formed into a roll designed to fit between studs of a standard stud wall
Bay
A portion of a building that projects beyond the face of the building
Beam
A horizontal structural member. May be solid timber, laminated wood, or metal
Bearing Wall
A wall that supports part of the load above it
Beginning Basis
The original cost or market value of an acquired asset
Benchmark
A registered marker denoting an official elevation above sea level; used by surveyors to identify other elevations in the area
Beneficiary
A party named to benefit from the yield or disposition of an asset identified in a trust, insurance policy or will
Beveled Siding
Siding consisting of horizontally overlapped boards that are thinner on the upper edge than on the lower
Bifold
A Two-paneled folding door mounted in a track, usually used with closets
Bilateral Contract
A contract where both parties promise to perform in exchange for performance by the other party
Binder
A temporary agreement to buy a property evidenced by a valuable deposit. Receipt of the deposit binds a seller to a good-faith agreement to sell a property, provided a complete sale contract is executed within a certain period
Blind Ad
An advertisement that does not contain the identity of the advertiser
Blockbusting
Inducing property owners to sell or rent their holdings due to an impending downturn in their property values, often owing to a change in the area’s ethnic or social composition
Blown Insulation
Loose insulation material blown into spaces between studs and wall surfaces
Blueboard
A type of rought gypsum board used for sheathing interior walls
Board & Batten
Siding that is applied in vertical panels or boards with the vertical joints covered by narrow strips
Bow
Curved window or group of windows build as a unit to project beyond the surface of a wall
Branch Office
Any office location of a real estate company that is separate from a principal office and supervised by a responsible broker
Brick
Outside structural wall or veneer consisting of brick and mortar. In residence, generally regarded as low maintenance, fireproof and decorative
Bridging
Diagonal bracing between floor joists to spread load
Broker
A direct agent of the principal who is hired for compensation to perform a stated service such as procuting a customer
Broker’s Opinion of Value
An estimate of a property’s value rendered by a party who is not necessarily licensed, objective, or qualified. The estimate may not be a complete appraisal.
Broker’s Price Opinion
An estimate prepared by a licensee that details the probable selling price of real estate and provides a varying level of detail about the real estate’s condition, market and neighborhood and information about sales of comparable real estate
Brokerage
The business of procuring customers on behalf of clients for the purpose of completing a real estate transaction
Building Code
A specific standard of construction or maintenance of any aspect of an improved property established by local government officials
Building Paper
An asphalt-saturated paper used as a covering over wall sheathing, roof decking, or a subfloor
Built Up
A low pitch or flat roof covered with layers of roofing felt laminated with tar, pitch or asphalt and topped with hot tar and gravel
Bundle of Rights
A set of rights associated with ownership of property, including the rights to possess, use, transfer, encumber and exclude
Bungalow
Originally a one-story house with prominent roof and large overhangs
Bus Bar
A solid metal bar in a service entrance panel or subpanel. A hot bus bar is connected to the main power source. A hot bus bar provides a terminal for all neutral wires and is part of the grounding connection
Business Brokerage
The brokerage of a business enterprise in addition to any real property it may own or lease
Buydown
A loan arrangement where the borrower pays extra interest in advance for the future benefit of a lower interest rate over the loan term
Buyer
A person attempting to acquire real estate and includes a tenant as that term is commonly used in the rental, leasing, or management of real estate
Buyer Representation Agreement
A broker’s listing with a buyer to locate a suitable property for purchase or lease
Buyer’s Agent
A licensee who is authorized to represent and act on behalf of the buyer in a real estate transaction
Buyer’s Market
A market characterized by an excess of sellers over buyers
BX
A flexible, metal-armored type of self-containing wiring that is installed without conduit. Also called AC (armored cable)
Bypass
Doors set in track so as to open by sliding past each other, usually used with closets
Cape Cod
A small one-story or one-an-a-half-story house with gable roof, clapboard or shingle siding, and no dormers (originally)
Capital Gain (or loss)
The difference between the net sales proceeds of an asset and its adjusted basis
Capital Improvement
An upgrading of improved property having sufficient magnitude to constitute an addition to the property’s basis. Contrasts with repair and maintenance.
Capitalization Rate
The rate of return on capital an investor will demand from the investment property, or the rate of return that the property will actually produce
Casement
A window hinged along one of the vertical edges
Cash Flow
The remaining positive or negative amount of income an investment produces after subtracting all operating expenses and debt service from gross income
Casing
Finish trim around a framed wall opening
Cast Iron
Material traditionally used for soil stack and soil pipe, with joins poured of hot lead
Cement Block
A foundation of cast blocks laid on a concrete footing
Central Air
An air conditioning unit, mounted outside a house, that cools the entire house by way of ducting
Certificate of Occupancy
A document confirming that a newly constructed or renovated property ahs fully complied with all building codes and is ready for occupancy and use
Certificate of Title
A document expressing the opinion of a title officer or attorney that a property seller is in fact the owner of good title base on a review of title records
Chain of Title
Successive property owners of record dating back to the original grant of title from the state to a private party
Chattel
An item of personal property
Circuit Braker
A resettable device that interrupts a circuit when there is an overload or fault on the line
Clapboard
A type of smooth beveled siding, generally narrow, that is common in older frame houses
Cleanout
A removable opening in a drain pipe that allows cleaning out of clogged material
Closing
A meeting of principal parties where a seller transfers title and a buyer pays monies owed to the seller and lender
Closing Statement
A financial summary and settlement of a property transaction indicating sums due and payable by the buyer and seller
Cloud
An encumbrance or claim on title to property impending or diminishing its marketability
Co-brokerage
A brokerage practice where agents and brokers outside of the ising broker’s agency assist as subagents in procuring a customer in exchange for potions of the commission
Collateral
Property liened by a lender as security for a loan
Collusion
An unlawful agreement between competitors to monopolize a market, disadvantage other competitors, or otherwise undertake activities in violation of fair trade laws
Color of Title
A defective title transfer or the transfer of a defective title where the new owner is originally unaware of the defect. COlor of title may be used as a grounds for adverse possession, which if successful, would nullify the original defect
Commingling
An unlawful practice mixing escrow funds with the agency’s operating funds
Commission
Wyoming Real Estate Commission
Common elements
Portions of a condominium property that are owned by all unit owners, ex: grounds, parking facilities, lobby, elevators
Portions of a commercial property used by all occupants as well as the public, for which the tenants may have to share in the repair and maintenance costs
Common Law
A body of law developed by court judgements, decrees and case decisions
Community Property
A system of property ownership established by law which generally defines rights of property ownership of spouses; community property is co-owned by spouses, and separate property is owned by a single spouse.
Generally, property acquired during the marriage with jointly held funds is community property
Comparable
A property having similar characteristics to a subject property in an appraisal. The value or sle price of the comparable is used to estimate the value of the subject
Comparative Market Analysis (CMA)
A method used by broker and sales people for estimating the current value of a property using sale price data from similar properties. Not to be confused with a bona fide appraisal performed by a licensed appraiser
Compensation
Money, item of value or payment which is provided, promised, or expected for the performance of any real estate activity
Concurrency
A local, county or regional planning policy that requires developers to correct foreseen negative impacts of a development during the construction period of the project itself rather than afterwards; example, widening a road during construction to accommodate a future increase in traffic
Condemnation
A decree by a court or municipal authority that a parcel of private property is to be taken for public use under power of eminent domain
A government order that a particular property is no longer fit for use and must be demolished
Condominium Estate
An estate distinguished by fee simple ownership of the airspace of a unit plus an undivided interest with the other unit owners in the overall property’s common elements
Conduit
Metal piping used to carry flexible wiring
Consideration
An item of tangible or intangible value, or one’s promise to do or not do some act which is used as an inducement to another party to enter into a contract
Constructive Notice
Knowledge one could or should have, according to the presumption of law; a demonstration to the public of property ownership through title recordation. ‘for all to see’
Contemporary
A modern house that emphasizes materials and structure rather than any traditional or derivative style
Contingency
A condition that must be satisfied for a contract to be binding and enforceable
Contract
A potentially enforceable agreement between two or more parties who agree to perform or not perform some act. If valid, the contract is enforceable, with limited expectations
Contract for deed
A financial contract where a seller retains legal title to a property and gives the buyer equitable title and possession over a period of time. During the contract period, the seller finances all or part of the purchase price. If the buyer makes timely payments and abides by all contract provisions, the seller conveys legal title at the end of the contract period
Contribution
The increment of market value added to a property through the addition of a component or improvement to the property. Not to be confused with the cost of the component
Conventional Loan
A permanent long-term loan that is not FHA-insured or VA-guaranteed
Conversion
Changing real property to personal property or vice versa
An illegal act of appropriating escrow funds for payment of an agency’s operating expenses
Conveyance
A voluntary transfer of real property interests
Cooperative Estate
Ownership of shares in a cooperative association which acquires a multi-unit dwelling as its primary asset. Shareholders also receive a proprietary lease on a unit for the duration of their share ownership
Cooperative Transaction
Any real estate transaction in which licensees from more than one real estate company participate, regardless of agency representation
Copper
Material traditionally preferred for piping hot and cold water supply within a house with soldered joints
Cost Approach
A method for determining value that take into account the cost of the land and the replacement or reproduction cost of the improvements net of estimated depreciation
Counteroffer
Any new offer or amended offer mand in response to an offer
Covenant
A written warrant or promise set forth in a contract or other legal document by one or both of the parties to the contract
Crawl Space
The area between first floor joists and the ground in a house without a basement. Often filled with gravel. Clearance is not sufficient to allow a person to stand up
Credit
An accounting entry on a closing statement indicating an amount a party has paid or is to receive.
Loan funds advanced to a borrower
Credit Evaluation
A lender’s opinion of a borrower’s ability to repay a loan in view of financial capabilities and past repayment patterns
Cross Gable
A Gale roof that intersects another gable roof at right angles
Cutrsey
A widower’s life estate claim to portions of his deceased spouse’s real property
Customer
In agency law, a party outside of the fiduciary relationship of client and agent. If an agent treats a customer as a client, an implied agency may result
Customer WY
