Real Estate Principles Glossary Flashcards
Abandonment
The termination of an easement when easement holders actions demonstrate clear intent to permanently abandon all future use of easement
Absolute privilege publication
Any publication during a judicial proceeding which is authorized by law bars a slander of title action against the person wrongfully claiming an interest in the property
Abstract of judgment
A condense written summary of the essential holdings of a court judgment
Acceleration
When a lender or carryback seller demands for immediate payment of amounts remaining due on the loan or extension of credit also known as calling the loan
Actual money losses
Money losses recovered for injury to real estate, lost use of the property, personal injury or injury to the occupant’s personal property
ad valorem taxes
Real estate taxes imposed on property based on its assessed value
Adjustable-rate mortgage (ARM)
A variable interest rate note with the rate of interest adjusted based on a selected index often starting out with an introductory teaser rate and then resetting at a higher rate in a few months or years
Administrative agencies
A government entity created by the state legislators and local governing bodies to oversee specialize matters. Most have legislative executive and judicial authority
Adjusted gross income (AGI)
A taxpayers total net income of expenses and deductions from all three income categories
Adverse possession
A method of acquiring title two real estate by openly maintaining exclusive possession of the property for a period of five years in pain all property taxes
Abstract of title
An accurate factual representation of title to the property being acquired encumbered release
Affiliated business arrangement (ABA)
Referral of a client to a financial controlled business whose earnings are shared with the broker
Affirmative covenant
A recorded restriction limiting the use of property to a specific purpose. For example can only be used for a school, railroad or highway
Agency confirmation provision
A provision and all purchase agreements and counteroffers disclosing the agency of each broker in the transaction.
Agency law disclosure
Reinstatement of agency codes in cases which establish the conduct of real estate licenses. it is delivered to all parties and targeted transactions when listing, selling, buying or leasing for a term greater than one year. Property containing 1 to 4 residential units, mobile home or commercial properties
Agency relationship
The scope of activities imposed on the broker by law as arising out of the representation authorized by the employment
Agent
One who is authorized to represent another such as a broker and client or sales agent and their broker
Agreed- boundary doctrine
When owners of adjacent properties uncertain over the true boundaries agreed to establish the location of their common lot line and acquiesce to the boundary line for at least five years
All-inclusive trust deed (AITD)
A note executed by the buyer in favor of the seller for payment of the amount remaining due on the purchase price after deducting the down payment the seller remaining responsible for payment on one or more of the underlying trustee deed obligation. It is also referred to as a wraparound or overriding note
Alquist-Priolo MAps
Maps which identify earthquake fault areas available from state mining and geological board the city or county planning department
Amendment clause
A clause contained in covenants conditions and restrictions (CCR’s) establishing a procedure for modifying the (CCR’s)
Amortization table
A schedule of monthly loan payments showing amount of principal and the amount of interest which comprises each constant payment until the loan is paid in full
Annual property operating data (APOD)
A document presenting income and expenses incurred by income property to analyze suitability for investment
Anti-deficiency
A limitation placed on a mortgage lender’s ability to recover losses on a default when the secured property’s values is insufficient to satisfy the mortgage debt
Applicable federal rate (AFR)
Rates set by the Internal Revenue Service for carryback sellers to impute and report as minimum interest income when the note rate on the carryback death is a lesser rate
Appraisal
An individual’s opinion of property value on a specific date documented in an appraisal report
Appraisal report
Documentation of an appraiser’s findings including the purpose and scope of the appraisals property description and opinion of value
Appurtenant easement
A type of easement which is incidental to the ownership and belongs to the property which benefits from its use
Appurtenant rights
Incidental property rights which are not located on the real estate nor reflected on its title including the rights of ingress and egress across adjoining properties
Area
The amount of space within the boundaries of a parcel of real estate
As is clause
An unforeseeable provision stating the buyer accepts the property without a full disclosure of known conditions. Properties are sold “as disclosed”, never “as is”
Associate license
A sales agent employed by a broker
Assumption agreement
A promise given by the buyer to the seller or a lender to perform all terms of the mortgage taken over by the buyer on the sale
