Real Estate Test General Real Estate Terms Flashcards
accelerated cost recovery system (ACRS)
method for claiming tax deductions for certain property purchased before 1987 in which it was possible to claim greater deductions in the early years of ownership, gradually reducing the amount deducted in each year of useful life
agency by ratification
an agency relationship created after the fact
allodial system
a system of land ownership in which land is held free and clear of any rent or service due to the government; commonly contrasted to the feudal system. land is held under the allodial system in the United States
blue-sky laws
common name for those state and federal laws that regulate the registration and sale of investment securities
boot
money or property given to make up any difference in value for equity between 2 properties in an exchange
confession of judgement clause
permits judgement to be entered against a debtor without the creditor’s having to institute legal proceedings
consumer
an individual who purchases goods or services that are not for resale
controlled business arrangement
an arrangement that offers consumers a package of services (e.g. a real estate firm, title insurance company, mortgage broker, and home inspection company)
cost
the total amount of money incurred for products or services
decedent
a person who has died
default
the nonperformance of a duty, whether arising under a contract or otherwise; failure to meet an obligation when due
determinable fee estate
a fee simple estate providing that the property returns to the original grantor or heirs when a specified condition occurs, indicating that the property is no longer being used for the purpose prescribed
easement by implication
an easement that occurs when a party’s actions reflect the intention to create an easement
duress
unlawful constraint or action exercised upon a person whereby the person is forced to perform an act against her will. a contract entered into under duress is voidable
estoppel
method of creating an agency relationship in which someone states incorrectly that another person is his agent and a third person relies on that representation
estoppel certificate
a document in which a borrower certifies the amount owed on a mortgage loan and the rate of interest
execution
the signing and delivery of an instrument. also, a legal order directing an official to enforce a judgement against the property of a debtor
federal funds rate
the rate recommended by the federal reserve for the member banks to charge each other on short-term loans. these rates form the basis on which the banks determine the percentage rate of interest they will charge their loan customers
feudal system
a system of ownership usually associated with precolonial England, in which the king or other sovereign is the source of all rights. the right to possess real property was granted by the sovereign to an individual as a life estate only. upon the death of the individual, title passed back to the sovereign, not to the decedent’s heirs
financing
the business of providing the funds that make real estate transactions possible
fiscal policy
the government’s policy in regard to taxation and spending programs. the balance between these two areas determines the amount of money the government will withdraw from or feed into the economy, which can counter economic peaks and slumps
forcible detainer
removal of a tenant from a rental property by the landlord if the tenant has breached one of the terms of the lease agreement, in compliance with statutory law
formal will/ witnessed will
a document having written instructions of property disbursements upon the death of the owner. the document must be signed and witnessed
good and indefeasible title
a title that cannot be annulled or rendered void
good faith estimate (GFE)
an estimate of all closing fees that was formerly provided to a borrower within 3 days of the loan application as was required by the Real Estate Settlement Procedures Act (RESPA)
graduated-payment mortgage (GPM)
a loan in which the monthly principal and interest payments increase by a certain percentage each year for a certain number of years and then level off for the remaining loan term