Real Estate vocab list 2 Flashcards
Collusion
A secret agreement between two or more people for an illegal purpose against another.
Color of Title
Title that appears to be valid but due to a hidden fact is actually void.
Commercial Banks
Institutions primarily involved in short term oans and demand deposits.
Commingling
The mixing of trust funds with the Broker’s personal funds.
Commission
The fees paid a Broker resulting from a transaction.
Common Area Maintenance
Fees charged to tenants for the upkeep of the common grounds.
Common Law
A system of law that is based on custom and usage as opposed to statutes.
Community Facility District
A method of financing infrastructure and improvements in a development. Bonds will be sold and repaid through increased property taxes.
Community Property
Property acquired by the efforts of a husband and wife during their marriage, belonging to them equally.
Compaction
To compress additional soil to those uneven areas of a lot.
Comparable
An appraisal method that compares similar properties to establish market value.
Compensatory Damages
Damages recovered in payments for actual losses.
Competent Party
An individual who is legally capable of entering into a binding agreement.
Compound Interest
Interest paid on interest.
Concentric Theory
Theory of land use developing around a central business district.
Concurrent Tenancy
Two or more parties own undivided interest in the same property.
Condemnation Suit
The legal process of taking private property for public use.
Condominium
Individual ownership of realty limited to cubage, plus an undivided interest in the common ground.
Conformity
A principle which states that value in a given area can best be obtained when all structures are in some way uniform.
Consideration
That which is given in exchange for the transfer of property or service. One of the legal requirements for validity of a contract, deed, lease, or option. Example: The purchase price would be the consideration for the property.
Construction Loan
A short term loan based on draws during the construction process.
Constructive Eviction
When the inaction of the Lessor makes the use of the property unsuitable, the Lessee moves out. The tenant moves out through no fault of his own.
Constructive Notice
A tem used when a document is recorded or printed in a public document.
Consumer Financial Protection Bureau
A regulatory agency charged with overseeing financial services offered to consumers.
Contingency
Future conditions that must be met for a contract to be binding.
Contingent Remainder
A life estate that passes to the life tenants’ heirs, pending the death of the person on whom the estate is based.
Contour Map
A map showing the physical features of land using lines to indicate elevations.
Contract
An agreement based on a promise “consideration” to do or refrain from doing something.
Contract for Deed
A real estate transaction where the seller retains legal title to the property until final payment is made.
Contract of Adhesion
Terms of a contract are set by one party. The other party is instructed to “take it or leave it”
Contract Rate
The rate of interest stated in the contract.
Contract Rent
Rental amount due as specified in the lease.
Contract Requirements
Every valid and enforceable real estate contract must have the following requirements. Competent parties, in writing, legal description, mutual assent, legal consideration, legal purpose, signatures, and communication.
Contribution
Any improvement to property is only worth its market value, the cost of the improvement.
Conventional Life Estate
A life estate created for the life of some stated natural person.
Conventional Loan
Real estate loans that are not insured by any governmental agency.
Conversion
In real estate law, the unlawful use and misappropriation of another’s personal property.
Conveyance
Transfer of title to real property. Such transfer is usually evidenced by a deed.
Cooperating Broker
A broker who works with and through the listing Broker.
Cooperative
Ownership of stock in a corporation which gives the holder the right occupy a certain unit-a long term proprietary lease.
Corporate Resolution
The written authorization of the Board of Directors for the corporation to act in a certain manner.
Corporation
A legal person created by law which is owned by stockholders who act as one.
Corporeal
Real property such as land and fixtures.
Correction Deed
A deed that corrects an error on a previously recorded Deed.
Correctional Lines
In the Government Rectangular Survey System, the lines that compensate for the curvature of the earth.
Correlation
The final step in an appraisal that weighs (usually by percentage) the comparables used to arrive at a final estimate of value. Also called Reconciliation.
Cost Approach
An appraisal process that estimates the value of property by using replacement or reproduction costs minus depreciation plus the value of the land.
Counteroffer
A new offer made in response to an original offer.
Covenant
A promise made between two or more parties, usually pertaining to contracts and deeds.
Covenant Against Encumbrances
The Grantor promises that he has revealed all the items that burdens the property.
Covenant Not to Compete
The seller of a business agrees not to open a like business for a specific period of time.
Covenant of Quiet Enjoyment
A promise that the Grantee has the highest claim to ownership.
Covenant of Seizin
The Grantor promises that he has possession of the property and has the right to convey it.
Covenants in a Deed
Promises in a deed made by the grantor for the protection of the grantee, usually found in Bargain and Sale and Warranty Deeds.
Curtesy
A husband’s right or interest in his wife’s property upon her death.
Customer
Usually referred to as the Buyer or Prospect.
Debt Relief
Forgiveness of an obligation, usually results in a taxable event.
Debt Service
The payments made to satisfy a mortgage loan, including principal and interest.
Decedent
Party who died.
Dedication
The voluntary transferring of private property for public usage.
Deed
The legal written document used to transfer ownership of real property.
Deed in Lieu of Foreclosure
An out of court settlement whereby a Lender accepts the Deed from the Borrower-friendly foreclosure.
Deed of Reconveyance
An instrument issued by the trustee when the debt secured by a Deed of Trust is paid in full.
Deed of Trust
Security for a debt using a neutral third party (Trustee) who holds legal title.
Deed Restrictions
Limits placed on public record by the Grantor that affect property usage by future owners.
Default
Failure to comply with a contractual agreement.
Defeasance Clause
Clause stating that when a condition is met, the Lender’s claim has been nullified and requiring the lender to issue a satisfaction piece.
Defeasible Fee
A fee simple state subject to certain limitations imposed by the Grantor.
Deferred Maintenance
Loss of value due to lack of maintenance.
Deficiency Judgment
The legal right of Lender through court action to collect from a borrower the remaining debt still owed after a foreclosure.
Delivery of Deed
The final transferring of a Deed from Grantor to Grantee. A prerequisite for valid conveyance.
Demise
The conveying of interest in property by means of a lease. A giving up of some interest but not all the rights of ownership.
Depreciation (Appraisal)
The loss of value due to an and all causes Functional, economic, physical social obsolescence.
Depreciation (Curable)
A defect in real property that is economically feasible to correct.
Depreciation (Incurable)
A defect in real property that would not be economically feasible to correct.
Depreciation (tax)
For income tax purpose, a deduction taken for an investment.
Descent
Distribution of property to heirs when one dies intestate.
Designated Broker
The broker who is responsible for day to day operation of the business.
Devise
The conveyance of real property through a will.
Devisee
The one who receives real property through a Will.
Devisor
The person who transfers real property through a Will.
Direct Endorsement Lenders
HUD approved lenders that approve FHA loans by themselves.
Directional Growth
The direction in which a residential community appears to be developing.
Disclaimer Deed
A document signed by a party to disavow any interest in a particular property.
Discount Points
A loan charge in addition to interest that increases the Lender’s yield.
Discrimination
Failure to give equal treatment-this concept is usually referring to a protected class of people.
Distraint Clause
Landlord’s right to seize a Lessee’s personal property for past due rent. (Commercial property only.) Unlawful in residential rental properties.
Docketed Judgment
A recorded judgement.
Doctrine of Relation Back
Document stating that the death of the Grantor does not terminate a valid escrow.
Dodd-Frank act
A federal law that places regulations on financial institutions.
Dollar Rate
Tax rate charged per $100 of assessed value.
Dominant Estate
The parcel of land that benefits from the easement against the servient estate.
Dower
A wife’s right in her husband’s property upon his death.
Down Zoning
A change from a higher to a lower zoning classification, such as commercial to residential.
Draws
Monies released under the terms of an open-ended loan.
Dual Agency
A transaction that involves two principals. When a broker represents both buyer and seller.
Due Diligence
The use of good faith and a degree of care required to perform one’s obligations.
Due on Sale Clause
The lender’s right to call the entire loan balance due upon resale of property.
Duress
The use of force in obtaining an agreement.
Earnest Money
Advance money given by a Buyer to show good faith in a purchase agreement.
Easement
The right one has to use the land of another for a specific purpose.
Easement Appurtenant
An easement that is attached to and transfers with the title to real property.
Easement by Necessity
An easement created by law, usually to have ingress and egress to land-locked property.
Easement by Prescription
The legal process of acquiring an easement due to adverse use that is open, constant and notorious for a period of time.
Easement in Gross
A personal right given to an individual or business to use the land of another. This privilege is irrevocable.
Eaves
The edge of a roof that projects beyond a building.
Economic Depreciation
Loss of value due to exterior forces beyond the property owner’s control, which is always incurable.
Economic Life
In appraisal, the number of years a property will contribute value to the land.
Economic Rent
The amount of rent a property could or would bring in an open market at a given time.
Effective Age
The age of a property based on its appearance.
Elevation
The view of the property as seen from the street.
Embellishment
To improve the item described by adding fictitious details. Overstating one’s opinion.
Emblements
The pre agreed right that the Seller or Lessee has to return to the land to harvest crops.
Eminent Domain
The right of the government to permanently take private property for public use with just compensation.
Enabling Legislation
Legislative authority extended to municipal governments to enact zoning laws.
Encroachment
Illegal intrusion upon another’s real property-usually physical in nature.
Encumbrance
Any lien, liability, or restriction upon ownership of real estate that will lessen its value.
EPA
Environmental Protection Agency-A federal agency that sets standards on environmental issues.
Equal Dignities Rule
A law that states if a contract must be in writing, then the agent’s authority to act for a principal must also in writing. If a Purchase Contract needs to be in writing to be enforceable, then any changes or alterations must also be in writing.
Equitable Interest
The Buyer’s interest in property at the signing of purchase contract. Vendee’s interest in an agreement for sale.
Equitable Period of Redemption
The mortgagor’s chance to redeem the property prior to sheriff’s sale by paying the entire debt.
Equitable Title
The Vendee’s right to ownership of real property. (Vendor still retains legal title.)
Equity
“Dollar value” interest remaining after liens are deducted from the current property value.
Equity Build-Up
The increase of equity due to the reduction of the loan amount.
Erosion
The gradual wearing away of land by acts of wind and water.
Escalator Clause
A contract clause that allows the interest to increase upon loan assumptions.
Escape Clause
The buyer is not obligated to buy if the FHA appraisal is less than the contract price.
Escheat
The right of the state to take property of the deceased who dies without a Will and has no heirs after a statutory period of time.
Escrow
Depositing documents with a neutral third party until the terms of an agreement are met.
Escrow Agent
A third party that acts on the instructions of the Buyer and Seller. When all terms and conditions are met, the agent will close the transaction.
Escrow Delivery
The act of delivering the Dee to a third party with instructions to deliver sad Deed to the Grantee after all conditions are met.
Estate
A right or interest one has in all property real and personal.
Estate in Land
A right or interest one has in real property.
Estoppel
A legal doctrine which prohibits a person form going back on previous facts or acts of conduct.
Estoppel Certificate
A document used to verify the terms and balances of existing leases or loans.
Evidence of Title
The method used to show one’s proof of ownership.
Excess Rent
Contract rent that exceeds the economic rent.
Exchanging
A transaction where like properties are traded, usually for tax benefits.
Exclusive Agency Listing
Appointing one Broker in a listing agreement with the owner reserving the right sell the property without paying a commission.
Exclusive Right to Sell
Appointing one Broker in a listing agreement, who will be paid regardless of who sells the property, including the owner.
Exculpatory Clause
A clause in a document that relieves the Landlord of any blame or guilt as relating the actions of the Tenants. An Escape Clause.
Executed Contract
A contract in which all terms and conditions have been met.
Executor
A person appointed in a Will to carry out its provisions.
Executory Contract
A contract in which all terms and conditions have not yet been met.
Expressed Contract
A contract in which the terms are specifically stated either orally or in writing.
Extended coverage Policy
A title insurance policy that normally covers items in the public record plus questions of survey and unrecorded mechanics liens.
F.D.I.C
Federal Deposit Insurance Corporation. Insures deposits for the depositor up to a certain dollar amount.
F.H.A.- Conditional Commitment
An F.H.A. appraisal based on a future loan commitment. The property has qualified but a buyer has not yet qualified.
F.H.A. -Firm Commitment
A final statement that F.H.A will insure a specified loan.
F. H. A. -Title 1
F.H.A. insures home improvement loans.
