Real Estate Vocabulary Flashcards
Abstract of Title
A report based on what was found in a title search, shows history of title
Acceleration Clause
A clause in a mortgage loan that allows the lender to declare the entire balance of the loan due immediately once the loan is declared in default after the borrower misses a certain number of payments
Accessory building
A separate building on a property that supports or is related to the main use of the property
Accretion
The gaining of land due to natural forces
Accrued depreciation
The total loss in value of a building from all causes; part of the cost approach to value.
Accrued item
an item that is owed by the seller but paid by the buyer opposite of prepaid item
Acknowledgment
In a deed, shows proof of witnessing the grantors signature
Actual eviction
Occurs when the landlord takes legal action, generally through a lawsuit, to repossess the premises
Ad Valorum
Used in connection with real estate taxes that are based on the value of the property
Add on factor
The percentage that is added to the useable space to arrive at the rentable space in a commercial building
Ex: rentable space + useable space = rent
Useable space =Common areas
Adjustable rate mortgage
A mortgage loan in which the interest rates can change throughout the life of the loan
Adverse possession
The claim of ownership of one persons property by another one based on how the encroaching person is using it and the length of the time involved
Ex:Squatters Rights
Agency by estoppel
An agency created when the principle doesn’t stop the agent from going beyond his normal duties thereby giving the impression that the agency relationship has been created
Agency by ratification
When the principal approves of an agents actions before the authorization of their agency relationship.
Agency coupled with an interest
An agency relationship where the agent has some kind of interest in the property being sold
Agency relationship
The relationship between the agent and the principal
Air Rights
Rights of a property owner to the infinite airspace above their land, That may be limited by government regulations regarding aircraft traffic.
Alienation clause - “Due on sales clause” “Call Clause” “Resale Clause”
A clause that requires a borrower to pay the remainder of their mortgage loan off immediately during the sale or transfer of a property title and before a new buyer can take ownership.
Fully Amortized loan
You make every payment according to the schedule, your loan will be fully paid off by the end of the term.
Partially amortized loan
Loan where portion of the debt is paid with regular monthly payments then, a balloon payment is made on the loan due date.
Amortized loan “direct reduction loan”
A type of mortgage loan in which the entire balance of the loan is paid off by the end of the term of the loan.
Annual Cap
the maximum amount the interest rate can be adjusted in any given year
Annual percentage rate (APR)
The cost you pay each year to borrow money, including fees, expressed as a percentage.
Antitrust laws
Federal laws designed to protect the public from unfair business practices.