Terms Flashcards
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate.
Brokerage
A person or an organization acting as the agent for others in negotiating the purchase and sale of real property or other commodities for a fee.
Real Estate Broker
A person performing any of the acts included in the definition of real estate broker but while associated with and supervised by a broker.
Real Estate Salesperson
A type of property that includes one to four dwelling units.
Residential Property
Property that produces rental income or that is used in business. Properties with five or more dwelling units are considered commercial property.
Commercial Property
Property that is used by companies or persons for manufacturing, warehousing, or the assemblage of components.
Industrial Property
A category of real property created as a result of combining the land and its improvements for a single highest and best use.
Special Purpose Property
Any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections.
Mixed-use Property
Changes or additional made to a property, such as walls and roads. These typically increase the value of a property, except in some cases of over improvement.
Improvements
A physical characteristic of land describing that land as a unique commodity.
Non-homogeneity
The present worth of future benefits.
Value
The amount a purchaser agrees to pay and a seller agrees to accept under the circumstances surrounding a transaction.
Price
The total dollar expenditure for labor, materials, and other items related to construction.
Cost
The amount of goods offered for sale within a given market at a given price during a given time period.
Supply
The amount of goods consumers are willing and able to buy at any given price during any given time period.
Demand
The study of the social and economic statistics of a community.
Demography
A person authorized to act on behalf of another.
Agent
The employer of an agent.
Principal
The party the agent brings to the principal as seller or buyer of the property.
Customer
An agent with full authority over one property of the principal, such as a property manager.
General Agent
An agent with limited authority to act on behalf of the principal, such as created by a listing.
Special Agent
A contract in which a property owner employs a real estate broker to market the property described in the contract.
Listing Contract
That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure.
Fiduciary Duty
A person in a position of trust and confidence, as between principal and broker; broker as fiduciary owes certain loyalty which cannot be breached under the rules of agency.
Fiduciary
Let the buyer beware. The buyer must examine the goods or property and buy at his or her own risk.
Caveat Emptor
An evaluation of a property’s value based on a given point in time that is performed by a professional appraiser during the mortgage origination process.
Appraised Value
A means of comparing similar type properties, which have recently sold, to the subject property. Commonly used in comparing residential properties.
Market Comparison Approach
An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land.
Cost Approach
One of the three methods of the appraisal process generally applied to income producing property, and involves a three-step process – (1) find net annual income, (2) set an appropriate capitalization rate or “present worth” factor, and (3) capitalize the income dividing the net income by the capitalization rate.
Income Approach
A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.
Assessed Value
The cost of replacing a structure completely destroyed by an insured hazard.
Insured Value
The basis of a depreciable asset used to compute the taxable gain from its sale; the basis is acquisition cost plus capital improvements less accrued depreciation.
Depreciated Value
The material of the earth, whatever may be the ingredients of which it is composed, whether soil, rock, or other substance, and includes free or unoccupied space for an indefinite distance upwards as well as downwards.
Land
The rights of an owner of a freehold estate to possession, enjoyment, control, and disposition of real property.
Bundle of Rights
The landowner’s ability to take minerals from the earth or to sell or lease this right to others.
Mineral Rights
The rights in real property to the reasonable use of the air space above the surface of the land.
Air Rights
Land and everything permanently attached to land.
Real Estate
The aggregate of rights, powers, and privileges conveyed with ownership of real estate.
Real Property
All property that is not land and is not permanently attached to land; everything that is movable.
Personal Property
Personal property.
Chattel
The crops and other annual plantings considered to be personal property of the cultivator.
Emblements
Personal property that has become real property by having been permanently attached or adapted to real property.
Fixtures
Items that are installed by a commercial tenant and are removable upon termination of the tenancy.
Trade Fixtures
A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property.
Condominium
A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease.
Cooperative
A form of cluster zoning providing for both residential and commercial land uses within a zoned area.
Planned Unit Development (PUD)
Any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections.
Mixed-use Property
A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation systems.
Mobile Home
A license or contractual or membership right of occupancy in a project which is not coupled with an estate in the real property.
Time-Share
The profit realized from the sale of real estate or other investment. Capital loss occurs when an investment property or another type of investment is sold at a loss.
Capital Gain
An insurance policy protecting against a variety of hazards.
Homeowners Policy
The insured is covered and reimbursed for the actual cost of replacing the damaged property.
Replacement Costs
An acronym denoting that a mortgage payment includes, principal, interest, taxes, and insurance.
PITI
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate.
Brokerage
A person who is licensed to buy, sell, exchange, or lease real property for others and to charge a fee for these services.
Real Estate Broker
The relationship between the principal and the principal’s agent which arises out of a contract, either expressed or implied, written or oral, wherein the agent is employed by the principal to do certain acts dealing with a third party.
Agency
A person authorized to act on behalf of another.
Agent
The employer of an agent.
Principal
The party the agent brings to the principal as seller or buyer of the property.
Customer
That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure.
Fiduciary Duty
A contract in which a property owner employs a real estate broker to market the property described in the contract.
Listing Contract
An agent with full authority over one property of the principal, such as a property manager.
General Agent
An agent with limited authority to act on behalf of the principal, such as created by a listing.
Special Agent
An agency relationship created by oral or written agreement between principal and the agent.
Express Agency
Agency that exists as a result of actions of the parties.
Implied Agency
A person in a position of trust and confidence, as between principal and broker; broker as fiduciary owes certain loyalty which cannot be breached under the rules of agency.
Fiduciary
Reimbursement or compensation paid to someone for a loss already suffered.
Indemnification
The exaggeration of the good points of a product, or real property, and the prospects for future rise in value, profits, and growth.
Puffing
The intentional and successful employment of any cunning, deception, collusion, or artifice, used to circumvent, cheat or deceive another person whereby that person acts upon it to the loss of property and to legal injury.
Fraud
Let the buyer beware. The buyer must examine the goods or property and buy at his or her own risk.
Caveat Emptor
A federal law that prohibits all discrimination on the basis of race.
Civil rights act of 1866
A law that prohibited discrimination on the basis of race, sex, color, national origin, or gender in any housing program receiving federal money.
Civil Rights Act of 1964
A federal prohibition on discrimination in sale, rental, financing, or appraisal of housing on the basis of race, color, religion, gender, national origin, handicap, or familial status.
Fair Housing Act of 1968
A federal law protecting the rights of individuals with physical or mental impairments
Americans with Disabilities Act (ADA)
The channeling of home seekers to a particular area, or areas, on the basis of race, religion, country of origin, or other protected class either to maintain the homogeneity of an area, or to change the character of an area in order to create a speculative situation.
Steering
The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry, or prospective entry of minority persons into the neighborhood.
Blockbusting
The practice of refusing to make loans or otherwise denying financial assistance for housing in a particular area.
Redlining
Anyone younger than 18 being domiciled with a parent or other person having legal custody of such individual, or the designee of such parent or other person having such custody, with the written permission of the parent.
Familial Status
Any medical disorder, condition, disfigurement or loss affecting one of the body systems, such as neurological, musculoskeletal, special sense organs, respiratory, cardiovascular, reproductive, digestive, genitourinary, immune, circulatory, hemic, lymphatic, skin, and endocrine.
Physical Impairment
