Terms Pt.1 Flashcards
100% Commission Plan
(6) A method of compensating salespeople where each salesperson pays the broker a monthly fee for the use of office space, support services, and the broker’s name, and in return, the salesperson keeps 100% of the commissions.
4-3-2-1 Rule
(12) A method of estimating the value of lots with more than standard depth, a depth table.
Abatement
(10) A decrease or reduction. A tenant might be entitled to an abatement of rent if the rented premises are damaged by a storm.
Absolute Delivery
(4) A grantor’s hand delivery of a deed to the grantee.
Abstract of Title
(4) A condensed history of all conveyances, liens, encumbrances, judgments, and other court decisions affecting the property.
Acceleration Clause
(14) Mortgage loan provision which permits the lender to demand the entire loan balance be immediately paid in full in the event of default.
Acceptable Buyer
(6) A buyer whose offer is acceptable to the seller, though different from the terms in the broker’s listing agreements.
Accession
(1,4) The acquisition of title by the owner of real property to those things attached to the property by others, such as tenants or trespassers or by nature.
Accretion
(4) The gradual addition to land resulting from some natural force, such as the action of water or wind.
Accrual for Depreciation
(12) A process for recovery of investment in a building; also called Return of Investment.
Accrued Depreciation
(12) Past depreciation; the actual depreciation in a property that has already occurred as of a given date.
Acknowledgement
(4) A formal declaration made by the grantor in the presence of an authorized official that the deed was signed voluntarily. Required in most states for recording, but has no effect on validity.
Acre
(1) A measure of land area equal to 43,560 square feet.
Action to Quit Title
(4) A court action to settle a title dispute or clear a title of defects.
Active License
(18) Status of an individual who has met all qualifications to practice real estate as a broker, associate broker, or salesperson; and such license is held by a broker, not the Commission.
Actual age
(12) The number of years a building has been in existence.
Actual agency
(6) An agency established by agreement, either written or verbal.
Actual Communication
(8) Oral or written communication to the offer or that the offeror has accepted the offer.
Actual Eviction
(10) A legal process to remove a tenant who holds over after the right of possession has ended, usually resulting from failure to pay rent.
Actual Fraud
(8) A deliberate misrepresentation of a material fact, made with the intent of inducing the other party to act upon it to one’s detriment. Can be done by words or silence.
Actual Notice
(4) Knowledge that one acquires from what is heard, read or observed.
Ad Valorem Tax
(5) A tax assessed against real property based upon its value. Revenue from such taxes is used to pay for the general operational expenses of the taxing authority.
Addendum
(8) (aka Exhibit) A page added to a form contract for the purpose of including essential terms or to provide supporting documentation, such as plats or a power of attorney. It must be referenced in the contract by reference then initialed and dated by the parties.
Adjustable Rate Mortgage
(14) Mortgage loan which allows the lender to periodically adjust the interest rate, up or down to reflect changes in market rates.
Adjusted Sales Price
(12) The price put on a comparable property after adjustments have been made for differences between it and the subject property.
