Terms Pt.4

Question 1

Blanket Mortgage

Answer 1

(14) A mortgage loan arrangement where several parcels of land are pledged as security; used primarily with subdivision financing.

Question 2

Blind Ad

Answer 2

(19) An advertisement which does not indicate the party offering to buy or offering to sell is licensed by the Commission. Such ads are prohibited. Every ad or sign must contain the name of the brokerage firm as registered with the Commission.

Question 3

Blockbusting

Answer 3

(5/19) The illegal practice of inducing homeowners in a neighborhood to sell their property by calling attention to the possibility that minorities may be moving in, resulting in a lessening of property values, a decline in the quality of education, and an increase in crime.

Question 4

Board Of Equalization

Answer 4

(5) A state authority whose function is to apply equalization factors to assessed values of properties located in counties which use different assessment rates. The purpose of this procedure is to assure fair and equitable treatment of taxpayers required to pay a state ad valorem tax.

Question 5

Breach of Contract

Answer 5

(8) Failure without legal excuse to perform one’s obligations under a contract.Failure to fulfill a duty.

Question 6

Broker

Answer 6

(3) An individual or legal entity (corporation or partnership) licensed to act as the agent of another in buying, selling, exchanging, renting, leasing, managing, or auctioning real estate for another.

Question 7

Brokerage

Answer 7

(6) Under “BRRETA” a brokerage engagement is an expressed contract (written or oral) where the client (principal) agrees to give to the real estate broker valuable consideration upon the broker producing a seller buyer, tenant, or landlord ready, willing and able to sell, buy or rent the property. (i.e listing contracts, buyer representation agreements,management contracts and lease contracts).

Question 8

Brokerage Relationship

Answer 8

(6) Under BRRETA a brokerage relationship is the relationship that is formed as a result of the parties entering into a brokerage engagement.

Question 9

Budget Mortgage

Answer 9

(14) Mortgage loan in which monthly payments include not only principal and interest but also one-twelfth (1/12) of the annual cost for taxes and insurance.

Question 10

Buffer Zone

Answer 10

(5) A parcel of land which separates other land used for different purposes. (i.e a playground that separates residential property from commercially used land.

Question 11

Building Codes

Answer 11

(5) Regulations, either local or state, which set construction standards for materials, methods and safety procedures.

Question 12

Bundle of Rights

Answer 12

(2) All of the rights a person can have in real property. Included in the bundle are rights of possession, control, enjoyment and disposition.

Question 13

Buyer Brokerage Agreement

Answer 13

(6) The contract that creates an agency relationship between a broker and a buyer.

Question 14

C,C,& R’s

Answer 14

(3) Covenants. conditions and restrictions which regulate the use of property held under condominium ownership and other subdivisions.

Question 15

Call

Answer 15

(1) The compass direction and distance for each boundary line.

Question 16

Capitalization

Answer 16

(13) The process of converting future income into present value. The income approach to value, considering net income and percentage of reasonable yield on the investment.

Question 17

Capitalization Rate

Answer 17

(13) The rate of return an investor will demand from the investment in a property; increases with risk involved in a property.

Question 18

Caveat Emptor

Answer 18

(6) Let the buyer beware.

Question 19

Censure

Answer 19

(18) Disciplinary power of the Commission whereby it reprimands a licensee, usually for technical violations occurring for the first time.

Question 20

Certificate of Eligibility

Answer 20

(14) The VA’s official statement regarding the amount of entitlement available to a particular veteran.

Question 21

Certificate of Occupancy

Answer 21

(5) Authorization from a building inspector that construction has been completed in compliance with building codes and is ready for occupancy.

Question 22

Certificate of Reasonable Value (CRD)

Answer 22

(14) An official VA appraisal of a specific property.

Question 23

Certificate of Sale

Answer 23

(14) Issued to the successful bidder at a foreclosure sale if the state provides a statutory period of redemption to the defaulting owner. If the property is not redeemed within the time allowed by law, a sheriff’s deed is issued to the new owner.

Question 24

Certificate of Title

Answer 24

(4) A title examiner’s written opinion of the current condition of a property title based on a search of the public records dating back for a specified number of years.

Question 25

Certified Property Manager (CPM)

Answer 25

(10) A professional designation for one who has met all the education and experience required of the Institute of Real Estate Management.

Question 26

Chain of Title

Answer 26

(4) The recorded history of conveyance affecting a property’s title beginning with the original patent or grant from the gov’t. and continuing to the current owner.

Question 27

Chattel

Answer 27

(1) Personal property

Question 28

Civil Rights Act of 1868

Answer 28

(5) The first federal legislation intended to prohibit racial discrimination in the sale or rental of all types of property.

Question 29

Client

Answer 29

(6/18) Under BRRETA the client in the person or entity who has entered into a contractual relationship (brokerage engagement) with the broker.
(6) The person who authorizes the agent (broker) to act on his behalf. in real estate the client may be the seller. Also called the Principal.