Vocab Flashcards
Accretion
The gradual build up of the land by wind or water.
Abatement
To reduce in amount, such as the removal or encapsulation of asbestos.
Abandonment of Homestead
A document recorded to terminate a homestead exemption.
1099S
Reports proceeds from a real estate transaction to the IRS.
Abutting Land
Parcels of land having common boundaries.
A.P.R.
Annual Percentage Rate. The calculations of all financing charges pertaining to a loan, expressed in a annual rate.
A.L.T.A
American Land Title Association. A national association of title companies.
Acceleration
The lenders right to call the entire loan all due and payable if certain conditions are violated.
Ability to Repay Rule
A residential lender is to verify that the borrower has a reasonable ability to repay the loan.
Adequate Water Supply
Subdivisions in Arizona located outside an Active Management Area are not required to have 100 year water supply.
Actual Eviction
Direct actions of a landlord to remove a tenant from the premises through the legal process.
Actual Age
The chronological age of a structure.
Acre Foot
One acre of land with water one foot deep. 325,850 gallons of water.
How much water is there in a acre foot?
325,850 gallons
Acre
43, 560 square feet. If it were measured in the shape of a square, it would measure 208.71 ft.
How many sq ft in a acre?
43,560
Acceptance
An agreement binding one of the terms of an offer.
Acknowledgement
Signing a legal document before a Notary Public or other authorized person.
Active Management Area
Areas in Arizona with heavy reliance on ground water: Phoenix, Prescott, Pinal, Pima, Santa Cruz.
Ad Valorem
According to the value. Arizona property taxes are based on ad valorem.
Actual Notice
Facts that are known to be true, actual knowledge.
Adjusted Badis
Purchase price plus the value of any capital improvements or the original cost minus deductions such as depreciation.
Actual Delivery
The Grantor physically hands the Deed to the Grantee.
Accrued Depreciation
For tax purposes, the cumulative amount of depreciation up to a certain time.
Abstract of Title
A summary of all documents that appear on public record affecting a parcel of real property.
Adjusted Gross Income
The total potential gross income minus vacancy and credit loss. Also called Effective Gross Income.
Adjusted Purchase Price
Original purchase price plus capital improvements.
Adjusted Purchase Price
Original purchase price plus capital improvements.
Appraisal
An opinion of the value of a property given for a specified date.
Anchor Tenant
A tripe-A tenant that gives exposure and stability to a shopping center.
Americans With Disabilities Act (ADA)
Federal law designed to eliminate discrimination against individuals with disabilities by requiring equal access to accommodations.
Amenities
Those desirable features (extras) of a property that may benefit an owner.
Adult
A person who is in his/her majority- usually 18 years of old.
Administrator
An individual appointed by the court to handle the estate of a party who dies without a will.
Agency
The legal relationship in which the Principal appoints an agent to act in his behalf.
Adverse Possession
Acquiring title to real property due to continuous, open, and hostile use for prescribed length of time.
Affidavit of Value
A sworn document that identifies the Grantor, Grantee and the states the value paid for real property. Signed by both parties and notarized.
Agency by Ratification
Unauthorized actions of an agent that are later approved by the Principal.
Agency Coupled with an Interest
An agency (listing) in which an agent has an interest (usually financial) in the subjects property.
Agent
One who is authorized to act for a Principal.
Agent by Necessity
An act of law or circumstances requiring a limited agent to act beyond his authority. ( Principal’s consent not necessary.)
Aggrieved
To cause grief or to injure one’s legal rights.
Agreement for Sale
A document giving equitable title to a buyer (vendee) of real property. Also called “Contract for Deed.” Parties are usually called Vendor and Vendee.
Agreement to Sell
Another name for a purchase contract.
Air Rights
The right to use the air space above a property.
Alienation Clause
A clause in a loan document calling for the entire balance due and payable when the property is sold.
All-Inclusive Deed of Trust
A wraparound loan arrangement whereby a Deed of Trust is used in place of a mortgage.
Allodial System
The rights of individuals to private ownership of real property.
Annuity
A series of payments made at specified intervals.
Anticipation
The present value of property is determined by the future benefits to be obtained from that property.
Appraisal Methods
Market Data Approach, Cost Approach, Income Approach
Appreciation
The increase in property value due to external or internal causes.
Appurtenant
That which belongs to the property rights, privileges, and improvements.
Arbitrage
To charge a higher interest rate to the buyer that is currently being charged on a loan.
Arbitration
The settling of a dispute between two parties by a neutral party.
Arm’s Length Transaction
A business transaction in which all parties have equal bargaining opportunity.
Arrears
(Paid) after its usage, such as Arizona property taxes and interest on real estate loans.
Asbestos
A fire resistant mineral used in building and household products that has been found to cause lung cancer.
Assemblage
The process of combining two or more smaller parcels of land into one large tract.
Assessed Value
The value placed on real or personal property for tax purposes.
Assessment
A tax charged to the owner of real property for benefits received. Tax is usually based on a pro rata share.
Asset
All valuable items held by a person which may be used to liquidate a debt.
Assignee
One to who interest in property is transferred.
Assignment
The transferring of interest from one party to another in a purchase contract or lease.
Assignment of Lease
The transferor of all or part of the tenant’s rights to another party.
Assignment of Rents
The right of a lender to collect rents from the borrower’s tenants in case of loan default.
Assignor
One who transfers a specified interest in property.
Assumption of Mortgage
The Grantee taking title to real property and assuming liability for an existing obligation. The original mortgagor still remains liable.
Axial Theory
Theory of land use development along major highways.
Assured Water Supply
Subdivisions in Arizona located in an Active Management Area need to provide a 100 year water supply.
Attachment
The taking of property into custody, pending the outcome of a legal action.
Attorney-In-Fact
One who has written authorization to act for another under a power of attorney.
Authorization to Sell
Another term for a listing agreement.
Automatic Stay
In bankruptcy an automatic injunction that halts actions by creditors.
Avulsion
The loss of land due to sudden and violent acts of nature.
Alluvium
Sand, clay, ect., deposited by flowing water.
Amendatory Clause
Also known as the F.H. A. Escape Clause
Amortization
A schedule of payments that will eventually extinguish the entire obligation.
Annexation
The method of attaching personal property to real property so that it becomes a fixture.
Back End Ratio
A ratio that indicates what portion of an individuals income is used to pay all long term debt.
Balloon Payment
A lump sum paid to liquidate a debt or paid anytime during a loan period.
Band of Investment
An appraisal method used for income property that establishes a capitalization rate by using mortgage interest rates available, rate of return required, and the debt and equity in said property.
Bankruptcy
A financial situation when a person’s liabilities exceed his ability to pay. (assets)
Bare-Naked Title
Title held by a trustee in a Deed of Trust document. The trustee does not have a any of the bundle of rights provided in ownership.
Bargain and Sale Deed
A conveying Deed that has three covenants but now warranties. Frequently used in an operation of law transaction.
Base Line (Principal)
In the Government Rectangular Survey System, the reference line that runs east and west and crosses the principal meridian.
Basis
The actual price paid for the property.
Basis Point
1/100 of one percent.
Bearing Wall
A wall in a building that supports a ceiling load.
Bench Mark
A mark made on a permanent object that has a known location and elevation.
Beneficiary
The lender under a Deed of Trust security.
Beneficiary Deed
A deed that used to transfer real property to one’s heirs without going through the probate process.
Bequest
Leaving personal property to an heir through a Will.
Bilateral Contract
A contract binding two or more parties.
Bill of Sale
A document used to transfer personal property.
Blanket Mortgage
A security that covers more than one parcel of land.
Blind Ad
A real estate ad that does not indicate that a brokerage firm is involved.
Block Busting
An illegal action usually concerning fair housing that creates panic selling for monetary gain.
Blue Sky Law
State laws regulating the sale of investment securities..
Boiler Plate
The standard pre-printed language that exists in a contract.
Bona Fide Buyer
A buyer who is acting in good faith for valuable consideration.
Book Value
The value of an asset carried on the books of business.
Boot.
Anything of value given to make up the difference in equities between two properties exchanged.
Breach of Contract
Failure to perform a contractual obligation.
Bring Down Fee
Updating the title report from the original report to the recording of the loan documents.
Broker
A third party who, for a fee, acts as an intermediary in a business transaction.
Brown V Board of Education
Court case that over turned Plessy v Ferguson
Budget Payment
Monthly payment including principal interest, taxes and insurance.
Buffer Zone
An area of land that separates one type of zoning from another.
Building Codes
Special construction standards enforced through a permit.
Bulk Transfer
The sale of a business which involves transfer of inventory.
Bundle of Rights
Legal rights of real property ownership: possession usage, transfer, encumber, exclusion.
Buyer Broker
A licensee who represents the buyer only in a fiduciary manner.
Caisson
A tract of land purchased or leased that serves as the building foundation for air rights.
CAN-SPAM Act
Federal law regulating commercial emails, providing the recipient an opt-out provision.
Capital
Income or sources of income.
Capital Gain
The taxable gain received from the sale of a capital asset.
Capital Improvements
Any permanent improvements to real property
Capital Loss
The loss realized from the sale of a capital asset.
Capitalization
A method used to estimate the value of property by dividing the net annual income by a capitalization rate.
Capitalization Approach
Also known as the Income Approach in appraising.
Capitalization Rate (Overall)
The overall rate of return which includes a return on investment on land, improvements and recapture.
Case Law
Laws based on an aggregate of previous court decisions.
Cash on Cash Return
Cash flow divided by the amount of capital invested.
CC&R’s
Covenants, Conditions and Restrictions
Cease and Desist Order
A governmental order directing the parties violating the law to refrain from further activity.
Ceiling Value
An appraisal concept in which the current listings in a neighborhood set the highest value.
Certificate of Eligibility
A certificate from the Veteran’s Administration that establishes the Veteran’s eligibility for a V.A. guaranteed loan.
Certificate of Occupancy
A document issued by the building inspector showing that a structure is ready for occupancy.
Certificate of Purchase
A document given to the winner at a tax lien sale.
Certificate of Reasonable Value
A V.A. appraisal that states the maximum V.A. guarantee on a certain property.
Certificate of Sale
The lien document given to the high bidder at a mortgage foreclosure sale.
Certificate of Title
A document issued by a Title examiner stating the condition of title to a given parcel of property.
Cession Deed
A deed that conveys private property for public usage.
Chain of Title
A history of constructive notice as it pertains to a certain parcel of real estate.
Chapter 11
A reorganization under the bankruptcy code usually pertaining to corporations-the debtor remains in possession.
Chapter 7
Complete liquidation of a person’s assets to pay liabilities. A trustee is appointed.
Chattel
Personal Property-also called personalty.
Chattel Mortgage
A security device used for personal property.
Chattel Real
Another name for a lease
Check lines
In the government Rectangular Survey System, a twenty-four mile square parcel containing 16 townships.
Civil Law
The body of law that protects a party’s private rights.
Civil Rights Act of 1866
Prohibits discrimination based on race.
Client
The party the Broker represents or the party who hires the Broker and agrees to pay a fee upon performance.
Close of Escrow (C.O.E.)
The day on which all terms and conditions of the contract and escrow have been met and the title is transferred. Close of Escrow usually occurs when all necessary documents are recorded.
Cloud on Title
A claim on Title that hinders it from being marketable.
CLUE Report
A history of insurance claims on a specific property.
Co-Maker
A person who signs a promissory note with another.
Codicil
An Amendment to a formal will.
Collateral
Property used as security for a loan.
