Vocab Flashcards
Abstract
A recorded history of a property (abstracts of all recorded documents)
Acceleration Clause
A clause in a note giving the lender the right to demand the entire balance owed upon the happening of some event.
Acceptance
The agreement of the offeree that forms the binding contract
Access right
The right of an owner for ingress and egress
Accession
Acquiring property because it has become joined with other property (such as fixtures)
Accretion
Addition to land from buildup of soil or action of water
Accured depreciation
Depreciation that has occurred. It is the difference between present replacement cost and present market value.
Acknowledgement
A declaration made before a notary by an individual that he or she has in fact executed (signed) a document.
Acquisition
Act of procuring property
Actual notice
Personal knowledge of an interest or instrument
Adjustable rate mortgage
A mortgage whose rate is tied to an index
Adjusted cost basis
Cost plus improvements
Adjusted gross Income
Gross income adjusted for a vacancy factor and collection losses
Adjusted market value
Adjustments to comparable property sales to estimate sale price of a subject property
Administrator
A MAN appointed by a probate court to administer the estate of the deceased.
Administratix
A WOMAN appointed by probate court to administer the estate of the deceased
Ad valorem
According to value
Advance fee
A fee charged by a business-opportunity broker for advertising
Adverse possession
Holding property adversely to the owners right. Title can be obtained by adverse possession
Affidavit
A written statement sworn under oath
Affirmation
A solemn statement before a court by a person whose religion prohibits him or her from taking an oath
Affirmative easement
An easement that allows the holder of the dominant tenement to use the land of the service to tenement
Agency
A relationship between a principal and agent whereby the agent is empowered to act for the principal
Agency by estoppel
Agency formed when principal’s actions or words reasonably result in a third person relying on the existence of an agency
Agency by ratification
Agency formed when principal accepts benefits of unauthorized acts by another
Agency coupled with an interest
Agent has an interest in the subject property
Agent
One who represents another
Agreement of sale
A written contract setting forth the conditions of sale
Air rights
The right if a landowner to reasonable use of the air space above the property
Alienation
Transfer
Alienation clause
A type of acceleration clause requiring the existing loan to be paid if property is transferred. AKA due on sale clause
Alluvium
Soil deposited by action of water (accretion)
ALTA
American Land Title Association
An extended coverage policy of title insurance to protect the lender
Amortization
Payment of a debt on an equal installment basis in which the last payment liquidates the obligation
Appraisal
An opinion of value
Appreciation
A rise in value
Appropriation of water
Diverting water to ones own use
Appurtenance
Something that belongs with another thing and goes with it (such as a house with the land) (runs with the land)
Appurtenant easement
An easement right that transfers with the dominant tenement
APR
Annual percentage rate
Expressed as simple interest considering loan costs
APY
Annual percentage yield
The annual interest paid by a bank for deposits based on compounding the interest
Abestos
Mineral formerly used in construction. Causes long problems.
- Year to remember
Assessed value
A value placed for tax purposes
Assessment
The amount of tax levied
Assignment
The turning over to another of a persons rights in property
Associate broker
Broker employed by another broker in a salesperson capacity
Assumption fee
Fee charged by a lender to allow assumption of loan
Attachment
Seizure of property before a judgement under court order to make sure it will be available after judgement. An attachment lien is good for 3 years.
Attorney in fact
One who operates under a power of attorney
Avulsion
Tearing away of land by action of water
Back end ratio
Loan qualifying ratio (gross income to loan payment and long term debt payments)
Balance sheet
A document that shows net worth by listing assets on one side and liabilities on the other
Balloon payment
A final installment payment greater than the preceding payments. It is needed to pay the debt in full.
Bankruptcy
Legal procedure whereby a person can eliminate his or her unsecured debts
Beneficiary
One who is benefited by a trust or the lender under a trust deed
Bilateral contract
A promise made for a promise
Bill of sale
A written instrument passing title to personal property
Blanket mortgage
One encumbrance covering several separate properties
Blockbusting
The illegal procedure of inducing panic selling based on the fear of minority groups entering the area.
Boot
Additional money or unlike property given to even up trade of property
Broker
A person employed as an agent for real estate dealings. Only a broker can employ a salesperson
Budget loan
A loan with payments that include taxes and insurance
Building permit
Construction permit issued by building inspectors office
Bundle of rights
Includes all rights that are incidental to ownership (such as the right to sell or lease)
Buy down loan
A loan in which the seller pays the lender so that the lender will provide the purchaser with a loan at a lower rate of interest.
Buyers market
A real estate marketplace where there are more sellers than buyers
CALFHA
California housing finance agency
A state housing bank supported by bond issues that offers home loans to lower and moderate income
CLTA
California land title association
The organization that developed the standard form of title insurance for buyer protection
CALVET loans
Loans made to California veterans administered by the California department of veterans affairs
CAP
The limit an adjustable rate loan can be increased at each adjustment period and/or over the period of the loan
Capital gain
Profit from the sale of a capital asset.
Capitalization method
An appraisal method based on the income of a property
Capital loss
Loss from the sale of a capital asset
Capital market
Refers to the financial market place for bonds, notes and treasury bills
CAR
California Association of REALTORS
Caveat emptor
“Let the buyer beware”
CC&R’s
Covenants, conditions & restrictions
CRV
Certificate of reasonable value. A VA loan appraisal
Certification of title
An opinion of title showing liens
Chain of title
A history of the actual conveyances from the original patent to the present owner.
Chattel
Personal property
Client
Principal that employs an agent
Closing statement
The final accounting statement for a real estate transaction
Cloud on title
Anything of record that may create any possible doubt as to marketability of the title.
CLTA
California land title association
The organization that developed the standard form of title insurance for buyer protection
Collateral
Property given as security for a loan
Color of title
An appearance of having tile but actually not having title at all
Commingling
Failure to properly segregate the personal funds of a licensee from funds entrusted to the licensee as an agent
Commission
An agents percentage for successfully completing a sale or lease. For tax purposes, it is treated as an expense of the sale or lease.
Community property
Property acquired during marriage that is owned equally
Company dollar
The brokers share of commission dollars earned (expenses would be deducted to determine the brokers net income)
Comparative market analysis
An analysis by real estate agents to estimate the likely sale price by adjusting the value to the price paid for comparable properties
Conclusion
The final estimate of value set forth in an appraisal
Condemnation
The process of taking private property for public use. Also a declaration that the property is unfit for use.
Condition precedent
The passing of title is not accomplished until the condition has been fulfilled
Conditional sales contract
A sales contract for personal property in which the buyer obtained possession, but the seller retains title as security
Condominium
A subdivision in which there is individual ownership of the units themselves. But joint ownership of common areas
Confirming loan
A loan that meets Fannie Mae and Freddie Mac purchase criteria
Conservation easement
An easement granted by a landowner that prohibits future development. The land is to remain in a natural state
Consideration
Something of value give. In exchange for a promise, act, or property.
Constructive eviction
An act of a landlord materially affecting a tenants quiet possession which entitles the tenant to consider the tenancy at end
