Vocabulary Flashcards
The best retail Location within a Community
100% Location
Office where salesperson pay regular fee to the broker, but receive 100% of the commission they earn
100% office
Voluntary giving up possession of property or a claim or right.
Abandonment
A legal action to stop a nuisance. Also can be a reduction of a property tax assessment.
Abatement
The rate at which new or vacant space ( such as office space) will become occupied.
absorption rate
A condensation of a court judgement becomes a general lien on the property of the debtor within the country where recorded.
abstract of judgement
A history of every recorded document dealing with a property.
It is examined to determine weather there is marketable title
Abstract
A means of obtaining land value by deducting the value of improvements from total property value.
Abstractive method
Any method of depreciation for tax purposes that gives greater initial depreciation than the straight-line method. Accelerated depreciation is no longer allowed.
Accelerated depreciation
A provision in a note making all payments due on the happening of certain event ( such as missing a payment or selling the property)
Acceleration clause
An act or agreement that forms a contract
Acceptance
Obtaining a title as a result of attaching or joining property to other property
Accession
A third person (consigner) who signs a negotiable instrument agreeing to be personally liable to the payee.
Accommodation party
The act of accepting a different consideration than agreed; for example, if there is a dispute as to performance, and one party accepts less than what was bargained for originally.
Accord and satisfaction
A professional designation awarded to a management company by the institute of Real Estate Management
Accredited Management Organization
AMO
A professional designation for resident property managers awarded by the Institute of Real Estate Management
Accredited Resident Manager
ARM
A gradual buildup of soil by action of water or wind
accretion
Depreciation to date; measures by the difference between the replacement cost new and the present value
Accused depreciation
A declaration customarily made before a notary, certifying that the signing of an instrument is the signer’s own free act.
acknowledgement
A measure of land equal to 43,560 square feet.
Acre
A legal action against a person.
When recorded, a judgement from such an action is a general lien against all of a debtor’s property in the county where recorded.
Action in personam
A legal action against property.
When recorded, a judgement from such an action is a specific lien against the particular property involved in the action.
Action in rem
Personal knowledge of an interest instrument
Actual notice
A tax according to value; real property taxes are considered to be ad valorem taxes
Ad valorem
Disposal of property by a testator before death.If defeats the rights of a specific beneficiary under the will.
(The beneficiary is not entitled to the sale proceeds or value).
ademption
A mortgage bearing a rate of interest subject or change (based on a particular index) during term of the loan. ARM’s generally have caps on the interest that can be charged.
adjustable-rate-mortgage (ARM)
Acquisition cost less depreciation plus cost of improvements. The adjusted basis is deducted from the sales price to determine gain or loss.
Adjusted basis
Gross income adjusted for a vacancy factor and collection loss
Adjusted gross income
The adjustment of comparable property’s sales price to account for differences in features and amenities of a property under appraisal( using the market comparison approach)
Adjusted market price
A man appointed by a probate court to administer the estate of a deceased; a female appointee is an …..
Administrator, administratrix
A lender agreement to provide permanent financing upon completion of a construction project.
Advance commitment
Fees paid in advance of service rendered.
Advanced fees
Zoning for conformance appearance such as architectural style requirements.
Aesthetic zoning
A statement sworn to under oath or by affirmation before notary.
Affidavit
A formal declaration as the truthfulness of a statement; made by a person whose religious beliefs prohibit swearing under oath.
Affirmation
A means of obtaining title from another by open, hostile, and continuous use for a statutory period of time. In some states, adverse possession also requires payment of taxes.
Adverse possession
An easement that allows the easement holder a right of use over the land of another.
Affirmation easement
An index of the National Association of Realtors that measures the median family income ability to support a mortgage do the median price home.
An index of 100 means that median income is equal to the amount necessary to afford the median price home.
Affordability index
An interest acquired by a grantor after he or she has conveyed property. Under some deeds, after-acquired interest is said to pass to the grantee.
After-acquired interest
Appraisal tables that indicate the economics life for various types of structures.
Age -life tables
An agency created when the principal’s words or conduct lead another to believe in the agency and thereby act to the others detriment.
Agency by estoppel
An agency created by a principal approving an unauthorized act of another.
Agency by ratification
An irrevocable agency under which the agent has an interest in the subject matter of agency.
Agency coupled with an interest
A contractual relationship in which one person (an agent) represents another (a principal).
Agency
A person representing and acting in behalf of another.
Agent
A described airspace over a property that is subject to being transferred.
Air lot
The rights of property owners to the reasonable use of the airspace over their property. Air rights are considered to be real property, and can be separately leased or conveyed.
Air rights
A transfer of property or property rights
Alienation
Soil added gradually to land by action of water or wind (accretion). The soil belongs to the land it is added by this accretion process
Alluvion
Modification of a contract or note by one party without the consent of the other. Alteration voids the contract.
Alteration
A change in the escrow instructions after they have been signed. The signature of both buyer and seller are required to amend the instructions.
Amend escrow instructions
Features of a property that enhance the satisfaction and use of theproperty; for example, an extra bath, a flower garden, mature shade trees.
Amenities
A type of title insurance policy providing extended coverage to the lender. The same extended coverage also may be available for the buyer.
American Land Title Association (ALTA)
Increased capital gains for high income taxpayers
American Taxpayer Relief Act of 2012
Provides for handicapped accessibility for places of public accommodation.
American with disabilities Act (ADA)
A loan that is liquidated by equal payments
Amortized loan
A bolt that ties mudsill ( the lowest board in a house) to the foundation.
Anchor bolt
A major tenant, usually located at one end (or both ends) of a shopping center. Lesser shops benefit by Bering between or close to anchor tenants.
Anchor tenant
A probate for real property located in a state other than the domicile of the deceased
Ancillary probate
Adding to something, as when a city annexes outlying land.
Personal property can become real property by being joined to it.
Annexation
An interest rate expressed in simple interest considering all finance charges
Annual percentage rate (APR)
Value changes based on anticipated future use and income
Anticipation
An action or a statement of a party before the performance due date that indicates the party will breach the contract. The other party can bring suit upon anticipatory breach without waiting for an actual breach.
Anticipatory breach
A clause in a mortgage that prevents loss of a lien priority should the lien-holder receive a deed. Otherwise, a deed in lieu of foreclosure would convey title subject to later liens.
Antimerger clause
Organization responsible for the Uniform Standards of Professional Appraisal Practice (USPAP).
The Appraisal Foundation.
An estimate of market value.
Appraisal
A right, benefit, or attachment that transfers with real property ; for example, buildings, easement rights, and water rights.
Appurtenance
Taking advantage of the interest rate differential by buying at one interest rate , and selling at a higher interest rate by either land contract or the use of wraparound loan.
Arbitrage
A nonjudical process for resolution of disputes whereby the parties agree to abite by a decision made by a third person.
Arbitration
A bargain freely entered into without duress, undue influence, or collusion (deceit).
Arm’s-Length transaction
Files with the state, they set forth the activities a corporation may engage in.
Articles of incorporation
A surveyor point for metes-and -bounds descriptions that is man add, such as an iron stake , a fence , or a canal
Artificial monument
A phrase intended to mean that the seller does not warrant a property’s condition. Such a phrase, however , does not protect the seller in case of concealment or fraud. Some courts hold that it applies only to readily observable defects, not to know, but undisclosed latent defects.
As is
A mineral formerly used for insulation and in housing products.
Asbestos dust is hazardous material.
Asbestos
The act of bringing adjacent parcels of land under one ownership; the opposite of subdividing . Assemblage usually results in an increase in value. see also pottage
Assemblage
Value placed by a tax assessor
Assessed value
The process of valuing a property for taxation purposes
Assessment
Property owned by or owed to a business or person.
Assets
One who receives an assignment.
Assignee
A mortage clause that allows the mortage to collect rents during foreclosure period.Could also be a transfer of rents of a third party.
Assignment of rents
The complete transfer of one persons rights to another. The assignee takes over the rights and duties of the assignor.
Assignment.
One who makes an assignment.
Assignor
Person who has met real estate broker requirements, buttocks for a broker in salesperson. Capacity
Associate broker
The act of taking over the responsibilities for an obligation and agreeing to be liable personally for the obligation.A deficiency judgement might be possible against an assuming party.
Assumption
The legal seizure of property under court order before a judgement when there is belief that the property will not be available after judgement.
Attachment
The act of witnessing ; to attest is to bear witness. Formal wills require witnesses
Attestation
A person operating as an agent (not an attorney -at -law) under a power of attorney
Attorney -in -fact
An agreement between owner and sublessee that the owner will recognize the sublease, and the sublessee will pay the owner should the sublessor’s interests be foreclosed
Attornment
A doctrine holding the owner of land liable for injury to children due to the unsafe condition of property where property is likely to attract children as trespassers.
Attractive nuisance
The sudden tearing away or loss of real property by action of water, such as a river’s changing course.
Avulsion
City growth along transportation routes from the city center (resembles the spokes of a wheel)
Axial growth
The ratio of gross income to loan payments (PITI) plus long-term installment debt payments. Used to qualify buyers.
Back-end ratio
Giving possession of personal property to another, but retaining title; for example, storing goods in a warehouse, renting a trailer, giving existing mortgages to a lender as security for a loan.
Bailment
A financial statement showing assets and liabilities. The balance sheet shows net worth.
Balance sheet
A final installment of an unamortized loan that exceeds the previous payments.
Balloon payment
Interest based on a 30- day month and 360 -day year
Bankers interest
A legal procedure to eliminate unsecured debts, the security must be surrendered.
Bankruptcy
A deed for consideration that uses the terms bargain consideration that uses the terms bargain and sale. It contains no warranties other than an implied interest by grantor.
Bargain and sale deed
The principal east and west surveyor lines established by government survey.
Base line.
A molding placement against a wall on the floor around a room.
Baseboard
Cost plus improvements less depreciation. Used to determine profit for tax purposes on sale
Basis
Wood strips used to cover joints;used in board-and batten siding.
Batten
A horizontal structural member giving support to a structure.
Beam
A negotiable instrument made out to cash or bearer that an be transferred without endorsement
Bearer paper
A wall with footing under it that bears the load of theatre true
Bearing wall
A marker placed by a government surveyor showing elevation above sea level and used by surveyors as a reference point.
Benchmark
The person receiving payments under a deed of trust; similar to a mortgagee.
Beneficiary
A deed that does not take effect until death of grantor(allowed in several states)
Beneficiary deed
A statement of a lender of the balance due on a loan.
Beneficiary statement
To give personal property by will
Bequeath
Personal property that is given by will
Bequest
An actual improvement (not a repair) to real estate.
Betterment
A Mutual exchange of promises whereby each promise is consideration for the other promise.
Bilateral contract
A written agreement transferring title to personal property.
Bill of sale
Insurance coverage given by an agent before the insurance of a policy of payment of a premium.
Binder
A mortgage covering more than one property
Blanket mortgage
A refinance rate that is less than the current market rate but more than the old rate.
Blended mortgage rate
An advertisement that fails to indicate that the advertiser is a real estate agent.
Blind advertising
A syndicate in which the property to be purchased will be selected after the money has been raised.
Blind pool
The act of inducing panic selling for gain by exploiting the fear of loss in value because minority members are moving into an area. Blockbusting is illegal under the civil rights Act of 1968
Blockbusting
Security registration requirements to protect consumers against investments in fraudulent schemes
Blue-sky-laws
A unit of lumber measurement equal to 144 cubic inches (1’x1’x1”)
Board foot
Cost plus improvement less depreciation taken; the value assigned an asset for bookkeeping purposes.
Book value
Money, personal property, or debt relief given ton even off a trade. Boot is taxable to the person receiving it.
Boot
The breaking of a law or contract
Breach
A licensed agent employed by a principal for real estate transactions. Only a broker can employ a salesperson
Broker
An income figure that does not consider a vacancy factor, collection costs, or management expenses.
Broker’s net income
Areas where soil has been contaminated by chemical discharges.
Brownfields
The unit of heat needed to raise one pound of water one degree Fahrenheit.the but is used to rate the capacity of heating and air conditioning units.
Btu (British thermal unit)
A loan by which the borrower pays one-twelfth of the estimated property tax and insurance payments with each monthly payment.
Budget mortgage
An area separating different land uses, often a green area.
Buffer zone
The setback from the lot line.
Building line
Construction permit issued by local building inspector office.
Building permit
A parrot the uniform commercial code ; requires recording and publication of sales not in the course of normal business. It applies to the sale of stock in trade when a business is sold. If the act is not complied with, the sale is void as the vendor’s creditors, who can then treat the stock as if the vendor still owned it.
Bulk sales act
Zoning for density with height, setback and open space requirement
Bulk zoning
All rights incidental to ownership, such as rights to lease, use, encumber, sell, exclude, and so forth.
Bundle of rights
A business including stock, fixtures, and goodwill.
Business opportunity
A financing technique in which a seller makes s purchase more attractive by paying a lender points to lower the effective interest rate on the mortgage.
Buy down
Agency where agents is the buyers representative rather then the sellers agent
Buyer agency
An agent representing the buyer rather then the seller
Buyer’s agent
A market condition characterized by more sellers than buyers, so buyers have a more commanding position.
Buyers market
The rules of how a corporation will be governed; sets forth the authority of its officers.
Bylaw
Protects consumes from unsolicited and misleading emails.
CAN -SPAM-ACT
A limit usually on the interest rate or rate increases, on an adjustable-Rate mortgage ARM
Cap
A physical asset such as land, a building, and equipment, usually for a business or trade. Capital assets other than land may depreciated
Capital asset
Profit from the sale of a business or an investment property. Capital gains held over one year are treated favorably for income tax purposes.
Capital gain
Loss from the sale of a capital asset or other real property. For tax purposes, there is no deductible loss from the sale of a residence, although a gain is taxable.
Capital loss
An appraisal approach whereby the net income of an investment property is capitalized to determine its value ( the net income is divided by a capitalization rate).
Capitalization method
A desired rate of return for an investment that is divided into the net income to determine a property’s value.
Capitalization rate
The net spendable cash remaining after all cash outlays are subtracted from the gross income
Cash flow
Let the buyer beware
Caveat emptor
Obtained by the veteran to be eligible for a VA loan. The veteran must submit discharge information
Certificate if eligibility
Frequently required before a new structure can be occupied;usually provided by the building inspector
Certificate of occupancy
An appraisal required for VA loans.
Certificate of reasonable value (CRV)
Evidence of title issued by a register under the -Torrens Title System-
Certificate of title
The highest designation awarded by the institute of Real Estate Management
Certified Property Manager (CPM)
A deed used to dedicate land to a public agency
Cessation deed
The history of a property showing all conveyances from the original government conveyance (called the patent)
Chain of title
A surveyor measurement of 66 feet
Chain
A mortgage of personal property; generally has been replaced by financing statements under the Uniform commercial code
Chattels mortgage
An item of personal property
Chattel
A personal property interest in real property,such as lease, mortgage,trust deed, land contract, or share in real estate syndicate.
Chattels real
A24-mile-by-24-mile are formed by guide meridians and parallels under government survey that corrects for the curvature of earth
Check
Prevents fires by disconnecting electrical service when a circuit becomes overloaded (replaces fuse)
Circuit breaker
Law that prohibits race discrimination in housing.
Civil Rights Act of 1866
Law that prohibits discrimination in government related housing.
Civil rights Act 1964
Title VIII of this act is called FEDERAL FAIR HOUSING ACT.
It prohibits discrimination.
Civil rights Act of 1968
Client
Principal that employs the agent.
Corporation where stock is not actively traded and the majority stockholders actively manage the corporation.
Close corporation
The final accounting showing all debits and credits in the sale of real property, or a business; also called a statement.
Closing statement.
A claim, a document, or a discrepancy that casts doubt on the marketability of a title.
Cloud on title
Zoning allowing units to be placed close together but with green areas so the density is maintained
Cluster zoning
An amendment (Änderung) to a will that requires the Same formalities as the will itself
Codicil (zusatz/Anhang)
A requirement that a property carry a minimum coverage ( usually 80%)replacement cost) in order to collect 100% of the loss. If a person carries a lesser percentage of the amount required, that person receives only that percentage of the loss suffered
Coinsurance
Property that secures a loan.
Collateral
Secured by other loans.
Collaterally secured
Because of a defect, having only the appearance of title instead of true title; for example, a title under forged deed.
Color of a title.
The amount left in an acre after deducting land for streets and walks; less than 43,560 square feet.
Commercial acre.
The act of mixing personal funds and a Principal’s funds; considered grounds for disciplinary action
Commingling
An agent’s fee or percentage for successfully completing a sale or lease
Commission
Areas in a common interest subdivision owned in common with other owners and used by all of the owners.
Common elements
The unwritten law of England established by court precedent. English common law is the. Asia for U.S statutory real estate law.
Common law
A residential tenancy in common with each owner having exclusive right of occupancy of a unit.
Community Apartment Project.
Property acquired during marriage that considered equally owned by both spouses. Presently, community property states are Arizona , California, Idaho, Louisiana, Nevada, New Mexico,Texas, Washington,Wisconsin, and Hawaii
Community property
Requires federally regulated lenders to publicize lending availability to low- income borrowers.
Community reinvestment Act
The compressing of soil so that it will support structure
Compaction
The brokers share of the gross commission earned before expenses.
Company dollar
Property’s used to estimate the value of a property using the sales comparison method
Comparables
An appraisal prepared by an agent adjusting recent comparable sales to indicate the likely sales price of a property
Comparative market analysis
An appraisal method to determine replacement cost. In general, the method is based on current price per square foot or cubic foot of similar construction.
Comparative unit method
The requirement of a lender that a borrower keep a specific Balance on deposit with the lender.
Compensating balance
Money damages awarded to indemnify (entschädigung) the injured party of a loss because of another’s wrongful act.
Compensatory damage.
An escrow for which everything necessary to be done has been accomplished.
Complete escrow
Interest that compounds on interest as well as principal. Because interest is paid monthly on standard real estate loans, it is simple, not compound, interest.
Compound interest.
A federal law that sets forth responsibility for environmental cleanup of hazardous sites
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
Requires disclosure of any fees and that fees can be saved by applying direct to the Internet
Computerized loan organization (CLO)
City growth in rings from the city center
Concentric circle growth
More than one estate in the same real property at the same time (one person)could have a fee simple interest and another, a leasehold estate)
Concurrent estates.
- The legal action to take property for pupil. Use by eminent domain.
- The process of declaring property units for use.
Condemnation
A condition that must Halle. Before the vesting of title in another. Until the condition occurs, title remains with the grantor.
Condition precedent.
A transfer of title with requirement that specified condition be met. If the condition is breached, the grantor must declare a forfeiture and retake the property within a reasonable period of time
Condition subsequent (anschließend)
A promise to make a loan on a property to a buyer yet unknown, so long as the buyer otherwise qualifies for the loan.
Conditional loan commitment
A security sakes agreement for the sake of personal property where title remains with the vendor - verkäufer (the vendee has possession-Besitz).
Title is transferred only when goods are paid for (has generally been replaced by financing statements)
Conditional sales contract
Special permission for a use not otherwise allowable under the zoning, but considered under special criteria in the zoning.
Conditional use permit
A vertical subdivision with common ownership of land and common areas and individual ownership of the units.
Condominium
A loan that meets the purchase requirements of Fannie Mae or Freddie Mac
Conforming loan
A property will have its maximum value when it is located in an area of similar properties.
Conforming loan
A property will have its maximum value when it is located in an area of similar properties.
Conformity
Negative easement requiring that land be kept in a natural or agricultural state.
Conservation easement
A person appointed by the probate court to manage and protect the assets of one who is unable to handle his to her own affairs
Conservator
Something of value given or promised on exchange for a promise, an act, or property of another.
A promise made without consideration is deemed void and unenforceable. Love and affection, although deemed good consideration, is not regarded as valuable consideration to support a promise or an act of another
Consideration
A act of a property owner that interferes with a tenant’s to consider the lease at an end, and be free from further obligations.
Constructive eviction.
The notice given by occupancy or recording to subsequent purchasers or lie holders of a prior interest in the property.
Constructive notice
An index that reflects by its changes. the changes in the purchasing power of the dollar; widely used as a measurement of inflation.
Consumer price index (CPI)
A Remainder interest in property that will vest only if some specified contingency (Zufällig) is met, such as the holder outliving a life tenant
Contingent remainder (restbestand)
Topographical lines on a map that follow elevations.lines close together indicate a slope, and lines far apart indicate a reactively level area
Contour lines
A -one sided take-it-or -leave-it contract
Contract of adhesion
An agreement, enforceable by law, between two or more competent parties for consideration to perform or not to perform a legal act.
Contract
A company that offers a variety of services such as title insurance, property insurance, mortgage banking, home inspection, etc. ( one stop shopping) through firms where the broker has an ownership interest.
Controlled business arrangement (CBA)
A loan made by a conventional lender without government guarantee of insurance.
Conventional loan
Taking a property entrusted to you and converting it to your own use; a form larceny.
Conversion
The transfer of an interest or title to a property. real estate is conveyed by a deed.
Conveyance
A sells broker selling the listening of another
Cooperating broker
An apartment structure owned by a corporation wherein each shareholder occupies a specific unit under a proprietary lease.
Cooperative
An increase in value of commercial property because of the additional property because of the additional traffic and exposure of being located on two streets.
Corner influence
A separate legal entity whose shareholder are not liable personally for corporate debts.
Corporation
Tangible property (real or personal)
Corporeal property
Surveyor correction to compensate for curvature of the earth.
Correction line
Interpreting value by combining two or more methods of appraisal; also called reconciliation.
Correlation
A method of appraisal whereby the cost to replace the structure is calculated . Accrued depreciation is determined and deducted from the replacement cost;the land value is then added to determine property value
Cost approach
An offer from the offereethat rejects the original offer and makes the original offered and offerer
Counteroffer
A promise that runs with the land
Covenant
The space between the ground and the floor on a house not built on a slab or with a basement.
Crawl space
A plus factor on a buyers or a sellers closing statement
Credit
One to whom something is owed.
Creditor
Vertical piece of 2-by-4 inch framing above or below an opening ( Window or door)
Cripple.
The number of cubic feet in a structure
Cubage
A dead end street having a rounded end. It is desirable for housing because there is no tough traffic.
Cul-de-sac
Zoning that allows the designated category of use, as well as less restrictive uses
Cumulative zoning
Deprecation that can be economically corrected
Curable depreciation
A common -law right of a husband in the estate of his deceased wife. Some states have made this a statutory right to. Life estate in the wife’s property, whereas other states grant undivided fee simple interest in a portion of the wife’s estate
Curtesy
The buyer or seller not represented by the agent.
Customer
A surveyors horizontal plane from which elevations and depths are measured
Datum plane
A person who makes a regular part of his income by buying and selling property
Dealer
A minus factor on a buyers’ is or a seller’s closing statement
Debit
Money raised by a business by borrowing through bonds or other debentures (schuldverscheibung)
Debt. Capital
One who owes money to a creditor
Debtor
A person who has died
Decedent
A formal procedure of recording a homestead from ins cured creditors up to a statuary amount.
Declaration of homestead
A declaration of the restrictive covenants record by the subdivided. In each deed, the subdivider usually incorporates the restriction by referencing the recording of the document
Declaration of restriction
The gift of real property to a governmental unit, usually by a subdivider, in order to gain approval. If the dedication (Widmung) is given for a particular purpose, and that purpose is later abandoned, the land dedicated may revert to the grantor.
Dedication
A deed given by the trust or when the trustor has paid the beneficiary in full.
It is used for trust deeds to remove lien in the same manner as a satisfaction is used to remove a mortgage
Deed of reconveyance
The transfer of title from the trustor (borrower) to a trustee (third party) as a security for a nite to a beneficiary (lender)
Deed of trust
A document that conveys title to real property from grantor to a grantee.
Deed
A mortgage provision that allows a junior lienholder to sure any default of a prior lien (and then foreclose on his or her own lien).
Default clause
The breach of a promise or an agreement.
Default
A mortgage provision that defeats (or cancels) the mortgage on the full payment as agreed.
Defeasance clause
An estate that can be lost should a certain event take place.
Defeasible estate
Maintenance (instandhaltung)that has been postponed
Deferred maintenance
A judgement obtained when a foreclosure sale does not satisfy a debt. Deficiency judgements are difficult to obtain in many states, because of restrictions on them. In some states, they are not allowed at all.
Deficiency judgement
A measurement for angles, used in metes-and- bounds descriptions. One degree (1”) is’/360of a circle
Degree
The actual transfer of an interest; requires the intent to make an irrevocable transfer.
Delivery
The transfer of a leasehold interest.
Demise
Federal department that establishes rules and regulations concerning housing and real property in the United States.
Department of Housing and Urban Development (HUD)
A federal governmental organization dedicated to serving U.S veterans.
Department of Veterans Affairs (VA)
A loss of property value from any cause
Depreciation
An appraiser’s table that determines additional value attributable to additional depth.
Depth table
Land that is created by the recession of water. It belongs to the adjacent landowners. Also called reliction.
Dereliction
Hereditary succession by an act of law when property does not pass by will.
Descent
An agency where one salesperson in the listing brokers office is designated (bezeichnet) the agent of the owner. If the listing office sells the property, the selling salesperson is the agent of the buyer. Also called split agency
Designated agency
The licensed broker who has the direct responsibility for the real estate activities of a firm.
Designated broker
The office overhead cost per desk. It is determined by dividing overhead by the number of salespeople in an office
Desk cost
A computer program developed by Frannie Mae that allows loan applications to be processes in a few minutes
Desktop underwriter
An estate that would end on the happening if an event that may or may not happen.
Determinable fee
An appraisal method to deter,one land value where cost of development is deducted from estimated value after development.
Development method
The passing of real property by will.
Devise
The person receiving real property by will.
Devisee
The testator or testatrix who transfers real property by will upon his or her death.
Devisor
A point where additional improvements fail to increase value to cover the cost of improvements
Diminishing returns.
A lender authorized to make FHA-insured loans without FHA prior approval
Direct endorsement
Rate charged by the federal reserve to member banks for loans
Discount rate
Fee charged by mortgage provider to decrease the effective rate of interest.
Discount point
Selling a loan for less than its face value (common with second mortgages or loans bearing low interest rates)
Discounting a loan
The sudden withdrawal of savings from lending institutions, resulting in a tight money market.
Disintermediation
The apportionment and division of an estate in probate after debts and costs have been paid.
Distribution
Formerly a federal tax of an real property conveyances that, when abandoned by the federal government, was adopted in many states. Also called revenue stamps.
Documentary transfer tax
Protects consumers by regulating appraiser’s and lenders.
Dodd-Frank-Act
Probate in the deceased’s state of residence.
Domiciliary probate
An estate using the land of another under an easement is an Appurtenance to the dominant tenement.
Dominant tenement
The person who receives a gift.
Donee
The person who gives a gift
Donor
The use of one escrow to purchase and resell a property.
Double escrow
A wife’s common-law right in the estate of her husband should she survive him. In some states, it is a statutory right, such as one-third interest.
Dower
A change in zoning resulting in a lower-density use or lesser use
Downzoning
A provision extending a mortgage to cover future obligations that may arise between the parties; used in an open-end mortgage
Dragnet clause
Report based on exterior viewing, area and sales in area.
Drive-by appraisal report
An agency created when an agent acts for the buyer, as well as the seller in a transaction.
Dual agency
The process of investigation and evaluation expected of a reasonable prudent person under the circumstances.
Due diligence
A type of acceleration clause in a note that makes all future payments due when a property is sold. It prevents an assumption of the loan. Also called an alienation clause.
Due-on-sale- clause
That use of force or threat to make a person act;makes a contract voidable
Duress
A good-faith deposit made by an offer with an offer
Earnest money
A beneficial easement that transfers with the land.
Easement appurtenant
An easement created when one persons words or actions lead another to believe in the existence of an easement, causing the second person to act to his own detriment. The person who made the assertion will be estoppel by court action from denying the existence of the easement.
Easement by estoppel
(Dienstbarkeit Durch Verwirkung)
An easement granted when there is no other possible access to a property
Easement by necessity
An easement created by open, notorious, and hostile use of property for a prescribed period of time.
Easement by prescription
A personal easement to use land of another where there is no dominant tenement being benefited.
Easement in gross
The right of a person to use another’s land.
Easement
That period for which improvements give a return attributable (zuzuschreiben)to the improvements alone.
Economic life
The rental value of a property in the marketplace.
Economic rent.
The savings possible by increasing production
Economics of sale
An age placed on property for appraisal purposes based on the condition of the property. The effective age may be more or less than the chronological age.
Effective age
The gross income less vacancy factor and an allowance for collection loss.
Effective gross income
A way to exit property
Egress
A legal action to oust an encroacher or a trespasser.
Ejectment
- Views of a structure from various direction on a builder’s plans.
- Height above sea level
Elevation
A minor who, under state law, may contract an adult.
Emancipated minor
Cultivated annual crops;
Considered to be personal property.
emblements
The government right to take private property (title or easement) for public use. It is not under police power because the owner is paid for the property taken.
Eminent domain
A person who works under the direction and supervision of an employer.
Employee
A legislative (Gesetzesgebung) act that confers power on local governments that they would not have otherwise. Zoning and planning powers were given under enabling acts.
Enabling act
Sealing off hazardous substances, such as painting over lead paint.
Encapsulation
A trespass by placing an improvement on or over the land of another.
Encroachment
Species listed as endangered or threatened have federal habit protection.
Endangered species act
The signature of a holder on the back of negotiable instrument
Endorsement
The efficiency evaluation of electrical systems and appliances.
Energy efficiency ratio (EER)
That portion of the loan the VA guarantees
Entitlement
A report required for projects that may have a significant effect on the environment
Environmental impact report (EIR)
An agency that enforces federal environmental standards
Environmental protection agency (EPA)
A federal act that prohibits credit discrimination based on age,sex,race or marital status, or from public assistance.
Equal Credit Opportunity Act (ECOA)
If an act must be in writing, the agency agreement appointing someone to perform the act must be also in writing
Equal dignities rules
A factor to bring into line low assessed valuations in some areas. The assessed value multiplied by the factor to determine the value that the tax rate will be applied to
Equalization factor
A standardized short sale system used by many lenders that allows agents to apply for short sales online
Equator platform
The price that results in a number of buyers equal to the goods available
Equilibrium point
An interest in property before receipt of legal title. Examples are a trustor under the trust deed, or a buyer under a sales contract (land contract)
Equitable title
Money raised by a business through selling shares in the business
Equity capital
Money raised by a business through selling shares in the business
Equity capital
The right if a mortgage to redeem during and after foreclosure; governed by state stature.
Equity of redemption
- The difference between value of a property and the Liens against it.
- That which is right or just.
Equity
The wearing away of soil by acts of wind and/or water
Erosion
Malpractice insurance carried bye broker and salesperson
Errors and omissions (E&O) insurance
Clause A contract or a lease provision allowing for payments to rise or fall.
Escalator
Let’s a party out of contract responsibilities in the even if stated situations.
Escape clause
The reversion of property to the state when a person dies intestate and without known heirs.
Escheat
A neutral depository that handles real estate closing as agent for buyer and seller
Escrow
An interest in property
Estate
A leasehold estate for an undertermined time period ; may be terminated at a h time by the lessor or lessee. Most states require a statutory notice period
Estate at will
A freehold interest whereby a person has property for his/her life or the life of another named person. The life gene at cannot encumber the property beyond his/her interest.at the end of the estate,the interest either reverts to the grantor or passes as a remainder interest to a third party.
Estate for life
A lease for a definite period of time, the result of an express agreement.
Estate for years
An estate that can be inherited, such as fee simple estate.
Estate of inheritance
An estate given based on a specific condition. Upon breach of the condition, the grantor can declare a breach and regain the property.
Estate of an condition subsequent
A doctrine whereby a party is barred from raising a defense when that persons acts or words induced another party to act to his detriment (Nachteil)
Estoppel
Statement by borrowers as to amount owed and loan terms, and that they have no defense or offsets against lender (obtained when loan is to be sold), or by tenants that they have no offset or defense against lease obligations.
Estoppel certificates
Necessity that the law allows, such as the right of a tenant to use timber (Holz, Nutzwald) for fuel and repair needs
Estover
And others
Et al
And wife
Et ux
Doing what’s right, measured by application of the golden rule.
Ethics
A dispossession by process of law
Eviction
In a deed an exclusion in a deed; deeding only part of a property.
Exception
Land that does not contribute economically to use and/ or value
Excess land
The value a property has another goods
Exchange value
Zoning that excludes a stated use.
Exclusionary zoning
A listing whereby the broker is exclusive agent of the owner, and is entitled to a commission if the broker or any other agent sells the property. If the owner sells the property without an agent, the broker is not entitled to a commission
Exclusive agency listing
A listing whereby the agent is entitled to a commission if the property is sold during the listing term by anyone, including the owner
Exclusive-right-to-sell listing
A contract provision excusing a party for injuries to another ; frequently used by lessors in leases. Exculpatory clauses do not affect the rights of third parties who may be injured on the premises
Exculpatory clause
To sign a document
Ba contract where all performances has been completed
Execute
Executed contract
The action of the sheriff in seizing and calling property of the debtor to satisfy a judgement.
Execution of judgement
A man appointed by a will to administer the estate of deceased ;a woman is an executrix
Executor
A deed during probate containing the warranty that the executor(trix) has not encumbered the property.
Executers deed
A contract that has yet to be performed
Executory contract
Punitive damages awarded in the excess of compensatory damages when an action was performed with willful intent.
Exemplary damages
A contract that is stated verbally or in writing, as opposed to an implied contract, which is understood but not stated.
Express contract
Extends a basic fire policy (fire, lighting,and smoke) to cover additional perils, such as windstorm, hail, and riot.
Extended coverage policy
Continued occupancy under the terms of an existing lease
(A lease renewal is a new lease)
Extension of a lease
A person working as a liaison between buyer and seller, but without agency duties. Also called an intermediary
Facilitator
Reporting Act Allows a person to know what is in his/her credit file, and to have explanations inserted and information investigated and removed if wrong.
Fair credit
A private corporation,now under government conservator ship (take care of someone that is incapacitated by illness or accident), that provides a secondary marketplace for mortgages
Fannie Mae
A study of the economic practicality of an investment.
Feasibility study
Insures bank and thrift deposits.
The maximum federal insurance is $250,000 for an accident
Federal Deposit Insurance Corporation (FDIC)
A federal agency that insures mortgage loans.
Federal housing administration (FHA)
A farm credit administrative agency that provides financing for farm purchases.
Federal land bank
A federal agency that regulates the money supply, interest rates, and reserve requirements of member banks.
Federal reserve system (The Fed)
An estate of inheritance (Erbe)
Fee
An appraiser who works either as an independent contractor or for an independent appraisal firm.
Fee appraiser
A grant that automatically ends should a property no longer be used for s designated purpose
A fee simple determinable
The highest ownership possible; has no time limit and can be transferred or inherited (the word fee means and inheritable (vererbbar) estate. Also called fee simple absolute.
Fee simple
An estate in which conveyance is limited to the descendants of the grantee.
Fee tail
Lender scoring system for loan worthiness.
FICO Score
A name that does not include the surname of every principal in a business. To use a fictitious name, the fictitious name publication and recording statues must be complied with
A name under which as person transacts business in this state, other then his legal name.
Fictitious name
Bond for employee covering employee honesty.
Fidelity bond
The duty of trust and honesty of an agent to the principal (Klient)
Fiduciary
The process in which housing passes down to lower economic groups
Filtering down
Requires state licensing and certification of appraiser’s.
Financial Institution Reform, Recovery, and Enforcement Act
FIRREA
An instrument files by a lender or a personal property loan to give public notice that the goods are security for the loan ( under the Uniform Commercial Code)
Financing statement
A fee paid to a non- licensee for an introduction only;legal in some states.
Finders fee
A horizontal block between studs to prevent a fire from rising through a wall.
Fire block
A wall built of fireproof material to limit or contain a fire.
Fire wall
A loan commitment made for a particular borrower and property.
Firm commitment
A former item of personal property that has become so connected to the realty that it has become part of the real property.
Fixture
A level-payment lease with no escalation clause; also called a gross lease.
Flat lease
Level areas along waterways subject to inundation.
Floodplain
The water overflowing a defined channel
Floodwater
The interior square footage measured from the inside walls
Floor space
The concrete poured in the ground on which the foundation rests. The footing distributes the building load to the soil.
Footing
The legal procedure whereby the lender forces the sale of property to pay indebtedness in the event of default.
Foreclosure
Requires buyer withholding of taxes when the seller is a foreign national, except for exempt sales.
Foreign investment in Real property tax act
The masonry -Mauerwerk- substructure on which the building rests. The foundation rests on the footing.
Foundation
A right distribute goods and services under a marketing plan established by a franchiser
Franchise
Fraud
An international act or omission -Unterlassung-to deceive another to the detriment-Nachteil- of that party
A private entity under as a secondary mortgage market and sells participation certificates.
Freddie Mac
A higher- interest category of estates (fee simple and life estates), as opposed to non freehold estates, which are leasehold interests.
Freehold
A linear measurement of land based on the number of feet fronting on a road (could also refer to water frontage)
Front foot
The Ratio of gross income to total loan payments (PITT);used to qualify buyers as to the amount of a loan.
Front-end Ratio
Obsolescence -Veralten- that is built in by design or by construction
Functional obsolescence
A fee paid by a veteran of a VA loan
Funding fee
A roof in which the two opposite planes slope down from a ridge line.
Gable roof
A roof with steep lower slope -Abschüssig- and a flatter upper slope; found on some barns and Dutch colonials
Gambrel roof
A temporary loan, usually at a higher interest rate, where the borrower intends to obtain better financing ;also called a bridge loan or swing loan.
Gap loan
An agent having all necessary authority to conduct a business or trade.
General agent
A lien against all property of debtor (for example, judgement liens and federal tax liens)
General lien
A partner who is active in management and liable for debts and actions of the partnership
General partner
A board power given by a principal to an agent that enables the agent to act for the principal. A specific power of attorney allows the agent to act only in the manner and area specified.
General power of attorney
A deed where the grantor warrants title as to the claims of all others.
General warranty deed
A deed given for love and affection. Creditors of the donor can reach the property if it can be shown that the gift was made while the donor was insolvent in an effort to evade creditors. A recorded gift deed does not take precedence over prior unrecorded deed by the grantor for value.
Gift deed
A federal tax on gifts. Donor exemption of $14,000 annually per donee
Gift tax
A federal corporation that provides assistance for federally aided housing projects that are at below- market interest rates. Funds are raised through the sale of government- backed securities.
Ginnie Mae
Love and affection are considered good consideration for a completed gift transfer;however, they are not considered valuable consideration to enforce a promise to make a transfer.
Good consideration
Acting honestly without deception
Good faith
Closing funds where the checks have cleared; cashiers checks or certified checks
Good funds
A portion of land less that a quarter section because of physical features such as lakes that limit the size of the lot. Established by government survey.
Government lot
The survey system used most of the nation whereby land is measured from principal base lines and meridians and laid out in townships and sections
Government survey
A period allowed for late payments without penalty
Grace period
A professional a designation that requires seminar attendance and courses of study
Graduate Realtors institute (GRI)
A loan where early payments are lower, and increase during the term of the loan, making it easier for young people, whose incomes are likely to increase to purchase property.
Graduated payment mortgage (GPM)
A regulation that permits existing conditions or uses to continue despite new laws against the ; applies to prior - use zoning.
Grandfather clause
An extra apartment in a zoned single- family area. Sometimes allowed if used for relatives such as in laws. Otherwise it would violate the zoning.
Granny flat
A deed used in some states in conjunction with the title insurance whereby seller warrants that title has not been conveyed -übermittelt- previously, and that there is nothing against the property that the seller knows of that has not been. Disclosed to the buyer.
Grant deed
A transfer of a title
Grant
The person who receives the grant from the grantor.
Grantee
A deed provision indicating that title is passing .
Granting clause
The person who makes the grant to the grantee
Grantor
Index A recorders index system by grantor/grantee name that makes it easy to research a title.
Grantor/grantee
The rectangular street system found in many cities usually based on government survey system
Gridiron
Gross sales less cost of the merchandise. To obtain net profit, all other expenses also must be deducted
Gross profit
An appraisal variation to get an approximate idea of value where gross income is multiplied by a gross rent multiplier. It does take into account unusual expenses.
Gross rent multiplier (GRM) method
A lease of a land only, tenant puts in the improvements
Ground lease
The portion of the rent attributable to land rather than to improvements
Ground rent
Surface water: all above ground water, including water with no defined channel
Underground non-flowing water.
Ground water
An agreement to refuse cooperation with another business to reduce competition
Group boycotting
A mortgage with increasing payments, causing the principal to be rapidly decreased
Growing equity mortgage (GEM)
A person lawfully charged with managing the property of another who is legally incapable
Guardian
North- south survey lines running east and west of a principal meridian. They are 24 miles apart.
Guide meridians
The “ to have and to hold” clause is a deed indicating the extant of ownership (such as fee simple or life estate)
Habendum
Reasonable for for human habitation
Habitability
A cash loan rather than seller financing
Hard- money loan
A master lease under which the lease subleases portions of the premises
Head lease
A beam over a window or door
Header
Any item capable of being inherited (vererbbar)
Hereditament
That use which results in the greatest value for a property
Highest and best use
A roof where all sides slope to the eaves
Hip roof
Structure listed on National Register of historic Places or a state registry . There are tax incentive for restoration, as well as penalties for demolition and alteration
Historic structure
A person who, in the course of commerce, takes a negotiable instrument good on its face for value before the due date, without notice of any defense of the maker
Holder in due course
Clause one party agrees to indemnify (entschädigung) the other for any loss suffered because of the contract or lease.
Hold - harmless
A lease condition that provides for a very high rent should the tenant fail to vacate at the end of the lease, discouraging a holdover situation.
Hold over clause
A tenant retaining possession after expiration of the lease. See tenancy sufferance
Holdover tenant
A handwritten, signed, and dated will. No witnesses are needed.
Holographic will
A governing association for common interest developments established pursuant to the restrictive covenants of the development
Homeowners association (HOA)
A comprehensive insurance policy covering fire, vandalism, theft, liability, and other hazards.
Homeowners policy
A home on which declaration of homestead has been filed to protect the home from unsecured creditors up to a statutory (gesetzlich) amount
Homestaed
To give something as security without giving up possession (Eigentum)
Hypothecate
In violation of an existing law
Illegal
An asset that is not readily convertible to cash. Real estate is considered to be illiquid
Illiquidity
An agreement that appears to be binding but in which one party actually is not bound ;not enforceable
Illusory contract
An agent not expressly appointed but implied by actions of the parties.
Implied Agent
An agreement not expressly states but implied by actions of the gparties.
Implied contact
An easement implied when the grantor conveys property that is landlocked by other property of the grantor or where the grantor created the use, sold the parcels separately.
Implied easement
A reserve for taxes and insurance kept by the lender to which the borrower pays, along with regular Principal and interest payments ; also called an escrow account
Impound account
An addition to property , such as room or air- conditioning unlike repairs, improvements increase the cost basis of the property.
Improvement
An interstellar rate that will be implied for tax purposes when a note shows a rate if interested less than statutory minimum (a person will be taxed as If the minimum acceptable rate was received)
Imputed interest
Encourages particular improvements;for example, zoning that allows greater height if a public plaza is included
Incentive zoning
A right not yet perfected, such as mechanics right to file a lien or a wife’s dower rights that won’t come into being until the death of her husband
Inchoate right
A person who, because age or mental capacity, lacks the legal ability to enter into valid contracts
Incompetent
Intangible property (immateriell)
Incorporeal property
Any increase in value
Increment
Depreciation where the cost of correction is prohibitive (unerschwinglich)
Incurable depreciation
Cannot be voided
Indefensible
A contractor employed to complete a task who is not under the supervision of control of the employer
Independent contractor
A lease tied to an index such as the consumer price index
Index lease
A method of determining cost of replacement by taking the actual costs when built and applying the increases in the construction cost index since that day.
Index method
A description of property that is not a legal description, such as by street address or name of owner.
Informal description
A means of entering
Ingress
A court action to cease and designs a course of action.
Injunction
Loan where interest only is paid. When due, loan must be paid off or recast (neuerfassung)
Interest only loan
The percentage of a loan balance charged by the lender for the use of money
Interest rate
A short- term gap loan
Interim loan
A security theory where title remains with mortgagor, but automatically transfers to the mortgagee in the event of default.
Intermediate theory (mortgage)
A method of measuring returns on investments that considers tax consequences.
Internal rate of return (IRR)
Action requested by party to determine rights when two or more people claim to have interest in property, such as action by broker where the buyer and seller each claim rights to a deposit
Interpleader action
Federal disclosure act for projects of 25 or more unimproved lots to be sold in interstate commerce
Interstate Land sales act (ILSA)
Dying without a will. Property passes to the heirs according to state statue governing intestate succession.
Intestate
An action by owner to force government unit to take property, when , but it’s action, the government has wrongfully restricted use.
Inverse condemnation
A lien imposed without consent of the landowner, such as a tax lien. A mortgage is a voluntary lien.
Involuntary lien
Report to IRS on cash transaction over $10,000.
IRS Form 8300
agreement to be liable together as well as separately
Joint and several
agreement that each party will be equally liable for an obligation
Joint liability
An undivided interest with the right of survivorship. Owners must take title at the same time, by the same instrument , with equal interests, and with equal rights of possession.
Joint tenancy
A partnership of a particular undertaking only. It differs from a standard partnership in that a sole joint venture partner cannot obligate the other joint venture partners.
Joint venture
A horizontal board that supports a floor or ceiling
Joist
Final order of a court as to money owned. When recorded, the judgement becomes a general lien on the property of the debtor
Judgement
A subordinate lien as determine by the time of recording it the nature of the lien.
Junior lien
A lot having a number of other lots abutting a side line (undesirable for residential use)
Key lot
A payment made to the lessor to obtain a lease
Key money
The doctrine that upholds the loss of the right to enforce an agreement or a restriction because the delay in bringing action worked to the detriment of the other party
Laches
A contract under which the seller keeps title while the buyer gets possession. Title passes when the property has been fully paid for.
Also called a contract for sale.
Land contract
A means to determine land value by deducting the value of the income attributable to the improvements alone from the value of the income property
Land residual method
Property that has no access because of surrounding property and the absence of any easement
Landlocked
A charge imposed by a lender for late payments. Late charges are regulated by state law.
Late charge
A defect not apparent from a reasonable visual inspection
Latent defect
Is referenced by lines parallel to the equator and is measured in degrees, minutes, and seconds.
Latitude
A tenancy agreement between landlord (lessor) and tenant (lessee)
Lease
A lease estate in realty; a nonfreehold or possessory interest only.
Leasehold
A bequest of money by will.
Legacy
A description of real property by government surgery; metes and bounds; or references to a recorded lot, block,and tract.
Legal description
A tenant under a lease
Lessee
A landlord who has given a lease.
Lessor
The use of the other people’s money to make money. Purchasing real property with a minimum down payment is a use of leverage
Leverage
London interbank offering rate used as index on adjustable-rate mortgages.
LIBOR rate
A revocable privilege to use the land of another
License
The theory in a majority of states that a mortgage is a lien and not a transfer of title. See title theory.
Lien theory
A monetary encumbrance that is secured by real estate
Lien
An estate in property for the life of a person that may not be inherited
Life estate
An exchange of similar property that qualifies for tax-deferred exchange; for example, real property for real property.
Like-for-like
Areas in a common- interest subdivision owned in common with the other owners, but designated for the exclusive use of particular owners, such as parking spaces or storage lockers.
Limited common elements
A business entity with limited liability that is taxes like partnership. It avoids the restrictions of S corporations or limited partnerships.
Limited liability company (LLC)
A partnership in which one or more partners
have liability limited only to the extent of their investments. Limited partners cannot be active in the business management
Limited partnership
A surveyor’s measure equal to 7.92 inches
Link
Cash or assets readily convertible to cash
Liquid
Advance agreements to the amount of damages for nonperformance when exact damages may be difficult to ascertain. If so unreasonable that the court considers them a penalty, they will not be enforced
Liquidated damages
Ability to turn assets into cash
Liquidity
A recorded notice of a pending lawsuit concerning a property. Though not a lien, Liz pendens provides constructive notice that an action is pending against property.
Lis pendens
An agency agreement between owner and broker wherein the owner authorized the broker to attempt to find a buyer and agrees to pay a certain commission should the broker succeed.
Listing
Property located on the shore of a lake or an ocean
Littoral property
Rights of a property owner to reasonable use of lake, pond, or ocean water bordering the property. Also see riparian (Ufer) rights.
Littoral rights
The space measured by the interior of each room, excluding interior walls and closets
Livable floor space
The percentage of the value (or ratio) that a lender will lend against a property.
Loan-to-value ratio (LTV)
A provision that allows prepayment, provided full interest is paid as if the loan had gone to maturity; the borrower is “locked in” as to interest.
Lock-in clause
Longitude is measured in terms of north-south meridians, and is measured in degree , minutes and seconds
Longitude
Legal description based on reference to a recorded subdivision map.
Lot,block and tract system
The person who signs a negotiable instrument
Maker
A French-style roof with a steep lower slope and a very gentle upper slope.
Mansard roof
The lenders security that is the difference between the mortgage and the value of the property
Margin (Spielraum) of security
The difference between the index rate and the rate of interest charged on an adjustable-rate mortgage
Margin
An appraisal method wherein value is based on sales of comparable properties
Market comparison approach
The price actually paid.
Market price
The price a willing, informed buyer would pay to a willing informed seller, allowing a reasonable sale time.
Market value
A title that is clear of objectionable (nicht einwandfrei) liens (Pfandfecht) and encumbrances (Belastung); a merchantable title.
Marketable title
The Percentage added to cost to determine selling price
Markup
The original lease between lessor and lessee when the lessee later subleases
Master lease
Comprehensive land use plan.
Master plan
A specific lien by a contractor, subcontractor, material man, or laborer for work performed or material supplied for a property but not paid for.
Mechanics lien
A non judicial process to resolve disputes where a third party acts as a facilitator to aid the parties on reaching an agreement
Mediation
An urban sprawl
Megalopolis
A professional membership designation of the appraisal institute.
Member, appraisal institute (MAI)
Threat of force that makes a contract voidable
Menace
The joining of a lesser right with a superior right so as to extinguish the lesser one ; for example , a tenant having an estate for years buys the property in fee simple, in which case the lease is extinguished because the owner an tenant now are one and the same.
Merger
Government surveyors’ north- south lines that intersect base lines.
Land is measured from the intersection of these lines.
Meridians
Land description by measurements and boundaries
Metes and bounds
A linear measure of 5,280 feet
Mile
One tenth of a cent, or vow of a dollar, write. As $0.001. Property taxes often are expressed in mills.
Mill
Lease rights to extract minerals,oil, and gas for the lease period ( a personal property interest)
Mineral, oil and gas lease
The absolute right to extract minerals, oil, and gas ( a real property interest)
Mineral, oil and gas rights
Any person younger than contractual age
Minor
A false statement to induce another to act. It makes a contract voidable at the option of the injured party. Unlike fraud, misrepresentation does not require intent to deceive
Misrepresentation
The duty of an injured party to use reasonable efforts to keep the damages as low as possible when the other party breaches a contract
Mitigation of damage
Policy of federal reserve to adjust availability and cost of funds.
Monetary policy
A fixed surveyor’s marker for a metes-and-bounds description; can be natural (such as a rock or tree) or artificial (such as an iron stake)
Monument
A security device for real estate. In lien theory state, the mortgagor restrains title and gives the mortgage a lien. In title theory states, the borrower retains possession but gives the lender or trustee title as a security
Mortgage
Mortgage company that originates loans that are then sold in secondary mortgage market.
Mortgage banker
Broker who arranges a loan between a borrower and a lender.
Mortgage broker
A private national mortgage database in which MERS may hold a mortgage note.
Mortgage Electronic registration system (MERS)
A private mortgage insurance (PMI) carrier
Mortgage guaranty insurance corporation (MGIC)
Insurance
Mortgage insurance premium (MIP) FHA
Firm that arranges the sake of existing loans in the secondary mortgage market
Mortgage loan correspondent
Subject to minimum standards of licensing and registration
Mortgage loan originator (MLO)
The note that reflects the promise to pay the mortgage debt. The mortgage is security for the note.
Mortgage note
One who receives the mortgage ; a lender or a seller (under a purchase money mortgage)
Mortgagee
The lowest board on a house that rests on the foundation it is often constructed of redwood or treated lumber to resist rot. Also called a sill.
Mudsill
A listing, usually an exclusive right to sell listing, given out to a group of cooperation brokers who are members of a multiple listing service.
Multiple listing
An organization of member real estate professionals in which listing agreements are shared to increase the chances of a sale.
Multiple listing service (MLS)
Muniment Of title deeds ( legal term for a document)
Muniment
The meeting of minds required for a binding contract
Mutual consent
The mistake of both parties to an agreement. A mutual mistake as to fact allows a mistaken party to void the agreement
Mutual mistake
Insurance that protects the lender against buyer default
Mutual mortgage insurance (MMI) FHA
A bank owned by its depositors and paying dividends, not interest, to the depositors. Located in several northeastern states, such a bank can make real estate loans anywhere in the nation
Mutual savings bank
Legal title only, without another right of ownership ; for example, a trustee under a deed of trust.
Naked title
An appraisal written in narrative form; the most comprehensive form of appraisal report
Narrative report
A trade organization dedicated to training real estate professionals and ensuring high ethical standards within the field.
National association of realtors NAR
A federal registry to protect residences from unwanted telephone solicitations
National do not call registry
Requires an environmental impact statement (EIS) on federal projects that can significantly affect the environment.
National environmental policy act (NEPA)
Legislation that makes flood insurance available in communities that have developed a flood- protection plan
National flood insurance act
A surveying point for metes- and- bounds description that is natural, as opposed to manmade; for example , a tree, rock, or river bank
Natural monument
A loan whose monthly installments are not sufficient to pay the interest, so the principal increases.
Negative amortization
An investment or a business that requires a regular infusion of cash because the cash outlay exceeds the cash receipts
Negative cash flow
A promise not to do something; for example, a restrictive covenant that prohibits detached garages
Negative covenant
A statement that a development will not have a significant adverse effect on the environment
Negative declaration -Negativerklärung-
An easement right that prohibits -verbietet- an owner from a use
Negative easement
Fraud resulting from failure to disclosure rather than form an affirmative act
Negative fraud
A written unconditional promise or order to pay a certain sum in money now or at a definite time in the future
Negotiable instrument
An area of social conformity
Neighborhood
A lease under which the tenant pays all operational and gives the lessor a net amount as rent
Net lease
A listing whereby the broker receives as a commission that portion of the sales prince that exceed the listing price. In some states, net listings are illegal
Net listing
Gross annual income less operational costs
Does not deduct for debt service or depreciation
Net operating income NOD
The profit after all expenses (excludes payment on the provincial of loans and taxes on the profit)
Net profit
The differences between total asserts and total liabilities
Net worth
a token amount awarded by a court when no actual damages result from wrongful act.
Nominal damage
- The rate stated in the instrument
2. a minimum quantity
Nominal
A loan that fails to meet the purchase requirements of Fannie Mae or Freddie Mac; usually held by the lender as portfolio loan.
No confirming loan
A use existing before zoning that does not conform with the zoning
Nonconforming use
Zoning that allows only a specified category of use (not less restrictive uses)
Noncumulative zoning
Clause a mortgage condition by which the mortgagee agrees nit terminate the lease (if the lessee is in compliance with lease terms) in the event of mortgage foreclosure
Non-disturbance
A leasehold interest
Nonfreehold estate
A lender other than a bank, a savings and loan association, or an insurance company ; for example a pension fund or a private individual
Noninstitutional lender
A loan for which the borrower is not personally liable ( no deficiency judgement is possible)
Nonrecourse loan
A signed instrument that acknowledges a debt, and agrees to pay it either on demand or at a set date in the future. The mortgage or trust deed secures the note in real estate transaction
Note
A notice filed by an owner that starts a statutory period in which mechanics liens must be filed
Notice of completion
A notice given under a trust deed that sets the statutory period for the trustor to pay obligations
Notice of default
A notice filed by an owner to protect the property from liens for work authorized by another person; for example, a tenant
Notice of nonresponsibility
A statutory notice given by landlord to a tenant to vacate the premises
Notice to quit
Clause in an employment for a sale contract that prohibits competition by former employees or sellers within a reasonable distance and for reasonable time period. If a court determines that the restrictions are unreasonable, such a clause is not enforceable
Not to compete clause
The substitution of one agreement for another if the substitution of parties to the agreement
Novation
A use of property that interferes with the quiet enjoyment by others of their properties. An abatement action can be taken to stop (abate) the nuisance
Nuisance
An oral deathbed will for personal property of low value. The witnesses must reduce it to writing. It is not valid in all states.
Nuncuptative will
Market value as opposed to subjective value, which is use value
Objective value
Loan advantages required by a lender under an agreement as construction progresses
Obligatory advance
The method of determining the effective age of a property by its condition
Observed condition method
Loss in value due to reduced desirability because of built in design ( functional obsolescence -Veralten-) or forces outside the property itself (external obsolescence)
Obsolescence
Permit issued by a building inspector when a new structure has been completed in accordance with codes
Occupancy permit
A statement by a lender as to the current status of a loan ( balance due). See Beneficiary statement.
Offset statement
A provision that allows prepayment without penalty
“Or more” clause
A brokerage firm that handles financing and closing functions. See controlled business arrangement
One-stop shopping
A nonexclusive agency whereby the owner agrees to a fee inky if the broker is the first to procure a buyer under the exact terms of listing or any other terms to which the owner agrees
Open listing
Federal reserve action in buying and selling federal securities in the open market.
Open market transaction
- Loan that can be prepaid without penalty
2. A mortgage in default before the foreclosure sale.
Open mortgage
A mortgage that can be increased in the future up to an agreed on maximum amount. Also see dragnet clause.
Open end mortgage
The loss is other opportunities by making an investment; for example , a long -term, low yield -Lange ausbeute- investment could result in illiquidity whereby the investor would have to forgo a later, more attractive investment opportunity
Opportunity cost
Adjustable rate loan with borrowers option to make a minimum payment.
Option arm
A noncancelable right given by an owner to another to buy or lease a property at an agreed -on price within a stated period. To be valid, consideration must have been given to keep the offer open
Option
The party who purchased the option, and has the right to exercise it.
Optioned
The owner who gives the option
Optionor
A note payable to a named person or order that allows it to be negotiated by endorsement
Order paper
The way a structure is placed on a site.
Orientation
Fees charged by mortgage brokers for services
Origination point
An agency that is implied by the actions of the parties
Ostensible agency
An improvement that cannot be recaptured by increased income of sale value
Overimprovement
A mortgage that includes personal property as well as real property
Package mortgage
The rule that bars verbal (parol) evidence from being used to show that a contract means other than what is says. Parol evidence can be used to clarify ambiguities -Zweideutigkeit- or to show fraud
Parol evidence rule
An amortized loan that must be paid off with a balloon payment before amortization
-Abschreibungen- is complete
Partially amortized loan
The splitting of property into separate parcels to dissolve a joint tenancy or tenancy in common
Partition in kind
A legal action to break a joint ownership
Partition
An agreement between two or more persons to unite for business purposes and to share profits
Partnership
A common wall on the property line maintained by both owners
Party wall
A paper loss from depreciation
-Abschreibungen-
Passive loss
A certified sold to investors backed by a pool of Ginnie Mae insured mortgages. The principal and interest paid by borrowers is passed through to the certificate owners.
pass-through certificate
A defect that is obvious from a visual inspection
Patent defect
The original conveyance of land from the government
Patent
The time it will take for the income generated by a property to return the investment ( down payment)
Payback period
An independent examination testing service
Pearson VUE
A measure for nails shown as the letter d. The larger the penny value, the larger the nail.
Penny
An inheritance by right of representation. Children share equally in the share their deceased parent would have received. This is different from per capita distribution, where all heirs obtain the same amount
Per stripes
a lease in which the rent is a percentage of the gross income
Percentage lease
The ability of soil to absorb water.
Percolation tests are required in many areas before permit is issued for a structure requiring a septic system
Percolation
A escrow in which all signed documents and funds have been deposited with the escrow and the transaction is ready for closing.
Perfect escrow
Bond that guarantees completion of a contract should the contractor default on performance
Performance bond
A rental from period to period that renews itself automatically unless the lessor or lessee gives notice
Period tenancy
A licensed of unlicensed party who works for a real estate salesperson. Generally regarded as employee of the employing salesperson.
Personal assistant
Property that is not classified as real property
Personal property
An act that prohibits public benefits, including professional licensing, to illegal aliens
Personal responsibility and work opportunity reconciliation act of 1996 (PRWORA)
Depreciation caused by age and use
Physical deterioration
The slope of a roof ; usually expressed in inches per foot. A 5-12 pitch drops five inches each horizontal foot. Generally, roofs with steeper pitches have longer lives than more gently sloped roofs.
Pitch
Denotes that a Payment includes principal, interest, taxes, and insurance
PITI P
A development with individual lot ownership and shared ownership of common areas such as recreational areas; also called development projects
Planned unit development (PUD)
A group of appointed officials responsible for planning and zoning
Planning commission
A map or plan of subdivision showing individual lots.
Plat
A horizontal board 2”x4” to which studs are nailed. There is both a top an da bottom plate ( called a sole plate)
Plate
the depositing of personal property as security for a debt with another while retaining title.
Pledge
The layout of a lot showing placement of the structure in relationship to lot lines.
Plot plan
The increase in value from the process of assemblage (joining several adjacent parcels to form a larger parcel)
Pottage
A listing not advertised or made available to other agents
Pocket listing
A fee charged by the lender that amounts to advance interest, making up for an interest rate the lender considers too low. Each point paid is 1% of the loan amount.
Point
The point of beginning in a metes-and bounds description
Point of beginning (POB)
The power of the state to adopt and enforce laws promote order, safety, health, moral, and general welfare. No compensation is given for financial losses resulting from the exercise of police power. It cannot be delegated to a , nongovernmental body.examples include zoning, health code and building code enforcement
Police power
Floodwater accumulation -angesammeltes- in depressions -Vertiefungen-
Pounding
The passive income received from investments rather than from a salary or business
Portfolio income
A loan held by the lender as an investment rather than one made for resale on the secondary mortgage market.
Portfolio loan
A written agency agreement given by a principals to an attorney-in-fact to act on their behalf
Power of attorney
Abusive lending practices to strip an owner of home equity
Predatory lending
A report indicating the present condition of the title and indicating the conditions upon which title insurance will be issued
Preliminary title report
A penalty for prepaying a loan before the payment schedule of the note
Prepayment penalty
Obtaining an easement by open, hostile and continuous use for a statutory period of time
Prescription
Illegal practice of conspiring to set fixed prices for goods or services.
Price fixing
First mortgage and trust deeds
Primary financing
Characterizes the actual granting of loans from the lender to the borrower
Primary mortgage market
- One who engages an agent to act on his behalf
- A party to a contract
- A sum of money
Principal
The highest value is created and maintained by a proper mix of land use resulting in the highest and best use for a site
Principle of balance
Real estate value do not remain constant
Principal of change
When extraordinary profits are being made, competition will enter the area and profits will drop.
Principal of competition
Improvements should not be made to a property unless the value of the property or rent is increased enough to justify the improvements
Principle of contribution
The value of a parcel changes based on changes in the use of surrounding parcels
Principle of dependency
Property goes through three phases of development:integration, equilibrium. And disintegration (growth, stability, and decline)
Principle of integration and disintegration
A person will not pay more for a property than the price of a property of equal utility and desirability
Principle of substitution
A theory used in some western states that the first user of water has priority rights over later users of water from the same source
Prior appropriation
Insures conventional loans
Private mortgage insurance (PMI)
The relationship of parties to a contract
Privity
An estimated operating statement based on anticipated returns and expenses it is used where no actual data are available
Pro forma
The legal proceeding to pay debts and distribute assets of a deceased
Probate
The cause originated a chain of events that, without a break in continuity, resulted in the object if an agents employment (sale or lease)
Procuring cause
The rights to take crops, soil, or profit from the mans of another
Profit prendre
A financial operating statement showing profit or loss for a designated period
Profit and loss statement
The increase in value of a less expensive home resulting from more expensive homes being built around it
Progression
Real estate activity focused on leasing and maintenance of property
Property management
A lease by a cooperative to a shareholder providing a right to occupy a unit
Proprietary lease
To apportion based on actual time to the date of closing, as with taxes, insurance, and rents.
Proration
Provides for leases surviving foreclosures,as well as a notice period.
Protecting tenants at foreclosure act
A statement of opinion given in a sale; not a warranty
Puffing
Exemplary damages beyond actual damages awarded for a wrongful, willful act for the purpose of punishing the wrongdoer
Punitive damages
A life estate of the life of a person other than a life tenant
Pur autre vie
The investor buys property and sells or leases it to the original owner. Normally, a leaseback is used by an owner to free capital for operational purposes. A purchase sale back is sometimes used in place of a mortgage to provide greater security for lender. Also called a sale- leaseback
Purchase sale-back
- A mortgage given by the buyers to the seller to finance the purchase. The seller is financing the buyer. Actual cash does not change hands.
- A loan given to buyer to finance a property purchase
Purchase money mortgage (PMM)
Refinancing or selling property that has increased in value to buy additional or larger property.
Pyramiding
An endorsement of a negotiable instrument “without recourse”. The endorser is not liable If the maker does not honor the instrument.
Qualified endorsement
A detailed method to determine replacement cost by pricing out all the elements of a structure in the same manner as a builder would estimate costs
Quality survey
The right of an owner or a tenant to use the property without interference
Quiet enjoyment
A court action to enter mine ownership rights.
Quiet title
A deed conveying whatever interest the grantor may have without making claims as to onwership
Quietclaim deed
The resistance factor used to measure insulation.
R factor
A colorless and odorless naturally occurring gas resulting from decomposition of radioactive minerals
Radon
A diagonal riff beam running from the eaves to the ridge of the roof
Rafter
A vertical row of townships, measured east and west from the meridian
Range
The approval of an act of the agent by the principal when the agent exceed her authority. By taking the benefits of the act, the principal also accepts its obligation
Ratification
an organization of brokers and associates (salespeople)
Real estate board
Property that is lender owned as the result of a foreclosure
Real estate owned (REO)
An unincorporated group of 100 or more investors who have limited liability. Under federal law, Reits are taxed on retained -behalten-earning only
Real estate investment trust (REIT)
A federal disclosure act requiring that a borrower be given an estimate of settlement costs, and an information booklet. The consumer financial Protection Bureau administers RESPA
Real estate settlement procedure act (RESPA)
Land and all that does with the land (appurtenances)
Real property
A real estate broker who is a member of the National Association of Real Estate Brokers
Realist
A member of the national association of realtors
Realtor
A provision in a percentage lease that gives the lessor the right to terminate the lease if a specified volume of sales is not reached
Recapture clause
The process whereby an appraiser assign various weights value determine
-bestimmen- by different appraisal methods (correlation)
Reconciliation
The deed from the trustee returning title to the trustor when the trustor has satisfied the debt to the beneficiary
Reconveyance deed
The act of recording with the county recorder so as to give constructive notice to all of the instruments recorded.
Recordation
A fund maintained by many state real estate departments to repay persons who suffer losses because of wrongful acts of licenses. Recovery is up to a statutory limit and usually requires an uncollected judgement against the licensee.
Recovery fund
Anything that should alert an agent as to a property problem
Red flag
The right of the mortgagor to redeem the property after a foreclosure sale. Before a sale, it generally is a reinstatement right.
Redemption right
Refusing to make loans within designated areas; violates the civil rights act of 1968
Redlining
A court action rectify-beheben- a mistake in a deed or contract so it’s reads as it was placed in an area of less expensive homes.
Reformation
The portion of the consumer Protection Act of 1968 called the Truth in Lending Act (TILA)
Regulation Z
Repair without changing
Rehabilitation
Land that forms after water recedes
Reliction
A provision in a blanket encumbrance allowing separate releases from the encumbrance -Belastung- by paying a stated sum of money
Release clause
The depreciation that an owner has left to take
Remainder depreciation
An interest that a third person has on property after the death of a life tenant
Remainder interest
A short-term mortgage where lender will rewrite the loan, when due, at the current interest rate (rollover mortgage)
Renegotiable-rate mortgage (RRNI)
An extension of a lease that continues the old lease
Renewal of lease
The cost of replacing a structure of the same desirability and utility values using modern methods and materials
Replacement cost
The cost to reproduce a structure exactly with the same design materials
Reproduction cost
Setting aside the contract and placing the parties back in the conditions they were in before the contract (as opposed to a waiver, which leaves them as they are).
Rescission of contract
The retention of a right, such as an easement, when property is conveyed. An exception retains part of the property
Reservation
A reserve fund established to replace an asset.
Reserve for replacement
The doctrine that a master is liable for the acts of his servants. It applies to employees, as well as agents
Respondeat superior
Returning to an original condition
Restoration
A probationary license granted by some states after a license has been revoked, suspended, or denied
Restricted license
A privat beneficial restriction whereby an owner is limited as to the use of his/her property ; for example, minimum size, setback, an height limitations. Also called covenants, conditions, and restrictions (CC&Rs)
Restrictive covenant
An endorsement on a negotiable instrument that restricts any further endorsement;”for deposit only”
Restrictive endorsement
Report limited to specific valuation purposes
Restrictive use appraisal
Eviction resulting from a tenants good-faith complaint. May violate the uniform residential landlord and tenant act, fair housing act, and state law
Retaliatory eviction
A mortgage in which the mortgage makes monthly payments to the mortgagor. The loan is paid back when the property is sold of the mortgagor dies
Reverse annuity mortgage (RAM)
A loan where the borrower receives annuity
-like payments from the lender but the loan is not repaid until the property is sold or the borrower(s) dies.
Reverse mortgage
An interest whereby a property goes back to the original grantor on the occurrence of an event such as the death of a life tenant
Reversionary interest
Change of zoning, as opposed, to variance, which is an exception to zoning
Rezoning
The highest board in a house, located horizontally between the tops of the opposing rafters.
Ridge board
The right of underground percolating water(the water table)
Right of correlative user
The right to leave real estate ; the right to go to real estate
Right of egress (or ingress)
A right right sometimes given to a tenant to meet the price and terms at which the owner will sell or lease the property to another party. The owner must offer it to the holder of the right before sale or lease can be made to another. In this case, the owner is not required to sell or lease, as he is with an option.
Right of first refusal
First right of refusal
The right to pass over another’s land, as in an easement
Right-of-way
The rights I’d a landowner to reasonable use the flowing water located on, under, or adjacent to his/her property
Riparian rights
A surveyor’s measure equal to 16.5 feet
Rod
Requires that a private trust for heirs be restricted to a statutory life limit. The deceased or grantor is limited as to how long he can continue to exercise control over property after death
Rule against perpetuties
Closely held corporation that has elected to be taxed as a partnership
S corporation A small,
A listing provision that grants the broker a commission for a sale made within a specified period of time after a listing expires, if the broker submits the name of the buyer to the owner within a stated period of time as a party with whom the broker had negotiated before expiration of the listing
Safety clause
A sale in which the grantor becomes the tenant of the grantee
Sale-leaseback
French for; without.
Used to exclude property from a grant
Sans
Given by the mortgage to the mortgagor when the mortgage has been satisfied. Recording the satisfaction removes the lien
Satisfaction of mortgage
Gross income based on 100% occupancy and scheduled rents
Schedule gross income
An impression or a stamp to authenticate the signature on a document , which required in some states on formal documents. Generally “(seal) or the letters “L.S.” (Locus Sigilli, Latin for place of the seal) are sufficient.
Seal
A loan with a payment history. Such a loan is desirable on the secondary mortgage market
Seasoned loan
Second mortgage or trust deeds
Secondary financing
Second mortgages or trust deeds
Secondary financing
Describes the buying and selling existing mortgages
Secondary mortgage market
Describes the buying and selling of existing mortgages
Secondary mortgage market
an undisclosed profit of the agent,regardless of the amount
Secret profit
A federal rent subsidy program for low-income families
Section 8
A parcel of land one mile square containing 640 acres, formed by government survey
Section
Sets requirement for state licensing of mortgage loan originators
Secure and fair enforcement for mortgage licensing act (SAFE Act)
A security interest that a creditor retains in personal property of a debtor (under the Uniform commercial code)
Security agreement
An investment where the investor invests money but has no control or management over the investment
Security
Possession by one who claims rightful ownership
Seisin
A market condition characterized by more buyers than sellers, so sellers have a more commanding position
Sellers market
An agreement that if a broker discloses a property to a prospective buyer, the buyer will negotiate only through that broker
Send- out slip
Property owned individually by a spouse in which the other spouse has no interest.
Separate property
Provides protection against eviction and foreclosure as well as excessive rates of interest
Service members civil relief acts
SCRA
The business of loan collection, maintaining impound accounts and record keeping
Serving a loan
An estate that is used by another under an easement
Serving tenant
The building line distance from the lot line
Setback
Ownership by one person entity alone.
Severally ownership
Removing something from the land such as cutting down a tree or demolishing a structure. The real property becomes personal property
Severance
A mortgage under which the mortgagee shares in the appreciated value of the property
Shared appreciation mortgage (SAM)
A covering over studs and rafters, which may be plywood, board or composition board, over which the siding or roofing is placed
Sheathing
Flooding down an incline but not in a watercourse
Sheet flooding
A deed given by the sheriff when property is sold for execution of a judgement or sheriff foreclosure sale
Sheriffs deed
Federal law that makes price fixing, market allocation agreements, and other actions to reduce competition illegal
Sherman anti trust act
A less-than- prorated refund received by an insured who cancels an insurance policy
Shirt rate refund
A sale where the lender agrees to accept sales proceeds for the debt because the sale price is less than the amount owed. When mortgage exceeds value, it is called an upside-down-sale.
Short sale
The preference of buyers for particular areas.
Situs
The sewage pipe carrying waste from a building to the sewer or septic system
Soil pipe
Easement of light
Solar easement
An agency in which the agent is authorized to perform only designated acts (specific agency)
Special agent
A charge against a property for a specific improvement, such as a street or sewer; usually assessed on benefits received
Special assessment
A deed in which the seller warrants title only as to defects arising (bestehen/auftauchen) during the grantors ownership
Special warranty deed
A lien against a particular property only, as opposed to a general lien, which applies to all property of the debtor.
Specific lien
The legal remedy of requiring a party to perform as agreed; ordinarily granted when money damages are inadequate
Specific performance
A fence that exceeds statutory height; considered a nuisance.
Spite fence
A survey that shows the location and outline of improvements, easement and encroachments
Spot survey
Small areas of zoning use that do not fit with the general use of the area ( frequently resulting from political influence)
Spot zoning
The measurement arrived at by taking exterior dimensions, excluding the garage
Square footage
East-west survey lines that run north and south of the base line. They are 24 miles apart
Standard parallels
The legal principle stating that previous decisions (precedent) should be considered by the courts
Stare decisis
A delayed exchange where the exchange property must be designated within 45 days of closing on the first property, and the exchange must be completed within 180 days of the closing on the first property.
Starker exchange
Legislation requiring that certain contracts, including those eating with real estate, be in written to be enforceable
Statue of frauds
Sets forth the time limit within which legal action must be taken or rights will lapse
Statue of limitations
Dedication that results from the recording of a subdivision map that indicates land dedicated to public use.
Statutory dedication
The illegal practice of directing buyers to certain areas, based on race or national origin.
Steering
A lease which graduated increases
Step lease
Non- physical factors that affect desirability of a property
Stigmatized property
A cooperative in which each owner owns stock in the project and has the right to occupy a unit.
Stock cooperative project
A note on which interest only is paid , with the entire principal payable on the due date ( A term loan)
Straight note
A method of depreciation whereby an equal amount is deducted each year over the life of the asset
Straight line depreciation
A substitute used to conceal the identity of an actual purchaser
Straw man
Foreclosure by peaceful entry of the mortgagor without a sale (allowable in several states)
Strict foreclosure
Vertical 2by 4 inch boards in a wall; usually 16 inches on center (from the center of one to the center of the next stud)
Studs
A person whose agency status was conferred by an agent, not the principal
Subagent
Land devision in accordance with state subdivision laws
Subdivision
Support of the surface by the underlying ground
Subjacent support
An agreement that allows the buying of real estate without agreeing to pay an encumbrance. Buyer is not personally liable in the loan, so a deficiency judgement is not possible. Buyer must make payments, however, or lien-holder will foreclose
“subject to” loan
The use value to the owner
Subjective value
A lease given by the original lessee, who becomes a sublessor. The sublease is the tenant of the sublessor, not of the original lessor. Also called a sandwich lease
Sublease
An agreement that a loan will be secondary to another encumbrance
Subordinate
Lender that will make loans deemed too risky by most conventional lenders. They charge higher interest and /or origination fees.
Subprime lender
The substitution of one party for another as to her interests
Subrogation
An unintentional contract breach that is not substantial. Contact remains enforceable, but price is reduced based on reduction in value
Substantial performance
Report that summarizes the market conditions and analyses performed
Summary appraisal report
An additional tax given when property is reassessed on sale to cover the increased tax for the increased assessment
Supplemental tax bill
The greater the supply, the lower the value; the less the supply , the higher the value. The greater the demand; the greater the value; the less the demand, the less the value
Supply and demand
Water not in a defined channel
Surface water
The mutual agreement of the parties to end a lease. All further obligations of the parties are terminated.
Surrender
A location or verification of property lines by a surveyor
Survey
On the death of a joint tenant, the tenants interest ceases to exist, and all interests remain undivided with the survivors
Survivorship
Equity earned through an owners construction or improvements.
Sweat equity
Two or more persona s who have joined together for investment purposes. A descriptive term for multiple ownership. Syndicates may be general partnerships, limited partnerships, corporations, or REITS, although most syndicates are limited partnerships…
Syndicate
Adding a previous owners use to satisfy the statutory period of use for an easement by prescription or a title by adverse possession
Tacking on
Permanent financing that replaces (takes out) a construction loan
Take- out loan
A program under which Fannie Mae buys below- market- interest mortgages at par value and resells them to encourage low -interest housing loans. Ginnie Mae makes up the loss between market value and par value.
Tandem program
An assessed value of all taxable property within a tax region ( needed revenue +- tax base= tax rate)
Tax base
Collects property tax and conducts tax sales
Tax collector
the deed given at a tax sale
Tax deed
A way of excluding income from taxes by such means as depreciation, which is paper expense and can offset other income
Tax shelter
An exchange of like-for -like property held for income or investment. Only boot received is taxed
Tax - deferred exchange (1031 exchange)
Team within a brokerage office where a salesperson or associate broker form teams and share income
Team concept
A situation arising when a tenant holds over (continues occupancy) after expiration of a lease. Tenant is subject to an Ejectment or an unlawful detainer action.
Tenancy at sufferance
A tenancy for an indeterminate period
Tenancy at will
A form of joint tenancy for husbands and wives. Neither spouse can separately convey break the tenancy
Tenancy by the entirely
Ownership by two or more persons, each of whom has an undivided interest it host the right of survivorship
Tenancy in common
a mode of holing ownership or interest in property
Tenancy
A unconditional offer to perform (legal tender is money)
Tender
Right that transfers with the real property
Tenement
A person who dies with a legal will in place
Testate
A person who has a will
Testator
A requirement that a buyer of goods or services agree to purchase other goods or services as a condition of the original agreement; generally illegal.
Tie-in agreement
A horizontal row of townships, measured north or south from the base line.
Tier
A statement that makes prompt performance mandatory
“time is of the essence”
An interval ownership plan used for vacation property
Time-Share
FHA home improvement loan.
Title I loan
Home purchase loan for one to four residential units
Title II loan FHA
An insurance policy that agrees to indemnify the owner for defects in title caused by specified risks
Title insurance
The theory that a mortgage is a transfer of title to secure a loan and not just a lien (used monitory of states)
Title theory
Ownership. This is passed by deed
Title
Line on a map indicating the contour of the land.
Topographical line
The surface elevation of a property
Topography
A system of registering ownership in which the court keeps the record of title and issues certificates of title.
Torrens title
Row housing having common walls with adjoining housing
Town house
An area established by U.S government survey that is six miles square and contains 36 sections
Township
Mold usually black mold that negatively reflects health
Toxic mold
Personal property installed by a tenant to carry on a trade or a business: remains personal property and can be removed by the tenant any time before the lease expiration
Trade fixtures
Borrowing money on equity in property in order to invest it at a higher rate of return.
Trading on equity
Revocable deed that allows real estate to go to heirs without probate
Transfer-on-death deed
A wrongful intrusion on the land of another
Trespass
A net lease where the tenant pays taxes and insurance in addition to all maintenance and operational expenses
Triple net lease
The debtor who gives title to the trustee as security for the loan
Trustee
Part of the consumer credit protection Act; also called Regulation Z . It is a disclosure act requiring the lender to shown the interest as an annual percentage rate (apr)
Truth-in- lending Act (TWA)
Completed project from building permit to occupancy permit
Turnkey project
The number of times an inventory is sold in one year
Turnover
An act outside the authority of the person acting. That person is responsible personally for his actions
Ultra vires
A contract that is so unfair or harsh that the courts will refuse to enforce it
Unconscionable contract
An improvement that, because of a deficiency in size or cost; fails to archive the highest and best use for the property
Under improvement
An unspecified interest in the whole rather than a separate interest in a particular portion in a property
Undivided interest
Taking advantage of another because of a unique position of trust, such as a doctor -patient or an attorney - client relationship.
Undue influence
An increase in value that is not due to any effort of the owner
Unearned increment
A group of standardized commercial laws adopted in whole or in part by most states. They cover negotiable instruments, as well as liens on personal property (financing statements)
Uniform commercial code
Gives legal recognition to electronic signatures
Uniform electronic transactions act
A form used for HUD, VA,Fannie Mae, Freddie Mac, and Framers home administration (FmHA) loans.
Uniform Residential Appraisal Report (URAR)
An act adopted in whole or in part by a number of states and designed to provide uniformity as to rights and obligations of residential tenants and landlords
Uniform residential landlord and tenant act
A standardized Fannie Mae and Freddie Mac form adopted for most residential loans. Uniform standards of professional Appraisal Practice (USPAP) standards developed by the appraisal foundation with which appraisers for federally related transactions must comply
Uniform residential loan application
Sets the risk of loss on property damaged or destroyed before completion of transfer
Uniform Vendor and Purchaser Risk Act (UVPRA)
A promise in exchange for an act; accepted by the offeree’s performance
Unilateral contract
An appraisal method whereby cost is priced per unit , such as price per square foot
Unit-in-place-method
An agent appointed to perform all acts that principal can delegate lawfully to another
Universal agent
A legal eviction procedure
Unlawful detainer
The minimum bid at an auction
Upset price
A loan that exceeds the fair market value of the security property
Upside down loan
Rezoning to a more intensive use
Upzoning
An unlawful rate of interest
Usury
Escrow in which an agreement has been reached and there has been conditional delivery of transfer agreements (deeds) to escrow. Delivery is conditioned upon escrow receiving all required funds and/or liens
Valid escrow
An internal angle in a roof. Metalwork often is used in a valley to prevent leaks.
Valley
An exception to zoning
Variance
The buyer
Vendee
The seller
Vendor
A sworn statement before an officer of the court as to the correctness of the contents of an instrument.
Verification
A remainder interest that cannot be defeated, such as a remainder interest to a life estate. The remainder holder or heirs are bound to get the property.
Vested remainder
A present or sure interest that cannot be revoked
Vested
Liability for acts of another based on the relationship of the parties such as liability of a broker for acts of a salesperson while acting for the broker.
Vicarious liability
Having no legal effect
Void
Capable of being voided by one party only; valid until voided
Voidable
A lien, such as a mortgage, placed by an owner
Voluntary lien
The treatment of the lower portion of a wall in a different manner than the rest of the wall;(half paneling
Wainscoting
To give up or relinquish a right
Waive
Accepting something less than contracted for. A waiver leaves the parties as they are. Rescission places them back as they were..
Waiver
Buyers final inspection of property before closing of a sale
Walk through
The practice of mortgage companies of accumulating a stock of mortgages and borrowing on them until they can be sold.
Warehousing
A deed under which the grantor warrants the marketability of the title. See general warranty deed, special warranty deed.
Warranty deed
Extrication or damage to a property (usually by a tenant)
Waste
Marsh or swampland where the water table is close to or at the surface. They are protected from development by federal and state conservation regulations.
Wetlands
A recorded deed or lien on a property outside the chain of title (placed by one not having a recorded interest in the property).
Wild document
Testamentary statement
Will
A loan written for the amount of both junior and senior liens. The borrower makes the entire payment to the lienholder who then makes the payment on the senior encumbrance. Also called an all-inclusive mortgage.
Wraparound loan
a loan in which the seller buys down the interest rate to zero; usually a short-term loan.
Zero interest loan
A building can be erected to the end of the property
Zero lot line
City or county regulation on land use; considered to be an exercise of police power.
Zoning
Provides wage replacement and
medical benefits to employees injured
in the course of employment.
Workers compensation insurance
