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
