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Glossary of Real Estate National Exam

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Reduce, decrease. in reference to decrease in assessed value of ad valorem tax
abate
a summary in chronological order of the essential provision of every recorded document pertaining to a particular parcel of lend(liens, encumbrances, chain of tittle, transfers)
abstract of title
what does an abstract of title not include and not guarantee?
Encroachments, forgeries and does not guarantee clear title
a term that includes any method of depreciation that is GREATER than straight-line depreciation
accelerated depreciation
a provision of a promissory note or mortgage where, upon the happening of a certain event the ENTIRE amount of the unpaid loan balance becomes due
acceleration clause
addition of soil(alluvium) to property by the gradual operation of natural causes(river,ocean frontage), the added land becomes the property of the owner on whose land it is deposited
Accretion
a written declaration by a person executing an instrument, given before an officer authorized to give an oath(notary public), stating that the execution of of his own volition(grantor of a deed)
Acknowledgement
an acre measures______________ square fee
43,560 sq feet
things you know because of your own sense: eyes, ears, etc
actual notice
type of financing available for real estate mortgages on property through which the APR charged will differ from year to year according to terms specified by the lender and authorized by the Federal Reserve banking system
Adjustable Rate Mortgage(arm)
a latin phrase meaning "according to vauation"-a tax to be paid based upon a value set by the authorities
ad valorem tax
the open, notorious, hostile, and uniterrupted possession of the propterty of another under a claim or color of title of 21 years after which time the adverse possessor may obtain title to the property
adverse possession
a sworn statement that title is good
affidavit of title
the name of the relationship between one person(principal) and another(agent) where the agent is given the right to act on behalf of the prinicpal in business dealings-creates a fiduciary duton the part of the agent to act in GOOD faith and loyalty towar
agency
the disclosure of the relationship in which one party(agent) acts for or represents another(principal) under the authority of the latter
agency disclosure
Latin,”let the buyer beware " The buyer must examine the goods or property and buy at his or her own risk
CAVEATOR EMPTOR
A legal instrument used by a mortgagee to stop the mortgage on a certain date where the mortgagor agrees that the mortgage balance is correct, after which date the mortgagee has no defense
CERTIFICATE OF NO DEFENSE
A certificate issued to a buyer at a judicial sale (foreclosure action) that entitles the buyer to a deed upon confirmation of the sale by the court if the land is not redeemed during the redemption period
CERTIFICATE OF SALE
Also known in some states as an “opinion letter” by a lawyer who has examined an abstract, giving an opinion stating that title is vested in a particular individual.
CERTIFICATE OF TITLE
Successive conveyances affecting a particular parcel of land, arranged consecutively, from the government or original source of title down to the present holder.
CHAIN OF TITLE
Personal property that is tangible. Goods or other items of property, moveable or immovable, which are not real property, e.g., showcase firmly attached in a store. With rented property, such as a store, chattels are personal property of the renter and a
CHATTELS
A mortgage deed that creates a lien on personal property
CHATTEL MORTGAGE
A valid encumbrance, e.g., mortgage or judgment, affecting title to realty.
CLOUD ON TITLE
A broker in a commercial transaction has an automatic lien against a property that’s the subject of a contract, for the contracted commission amount, when the contract is fulfilled and the broker files a lien affidavit in the recorder’s office in the
COMMERCIAL BROKER LIEN LAW
To mix funds held in trust with other funds. For example: A broker mixes deposits with his funds by putting the deposits in his general account
COMMINGLING
The broker’s professional fee. Usually a percentage of the sales price. The fee is an amount agreed upon between the principal and the broker.
COMMISSION
The area owned together by all the owners of a condominium project. A condominium owner will own their own particular unit in fee simple and the common area jointly with the other owners. The common area usually has liability insurance paid by the Condom
COMMON AREA
Property accumulated by husband and wife by the efforts of either during their marriage. Community property laws provide that each spouse has an equal interest in the property so acquired. Community property is not recognized in all states.
COMMUNITY PROPERTY
A judicial or administrative procedure to exercise the right of eminent domain to take private property for public use and justly compensate the owner
CONDEMNATION
The system of ownership in fee simple title to designated areas of air space plus a percentage of ownership of common elements in the property. The air space consists of the area between the walls, floor, and ceiling area.
CONDOMINIUM
Something of value given to another to compensate them for entering into a contract
CONSIDERATION
Interim financing used during construction of a building followed by long-term financing called a “takeout loan.” Loan proceeds are made in installment payments as completion of the improvements occurs
CONSTRUCTION LOAN
Notice given by publication in a newspaper, recording or other method. There need not be actual notice by such publication
CONSTRUCTIVE NOTICE
An agreement that the law will enforce. The elements of a contract are mutual assent (offer and acceptance), consideration, competent parties, legal subject matter, and sometimes that the contract be in writing if required by the Statute of Frauds.
CONTRACT
A real estate installment sales contract commonly referred to as a land contract
CONTRACT FOR DEED
A loan that is not guaranteed or insured by a government agency
CONVENTIONAL LOAN
Transfer of title to land. Includes most instruments by which an interest in real estate is created, mortgaged, or assigned
CONVEYANCE
A state tax imposed on the transfer or conveyance of realty or any realty interest by means of a deed, lease, sublease, assignment, contract for deed or similar instrument
CONVERYANCE TAX
The right to occupy property is obtained through a proprietary lease by purchasing stock in a corporation that owns the property. Owner has interest in the entire building.
COOPERATIVE
A method of appraisal based on replacement cost minus depreciation plus land value.
COST APPROACH
A new and contrary offer made as a reply to an offer received from another
COUNTEROFFER
A promise or agreement of possession under a legal right. One of the five warranties in a general warranty deed
COVENANT OF SEISIN
The express promises of two or more parties in writing, the breach of which would entitle a person to damages
COVENANTS
The fractional interest of a husband in the estate of his wife at the time of her death.This term not used in all states.
COURTESTY
The amount of money owing on a note or a promise to pay
DEBT
The amount of money paid in regular intervals to reduce down the balance owed on a debt. The payment normally has to do with an amortized loan. Thus, it covers principal and interest
DEBT SERVICE
The transferring of real property by a private owner to a public agency (usually occurs from a builder to a city for construction of new streets in a subdivision).
DEDICATION
A written instrument transferring the grantor’s ownership of or interest in real property, if any
DEED
When the deed to a property is given by a borrower to the lender to satisfy the debt and avoid foreclosure
DEED IN LIEU OF FORECLOSURE
An instrument used to transfer title from a trustee to the equitable owner of real estate when title is held as collateral security for a debt, most commonly used upon payment in full of a deed of trust
DEED OF RECONVERYANCE
Limitations upon the use of property contained in the deed as a means of controlling the quality or character of a subdivision or specific piece of property.
DEED RESTRICITIONS
An instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor) in favor of the lender (beneficiary) and reconveyed upon payment in full. (NOT used in all states, but still may appear on the test.)
DEED OF TRUST
A clause used to defeat or cancel a certain right upon the happening of a specific event (e.g., upon final payment, words of grant in a mortgage are void and the mortgage is thereby cancelled and title is re-vested to mortgagor).
DEFESANCE CLAUSE
The mortgage debt that remains due and payable by the borrower after a sheriff’s sale of property. The judgment is actually for the full amount of the unpaid mortgage debt, but the foreclosure sale proceeds are deducted from the amount due.
DEFICIENCY JUDGMENT
Act of transferring ownership in real property by documents recognized by law. Grantor delivers a deed to the grantee with the intention of giving up all rights to the property
DELIVERY
1. The decrease in value to real property improvements caused by deterioration or obsolescence; 2. A loss in value as an accounting procedure for use as a tax deduction for income tax purposes
DEPRECIATION
Administrative process where civil rights complaints are heard immediately by the Real Estate Commission, instead of using a hearing examiner.
DIRECT COMPLAINT PROCEDURES
The document commonly referred to under the truth and lending laws (Regulation Z) required to be given to a loan applicant to disclose all of the terms of his loan
DISCLOSURE STATEMENT
An added loan fee charged by a lender to make the yield on a lower-than- market interest rate loan competitive with other higher interest conventional loans.
DISCOUNT POINTS
Treating persons differently
DISCRIMINATION
The movement of money out of savings accounts into higher yield investments such as corporate and government instruments.
DISINTERMEDIATION
In some states, a life estate that is a one-third estate in real property which the spouse is entitled to claim upon the death of the other spouse on land which the late spouse sold during their marriage.
DOWER
Representing both parties to a transaction.
DUAL AGENCY
Money given by a buyer upon signing a sale contract showing the buyer’s intention to carry out the terms
EARNEST MONEY DEPOSIT
Right acquired by one person to use the land of another for a specific purpose
EASEMENT
The right acquired by the owner of one parcel of land to use the adjacent land of another for a specific purpose.There must be two tracts of land. One tract is called the dominant tenant (the tract that benefits from the easement). The other tract is cal
EASEMENT APPURTENANT
An easement created by operation of law (not express grant or reservation) when land is divided, if there is a long-standing, apparent use that is reasonably necessary for enjoyment of dominant tenement
EASEMENT BY IMPLICATION
An easement given to a landlocked owner by the court system to provide a way of ingress and egress for the landlocked land. Remember: Ingress vs. Egress, and also landlocked land example
EASEMENT BY NECESSITY
A means of acquiring title by long-continued use
EASEMENT BY PRESCRIPTION
An easement created by law for the good of the public, i.e., utility easement. Remember there is no dominant tenement in an easement in gross.
EASEMENT IN GROSS
A loss of value due to a change in external factors of a piece of real property, e.g., a steel mill is being built next to your home
ECONOMIC OBSOLESCENCE
Farm Crops. Tenant farmers’ crops may be removed if owner sells the land.
EMBLEMENTS
The power or right of governmental bodies to take private real estate for public use upon payment of an equitable compensation
EMINENT DOMAIN
The unauthorized intrusion of a fixture or real property improvement onto the property of another, e.g., the roof of a building that extends over the property line into a neighbor’s property
ENCROACHMENT
Any claim, lien, charge or liability that affects or limits the fee simple title to real property, i.e., easement, liens, etc
ENCUMBRANCE
Any interest in real property other than legal title, that a court will enforce and protect, e.g., the interest held by a vendee under a land contract, a lease, an easement, etc.
EQUITABLE TITLE
The amount of an owner’s interest in a parcel of real estate which is the fair market value of the real estate in excess of the mortgaged indebtedness.
EQUITY
Mortgage or lease clause allowing a holder to vary the interest rate.
ESCALATION CLAUSE
Where real property passes to the state when the owner of such property dies without a will and with no heirs
ESCHEAT
The process by which mo legal documents are deposited with a third, disinterested party for future delivery so that several acts can occur at the same time and so that all parties to a transaction will have their interests protected.
ESCROW
An estate or interest in land for a definite number of years, months, etc., or expiring on a certain date
ESTATE FOR YEARS
A statement that prevents its issuer from later asserting different facts.
ESTOPPEL CERTIFICATE
A court action where a tenant loses possession of leased premises by act of a landlord because of a wrongful act by the tenant
EVICTION
A listing agreement where the broker is given the exclusive right to sell property but reserves to the owner the right to sell the property himself without payment of any commission.
EXCLUSIVE AGENCY LISTING
A listing agreement where the broker is entitled to collect a sales commission regardless of who sells the property including the owner of the property himself
EXCLUSIVE RIGHT TO SELL LISTING
A contract that has been performed by the parties. In the vernacular, people use “executed” to mean “signed:’ but this is not the legal definition
EXECUTED
A person appointed by a person in his will to carry out the terms of the will and to dispose of his property pursuant to the will provisions
EXECUTOR
A valid contract which has not been fully performed. Most real estate contracts are good examples.
EXECUTORY CONTRACT
an agency of the federal government created in 1934 to improve housing standards, provide a home, financing system to insure home mortgage and credit, and stabilize the mortgage market
FHA
Loans insured by an agency of the federal government
FHA LOAN
An entity that provides its own funds for mortgage financing
MORTGAGE BANKER
The lender who receives and holds a mortgage as security for a debt
MORTGAGEE
The document, promising to pay back money according to specific terms. The note may not be recorded, but the mortgage deed is recorded, The note is the promise to pay; the mortgage deed is the security for that promise.
MORTGAGE NOTE
One who gives a mortgage on his property to a lender, or mortgagee, as security for a loan or performance of an obligation; a borrower.
MORTGAGOR
A method of marketing real estate whereby other brokers in an organization are permitted to show and sell property listed with another broker
MULTIPLE LISTING
A service provided by a local board of REALTORS’ that puts homes for sale into a listing book where all members can show the property.
MULTIPLE LISTING SERVICE(MLS)
Also known as”aiternative MLs
MLS PLUS
A lease agreement that requires the lessee (tenant) to pay taxes, insurance, repairs, operating expenses, and other costs of property
NET LEASE
A listing contract where the seller receives a sum he specifies from the full proceeds of the sale. The broker receives the amount remaining as her commission
NET LISTING
The use of a structure that, while once lawful, no longer complies with zoning limitations.
NONCONFORMING USES
An executed document acknowledging debt by the person(s) signing it. In real estate, a mortgage deed is usually executed at the same time as security for the note
NOTE
Substituting a new obligation for an old one or substituting a new contract for an existing contract, thus relieving the original obligor from any further liabilities.
NOVATION
A loss of value due to a decrease in the usefulness of property caused by decay, changes in technology,people’s behavior patterns and tastes, or environmental changes, e.g., economic (external) obsolescence, functional obsolescence.
OBSOLESCENCE
A mortgage that serves the dual purpose of being security for both the original loan and other future loans. Most mortgages are open-ended today
OPEN-ENDED MORTGAGE
The prevention or elimination of discrimination in housing based upon race, sex, color, religion, national origin, handicap, or familial status.
OPEN HOUSING
A listing agreement where one or more brokers are permitted to show a listed property. Only the broker who sells the property is entitled to a commission.
OPEN LISTING
An agreement for which payment is made granting the exclusive right to buy or lease property at a given price within a stated period of time and binding the seller to hold an offer open for a stated period of time. A Unilateral Contract
OPTION(CONTRACT)
Payment made after it is due. Interest is said to be paid in arrears since it is paid the day of payment rather than in advance, as is rent. Property taxes are also usually paid in arrears.
PAID IN ARREARS
See BLOCKBUSTING
PANIC SELLING
A rule of law that
limits the terms of a contract to those that are written within it. No oral evidence is permitted at time of trial concerning terms not in the written agreement
PAROLE EVIDENCE RULE
The Part Performance Doctrine states that if one of the parties substantially performs his part of the agreement, then the other party may not avoid the contract just because it was not in writing.
PARTIAL PERFORMANCE
A lawsuit in which unlawful discrimination is sought to be proven by evidence of patterns of racial discrimination and the practices of individuals charged with violations. Suits are investigated by the Justice Department
PATTERN AND PRACTICE SUIT
The person to whom a debt instrument (e.g., check or promissory note) is made payable to; also known as the receiver
PAYEE
The payment-in-full of an existing loan or other lien
PAYOFF
The sender of the payment
PAYOR
“by heads One who inherits property under a will, or pursuant to law, does so as an individual, as opposed to inheriting a divided share as one of several representatives of one in whose stead they take.
PER CAPITA
,”by lineage.”A distribution under a will, or pursuant to law, where children share what their deceased parent would have inherited if the parent had lived
PER STIRPES
A lease where the tenant’s rent is based upon the monthly or yearly gross receipts made on the premises, e.g., retail lease.
PERCENTAGE LEASE
A leasehold interest that continues from period to period, e.g., month to month, year to year.
PERIODIC TENANCY
Property that is not real property, but is tangible and moveable; personal chattels, e.g., clothes, furniture, portable dishwashers, microwave ovens, light bulbs.
PERSONAL PROPERTY
A map recorded at the county recorder’s office showing how a parcel of land is divided into lots. A map used to show a new subdivision
PLAT (PLAT MAP)
A term for a percentage of the loan amount that the lender charges as a fee for making the loan, lowering the interest rate, or other reason. One point is equal to one percent of the principal loan amount.
POINT
Right of the government to pass legislation protecting the safety and welfare of the public.
POLICE POWER
A legal instrument giving a person the authority to act for another, as attorney-in-fact, not necessarily an attorney-at-law
POWER OF ATTORNEY
An easement created by statute or court action because someone used another’s property openly and continuously over a period of time. Thus, even though not a written easement, one was created. Do not confuse with adverse possession.
PRESCRIPTION EASEMENT
Two or more brokers agreeing to set commission rates. This is illegal and is in violation of the Sherman Antitrust Act.
PRICE FIXING
. The person who gives authority to an agent or attorney, thereby creating afiduciary relationship; 2.The amount of a debt, excluding interest due
PRINCIPAL
The effort that brings about the desired result. An unbroken chain of events that results in the sale of property. Under an open listing, the broker who is the procuring cause of the sale receives the commission.
PROCURING CAUSE
The division of ongoing expenses and income items between the buyer and seller proportionately to the time of use, or the date of closing
PRORATION
Exaggerated or superlative comments or opinions, e.g.,”This is the most beautiful home in the neighborhood!”
PUFFING
A mortgage given by the buyer to the seller as a portion of, or the entire purchase price, of the property. Here the seller is acting as the lender.
PURCHASE MONEY MORTGAGE
A deed that grants any interest in property which the grantor may have. The grantee takes the property “as is” because the deed contains the operative words “release, remiss, or forever quit” and does not warrant title or possession.”l will qui
QUITCLAIM DEED
Action by a court to remove a cloud or claim that has been placed on title to property.
QUIET TITLE ACTION
See STEERING
RACIAL STEERING
Land and anything permanently affixed to the land. Synonymous with “real property:’
REAL ESTATE
Established in lieu of a security bond covering each licensee. In Ohio, the maximum amount an injured claimant may recover is $40,000 per licensee involved in a transaction.
REAL ESTATE RECOVERY SPEACIAL ACCOUNT
The land and anything permanently attached, such as buildings, fences, and fixtures, including wall-to-wall carpeting, dishwasher, sump pump.
REAL PROPERTY
” A trade name for a member of the National Association of REALTORS” and its state and local affiliates. All brokers and salespersons are not REALTORS” any more than all copiers are Xerox”.
REALTOR
The return of monies invested in property, through reduction of the loan
amount and/or appreciation. Recapture rate is equal to the rate of depreciation that is allowed for one year.
RECAPTURE
Filing or entering a legal instrument into the county recorder’s office, which causes it to become a public record giving constructive notice of its existence to the world.
RECORDING
Federal government system of accurate land survey and description using base lines and principal meridians. There are 36 Sections in a township
RECTANGULAR SURVEY
The right of a landowner to reclaim property after foreclosure.
REDEMPTION,RIGHT OF
A right of a borrower who has defaulted on a mortgage note to redeem his title by paying entire debt before the foreclosure sale.
REDEMPTION,EQUITABLE RIGHT OF
A certificate used to reclaim a piece of real estate by paying off the debt owed on the property along with any court fees, This procedure is done after a foreclosure sale has been conducted and during the redemption period.
REDEMPTION CERTIFICATE
right of a borrower who has defaulted on a mortgage note to redeem his title by paying entire debt after the foreclosure sale. Statutory period can be as long as 1 year. Not used in all states.
REDEMPTION,STATUTORY RIGHT OF
Joint ventures, usually in the form of a limited partnership, through which real estate is purchased. A person must have a securities license to sell REITS. REITs avoid double taxation as they are taxed to the beneficiary.
REITs(RE,EST,INV,TRS)
A federal statute requiring disclosure of certain costs and prohibits certain acts in the sale of residential (one- to four-family) improved property which is to be financed by a federally insured lender.
RESPA(RE,EST,ST,PRD,AC)
The illegal process of a lender denying loans in certain areas of a community because of race, color, creed, etc. An analogous situation exists whenever insurance companies refuse to sell insurance to someone for reasons based on race. Any decision made
REDLINING
The implementing provision of the Consumer Sales Practices Act enacted in 1969, which requires disclosure of the cost of credit and various terms available for credit to borrowers and consumers seeking credit. This is a Federal Statute, regulated by HUD,
REGULATION Z
The discharge or relinquishment of a right, claim, or privilege.
RELEASE
A document signed(and usually recorded) by a lending institution when a mortgage has been satisfied in full.
RELEASE OF MORTGAGE
An interest in land whereby a person receives an interest in real estate upon the death of another, e.g., dad conveys a life estate to son “A7 and states that upon the son’s death, the estate will go to daughter”B Daughter “B” has received a re
REMAINDER
The one entitled to the remainder.
REMAINDERMAN
The annulment of a contract so that the parties to it are put in a position as though the contract never existed, i.e., earnest money is returned to buyer.
RESCISSION
The interest in a life estate that reverts to a grantor or grantor’s heirs if no remainderman is named.
REVERSIONARY INTEREST
The characteristic of a joint tenancy by which the surviving joint tenant (owner) automatically takes all rights, title, and interest of the deceased joint tenant.
RIGHT OF SURVIVORSHIP
A method for a seller to free capital for his business expansion by selling his property to a buyer who has agreed to lease it back to him.
SALE AND LEASEBACK
A measure of land equal to one square mile, 640 acres, 1 of a township.
SECTION
The federal agency that regulates the sale of interstate real estate securities.
SECURITIES and EXCHANGE COMMISSION
The taking of custody of one’s personal or real property to compel compliance with a court order.
SEQUESTRATION
A term used in local zoning ordinances that represents the distance between lot lines and improvements.
SETBACK
The individual, normally working for the title company, who closes real estate loans. The settlement agent is required by FHA guidelines to sign the closing documents along with the seller and the buyer.
SETTLEMENT AGENT
Property held by one person or entity (corporation). Also called sole ownership.
SEVERALTY
Name of the federal antitrust law that makes it illegal for brokers to set uniform commission rates (price fixing), and prohibits other acts of collusion.
SHERMAN ANTITRUST ACT
Place where something exists; the personal preference of persons for one area over another, not necessarily based on objective facts of knowledge. Refers to the economic attributes (value, area of preference, etc.) that location gives to a particular par
SITUS
A special agency authorizes the agent to represent the principal in a specific activity or transaction, e.g., a real estate broker acting as an agent for a seller.
SPECIAL AGENCY
A deed by which the grantor covenants or guarantees the title from the time he received it until it is conveyed to the grantee. The operative words of such a deed are “by, through, or under the grantor, but not otherwise.”This deed does not have all
SPECIAL WARRANTY DEED
A lien affecting or attaching only to a certain specific parcel of land or piece of property, e.g., mortgage, mechanic’s, and ad valorem taxes.
SPECIFIC LIEN
A legal action available to a buyer to compel the performance of the terms of an agreement, such as the sale of a home.
SPECIFIC PERFORMANCE
A law requiring that certain instruments be in writing to be enforceable, e.g., deed, lease, option, but not a listing agreement. A listing agreement must be in writing according to another statute.
STATUTE OF FRAUDS
See REDEMPTION
STATUTORY REDEMPTION
The illegal practice of trying to influence a buyer’s choice of housing by racial, religious, ethnic, national origin, ancestry factors, etc. This includes showing only certain neighborhoods, “slanting”

property descriptions, and downgra
STEERING
A loan where each payment is different, consisting of a fixed amount plus interest on the remaining balance.
STRAIGHT LINE AMORTIZED LOAN
A method of replacing the capital investment of income property, by reducing the value of the property by a set amount annually from the income, over the economic life of the property.
STRAIGHT-LINE DEPRECIATION
An agent of an agent; a person that an agent has delegated authority to, so that the subagent can assist in carrying out the principal’s order.
SUBAGENT
A written agreement between holders of liens on
mortgages, judgments, and other liens.
SUBORDINATION AGREEMENT
The substitution of one creditor for another, with the substituted person succeeding to the legal rights and claims of the original claimant.
SUBROGATION
The transfer of real property by will or the law of descent and distribution, as compared to transfer by a grant of the deed or any other form of purchase or transfer.
SUCCESSION
The procedure that determines the shape, area, and position of a parcel of land by locating its boundaries, and by which a buyer may be sure a property has no encroachment.
SURVEY
One of the four powers of the government, used as a means to collect revenue and implement policies. The power of government to tax, among other things, real property.
TAXATION
Joint tenancy with right of survivorship between a husband and wife.
TENANCY BY THE ENTIRETY
The interest in real property held by a tenant or mortgagor who remains in possession of leased premises after his right of possession has expired and the landlord has declared he does not want the tenant to remain.
TENANCY AT SUFFERANCE
The interest in real property held by a tenant or mortgagor in possession with the permission of the owner for a term that is not specified.
TENANCY AT WILL
The interest held by two or more persons in property who hold an undivided interest and whose interests need not be equaL There’s no right of survivorship between tenants in common.
TENANTS IN COMMON
A loan whereby interest only is paid in each installment and, at the end of the loan period, the principal is due in full.
TERM LOAN
One who makes a will; one who dies leaving a will.
TESTATOR
Legal phrase meaning that the amount of time stated in a con-tract must be strictly adhered to in order not to breach the contract. The parties specifically contemplate a punctual performance and precise time for completion of the contract.
TIME IS OF THE ESSENCE
An undivided interest in real estate for a period of time. A relatively new type ofownership of real estate used in resort areas. Purchasers buy the use of a property for a certain period of time in each year. Expenses are shared equally among the owners
TIMESHARE
Evidence of legal ownership in real estate. Title is a concept, not a document.
TITLE
A contract whereby a title insurance company indemnifies the owner that title is free of defects and hidden risks such as forgeries. This does not guarantee you will not lose ownership, only that you would be compensated under terms of the policy.
TITLE INSURANCE
A legal system of land registration, using signature cards, to verify land ownership and determine title status, instead of being recorded (not used in all states).
TORRENS SYSTEM
Items of personal property annexed to leased property, which are necessary to the carrying on of a trade or business and which are removable by the tenant prior to expiration of the lease, e.g., pizza ovens, bowling lanes.
TRADE FIXTURE
A non-interest bearing bank account, separate from a real estate broker’s personal and business accounts, used to segregate trust funds from the broker’s own funds.
TRUST ACCOUNT
An instrument that conveys title to a trustee who holds it.
TRUST DEED
A deed executed by a trustee conveying land held in a trust to anyone other than the trustor.
TRUSTEE'S DEED
Federal law requires disclosure of the terms of credit by a creditor to a prospective debtor. Regulation Z implements Truth-In-Lending.
TRUTH-IN-LENDING
A contract (e.g., Open listing, Option) under which one party makes an express promise or undertakes performance without receiving in return any ex-press promise or performance from other party. No contract occurs until someone performs.
UNILATERAL CONTRACT
1. In appraisal for sale purposes, the true economic value of a building in terms of years of use to the owner; 2. For tax purposes, the life set for depreciation. At any time during that period, a new life could begin for a new owner.
USEFUL LIFE
Charging an illegal rate or amount of interest on a loan. In Ohio, the maximum allowable rate is 8% above the Federal Reserve discount rate. Ohio usury law does not regulate all government-affected mortgage corporations. Non-exempted loans have a ceiling
USURY
A mortgage loan secured through an approved lending institution and guaranteed by the Veteran’s Administration.
VA LOAN
Binding and enforceable contract; one party can legally force the other party to perform.
VALID CONTRACT
Allows lender to increase or decrease the interest rate within parameters set down in mortgage note. See a/so ADJUSTABLE RATE MORTGAGE.
VARIABLE RATE MORTGAGE
A change in part of a zoning requirement without actually changing the zoning.
VARIANCE
A purchaser in a land contract; the purchaser of real estate.
VENDEE
The seller in a land contract; the seller of real estate.
VENDOR
A contract lacking the essential elements necessary for formation; a contract of no legal force and effect, e.g., a contract for an i/Jega/ purpose.
VOID CONTRACT
A contract that can be terminated even though it appears valid; e.g., a contract with a minor can be rescinded by the minor and thus is a voidable contract.
VOIDABLE CONTRACT
A deed in which the grantor fully warrants good and clear title to the property and agrees to defend the premises against the lawful claims of third persons. See a/so GENERAL WARRANTY DEED.
WARRANTY DEED
Improper use of property, which hurts its value by a possessor who holds less than fee ownership, such as a life tenant, tenant, etc.
WASTE
A deed clause stating a grantor’s intent to transfer an interest in real property. Also called a
GRANTING CLAUSE.
WORDS OF CONVEYANCE
A form ofjunior mortgage that may be used when it is not feasible to retire the first mortgage, land contract, or lease-purchase agreement. Title to the real estate does not pass until subsequent payments occur.
WRAPAROUND LOAN
A court order directing an official to sell property to satisfy a judgment against the owner of the property.
WRIT OF EXECUTION
Rate of return on an investment, generally shown as a percentage. The yearly income divided by the value of the building equals the percentage of return. IRV— income, rate, value.
YEILD
The regulation over the use of land within a specific municipality.
ZONING
Under the common law, this relationship is defined as:
1. Agency is the fiduciary relation that results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control, and consent by the
AGENCY RELATIONSHIP
See MIS PLUS.
ALTERNATIVE MLS
An automatic offer that is made by a listing agent to all other members of the Multiple Listing Service (MLS) when the agent submits the seller’s listing to a traditional MLS; the offer is accepted whenever an agent shows the listed property without re
BLANKET UNILATERAL OFFER OF SUBAGENCY
The agency relationship that exists between a buyer principal and the buyer’s agent.
BUYER AGENCY
The practice of representing only the buyer and never the seller in a transaction.
BUYER AGENCY EXCLUSIVELY
A real estate agent who is employed by and represents only the buyer in a real estate transaction, regardless of whether the commission is paid by the buyer or by the seller, or through a commission split with the listing agent.
BUYER'S AGENT
A buyer or seller represented by an agent who is subject to that buyer’s or seller’s control; also called a principal.
CLIENT
Any fee that is conditional upon some event occurring, usually a closing.
CONTINGENT FEE
See SELLING AGENT
PARTICIPATING AGENT
A buyer who is working with an agent who represents the seller; also the seller of unlisted property that is being sold to a buyer represented by a buyer’s agent.
CUSTOMER
A dual agency relationship where the brokerage firm, by written or oral means, discloses and receives informed consent from both the buyer and the seller to act in a dual agency capacity.
DISCLOSED DUAL AGENCY
A real estate agent who has received informed consent from both a buyer and seller in the same transaction to act in a dual agency capacity.
DISCLOSED DUAL AGENT
An agency relationship where the brokerage firm represents both the buyer and the seller in the same transaction to act in a dual agency capacity.
DUAL AGENCY
A person who assists the parties to a potential real estate transaction in communication, interposition, and negotiation, to reach agreement between or among them, without being an advocate for the interests of any party except the mutual interest of all
FACILITATOR
Duties owed by an agent to his principal (ACCOLD):1. Duty of Accountability 2. Duty of confidentiality 3. Duty of Care (Reasonable Care and Skill4. Duty of obedience 5. Duty of Loyalty 6. Duty of Disclosure
FIDUCIARY DUTIES
Any agency relationship that is indicated by the words and/or actions of the agent rather than by written agreement; also called accidental or undisclosed agency.
IMPLIED AGENCY
A person’s agreement to allow something to happen that is based on a full disclosure of facts needed to make the decision intelligently, e.g., knowledge of liability involved, alternatives, etc.
INFORMED CONSENT
A sale in which one real estate brokerage company acts as both the listing and selling agent.
IN-COMPANY SALE
See FACILITATOR
INTERMEDIARY
An agent of the seller who markets that seller’s property, usually exclusively, and represents the seller during the sale and closing of the property. Also known as “seller’s agent:’
LISTING AGENT
An
organized system created to disseminate information about listed properties and through which members offer cooperation and compensation to their participants; usually a committee of a Board or a corporation owned by a Board.
MULTIPLE LISTING SERVICE(MLS)
policy that allows listing agents to indicate the fee they will pay a buyer’s agent as well as the fee they will pay to a subagent upon a successful closing. An offer of subagency is mandatory. Also known as “alternative MLS7 but is not in all market
MLS PLUS
The proximate cause originating a series of events that, without break in their continuity, results in the accomplishment of the objective. A real estate broker will be regarded as the “procuring cause” of a sale, so as to be entitled to commission,
PROCURING CAUSE
A real estate agent who is employed by and represents only the seller in a real estate transaction. Also known as “listing agent:’
SELLER'S AGENT
The agency relationship that exists between a seller principal and the seller’s agent.
SELLER AGENCY
The practice of representing the party you are working with (either buyer or seller) and becoming a disclosed dual agent for in-company sales.
SELLER AGENCY AND BUYER AGENCY WITH DISCLOSED DUAL AGENCY FOR IN -COMANY SALES
The practice of representing only the seller and never the buyer in a transaction.
SELLER AGENCY EXCLUSIVELY
Any agent who sells a property; she may be the subagent or listing agent of the seller, or a buyer’s agent, or a dual agent. Also called a cooperating agent, or participating agent.
SELLING AGENT
The practice of representing either the buyer or the seller, but never both, in the same transaction.
SINGLE AGENCY
A situation in which one agent represents the buyer and another agent from the same real estate brokerage represents the seller. The broker and all management- level employees are dual agents of both buyer and seller. The broker may also appoint a specif
SPLIT AGENCY
An agent employed to act for another agent in performing functions undertaken for a principal, who owes the same duties and responsibilities to the principal as the principal’s agent. Correspondingly, the subagent can create the same liabilities for th
SUBAGENT
MLS in which listing agents must offer cooperation but don’t automatically offer subagency; the offer of compensation may be to buyer’s agents, subagents and/or listing agents; subagency may be offered.
SUBAGENCY OPTIONAL MLS
A dual agency relationship that occurs when a listing agent or subagent acts or speaks as though he also represents the buyer but without either written or oral disclosure. Conversely, dual agency also occurs when an agent of the buyer acts or speaks as
UNDISCLOSED DUAL AGENCY
A measure of land that is 43,560 square feet.
ACRE

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