Real Estate Voc. 1
Terms
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- Square feet in an acre.
- 43,560
- The voluntary surrender or relinquishment of possession of real property with the intention of terminating one’s possession or interest but without the vesting of this interest in any other person, such as when a person moves and abandons leased proper
- ABANDONMENT
- A summary of all events in the chain of title to a parcel of land.
- ABSTRACT OF TITLE
- An abstract of title that a lawyer has examined and has certified to be, in his or her opinion, an accurate statement of fact.
- An abstract of title with lawyer’s opinion
- A condition in a real estate financing instrument giving the lender the power to declare all sums owed to the lender immediately due and payable upon the happening of an event such as sale of the property or a delinquency in the repayment of the note.
- Acceleration clause
- Acquiring title to additions or improvements to real property as a result of the annexation of fixtures or the accretion of alluvial deposits along the banks of streams.
- Accession
- The increase or addition of land by the deposit of sand or soil washed up naturally from a river, lake, or sea
- Accretion
- On a closing statemnet, items of expenses that are incurred buy not yet payable, such as interest on a mortgage loan or taxes on real property.
- Accrued Items
- A measure of land equal to 43,560 sq ft, 4,840 sw yards, 4,047 sq meters, 160 sq rods or 0.4047 hectare.
- Acre
- A mortgage loan in which the interest rate may increase or decrease at specified intervals over the life of the loan.
- ARM
- A man/woman appointed by a court to settle the estate of a deceased person when there is no will; contrast w/executor/executrix.
- Administrator/administrator
- A tax levied according to value; generally used to refer to real estate tax; also called the general tax.
- Ad valorem tax
- The actual, visible, hostile, notorious, exclusive and continuous possession of another's land under a claim of title. Possession for a statutory period may be a means of acquiring title.
- Adverse possession
- A statement or declaration reduced to writing and sworn to or affirmed before a public official who has authority to administer an oath or affirmation.
- Affidavit
- An agency relationship where the agent holds an estate or interest in the property that is the subject of the agency relationship.
- Agency coupled with an interest
- a designated airspace over a piece of land. An air lot, like surface property, may be transferred
- Air lot
- The right to use open space above a property, generally allowing the surface to be used for another purpose.
- Air rights
- The act of transferring property to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession.
- Alienation
- The clause in a mtg. or deed of trust that states that the balance of the secured debt becomes immediately due and payable at the mortgaee's option if the property is sold by the mortgagor. In effect this clause prevents the mortgagr from assigning the d
- Alienation clause
- A system of land ownership in which land is held free and clear of any rent or service due to the government; commonly contrasted to the feudal system. In the U.S., land is held under the allodial system.
- Allodial System
- The gradual elimination of a liability, such as a mortgage through regular payments over a specified period of time which must be sufficient to cover both the principal and the interest.
- Amortization
- The amount of gain, or profit, subject to the income tax
- Amount realized on sale
- Laws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition.
- Antitrust Laws
- A license associated with and appointed by an intermediary broker to communicate with, carry out instructions of, and provide opinions and advice to the parties to whom the licensee is appointed.
- Appointed license
- A group of people who hear appeals concerning assessed valuations for tax purposes and recommend or deny changes in values shown of record.
- Appraisal review board
- An estimate of the present worth of a property
- Appraised value
- The increase in value of property over a time period.
- Appreciation
- Those rights, privileges and improvements that belong to and pass with the transfer of real property but are not necessarily a part of the property, such as rights-of-way, easements, water rights and property improvements.
- Appurtenances
- The combining of 2 or more adjoining lots into one larger tract to increase their total value.
- Assemblage
- An amount that might be higher or lower or at market value or that is based upon a percentage of market value that is placed upon a piece of property by a public authority as a basis for levying ad valorem taxes on the property.
- Assessed value
- Assessment
- The official valuation placed on property for ad valorem taxation or public improvements
- Attachment
- The seizure of real or personal property of a party to a lawsuit by the court for the purpose of acquiring jurisdiction over the property to compel an appearance before the court or to furnish security for a debt or costs arising out of the litigation.
- Broker-salesperson relationship agreement
- A written agreement required by state regulations setting forth the material aspects of the relationship between a real estate broker and each salesperson or broker performing licensed activities in the name of the supervising broker
- Building codes
- A systematic method established by ordinance or law of regulating and setting minimum construction standards for buildings within a municipality to protect the public's safety and health.
- Building line
- A line established by law or a deed restriction that determines the distance from a street in front of which an owner cannot build.
- Building permit
- The authorization by a local government for the erection
- Bulk sales transfer
- A sale of the entire stock of a business along with real estate as opposed to it being sold in the ordinary course of its business. See Uniform Commercial Code
- Bundle of rights
- A concept or theory of ownership that holds that the entire set of legal rights are included with the ownership of land including the rights to possess
- Buy-down
- A mortgage financing technique in which the interest rate has been reduced over the first few years of the loan because the lender received an initial payment from the builder or seller to reduce the rate
- Buyer-agency agreement
- A principal-agent relationship in which the broker is the agent for the buyer and owing fiduciary responsibilities to the buyer/principal under the law of agency.
- Buyer's broker
- A real estate broker who from a personal or brokerage point of view represents prospective buyers exclusively and who owes the buyer/principal common-law or statutory agency duties.
- Capital gain
- Income of a capital item that results from the sale of an asset and not from the usual course of business
- Capitalization
- A process of reflecting future income in present value and used to determine the value of property by considering its net income and a percentage of reasonable return on the investment. The value of an income property can be determined by dividing annual net operating income by its capitalization rate.
- Capitalization rate
- The rate of interest, made up of the interest rate (return on the investment) plus the recapture rate (return of the original investment), which is considered a reasonable return on the investment and used in the process of determining value based upon net income. It may also be described as the yield rate that is necessary to attract the money of the average investor to a particular kind of investment. In the case of land improvements which depreciate, to this yield rate is added a factor to take into consideration the annual amortization factor necessary to recapture the initial investment in improvements.
- Cash flow
- The net income generated by a property before depreciation and other non-cash expenses
- Casualty insurance
- A type of insurance that protects a property owner from claims arising from damage to his or her own property such as fire or theft. See Liability insurance.
- Certificate of sale
- A document issued to the highest bidder at a tax foreclosure sale to indicating ownership but which does not convey actual title indicating that all past due taxes have been paid and that title will pass upon the expiration of the redemption period.
- Certificate of title
- A written document issued by an attorney or a qualified person who has examined the record of the real estate title reporting the state of that title
- Chain of title
- A history of all conveyances and encumbrances affecting the title from the time the original patent was granted or as far back as records are available and identifies how title came to be vested in current owner
- Chattel
- Goods or every type of personal property that are movable or immovable and which are not real property. See Personal property or Chattel real
- Closing statement
- A separate accounting of funds to the buyer and seller as required by law at the completion of every real estate transaction.
- Cloud on the title
- Any outstanding claim
- Cluster development
- A housing arrangement in which units are placed close together to allow for large recreational or common areas.
- Collateral
- Any real or personal property having marketable value that a borrower pledges as security in order to obtain a loan. In mortgage transactions
- Common property
- 1. Land considered to be public property. 2. A legal term denoting an incorporeal hereditament consisting of a right of one person in the land of another such as a right to fish
- Comparative Market Analysis
- (CMA) A comparison of recently-sold homes that are substantially equivalent to another home in terms of selling price
- Condemnation
- 1. The act by which property of a private owner is taken for public use by a political subdivision without the owner's consent but with the owner's awareness and with the payment of just compensation. 2. A declaration that a structure is unfit for use