real estate 2

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  1. The interest or value that an owner has in property over and above any indebtedness.
  2. The gradual wearing away of land by water, wind and general weather conditions; the diminishing of property by the elements.
  3. The reversion of property to the state or county, as provided by state
    law, in cases where a decedent dies intestate without heirs capable of
    inheriting, or when the property is abandoned.
  4. The closing of a transaction through a third party called an escrow
    agent, or escrowee, who receives certain funds and documents to be
    delivered upon the performance of certain conditions outlined in the
    escrow instructions.
  5. The trust account established by a broker under the provisions of the
    license law for the purpose of holding funds on behalf of the broker's
    principal or some other person until the consummation or termination of a
    escrow account
  6. The tenancy of a lessee who lawfully comes into possession of a
    landlord's real estate but who continues to occupy the premises
    improperly after his or her lease rights have expired.
    Estate (Tenancy) at Sufferance
  7. An estate that gives the lessee the right to possession until the estate
    is terminated by either party; the term of this estate is indefinite.
    Estate (Tenancy) at Will
  8. An interest for a certain, exact period of time in property leased for a specified consideration.
    Estate (Tenancy) for Years
  9. An interest in leased property that continues from period to period, week to week, month to month or year to year.
    Estate (Tenancy) from Period to Period
  10. The degree, quantity, nature and extent of interest a person has in real property.
    estate in land
  11. Federal taxes on a decedent's real and personal property.
    estate taxes
  12. Method of creating an agency relationship in which someone states
    incorrectly that another person is his or her agent, and a third person
    relies on that representation.
  13. A document in which a borrower certifies the amount owed on a mortgage loan and the rate of interest.
    Estoppel Certificate
  14. A legal process to oust a person from possession of real estate.
  15. Proof of ownership of property;
    commonly a certificate of title, an abstract of title with lawyer's
    opinion, title insurance or a Torrens registration certificate.
    Evidence of Title
  16. A transaction in which all or part of the consideration is the transfer
    of like-kind property (such as real estate for real estate).
  17. A listing contract under which the owner appoints a real estate broker
    as his or her exclusive agent for a designated period of time to sell
    the property, on the owner's stated terms, for a commission. The owner
    reserves the right to sell without paying anyone a commission if he or
    she sells to a prospect who has not been introduced or claimed by the
    Exclusive-Agency Listing
  18. A listing contract under which the owner appoints a real estate broker
    as his or her exclusive agent for a designated period of time, to sell
    the property on the owner's stated terms, and agrees to pay the broker a
    commission when the property is sold, whether by the broker, the owner
    or another broker.
    Exclusive Right-to-Sell Listing
  19. A contract in which all parties have fulfilled their promises and thus performed the contract.
    Executed Contract
  20. The signing and delivery of an instrument. Also, a legal order directing
    an official to enforce a judgment against the property of a debtor.
  21. A contract under which something remains to be done by one or more of the parties.
    Executory Contract
  22. An oral or written contract in which the parties state the contract's terms and express their intentions in words.
    express agreement or express contract
  23. Reduction in a property's value caused by outside factors (those that are off the property).
    External Depreciation
  24. The federal law that prohibits discrimination in housing based on race,
    color, religion, sex, handicap, familial status and national origin.
    fair housing act
  25. An agency of the federal government that provides credit assistance to farmers and other individuals who live in rural areas.
    Farmer’s Home Administration (FmHA)
  26. An independent federal agency that insures the deposits in commercial banks.
    Federal Deposit Insurance Corporation (FDIC)
  27. A corporation established to purchase primarily conventional mortgage loans in the secondary mortgage market.
    Federal Home Loan Mortgage Corporation (FHLMC) or Freddie Mac
  28. A quasi-government agency established to purchase any kind of mortgage
    loans in the secondary mortgage market from the primary lenders.
    Federal National Mortgage Association (FNMA) or Fannie Mae
  29. The country's central banking system, which is responsible for the
    nation's monetary policy by regulating the supply of money and interest
    Federal Reserve System
  30. The maximum possible estate or right of ownership of real property, continuing forever.
    Fee Simple Absolute
  31. A system of ownership usually associated with pre-colonial England, in
    which the king or other sovereign is the source of all rights. The right
    to possess real property was granted by the sovereign to an individual
    as a life estate only.
    Feudal System
  32. A loan insured by the Federal Housing Administration and made by an approved lender in accordance with the FHA's regulations.
    FHA Loan
  33. A legal procedure whereby property used as security for a debt is sold
    to satisfy the debt in the event of default in payment of the mortgage
    note or default of other terms in the mortgage document. The foreclosure
    procedure brings the rights of all parties to a conclusion and passes
    the title in the mortgaged property to either the holder of the mortgage
    or a third party who may purchase the realty at the foreclosure sale,
    free of all encumbrances affecting the property subsequent to the
  34. Deception intended to cause a person to give up property or a lawful right
  35. An interest in land which permits the owner to enjoy possession of real estate during his life without interference from others.
    freehold estate
  36. The measurement of a parcel of land by the number of feet of street or road frontage.
    front footage
  37. A loss of value to an improvement to real estate arising from functional problems, often caused by age or poor design.
    Functional Obsolescence
  38. A person's present right to an interest in real property that will not
    result in possession or enjoyment until some time in the future, such as
    a reversion or right of reentry.
    Future Interest
  39. One who is authorized by a principal to represent the principal in a specific range of matters.
    general agent
  40. The right of a creditor to have all of a debtor's property-both real and personal-sold to satisfy a debt.
    general lien
  41. A deed in which the grantor fully warrants good clear title to the
    premises. Used in most real estate deed transfers, a general warranty
    deed offers the greatest protection of any deed.
    General Warranty Deed
  42. A government agency that plays an important role in the secondary
    mortgage market. It sells mortgage-backed securities that are backed by
    pools of FHA and VA loans.
    Government National Mortgage Association (GNMA) or Ginnie Mae
  43. A system established in 1785 by the federal government, providing for
    surveying and describing land by reference to principal meridians and
    base lines.
    Rectangular (Government) Survey System or Government Survey System
  44. A person who receives a conveyance of real property from a grantor.
  45. Words in a deed of conveyance that state the grantor's intention to
    convey the property at the present time. This clause is generally worded
    as "convey and warrant," "grant," "grant, bargain and sell" or the
    granting clause
  46. The person transferring title to or an interest in real property to a grantee
  47. A property lease in which the landlord agrees to pay all expenses which are normally associated with ownership.
    gross lease
  48. a ratio that uses total rents and the sales price. It is used to provide a rough estimate of value.
    Gross Rent Multiplier (GRM)
  49. may also be called a Land Lease and refers to an agreement in which only the land is rented.
    ground lease
  50. The possible use of a property that would produce the greatest net income and thereby develop the highest value.
    Highest and Best Use
  51. It refers to the tenant/landlord situation when a tenant
    of real estate continues to occupy the property after the expiration of a
    Holdover Tenancy
  52. A loan (sometimes called a line of credit) under which a property owner
    uses his or her residence as collateral and can then draw funds up to a
    prearranged amount against the property.
    Home Equity Loan
  53. A standardized package insurance policy that covers a residential real
    estate owner against financial loss from fire, theft, public liability
    and other common risks.
    Homeowner’s Insurance Policy
  54. Land that is owned and occupied as the family home. In many states a
    portion of the area or value of this land is protected or exempt from
    judgments for debts
  55. To pledge property as security for an obligation or loan without giving up possession of it.
  56. A contract under which the agreement of the parties is demonstrated by their acts and conduct.
    Implied Agreement
  57. An implied contract is one in which some of the terms are not expressed in writing.
    Implied Contract
  58. (1) Any structure, usually privately owned, erected on a site to enhance
    the value of the property for example, building a fence or a
    driveway. (2) A publicly owned structure added to or benefiting land,
    such as a curb, sidewalk, street or sewer.
  59. one of three methods appraisers use to establish property values.
    income approach
  60. Someone who is retained to perform a certain act but who is subject to
    the control and direction of another only as to the end result and not
    as to the way in which the act is performed. Unlike an employee, an
    independent contractor pays for all expenses and social security and
    income taxes and receives no employee benefits. Most real estate
    salespeople are independent contractors.
    Independent Contractor
  61. A contract for the sale of real estate whereby the purchase price is
    paid in periodic installments by the purchaser, who is in possession of
    the property even though title is retained by the seller until a future
    date, which may be not until final payment. Also called a contract for
    deed or articles of agreement for warranty deed.
    Installment Contract
  62. A transaction in which the sales price is paid in two or more
    installments over two or more years. If the sale meets certain
    requirements, a taxpayer can postpone reporting such income until future
    years by paying tax each year only on the proceeds received that year.
    installment sale
  63. A charge made by a lender for the use of money.
  64. A short-term loan usually made during the construction phase of a
    building project (in this case often referred to as a construction
    Interim Financing
  65. The condition of a property owner who dies without leaving a valid will.
    Title to the property will pass to the decedent's heirs as provided in
    the state law of descent.
  66. Money directed toward the purchase, improvement and development of an asset in expectation of income or profits.
  67. A lien placed on property without the consent of the property owner.
    Involuntary Lien
  68. Ownership of real estate between two or more parties who have been named
    in one conveyance as joint tenants. Upon the death of a joint tenant,
    the decedent's interest passes to the surviving joint tenant or tenants
    by the right of survivorship.
    Joint Tenancy or Right of Survivorship
  69. The formal decision of a court upon the respective rights and claims of
    the parties to an action or suit. After it has been entered and
    recorded with the county recorder, it usually becomes a general lien on
    the property of the defendant
  70. An obligation, such as a second mortgage, that is subordinate in right or lien priority to an existing lien on the same realty.
    Junior Lien
  71. is an Agreement made and entered into by parties for the
    disposition of land and shall be binding upon each of the parties.
    Land contract
  72. A written or oral contract between a landlord (the lessor) and a tenant
    (the lessee) that transfers the right to exclusive possession and use of
    the landlord's real property to the lessee for a specified period of
    time and for a stated consideration (rent). By state law ______for
    longer than a certain period of time (generally one year) must be in
    writing to be enforceable.
  73. an ownership interest in land in which a lessee or
    a tenant holds real property by some form of title (usually a lease
    accompanied by the payment of rent) from a lessor or landlord.
    leasehold estate
  74. A lease under which the tenant has the right to purchase the property either during the lease term or at its end.
    lease option
  75. The purchase of real property, the consummation of which is preceded by a
    lease, usually long-term. Typically done for tax or financing purposes.
    Lease Purchase
  76. A description of a specific parcel of real estate complete enough for an independent surveyor to locate and identify it.
    Legal Description
  77. People who are recognized by law as being able to contract with others; those of legal age and sound mind.
    Legally Competent Parties
  78. The use of borrowed money to finance an investment.
  79. (1) A privilege or right granted to a person by a state to operate as a
    real estate broker or salesperson. (2) The revocable permission for a
    temporary use of land--a personal right that cannot be sold.
  80. A right given by law to certain creditors to have their debts paid out
    of the property of a defaulting debtor, usually by means of a court
  81. An interest in real or personal property that is limited in duration to
    the lifetime of its owner or some other designated person or persons.
    life estate
  82. A person in possession of a life estate.
    Life Tenant
  83. An amount predetermined by the parties to a contract as the total
    compensation to an injured party should the other party breach the
    Liquidated Damages
  84. The ability to sell an asset and convert it into cash, at a price close to its true value, in a short period of time.
  85. A recorded legal document giving constructive notice that an action
    affecting a particular property has been filed in either a state or a
    federal court.
    Lis Pendens
  86. The broker in a multiple-listing situation from whose office a listing
    agreement is initiated, as opposed to the cooperating broker, from whose
    office negotiations leading up to a sale are initiated. The listing
    broker and the cooperating broker may be the same person.
    Listing Broker
  87. (1) A landowner's claim to use water in large navigable lakes and oceans
    adjacent to his or her property. (2) The ownership rights to land
    bordering these bodies of water up to the high-water mark.
    Littoral Rights
  88. A fee charged to the borrower by the lender for making a mortgage loan.
    The fee is usually computed as a percentage of the loan amount.
    Loan Origination Fee
  89. The relationship between the amount of the mortgage loan and the value of the real estate being pledged as collateral.
    Loan-to-Value Ratio:
  90. A method of describing real property that identifies a parcel of land
    by reference to lot and block numbers within a subdivision. as specified
    on a recorded subdivision plat.
    Lot-and-Block (Recorded Plat) System
  91. A contract between the owner of income property and a management firm or
    individual property manager that outlines the scope of the manager's
    Management Agreement
  92. Good or clear title, reasonably free from the risk of litigation over possible defects.
    Marketable Title
  93. The most probable price property would bring in an arm's-length transaction under normal conditions on the open market.
    Market Value
  94. A comprehensive plan to guide the long-term physical development of a particular area
    master plan
  95. A statutory lien created in favor of contractors, laborers and
    material-men who have performed work or furnished materials in the
    erection or repair of a building.
    Mechanic’s Lien
  96. One of a set of imaginary lines running north and south and crossing a
    base line at a definite point, used in the rectangular (government)
    survey system of property description.
  97. A legal description of a parcel of land that begins at a well-marked
    point and follows the boundaries, using directions and distances around
    the tract, back to the place of beginning.
    Metes-and-Bounds Description
  98. One-tenth of one cent. Some states use a mill rate to compute real
    estate taxes; for example, a rate of 52 mills would be $0.052 tax for
    each dollar of assessed valuation of a property.
  99. Someone who has not reached the age of majority and therefore does not have legal capacity to transfer title to real property.
  100. A periodic tenancy under which the tenant rents for one month at a
    time. In the absence of a rental agreement (oral or written) a tenancy
    is generally considered to be month to month.
    Month-to-Month Tenancy
  101. A fixed natural or artificial object used to establish real estate boundaries for a metes-and-bounds description.
  102. A conditional transfer or pledge of real estate as security for the
    payment of a debt. Also, the document creating a mortgage lien.
  103. Mortgage loan companies that originate, service and sell loans to investors.
    mortgage banker
  104. An agent of a lender who brings the lender and borrower together. The broker receives a fee for this service.
    mortgage broker
  105. A lender in a mortgage loan transaction
  106. A lien or charge on the property of a mortgagor that secures the underlying debt obligations.
    Mortgage Lien
  107. A borrower in a mortgage loan transaction.
  108. A marketing organization composed of member brokers who agree to share
    their listing agreements with one another in the hope of procuring
    ready, willing and able buyers for their properties more quickly than
    they could on their own. Most multiple-listing services accept
    exclusive-right-to-sell or exclusive agency listings from their member
    Multiple Listing Service (MLS)
  109. A written promise or order to pay a specific sum of money that may be
    transferred by endorsement or delivery. The transferee then has the
    original payee's right to payment.
    Negotiable Instrument
  110. A lease requiring the tenant to pay not only rent but also costs
    incurred in maintaining the property, including taxes, insurance,
    utilities and repairs.
    net lease
  111. A listing based on the net price the seller will receive if the property
    is sold. Under a net listing the broker can offer the property for sale
    at the highest price obtainable to increase the commission. This type
    of listing is illegal in many states.
    net listing
  112. The income projected for an income-producing property after deducting losses for vacancy and collection and operating expenses.
    Net Operating Income (NOI)
  113. A use of property that is permitted to continue after a zoning ordinance prohibiting it has been established for the area.
    Nonconforming Use
  114. A lack of uniformity; dissimilarity. Because no two parcels of land
    are exactly alike, real estate is said to be non-homogeneous.
  115. Substituting a new obligation for an old one or substituting new parties to an existing obligation.
  116. The loss of value due to factors that are outmoded or less useful. It may be functional or economic.
  117. A permit issued by the appropriate local governing body to establish
    that the property is suitable for habitation by meeting certain safety
    and health standards.
    Occupancy Permit
  118. Two essential components of a valid contract; a "meeting of the minds."
    Offer and Acceptance
  119. A mortgage loan that is expandable by increments up to a maximum dollar
    amount, the full loan being secured by the same original mortgage.
    open end loan
  120. A listing contract under which the broker's commission is contingent on
    the broker's producing a ready, willing and able buyer before the
    property is sold by the seller or another broker.
    open listing
  121. An agreement to keep open for a set period an offer to sell or purchase property.
  122. A form of implied agency relationship created by the actions of the
    parties involved rather than by written agreement or document.
    Ostensible Agency
  123. A real estate loan used to finance the purchase of both real property
    and personal property, such as in the purchase of a new home that
    includes carpeting, window coverings and major appliances.
    Package Loan
  124. A rule of evidence providing that a written agreement is the final
    expression of the agreement of the parties, not to be varied or
    contradicted by prior or contemporaneous oral or written negotiations.
    Parol Evidence Rule
  125. A mortgage loan wherein the lender has a partial equity interest in the
    property or receives a portion of the income from the property.
    Participation Mortgage
  126. The division of covenants' interests in real property when the parties
    do not all voluntarily agree to terminate the co-ownership; takes place
    through court procedures.
  127. An association of two or more individuals who carry on a continuing
    business for profit as co-owners. Under the law it is
    regarded as a group of individuals rather than as a single entity. it is a typical form of joint venture in which each
    general partner shares in the administration, profits and losses of the
    operation. A limited partnership is a business arrangement whereby the
    operation is administered by one or more general partners and funded, by
    and large, by limited or silent partners, who are by law responsible
    for losses only to the extent of their investments.
  128. A wall that is located on or at a boundary line between two adjoining
    parcels of land and is used or is intended to be used by the owners of
    both properties.
    party wall
  129. A lease, commonly used for commercial property, whose rental is based on
    the tenant's gross sales at the premises; it usually stipulates a base
    monthly rental plus a percentage of any gross sales above a certain
    Percentage Lease
  130. A test of the soil to determine if it will absorb and drain water adequately to use a septic system for sewage disposal.
    Percolation Test
  131. Items, called chattels, that do not fit into the definition of real property; movable objects.
    personal property
  132. A reduction in a property's value resulting from a decline in physical
    condition; can be caused by action of the elements or by ordinary wear
    and tear.
    Physical Deterioration
  133. A planned combination of diverse land uses, such as housing, recreation
    and shopping, in one contained development or subdivision.
    Planned Unit Development (PUD)
  134. A map of a town, section or subdivision indicating the location and boundaries of individual properties.
    Plat map or Subdivision Plat
  135. The increase in value or utility resulting from the consolidation (assemblage) of two or more adjacent lots into one larger lot.
  136. In a metes-and-bounds legal description, the starting point of the
    survey, situated in one corner of the parcel; all metes-and- bounds
    descriptions must follow the boundaries of the parcel back to the point
    of beginning.
    Point of Beginning (POB)
  137. The government's right to impose laws, statutes and ordinances,
    including zoning ordinances and building codes, to protect the public
    health, safety and welfare.
    police power
  138. A written instrument authorizing a person, the attorney-in-fact, to act
    as agent for another person to the extent indicated in the instrument.
    power of attorney
  139. On a closing statement, items that have been paid in advance by the
    seller, such as insurance premiums and some real estate taxes, for which
    he or she must be reimbursed by the buyer.
    prepaid items
  140. A charge imposed on a borrower who pays off the loan principal early.
    This penalty compensates the lender for interest and other charges that
    would otherwise be lost.
    Prepayment Penalty
  141. The mortgage market in which loans are originated and consisting of
    lenders such as commercial banks, savings and loan associations and
    mutual savings banks.
    Primary Mortgage Market
  142. 1) A sum loaned or employed as a fund or an investment, as distinguished
    from its income or profits. (2) The original amount (as in a loan) of
    the total due and payable at a certain date. (3) A main party to a
    transaction--the person for whom the agent works.
  143. The order of position or time. The priority of liens is generally
    determined by the chronological order in which the lien documents are
    recorded; tax liens, however, have priority even over previously
    recorded liens.
  144. Insurance provided by private carrier that protects a lender against a loss in the event of a foreclosure and deficiency.
    Private Mortgage Insurance (PMI)
  145. A legal process by which a court determines who will inherit a decedent's property and what the estate's assets are.
  146. The effort that brings about the desired result. Under an open listing
    the broker who is the cause of the sale receives the
    Procuring Cause
  147. A financing instrument that states the terms of the underlying
    obligation, is signed by its maker and is negotiable (transferable to a
    third party).
    Promissory Note
  148. Someone who manages real estate for another person for compensation.
    Duties include collecting rents, maintaining the property and keeping up
    all accounting.
    Property Manager
  149. A lease given by the corporation that owns a cooperative apartment
    building to the shareholder for the shareholder's right as a tenant to
    an individual apartment.
    Proprietary Lease
  150. Expenses, either prepaid or paid in arrears, that are divided or distributed between buyer and seller at the closing.
  151. Any group of people designated as such by the Department of Housing and
    Urban Development (HUD) in consideration of federal and state civil
    rights legislation. Currently includes ethnic minorities, women,
    religious groups, the handicapped and others
    protected class
  152. Exaggerated or superlative comments or opinions.
  153. A life estate pur autre vie is a life estate that is measured by the life of a person other than the grantee.
    Pur Autre Vie – “For the Life of Another”
  154. A note secured by a mortgage or deed of trust given by a buyer, as
    borrower, to a seller, as lender, as part of the purchase price of the
    real estate.
    Purchase Money Mortgage (PMM)
  155. The appraisal method of estimating building costs by calculating the
    cost of all of the physical components in the improvements, adding the
    cost to assemble them and then including the indirect costs associated
    with such construction.
    Quantity-Survey Method
  156. Court action to remove a cloud on the title.
    quiet title
  157. A conveyance by which the grantor transfers whatever interest he or she
    has in the real estate, without warranties or obligations.
    Quitclaim Deed:
  158. The limit on the amount the interest rate can be increased at each
    adjustment period in an adjustable-rate loan. The cap may also set the
    maximum interest rate that can be charged during the life of the loan.
    Rate Cap
  159. One who is prepared to buy property on the seller's terms and is ready to take positive steps to consummate the transaction.
    Ready, Willing, and Able Buyer
  160. A portion of the earth's surface extending downward to the center of the
    earth and upward infinitely into space, including all things
    permanently attached to it, whether naturally or artificially.
    Real Estate Land
  161. Trust ownership of real estate by a group of individuals who purchase
    certificates of ownership in the trust, which in turn invests the money
    in real property and distributes the profits back to the investors free
    of corporate income tax.
    Real Estate Investment Trust (REIT)
  162. The federal law that requires certain disclosures to consumers about
    mortgage loan settlements. The law also prohibits the payment or receipt
    of kickbacks and certain kinds of referral fees.
    Real Estate Settlement Procedures Act (RESPA)
  163. The interests, benefits and rights inherent in real estate ownership.
    real property
  164. The final step in the appraisal process, in which the appraiser combines
    the estimates of value received from the sales comparison, cost and
    income approaches to arrive at a final estimate of market value for the
    subject property.
  165. A deed used by a trustee under a deed of trust to return title to the trustor.
    Reconveyance Deed
  166. The act of entering or recording documents affecting or conveying
    interests in real estate in the recorder's office established in each
    county. Until it is recorded, a deed or mortgage ordinarily is not
    effective against subsequent purchasers or mortgagees.
  167. A system established in 1785 by the federal government, providing for
    surveying and describing land by reference to principal meridians and
    base lines.
    Rectangular (Government) Survey System
  168. The right of a defaulted property owner to recover his or her property by curing the default.
  169. A period of time established by state law during which a property owner
    has the right to redeem his or her real estate from a foreclosure or tax
    sale by paying the sales price, interest and costs. Many states do not
    have mortgage redemption laws.
    Redemption Period
  170. The illegal practice of a lending institution denying loans or restricting their number for certain areas of a community.
  171. The document signed by a lender indicating the amount required to pay a
    loan balance in full and satisfy the debt; used in the settlement
    process to protect both the seller's and the buyer's interests.
    Reduction Certificate (Payoff Statement
  172. Implements the Truth-in-Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit.
    Regulation Z
  173. A document, also known as a deed of reconveyance, that transfers all
    rights given a trustee under a deed of trust loan back to the grantor
    after the loan has been fully repaid.
    Release Deed
  174. The remnant of an estate that has been conveyed to take effect and be
    enjoyed after the termination of a prior estate, such as when an owner
    conveys a life estate to one party and the remainder to another.
    Remainder Interest
  175. A fixed, periodic payment made by a tenant of a property to the owner
    for possession and use, usually by prior agreement of the parties.
  176. A statement of proposed rental rates, determined by the owner or the
    property manager or both, based on a building's estimated expenses,
    market supply and demand and the owner's long-range goals for the
    Rent Schedule
  177. The construction cost at current prices of a property that is not
    necessarily an exact duplicate of the subject property but serves the
    same purpose or function as the original.
    replacement cost
  178. The construction cost at current prices of an exact duplicate of the subject property.
    Reproduction Cost:
  179. A clause in a deed that limits the way the real estate ownership may be used.
    Restrictive Covenants
  180. A loan under which the homeowner receives monthly payments based on his
    or her accumulated equity rather than a lump sum. The loan must be
    repaid at a prearranged date or upon the death of the owner or the sale
    of the property.
    Reverse-Annuity Mortgage (RAM)
  181. The remnant of an estate that the grantor holds after granting a life estate to another person.
    Reversionary Interest
  182. The return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease.
    Reversionary Right
  183. Clause in a lease which gives the lessee (tenant) the right to purchase
    the rented property if during the term of the lease the lessor
    (landlord) receives an offer to purchase from a buyer. Usually the
    lessee must purchase on the terms and conditions of the buyer's offer.
    Right of First Refusal
  184. The right given by one landowner to another to pass over the land,
    construct a roadway or use as a pathway, without actually transferring
  185. An owner's rights in land that borders on or includes a stream, river or
    lake. These rights include access to and use of the water.
    Riparian Rights
  186. A transaction in which an owner sells his or her improved property and,
    as part of the same transaction, signs a long-term lease to remain in
    possession of the premises.
    sale and leaseback
  187. The process of estimating the value of a property by examining and comparing actual sales of comparable properties.
    Sales Comparison Approach
  188. A person who performs real estate activities while employed by or associated with a licensed real estate broker.
  189. A document acknowledging the payment of a mortgage debt.
    Satisfaction of Mortgage
  190. A market for the purchase and sale of existing mortgages, designed to
    provide greater liquidity for mortgages; also called the secondary money
    market. Mortgages are first originated in the primary mortgage market.
    Secondary Mortgage Market
  191. A portion of township under the rectangular (government) survey system. A
    township is divided into 36 sections, numbered one through 36. A
    section is a square with mile-long sides and an area of one square mile,
    or 640 acres.
  192. A payment by a tenant, held by the landlord during the lease term and
    kept (wholly or partially) on default or destruction of the premises by
    the tenant.
    Security Deposit
  193. Land on which an easement exists in favor of an adjacent property (called a dominant estate); also called a _______ estate.
    Servient Tenement
  194. The amount of space local zoning regulations require between a lot line and a building line.
  195. Ownership of real property by one person only, also called sole ownership.
  196. Changing an item of real estate to personal property by detaching it from the land; for example, cutting down a tree.
  197. A mortgage loan in which the lender, in exchange for a loan with a
    favorable interest rate, participates in the profits (if any) the
    borrower receives when the property is eventually sold.
    Shared-Appreciation Mortgage (SAM)
  198. The personal preference of people for one area over another, not necessarily based on objective facts and knowledge
  199. One who is authorized by a principal to perform a single act or
    transaction; a real estate broker is usually a special agent authorized
    to find a ready, willing and able buyer for a particular property.
    special agent
  200. A tax or levy customarily imposed against only those specific parcels of
    real estate that will benefit from a proposed public improvement like a
    street or sewer.
    Special Assessment
  201. A deed in which the grantor warrants, or guarantees, the title only
    against defects arising during the period of his or her tenure and
    ownership of the property and not against defects existing before that
    time, generally using the language, "by, through or under the grantor
    but not otherwise."
    Special Warranty Deed
  202. A lien affecting or attaching only to a certain, specific parcel of land or piece of property.
    Specific Lien
  203. : A legal action to compel a party to carry out the terms of a contract.
    Specific Performance
  204. The appraisal method of estimating building costs by multiplying the
    number of square feet in the improvements being appraised by the cost
    per square foot for recently constructed similar improvements.
    Square Foot Method
  205. That part of a state law that requires certain instruments, such as
    deeds, real estate sales contracts and certain leases, to be in writing
    to be legally enforceable.
    statute of frauds
  206. That law pertaining to the period of time within which certain actions must be brought to court.
    Statute of Limitations
  207. A lien imposed on property by statute, a tax lien, for example--in
    contrast to an equitable lien, which arises out of common law.
    Statutory Lien
  208. The right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and charges.
    Statutory Redemption
  209. The illegal practice of channeling home seekers to particular areas,
    either to maintain the homogeneity of an area or to change the character
    of an area, which limits their choices of where they can live.
  210. A loan in which only interest is paid during the term of the loan, with
    the entrie principal amount due with the final interest payment.
    Straight (Term) Loan
  211. One who is employed by a person already acting as an agent. Typically a
    reference to a salesperson licensed under a broker (agent) who is
    employed under the terms of a listing agreement.
  212. One who buys undeveloped land, divides it into smaller, usable lots and sells the lots to potential users.
  213. A tract of land divided by the owner, known as the subdivider, into
    blocks, building lots and streets according to a recorded subdivision
    plat, which must comply with local ordinances and regulations.
  214. Municipal ordinances that establish requirements for sub- divisions and development.
    Subdivision and Development Ordinances
  215. The leasing of premises by a lessee to a third party for part of the lessee's remaining term. See also assignment.
  216. Relegation to a lesser position, usually in respect to a right or security.
  217. A written agreement between holders of liens on a property that changes
    the priority of mortgage, judgment and other liens under certain
    Subordination Agreement
  218. The substitution of one creditor for another, with the substituted
    person succeeding to the legal rights and claims of the original
    claimant. it is used by title insurers to acquire from the
    injured party rights to sue in order to re- cover any claims they have
  219. An appraisal principle that states that the maximum value of a property
    tends to be set by the cost of purchasing an equally desirable and
    valuable substitute property, assuming that no costly delay is
    encountered in making the it.
  220. A court suit initiated by a landlord to evict a tenant from leased
    premises after the tenant has breached one of the terms of the lease or
    has held possession of the property after the lease's expiration.
    Suit for Possession
  221. A court action intended to establish or settle the title to a particular
    property, especially when there is a cloud on the title.
    Suit to Quiet Title
  222. A pictorial depiction of land and the improvements on it and shows
    boundary lines with measurements and bearings, buildings, easements,
  223. To levy an assessment against, usually by government powers. Unpaid
    taxes usually form a special lien on property owned by the taxpayer,
    ahead of registered mortgages.
  224. The instrument of conveyance when a property is sold by a government body to pay for arrears of taxes.
    tax deed
  225. A claim registered against a property by a government authority for non-payment of assessed taxes.
    Tax Lien
  226. Sale of property by a government body for non-payment of taxes, either by tender or auction.
    Tax Sale
  227. Ownership of property in which several owners each own a stated portion
    of the property (a percentage). Each owner may deal with her portion of
    the property as she wishes (giving it away, mortgaging it, bequeathing
    it, etc.) and, upon her death, her share becomes part of her estate.
    Tenancy in Common
  228. To die leaving a valid will: opposite meaning is to die intestate.
  229. The person who makes a will.
  230. A standard statement in a contract which ensures that all dates and
    times of day noted in the contract are important and cannot be ignored
    by any of the parties without the consent of the others except in breach
    of the contract.
    Time is of the Essence
  231. A form of joint ownership of property where numerous owners share title
    and enjoy use or occupation of the property according to a specific
  232. The legal term for one's ownership interest in land.
  233. A form of insurance contract which guarantees to indemnify an owner or
    mortgagee of property for damages suffered as a result of undiscovered
    title defects which arise later
    Title Insurance
  234. The act of examining in detail the public records relating to ownership
    of a parcel of land to ensure that the current owner has clear title,
    free of any liens, claims, mortgage or competing and adverse interests.
    Usually performed by a lawyer, qualified title searcher, or title
    insurance company on behalf of a proposed purchaser or mortgagee.
    Title Search
  235. An instrument of conveyance of title to property wherein the transferee
    will be holding the title to the property on behalf on another person
    Trust Deed
  236. A person who holds title to property on behalf of another.
  237. An agreement to exchange payment for services, where payment becomes due
    only once the service has been successfully performed. A listing
    agreement for the sale of real property may be it
    Unilateral Contract
  238. The illegal act of charging extremely high interest rates on a loan.
  239. Legally binding; authorized
    Valid Contract
  240. An indulgence granted by a local zoning commission or authority to allow a non-conforming use of a property to continue.
  241. A contract that may be treated as legally unenforceable at the option of
    a party (usually the injured party) but remains enforceable until that
    party exercises her option.
    Voidable Contract
  242. Transfer of title to an asset with the consent of the owner.
    Voluntary Alienation
  243. A claim that is recorded/registered with the consent of the owner.
    Voluntary Lien:
  244. Allowing or causing a property to suffer damage or
    undue wear and tear to the detriment of another person who has an
    interest in or claim to the property.
  245. A written statement of a person's wishes for the disposition of that person's estate after their death.
  246. A secondary financing option in which new
    money borrowed is blended with money already owed and registered on
    title to the property. A second mortgage is registered as security for
    the new money but the old mortgage remains in existence and the rate of
    interest is a blend of the rate chargeable on the old mortgage and the
    rate chargeable on the newly borrowed money.
    Wraparound Loan
  247. A set of rules passed by local
    government which regulates the use of property according to its location
    within the municipality, placement of structures on the property,
    maximum floor area, minimum lot area, minimum floor-to-lot area ratios,
    Zoning Ordinance
  248. An item of personal property that has been converted to real property by being permanently affixed to the realty.
Card Set
real estate 2
real estate
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