Real Estate Vocab

Broker

one who buys and sells for another for a fee. Individual licensed to charge the public for real estate services

Broker-salesperson

fully qualified broker who remains under another broker’s supervision

continuing education

12 hours of study required for license renewal

Guaranty fund

money set aside to reimburse persons defrauded or badly served by real estate licenses.

New Jersey Real Estate Commission

administrator of real estate licenses

Real Estate License Act

law governing the practice of real estate in New Jersey. Title 45, Chapter 15

Real estate rental referral company

a real estate firm that only engages in listing rental units to find prospective tenants

REALTOR

a registered trademark reserved for the sole use of members of the National Association of REALTORS. Member of a private real estate trade organization(no connection to state licensing)

REALTOR-ASSOCIATE

salesperson associated with a REALTOR who joins the nation and state associations of REALTORS(no connection to state licensing)

salesperson

a person who performs real estate activities while employed by or associated with a licensed real estate broker. One licensed to assist a broker in real estate transactions

Salesperson license with a real estate referral company:

 a person who is authorized to only make referrals and no other real estate activity. This person is not required to complete continuing education hours unless/until they wish to change to another New Jersey license type 

Title 11, Chapter 5

Administrative Code also known as the New Jersey Real Estate Commission rules and regulations

Referral fee

money paid to another broker for sending a client or customer

branch office

a secondary place of business apart from the principal or main office from which real estate business is conducted

commingling

 the illegal act by a real estate professional of placing client or customer funds with personal funds. By law, real estate professionals are required to maintain a separate trust or escrow account for other parties’ funds held temporarily by the real estate professional.

escrow account

the trust account established by a real estate professional under the provisions of the license law for the purpose of holding funds on behalf of the real estate professionals principal or some other unit the consummation or termination of transaction; trust account established by an escrow agent to hold funds pending distribution at the closing of a transaction

guilty knowledge

awareness of wrongdoings without any attempt to stop it

letter of intent

a non-binding (usually) recitation of what parties intend to do, preceding entering into a contract

probation

the last severe discipline available to Real Estate Commission

revocation

an act of recalling power of authority conferred, as the revocation of power of attorney, a license or an agency

suspension

the temporary lifting of a real estate license by the commission

trust account

escrow account for money belonging to another

waiver of broker cooperation

seller's statement that only one office will be marketing the property

agent

one who undertakes to transact some business or to manage some affair for another by authority of the latter

antitrust laws

laws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition

attorney in fact

a person who has received a written authorization to act on behalf on someone else, known as a power of attorney document

buyers agent

 a real estate professional who is under contract to locate property for a buyer and represent buyers interest in a transaction

buyers broker

a real estate broker retained by a prospective purchaser, who becomes the broker’s principal or client and to whom fiduciary duties are owed

code of ethics

standards of conduct adopted by the National Association of REALTORS

commission

payment to a broker for services rendered such as in the sale or purchase of real property

conflict of interest

situation where an agent is faced with a decision for which they may stand to benefit

Consumer information statement(CIS)

written explanation of agency relationships presented to buyers and sellers

customer

third party in a transaction owed honest treatment but not owed fiduciary duties

disclosed dual agent

agent who has received the informed, written consent to represent both parties in a transaction

dual agency

representing both parties to a transaction

employee

for tax purposes, someone who works as a direct employee of an employer and has employee status. The employer is obligated to withhold income taxes and Social Security taxes form the compensation of employees

Errors and omissions(E&O) insurance

for of malpractice insurance for real estate licensees

fiduciary

one legally placed in a position of trust and confidence

fiduciary relationship 

a relationship of trust and confidence between trustee and beneficiary, attorney and client, or principal and agent.

fraud

 intentional deception that harms another

fraudulent misrepresentation

 intentional fraud and/ or deliberate lying

general agent

one authorized to act for his or her principal in a wide range of matters

independent contractor

salesperson who sets his or her own hours and who is not covered by income tax withholding; contrasted with an employee

innoncent misrepresentation

 unintentional misleading of a buyer committed in ignorance

kickback

 the illegal return of part of the commission as gifts or money to an unlicensed persons

latent defect

problem with the property not discoverable by ordinary prudent inspection

listing agreement

contract between a property owner(as principal) and licensed real estate broker (as agent) by which the broker is employed as agent to sell real estate on the owner’s terms within a given time, for which the landowner agrees to pay a commission or fee

meeting of the minds

one of the requirements for a valid contract, is reached when all parties have agreed to the terms of a contract. In NJ real estate, it is said to have taken place when the parties are in agreement on price, down payment, and financing method

Megan’s Law

NJ law requiring that communities be alerted to the presence of convicted sex offenders. All contracts and leases must include a this Statement advising purchasers and lessees that a list of any known sex offenders who live in the area may be obtained from the county prosecutor

National Association of REALTORS

 private nationwide organization of salesperson and brokers

Negligent misrepresentation

fraud committed, not necessarily on purpose, by someone who should’ve known better

New Jersey REALTORS

statewide organization of real estate licensees who choose to join the organization

off-site conditions

 in NJ, licensees must disclose conditions beyond the limits of a property, such as a hazardous waste disposal site, that may be considered material facts by a prospective purchaser

Power of attorney

written instrument authorizing a person, the attorney-in-fact, to act as agent on behalf of another person

principal

 a main party of a transaction- the person for whom the agent works for

procuring cause

the broker responsible for bringing about a sale

puffing

exaggerated or superlative comments or opinions made to induce a buyer to buy, not as representations of fact and thus not ground for misrepresentation

Ready, willing, and able buyer

one who is prepared to buy property on the sellers terms and is ready to take positive steps to consummate the transaction

special agent

one authorized by a principal to perform a single act of transaction

standard of care

the degree of care a prudent and reasonable person would exercise as an agent under the circumstances

subagent

a broker sales associate, or cooperating broker in a multiple listing system, in relationship to the principal who has designated the broker as an agent

transaction broker

licensee who works with a buyer, seller, or both, without representing either one in an agency relationship

universal agent

person empowered to do anything the principal could do personally

attorney general’s memorandum

written statement about Fair Housing Laws to be presented to buyers and sellers

blockbusting

also known as panic peddling, the illegal practice of inducing homeowners to sell their property by making representations regarding the entry or prospective entry of minority persons into the neighborhood

Civil Rights Act of 1866

 an act that prohibits racial discrimination in the sale and rental of housing

Emotional support animals(ESAs)

any animal that assists a person coping with mental health condition; undefined by law

Federal Fair Housing Act of 1968

the federal law that prohibits discrimination in housing based on race, color, religion, sex, disability familial status, and national origin

Law Against Discrimination

New Jersey’s Law listing protected classes for fair housing practice

Mount Laurel I

1983 New Jersey Supreme Court decision holding that municipalities have an obligation to affirmatively provide a range of housing

Mount Laurel II

a judicial interpretation that requires local zoning boards to provide realistic opportunities for housing that low-to moderate income households can afford

protected class

specific group that must receive equal treatment in housing

redlining

the illegal practice of a lending institutions denying loans or restricting their number for certain areas of a community

Reverse discrimination

a form of discrimination affecting members of a non protected class, typically a majority

service animal

any dog that is individually trained to do work or perform tasks for the benefit of an individual with a disability, including a physical, sensory, psychiatric, intellectual, or other mental disability. In rare cases, a miniature horse may be considered a service animal

steering

the illegal practice of channeling home seekers to particular areas for discriminatory ends

testers

members of civil rights and neighborhood organizations, often volunteers who observe real estate offices to assess compliance with fair housing laws.

Title VIII

section of the federal Civil Rights Act covering housing

accretion

 the increase or addition of by by the deposit of sand or soil washed up naturally from a river, lake, or sea

air rights

the right to use the open space above property, general allowing the surface to be used for another purpose

alluvion

solid material deposited by accretion through the action of the water passing over land

avulsion

the sudden changing of course of a stream increasing or decreasing areas of land

bill of sale

written instrument given to transfer of title of personal property

bundle of rights

a term that describes the rights and interests of the legal owner of real property- generally, the rights of possession, use, enjoyment, exclusion, and disposition, Subject to certain government powers

chattels

moveable personal property

corporeal

anything with a physical presence, anything that can be touched

devise

a gift of real property by will; the act of leaving real property by will

erosion

the gradual wearing away of land by water, wind, and general weather conditions; the diminishing of property caused by the elements

fixture

an item of personal property that has been converted to real property

front foot

 a standard measurement, one foot wide, of the width of land, applied as the frontage on its street line. Each from foot extends the depth of the lot

hereditament

anything that can be inherited

improvement

any structure erected on a site to enhance the value of the property- buildings, fences, driveways, curbs, sidewalks, or sewers

incorporeal

anything without physical presence, something that cannot be touched

land

 the earths surface, extending downward to the center of earth and upward infinitely into space

littoral rights

1. Landowners claim to use water in large navigable lakes and oceans adjacent to his or her property. 2. The ownership of rights to land bordering these bodies of water up to the mean high water mark

mineral rights

subsurface rights, which can be sold or retained separately

personal property, personalty

all property that is not real property

real estate

portion of the earths surface extending downward to the center of the earth and upward infinitely into space including all things permanently attached thereto, whether by nature or by person

real property, realty

real estate plus all the interests, benefits and rights inherent in ownership, anything permanently attached to land; real estate