Real Estate Vocabulary - Page 1

A collection of flashcards focused on fundamental real estate vocabulary terms based on the provided lecture notes.

Abstract of Title

A summary or digest of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title.

Acceleration Clause

A condition in a real estate finance instrument giving the lender the power to declare all sums owing 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.

Acceptance

The act of agreeing or consenting to the terms of an offer thereby establishing the "meeting of the minds" that is an essential element of a contract.

Accession

An addition to property through the efforts of man or by natural forces.

Accretion

Accession by natural forces, e.g., alluvium.

Acknowledgment

A formal declaration made before an authorized person, e.g.. a notary public, by a person who has executed an instrument stating that the execution was his or her free act.

Actual Eviction

The removal of a tenant by the landlord because the tenant breached a condition of a lease or another rental contract.

Actual Notice

Express or implied knowledge of a fact.

Addendum

Additional pages of material that are added to and become part of a contract.

Adverse Possession

A method of acquiring title to real property through possession of the property for a statutory period under certain conditions by a person other than the owner of record.

Agency

The relationship between principal and the principal's agent, which arises out of a contract, either expressed or implied, written or oral, wherein the agent is employed by the principal to do certain acts dealing with a third party.

Agent

One who acts for and with authority from another called the principal.

Agreement of Sale

A written agreement or contract between seller and purchaser in which they reach a "meeting of minds" on the terms and conditions of the sale. The parties concur; are in harmonious opinion.

Air Rights

The rights in real property to the reasonable use of the air space above the surface of the land.

Alienation Clause

A clause in a contract giving the lender certain rights in the event of a sale or other transfer of a mortgaged property.

Alluvium

The gradual increase of the earth on a shore of an ocean or bank of a stream resulting from the action of the water.

Amortization

The liquidation of a financial obligation on an installment basis.

Amortized Loan

A loan to be repaid, interest and principal, by a series of regular payments that are equal or nearly equal, without any special balloon payment prior to maturity.

Appraisal

An estimate of the value of property resulting from an analysis of facts about the property. An opinion of value.

Appraiser

One qualified by education, training and experience who is hired to estimate the value of real and personal property based on experience, judgment, facts, and use of formal appraisal process.

Apreciation

Monetary gain resulting from the increase in the market value of an investment, excluding additions of capital. For example, a house which is sold five years after it was purchased for 20% more than the purchase price.

Asbestos

A naturally occurring mineral fiber sometimes found in older homes. t is hazardous to health when a possibility exists of exposure to inhalable fibers. Homeowners should be alert for friable asbestos and always seek professional advice in dealing with it.

Asbestosis

A chronic lung disease cause by inhaling asbestos fibers

Assessed Values

A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property

Assessed unit

A city, county, town or village with the authority to value real property for the purposes of taxation

Assessments

A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer

Assignment

The transfer to another of any property in possession or in action, or of any estate or right therein. A transfer by a person of that persons rights under a contract.

Assignment of Rents

A provision in a mortgage or deed of trust under which the lender may, upon default of the trustor, take possession of the property, collect income from the property and apply it to the loan balance and the costs incurred by the lender

Assumption of Mortgage

The taking of a title to property by a grantee wherein the grantee assumes liability for payment of an existing note secured by a mortgage or deed of trust against a property. becoming a co-guarantor for the payment of a mortgage or deed of trust note.

Avulsion

A sudden and perceptible loss of land by the action of water as by a sudden change in the course of a river

Bargain and Sale Deed (BSD)

Any deed that recites a consideration and purports to convey the real estate: a bargain and sale deed with a covenant against the grantor's act is one in which the grantor warrants that grantor has done nothing to harm or cloud the title

Base and Meridian

Imaginary lines used by surveyors to find and describe the location of private or public lands. In government surveys, a base line runs due east and west, meridians run due north and south, and are used to establish township boundaries.

Benificiary

The lender on the security of a note and deed of trust

Bilateral Contract

A contract in which each party promises to do something

Blanket Mortgage

A type of loan used to fund the purchase of more than one piece of real property. Used for subdivisions financing

Blockbusting

The practice of panic selling below market value, especially by exploiting the prejudice of property owners in which the racial make-up is changing or on the verge of changing

Building Code