Real estate terms

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<ul><li> 1. REAL ESTATE TERMINOLOGY An excellent tool for doing homestudycourses, both continuing education and statutory courses. It is also a tremendous aid in helping study for anytest that has anything to do with real estate; wether it be a college course, state exam, or college exam PAGE 1 A ABANDONMENT Failure to occupy and use property; may result in loss of rights. ABATEMENT OF NUISANCE The act of ending or terminating a nuisance; a type of legal action brought to end a nuisance. ABSOLUTE OWNER SHIP SEE: Fee Simple Es tate ABSTRACT A brief sum ma ry. ABSTRACT OF JUDGMENT A summary of money judgment. The summary is usually prepared so that it may be recorded, thereby creating a (judgement) lien on real estate owned by the judgm ent debtor. ABSTRACT OF TITLE A sum mary of the instrum ents affecting title to a parcel of real property as shown by the public records. ABSTRACTION A method of valuing land. The indicated value of the improvement is deducted from the sale price. ABSTRACTION METHOD Method of appraising vacant land; allocation of the appraised total value or sale price of the prope rty betw een land a nd bu ilding e ither o n a ratio basis or by subtracting a figure representing building value or price from the total appraised value or price of the property. Also called Allocation Method. ACCELERATE To make a note all due and payable at one time. ACCREDITED MANAGEMENT ORGANIZATION (AMO) A professional designation awarde d to qualified property man agem ent firm s by the institute of Real Estate Mana gem ent. ACCREDITED RESIDENT MANAGER (ARM An individual who has completed IREM s educational program for re sident m anagers of res idential property. ACCELERATED COST RECOVERY SYSTEM (ACRS) The system for figuring depreciation (cost recovery) for depreciable real property acquired and placed into service after January 1, 1981 ACCELERATED DEPRECIATION A method o f cost write-off in which depreciation allowances are greater in the first few years of ownership than in subsequent years. This permits an earlier recovery of capital and a faster tax write-off of an asset. ACCELERATION CLAUSE A clause in a deed of trust or mo rtgag e givin g the lende r the right to call all s um s owing him or her to be immediately due and payable upon the occurrence o f a certain e vent. It is also a clause th at perm its a debtor to pay off a loan before the due date. ACCEPTANCE 1. Agreeing to the terms of an offer to enter into a contract, thereby creating a binding contract. 2. Taking delivery of a deed. The act of agreeing or consenting to an offer. ACCEPTANCE OF AN OFFER After acceptance of an offer, a broker may not return the buyer s deposit without authorization from the seller. An essential element of every contract, it is the consent to be bound by the offer. In deeds, it is the cons ent to accept a grant of real property. ACCESSION The acquisition of title to additional property by its annex ation to rea l estate alrea dy owned . An add ition to property through the efforts of man or by natural forces. ACCESS RIGHT The right of an owner to go into and out of his or her p rope rty. ACCOMMODATION PARTY A person who, without receiving value, signs a promissory note to help another person borrow mon ey or get cre dit. ACCOMMODATOR An intermediary who holds funds in a delayed exchange. ACCORD AND SATISFACTION An agreement to accept something different than (and usually less than) what the original contract called for. The discharge of an existing contrac t by accep ting the per form ance u nder a s ubstitute contract. Gen erally, c onsidera tion under the n ew contra ct is different from and of lesser value than under the original contrac t, and satisf action is the perform ance o f that contract; the com bination discharge s the origina l contract. ACCRETION A gradual addition to land from natural causes; for example, from gradual action of ocean or river waters. </li></ul><p> 2. REAL ESTATE TERMINOLOGY An excellent tool for doing homestudycourses, both continuing education and statutory courses. It is also a tremendous aid in helping study for anytest that has anything to do with real estate; wether it be a college course, state exam, or college exam PAGE 2 ACCRUE To increa se or accum ulate; intere st on loans is said to accrue daily. ACCRUED DEPRECIATION The difference between the cost of replacement of a new building, as of the date of the appraisal and the present appraised value. Depreciation that has accumulated over a period of time. (1) The difference between the cost of replacement new as of the date of the appraisal and the present appraised value. (2) The accumulated losses in value that has affected the improveme nts on real property. ACCRUED ITEMS OF EXPENSE Those incurred expenses which are not yet payable. The seller s accrued expenses are credited to the purchaser in a closing statement ACCUSATION A written statement of rules violated, used in a property right healing. ACKNOWLEDGMENT When a person who has signed a document formally declares to an authorized public official (usually a notary public) that he or she signed voluntarily. The official attests that the signature is voluntary and genuine. A formal declaration before a notary public or qualified officer that th e person signin g the docu me nt is doing s o volu ntarily and using his or her legal name and signature; called notarizing. ACOUSTICAL TILE Blocks of fiber, mineral, or metal with small holes or a rough-textured surface to ab sorb sound, used as covering for interior walls and ceilings. ACQUISITION The act or process by which a person proc ures property. ACQUISITION COST Under FHA . A loan is based on acquisition cost, which is sale price or FHA value, whichever is lesser, plus nonrecurring closing costs the buyer is paying per FH A rules. ACRE A measure of land equaling 160 square rods, 4840 square yards, 43,560 square feet, or a tract about 208.71 feet square. ACT A statute ACTUAL AUTHORITY Authority expressly given by the princ ipal or given by the law an d not denie d by the principal. ACTUAL EVICTION Forcible removal of a tenant from a property by an officer after a judgement decree of possession has b een issued in favor of the owner. ACTUAL FRAUD An act inte nded to d eceive another, e.g., making a false statement, making a promise without intending to perform it, suppressing the truth. ACTUAL NOTICE An individual may be conscious of the circum stance s in which the owner receive d title to the prop erty and is at the same time is aware that the owner has not reco rded the deed nor is he in p ossession of the prope rty. There is no constructive notice, only actual notice as to the owner of the prope rty. ADDENDUM An attach men t to a purch ase ag reem ent or to escrow instructions. Used to modify or make changes. ADJACENT Located next to or near an object or parcel of prop erty. ADJOINING Located so as to touch an object or share a common property line. ADJUSTED COST BASIS The income tax cost basis of the prop erty with certain additions, such as acqu isition costs and the cost of improvements, and certain subtractions, such as depreciation in value. ADJUS TM ENT IN TERV AL The time between permitted changes in the interest rate or mo nthly paym ents, typically six months to one year, depending on the indexused. ADJUSTMENTS In appraising , a means by which characteristics of a residential property are regulated by dollar amount of percentage to conform to similar characteristics of another residential property. ADJUSTABLE-RATE-MORTGAGE A mortgage or deed of trust with a variable interest rate (an interest rate that changes perio dically. This m ortgage tends to a ttract m ore peo ple into the m ortgage mark et. ADJUDICATIVE METHODS The resolution of a dispute by mirroring the judicial process in that a third party decides the controversy m uch as a judge d oes in co urt. ADJU STED BAS IS The adjusted basis is equal to the purchase price plus buying. ADJUSTABLE RATE MORTGAGE (ARM) A mortgage loan which bears interest at a rate subject to change during the term o f the loan, predeterm ined or oth erwise. ADMINISTRATIVE AGENCY A government agency that administrates a complex area of law, adopting an enforcing detailed regulations that have the force of law. ADMINISTRATIVE LAW JUDGE A law judge that con ducts hearings enforcing the detailed regulations that have the force of law, by a government agency. It is a complex area of law. 3. REAL ESTATE TERMINOLOGY An excellent tool for doing homestudycourses, both continuing education and statutory courses. It is also a tremendous aid in helping study for anytest that has anything to do with real estate; wether it be a college course, state exam, or college exam PAGE 3 ADMINISTRATOR A person appointed by the probate court to manage and distribute the estate of a deceased person when no e xecutor is nam ed in th e will or there is no w ill. ADJU STED CO ST B ASIS For tax purposes it is the cost of the property plus improvements and minus depreciation, amortization, and depletion. ADMINISTRATOR A perso n appointed by the probate court to administer the estate of a deceased person. His or her duties include making an inventory of the assets, managing the property, paying the debts and expenses, filing neces sary repo rts and tax returns, a nd distributing the assets as orde red by the p robate c ourt. AD VALOREM According to value AD VALOREM LIEN Refers to General real estate tax. AD VALO REM TAX A property tax based upon value. ADVANCES Transfer of funds from a lender to a borrower in advance on a loan. Mone y advanced by a beneficiary under a trust deed to pay real es tate taxes or other item s to protect the lender s interest under the trust deed. Also refers to additional funds loaned under an open -end trust deed or mortgage. ADVANCE FEE ACCOUNTS A verified copy of advance fee accounts must be sent to the owner of advance fee funds every quarter. ADVANCE FEE AGREEMENTS. For DRE approval, an advance free agreement must state the total amount of advances fees to be paid. An advance fee agreement may not include a guarantee the transaction will be completed. ADVANCE COMMITMENT The institutional investor s prior agreement to provide long-term financing upon the completion of construction; also known as a take-out loan com mitm ent. ADVANCE FEES A fee paid in advance of any services rendere d. Som etimes unlawfully charged in c onnec tion with that illegal practice of obtaining a fee in advance for the advertising of property or a business for sale., with no intent to obtain a buyer, by persons representing themselves as a real estate licensees, or representative of a licensed real estate firm. ADVERSE POSSESSION A method of acquiring property based on open and notorious possession, under a claim of right, color of title, continuous use for five years, and the paym ent of taxes. A m ethod of acquiring property through continuous use of that property while paying taxes on it. .ADVERTISING (COSTS) Purchased space in a newspaper, m agazine or othe r me dium used to attract public attention to a commodity for sale or lease. They should be based on projected vacancies, turnover market conditions. Where you advertise depends on who are the customers that you want to reach. AFFIANT One who makes an affidavit or gives evidence. AFFIDAVIT A statement or declaration reduced to writing, sworn to or affirm ed befo re som e officer w ho has authority to administer an oath or affirmation, such a s a notary public or a commanding officer in the service. AFFIDAVIT OF TITLE A statement in writing , made under oath by seller or grantor, acknowledged before a N otary Public in which the affiant identifies himself or herself and affiant s marital status certifying that since the examination of title on the contract date there are no judgements, bankruptcies or divorces, no unrecorded deeds, contracts, unpaid re pairs or im provem ents, or de fects of title k nown to the affiant and that affiant is in pos session of the pr operty. AFFIRM To c onfirm, s wear, ratifyin g, verity. AFFIRMATION A solemn declaration by an individual who is adverse to take an oath. AGE-LIFE METHOD OF DEPRECIATION SEE: Stra ight- line Method of Depreciation. AGENCY A special relationship of trust by which one person (agent) is authorized to conduct business, sign papers, or otherwise act on behalf of another person (principal). AGENCY AGREEMENT An agent must use reasonable care and skill in carrying out the tasks dictated by the agen cy agreemen t. AGENCY CONFIRMATION STATEMENT The Agency Disclosure Addendum will always be used by the selling broke r whene ver Age ncy Con firmation Statem ent is requ ired. An Agency Confirmation Statement is required in a transaction involving the lease of one-top-four unit residential property fo r more than on e year. AGENCY COUPLED W ITH AN INTEREST When the agent has a personal interest in the subject of the agency; as when one co-owner has been authorized by the others to sell the property. AGENCY DISCLOSURE ADDENDUM This required when a broker is involved in n egotiating the sale of one-to-four unit residential property. This defines and explains, in general terms, the words and phrases used to express the agency 4. REAL ESTATE TERMINOLOGY An excellent tool for doing homestudycourses, both continuing education and statutory courses. It is also a tremendous aid in helping study for anytest that has anything to do with real estate; wether it be a college course, state exam, or college exam PAGE 4 relatio nship of broke rs to th e parties of the residential sale transaction. Refusals to sign the Agency Disclosure Addendum could occur when: owners refuse to list with the broker FSBO seller s refusal to accept an offer and when buyers refuse to sign a deposit receipt offer presented for consideration. AGENT One who represents another called a principal and has authority to act for the principal in dealing with third parties. The relationship is referred to as an agency. Someone authorized to act for another (called the principal) in business matters. AGENT , GENE RAL An agent authorized to handle all of the principal s affairs in one area or in a specified area. AGENT , SPECIAL An agent authorized to do everything that can br lawfully delegated to a representative. AGENT , UNIVER SAL An agent authorized to do everything that can be lawfully be delegated to a representative. AGENTS OF PRODUCTION Four factors that are com bined to pro duce inco me ; labor, coo rdina tion, capital, and land. AGREEMENT A mutual understanding or compact between parties. Altho ugh ofte n used a synonym ous with c ontract, technically it denotes mutual promises that fail as a contract for lack of consideration. AGREED -UPON-COMPENSATION To receive this compensation you must be the procuring cause, must find a ready, willing and able buyer, and must be the one that initially brought the th ird party into the c ontract.. AGREEMENT OF SA...</p>