255 real estate exam vocabulary Flashcards

255 real estate exam vocabulary Flashcards Bundle of RightsWhen a person purchases property, he or she is given the rights to the property; these rights can be split up and given to different parties.Appraisal ContingencyMost big lenders/ banks require the buyer to have a appraisal done to the property before the loan is granted.this is to ensure the house is worth somewhat close to the price of the accept offer.Easement for ingress and egressAn easement used for entering and exiting a property.Caveat EmptorCaveat emptor is Latin for "Let the buyer or buyers beware". The concept is that the buyer is responsible for checking the quality of a product before a purchase is made.Dual AgencyOccurs when one real estate agent represents both the buyer and seller in a transaction.EscheatWhen a property owner dies and leaves no proper documented inheritance plan, the property ownership reverts to the government. Escheat ensures that property always has ownership.AmenitiesAre a useful feature/ add on to a home that typically add value to the property.Economic ObsolescenceRefers to the loss of property value due to external factors, meaning things off the property affecting the property's value.AmendementsAdd on's/ fixes to contracts.Cetris peribus"other things equal"- All things remaining constant.AppraiserAlthough brokers and agents usually have some understanding of the valuation process, usually they bring in an appraiser to do the job. Appraisers must have detailed knowledge of the methods of valuation and many states require a specific license or certification to perform those duties.EncroachmentIs intrusion on a person's territory or property.Balloon LoanIs a mortgage which does not fully amortize over the term.ContractAn agreement between two or more parties by law.Buyers AgentIf someone is in the market for a new home, they enlist a buyer's agent. A buyer's agent represents the buyer in a transaction in return for their services they receive a fee.Alienation ClauseThe provision in a mortgage or deed of trust signed with the lender that states that the borrower must pay the mortgage in full before the borrower can transfer the property.

AmortizationIs when payments divide into qual amounts for the duration of the loan.egressThe right to exit a property.AgentIs one who speaks for/ represents someone.DBADoing Business As.Breach of ContractIs the failure to complete an agreement per agreed terms.AlienationIs the act to transferring title, ownership, and estate/ an interest in real estate from one party to another.Constructive FraudBest described as ignorance or lying without knowing you are lying.Equitable TitleThe interest held by one party to purchase property before closing.EscrowA way for money and property to be transferred from one party to another through the use of a neutral, third-party agent also known as an escrow agent. Escrow makes it a lot safer for both buyers and sellers to close the sale without worrying about getting snubbed or cheated.CollateralSomething of worth promised to a lender as security (mortgage) for an obligation.Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) Also known as The Superfund. The Superfund is a United States federal government program designed to fund the cleanup of sites contaminated with hazardous substances and pollutants.Commercial Propertya property that generates an income or salary.EndorsementSigning paperwork normally a contract.Capital Gainthe profit from the sale or auction of property or investment.EncumbranceMeans an involuntary lien is on the property.ad valoremaccording to value.Double Net Lease"Double" means two additional costs will be added to your base rent. Usually taxes and insurance costs are added to the monthly lease payment.Enviromental Protection Agency (EPA)The federal agency responsible for dealing with environmental issues. The EPA was established in December 1970 by the executive order of United States President Richard Nixon.Equal Credit Opportunity Act (ECOA)A regulation that aims to give all legal individuals an equal opportunity to apply for loans. The act prohibits creditors and lenders from considering a consumer's race, color, national origin, sex, religion, or marital status in deciding whether to approve their credit application.EmblementsAre annual crops produced by cultivation legally belonging to the tenant with the implied right for its harvest, and they are treated as the tenant's property.Discount PointsAlso known as mortgage points are prepaid interest.

Errors and Omissions InsuranceSome but not all states require this form of insurance. It is a type of liability insurance that protects professionals against claims of inadequate work or negligent actions.Co-opIs a nonprofit corporation, complete with a board of directors, and each resident is a shareholder. Perhaps the largest distinction between a condominium and a co-op is that most co-op associations require that a prospective purchaser be approved by a committee composed of current co-op owners.BlockbustingIs an illegal practice where real estate agents sell houses at a low price to one race then sell those same house at a much higher price to a minority.AbuttingMean an area of land or a building has a common boundary with another.Buyer's Home Sale ContingencyThis contingency allows the buyer to cancel the contract if they are unable to sell their current home in a specified amount of time.Contingent propertyAn offer for the property has been accepted but there is a condition or "contingency" that is written into the contract and it must be met before the sale can go through.Capitalization RateCap rate is used to indicate the rate of return that is expected to be generated on a property.Antitrust LawsAre a collection of federal and state government laws that regulate the conduct and organization of business corporation, normally to promote fair competition of the benefit of consumers.Agreement of SaleA form that states the buyer consents to purchase a property and the seller agrees to sell that property with the terms and conditions illustrated in from both parties.Acceleration ClauseIs a contract provision that allows a lender to require a borrower to repay all of an outstanding loan if payment are not being made/ there is a breach of contract.AccretionSlow process of growth/ acquisition of land, typically when soil is deposited by the natural action of water. long term accretion can actually increase the size of a property.Estate at willmeans that it can be ended at any time. The term of this estate is indefinite. It's also important to note that not all states recognize an estate at will and ones that do vary in laws.Community PropertyCommunity Property Laws are based on the idea that husband and wife are equal, separate, partners rather than one whole one like tenants by the entirety.Bill of SaleThe paperwork given to pass title to an individual property.Buffer ZoneIs a space of land between two use districts such as a park, playgrounds/ a highway. the point of a buffer some is to

ease the transition from zone to zone.