IL real estate exam vocab Flashcards

IL real estate exam vocab Flashcards Automated underwritingSoftware that permits lenders to expedited loan approval process Appurtenance easementEasement that is annexed to ownership of one parcel and allows owner use of neighbors land AcknowledgementFormal declaration made before an authorized officer, notary public Allodial systemSystem of land ownership where land is held free and clear of rent and service due to govt.AttachmentAct of taking persons property into legal custody by writ or judicial order to hold it available for application to that persons debt to a creditor buyer agent agreementprincipal-agent relationship in which the sponsoring broker is the agent for the buyer with fiduciary responsibilities to the buyer blanket loanmortgage covering more than on parcel of real estates, wherein each parcel can be released from line on portion of debt is paid Amortized loanPrincipal and interest is payable in monthly or other periodic installments over life of loan cappingprocess of laying two to four feet of soil over the top of a landfill and then planting grass on for aesthetic value certificate of saledocument given to purchaser of delinquent property taxes at a tax foreclosure sale Actual noticeDirect knowledge capitalization raterate of return property will produce on investment cash rentin an agricultural lease, amount of money given as rent to the landowner at the outset of the lease as opposed to sharecropping Attorneys opinion of titleAbstract of title that an attorney has examine and certified carbon monoxide (CO)colorless, odorless gas that occurs due to incomplete combustion from burning fuels changeappraisal principle that holds that no physical or economic condition remains constant benchmarkpermanent reference mark or point established for use by surveyors in measuring difference in elevation capitalizationmathematical process for estimating value of property using proper rate of return on investment and annual net op income expected (NI/ Rate= value) AddendumAny provision added to an existing contract without altering contents of original

chain of titlesuccession of conveyances from some accepted starting point Assumption of mortgageAcquiring title to property and existing liability of mortgage AsbestosMineral once used in insulatuon, causes respiratory issues Antitrust lawsLaws design to preserve free enterprise (protect against price fixing and allocation of customers and markets brownfielddefunct, derelict, or abandoned commercial or industrial sites; many have toxic wastes broker's price opinion BPOless-expensive alternative of evaluating property, used often by lenders on home equity lines, refinancing, etc AppurtenanceRight, privledge, or improvement passing with the land code of ethicswritten system of standards for ethical conduct comminglingillegal act by a real estate licensee of mingling client or customer funds with the licensee's personal funds AccessionAcquiring title to additions or improvements to real property as the result of annexation of fixtures Accrued itemOn closing statement, item of expense incurred but not paid CAN-SPAM Act of 2003law estab. requirements for the commercial email, penalties , and consumer rights building codean ordinance that specifies minimum standards of construction for buildings to protect public safety and health Air rightsRights to air above land commissionpayment to a licensee for services rendered such as in the sale or purchase of real property AgentOne who has the power to act for another binderagreement that may accompany an ernest money deposit for the purchase of real property as evidence of the purchaser's good faith and intent to complete the transaction bequestgift of personal property under a will (aka legacy) cloud on titleany doc, claim, or unreleased lien, or encumbrance that may impair the title to real property Affidavit of titleAcknowledgement by seller that there are no defects on title and have possession of prop AppropriationThe way a taxing body actually authorizes the expenditure of funds and provides for the sources of the funding AssignmentTransfer in writing of interest in bond, mortgage, lease etc closing statementdetailed cash accounting of real estate transaction showing all cash received, all charges and credits made, and all cash paid out in transaction American land title association ALTA policy Title insurance policy that protects the interest I'm a collateral property of a mortgage lender who originates a new real estate loan

building permitwritten governmental permission for the construction, alteration, or demolition of an improvement, showing compliance with codes and zoning ordinances buffer zonestrip of land, such as a park, separating land dedicated to one use from another (residential from commercial) beneficiaryperson for whom a rush operates or on whose behalf the income from trust estate is drawn OR lender in a deed of trust loan transaction (also called legatee) certificate of occupancypermit issued y appropriate local governing body to establish that prop is suitable for habitation bundle of legal rightsconcept of land ownership including ownership of all legal rights to the land (possession, control, enjoyment) Abstract of titleHistory of a title to a parcel of real estate blind adadvertisement whereby the sponsoring broker's name is not identified in the advertisement caveat emptorlatin phrase = let the buyer beware chattelitems of personal property, including trade fixtures Actual evictionLegal process resulting in physical removal from leased premise brokerone who acts as an intermediary on behalf of others for a fee or commission Brownfields Legislationprovides federal funding to states and localities to lean up brownfield sites Alienation clauseClause in mortgage or deed that states balance of debt immediately due and payable if house is sold by borrower codicilsupplement or addition to a will Air lotDesignated airspace over a piece of land Agency coupled with an interestAgency relationship in which agent is given an estate or interest in the property basisfinancial interest IRS attributes to an owner of an investment property to determine annual depreciation and gain or loss on sale Annual percentage rate APRRelationship of total finance charge associated with a loan bill of salelegal document that transfers personal property brokerage agreementwritten or oral agreement b/t a sponsoring broker and a consumer for exchange of services for commission bilateral contractcontract by which all parties to the instrument are legally bound to act as prescribed AssessmentImposition of tax, charge, or levy, usually according to estab Rates balloon paymentfinal payment of a mortgage loan that is considerably large than required periodic payments because loan was not fully amortized brokeragebringing together of parties interested in making a real estate transaction

balanceappraisal principle state that the greatest value in property will occur when type and size of improvements are proportional to each other and land breach of contractviolation of any terms or conditions in a contract w/o legal excuse closingthe point at which ownership of property is transferred in exchange for the selling price AppraisalEstimate of quantity, quality, or value of something.Convulsions formed, opinions branch officessecondary place of business party from the principal or main office from which real estate business is conducted; must be run by managing broker cash flownet spendable income from investment, determined by deducting all op and fixed expense from gross income AppraiserPerson trained to give unbaisied opinion of value, objectively AnticipationAppraisal principal, that value can increase or decrease based on future benefit or detriment produced by property AssemblageCombing two or more adjoining lots to increase value branch office licensein IL, a separate license that must be obtained for each branch office a sponsoring broker wisher to establish AgencyRelationship between principal and agent AmendmentChange to existing contract Adjustable-rate mortgage (arm)A loan characterized by a fluctuating interest rate, usually one tied to a bank or saving and loan association cosy of funds index Adverse possessionActual, open notorious, hostile, and continuous possession of another's land certificate of reasonable value (CRV)form indicating the appraised value of a property being financed w/ a VA loan AlienationAct of transferring property to another Americans with disabilities act ADALegislation that prohibits discrimination against the physically or mentally impaired as it relates to employment opps and public accomdations base linemain imaginary line running east and west and crossing a principal meridian at a definite point, used by surveyors for reference in locating and describing land in rectangular survey system Acceleration clauseMake entire debt due immediately upon borrower default blockbustingillegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of person of a particular race or origin into neighborhood bargain and sale deeddeed that carries with it no warranties but implies that grantor has right to convey title