MA Real Estate Salesperson Vocab - Freedom Trail RE course

MA Real Estate Salesperson Vocab - Freedom Trail RE course Flashcards Capital gainsTax paid on profits from the sale of an investment property.Short term is held less than 12 months. Long term is held more than 12 months AssemblageThe act or process of combining two or more lots under single ownership Associate BrokerA broker who chooses to work as a salesperson for another broker (the employing broker) Accrued DepreciationThe difference between the cost of replacement new as of the date of the appraisal and the present appraised value.Already occurs when property is purchased AffadavitA swim statement; written oath such as acknowledgement AcknowledgementAn act of executing a legal instrument such as a deed, mortgage or discharge before a lawyer or other officer of state such as a notary public; this act decliners signing to be free and voluntary; this is necessary before recording at registry Adverse PossessionOccupants right to acquire legal title to private property held by title holder by deed if occupant holds land openly notoriously adversely and without permission for 20 years; squatters rights Building lineLine drawn certain distance from lot lines; no building can be erected between building line and lot line Attorney-in-factSomeone holding a written power of attorney BettermentsImprovements adding to value of realty done by local government and paid for by gainers of value; sidewalks, streets etc. results in special assessment Bait and SwitchForm of fraud where an agent advertises a certain property that may or may not be available, with the intention of switching it out for something more expend or lower quality when the client comes into the office to view; prohibited under licensing law abuttingneighboring land with a common boundary Buffer ZonesUsed to ease transitions between zoning areas Agency for Toxic Substances and Disease Registry Created by CERCLA as a part of their environmental protection programs BrownfieldsLands previously used for commercial purposes and are contaminated by hazardous waste or pollution Assumption of MortgageMethod of taking over a mortgage; borrower and original mortgagor are both responsible for the loan and liability for any deficiency after foreclosure; joint responsibility

BondGuarantee by third party that it will make good any loss, up to a certain amount, incurred by a party dealing with a broker not acting in good faith; bonding company is Surety and oblige and State is oblige; broker bond is made payable to state BootUnreplaced property value or reduced mortgage debt; taxable Adjustmentsrents, insurance, fuel, taxes etc., apportioned or prorated between buyer and seller at closing of title (passing of papers) Affirmationa solemn declaration; a non-religious oath AttestAffirmation that something is true or authentic Acre43,560 square feet Bill of SaleA written instrument that is the evidence of transfer of one persons right in personal property to another Annual Property Operating Data (APOD sheet) Sheet that shows annual income of a rental property; profit and loss statements for investment properties; looks at vacancies, operating expenses, debt service and capital expenditures.AlluviumClay, silt, sand, gravel or simile detrital material deposited by running water AuctionPublic sale of property to highest bidder Buyers agency agreementAgreement that covers exclusivity of buyer and their broker AssignorPerson assigning a contract Approaches to ValueThree methods used by appraiser to form an estimate of value such as cost, market and income Approaches BenchmarkMark on stone or ground permanently fixed to ground; used as measuring point by surveyors Broker of recordOwner of the brokerage; may also be known as employing broker 21E CertificateCertifies that property is free from contamination Capital ReservesMoney held in a reserve fund account by condo associations and investors to pay for improvements to a property Calling the noteFirst step in the foreclosure process; when the lender accelerates the maturity date of the loan AvulsionSudden separation of land from one property and it's attachment to another typically by flooding or changing course of a river Bargain and Sale DeedAlso known as a certificate of sale; provides no warranties; typically used in tax foreclosures Agreement of SaleBilateral contract whereby buyer promises to buy and seller promises to sell by execution and delivery of deed; also known as Purchase and Sale

AssetsAll real and personal property one owns; assets minus liabilities such as mortgages, equal net worth transfer of title or interest in writing; assignor gives and assignee receives Attorney-at-lawA lawyer employed by a party to manage a cause Capitalization RateAka Cap Rate. Profit expressed as a percentage that an investor expects from an investment on a yearly basis. A rate of return BalanceThe notion that value is created and maintained when equilibrium is the amount and location of types of real estate Balloon MortgagePrincipal loan amount paid off in lump sum at end of term as opposed to amortized direct reduction method AgreementOne of the tests to determine whether something is real or personal property; buyer and seller agree to make that decision; this overrides all other tests but should be in writing per the statute of frauds AnnexationWhen property that was personal becomes real AnticipationWith respect to principles of value, the benefit of a property owner expects to receive over the lifetime of their ownership Aeolian SoilSoil deposited by wind, such as sand dunes or silt AppraiserProfessional with an appraisal license who estimate what buyers will pay for property Assessed ValueAlso known as tax value; value given to realty by assessors office for property taxation purposes; actual collection of tax comes from Tax Collector or Treasurer accretionIncrease of property by gradual natural additions, as of land by alluvion BlockbustingEmploying fear tactics to include panic selling or panic peddling in a neighborhood; illegal Abatementreduction of property taxes BinderDeposit or earnest money given as evidence of good faith by buyer to secure property until sale is consummated; it can also refer to a temporary memorandum outline of real estate deal, similar to letter of intent AlienationLoss of ownership; can be voluntary such as in a real estate sale or involuntary such as foreclosure Alienation ClauseAka Due on Sale Clause or Assumption Clause ; permits lenses to speed up the due date of the loan in an event of a title transfer; prevents transfer of mortgage due to a third party AsbestosHazardous material that was used as an insulation material and fire retardant; carcinogenic; most often seen in homes with popcorn ceilings; most dangerous in a friable state

Bilateral contractOne persons promise in exchange for another persons promise such as p&s Buyers AgentBroker or their subagent who represents a buyer; owes obedience, loyalty, confidentiality, disclosure, account and reasonable care to the buyer Building CodeRegulations established by government setting forth minimum structural requirement; a police power AgencyA contract by which one party undertakes to represent another in certain business situations, such as a realty brokerage Blanket MortgageA single mortgage instrument securing more than one parcel of property as security for the loan; usually includes partial release clause AcceptanceIndication by signature of offeree that he is willing to be bound by terms of offer from offeror ARMAdjustable Rate Mortgage; loan with an interest rate that adjusts Anchor TenantsTenants in a percentage lease such as dept stores Acceleration ClauseThe clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the borrower defaults on an installment payment or other covenant.; prelude to foreclosure Action of LawA way in which a lease can be terminated; includes eminent domain taking, tax sale, etc Actual Eviction- legal action originated by lessor whereby lessee in default is physically ousted pursuant to a court order(unlawful detainer).Attachment (test)One of the ways to test whether something is real or personal property; whether or not the property is attached with roots or nails to the land AlluvionIncreasing of land area along a shore by deposited alluvium or by the or the recession of water Ad ValoremTax assessment based on actual value BeneficiarySomeone receiving money from a trust ABAsAffiliated Business Arrangements; service providers such as mortgage brokers and RE attorneys package their services together as an offering to their clients 1031 ExchangeWay to defer capital gains tax; property owner must re-invest profits from the sale of an investment property into another investment property within 6 months AssignmentTransfer of ones remaining interest in a lease or option to a third party Blind AdvertisingWhen real estate agents advertise property under their own name without disclosing the name of their broker and that they are a licensed agent; prohibited under licensing law