Master Plan A comprehensive guideline for the long-term physical

Champion Real Estate Vocabulary Flashcards Prima Facie evidenceEvidence so strong that the party is guilty- no further investigation necessary ComminglingThe illegal act of mixing broker funds (business or personal) with client funds Unenforceable ContractWill not be enforced by the courts- oral real contract- violates the statute of frauds Assessed ValueProperty value for tax purpose - ( tax rate x assessed value=tax) Master PlanA comprehensive guideline for the long-term physical development of a particular area- mixed land use is designed to meet the needs of future residents Appropriative rightsWater rights under prior appropriation D.U.S.TThe four basic characteristics of value- demand, utility, scarcity, transferability CapitalizationThe conversion of income into an indication of value COLICThe requirements of a valid and enforceable real estate contract- competent parties, offer and acceptance, legal purpose, in writing, consideration Assessment RollsBooks showing the assessed value of all properties in the tax district Prior AppropriationA theory of water law stating the first landowner to claim riparian rights has the exclusive right to take all the water for specific beneficial uses AccretionSoil is deposited on land as a result of the action of water, causing a change in land boundaries - the soil is called alluvion Money DamagesCompensation awarded to an injured party as a result of a lawsuit against the defaulting party in a contract Physical DeteriorationDepreciation due to ordinary wear and tear- curable- little impact on an appraisal Eminent DomainThe right of government to take private property for public AmendmentModification to an existing agreement is made and signed SteeringTaking buyers to or away from any neighborhood based on any of the protect categories under Fair Housing- race, color, religion, national origin, sex, familial status or handicap- also called channeling NovationThe substitution of a new contract for an existing one - the original agreement is terminated VariancePermission to violate current zoning regulations- obtained by a hearing

Liquidated DamagesDamages specified in a contract that will be awarded in the event of default Breach of ContractWhen one of the parties to the contract is in default ConsiderationSomething of value given by the party to contract- the buyer's promise to pay in exchange for the seller's promise to deliver a deed Option ContractA unilateral contract where one party has the option to buy property at a preset price within a negotiated time period Competant partiesSane, sober, consenting adults (18 years or older) Executory ContractA contract that has been signed by the parties, but not yet carried out- sales contract before closing, or contract for deed BOVBroker's opinion of value- similar to a CMA but used by a relocation firm, bank or attorney- also called BPO- broker's price opinion RESPAReal estate settlement prodcedures act - EISEnvironmental impact statement - a study done to determine the effect of a proposed project on a community DefaultNon-performance of a duty under a contract Market Data ApproachAn appraisal used primarily on residential properties- it involves comparing the subject property to recent sales to determine a value- also called sales comparison approach Income ApproachAn appraisal used to determine the value of a property that produces income or rent-( net annual income= rate of return x market value)- also called capitalization method InjunctionA court order to cease, stop, or refrain from acting- can be used to enforce c,c&r's Independent ContractorA licensee sponsored by a broker who is not considered an employee- there must be a written agreement, the independent contraction must be licensed and [payment is on the basis of performance, not number of hours worked Implied ContractBY action or evidence but not written or spoken Escrow AgentThe person responsible for closing the transaction as set forth in the sales contract, or preventing closing unless both the buyer and seller agree to any changes in the contract terms Riparian rightsThe rights to use from river or steam that borders a property BlockbustingCausing panic, selling by homeowners- also called panic pedding Mutual RescissionThe parties to a contract agree to cancel the contract Bilateral ContractAn exchange of promises binding both parties Special AssessmentA tax levied against only property owners who benefits from government improvement such as curbs, or sidewalks

AlienationA change of ownership of real property ContingencyA condition in a contract that has not yet been met- financing inspections, etc.Earnest moneyA buyer's evidence of good faith, submitted with an offer to purchase CounterofferA rejection of an offer and the presentation of a new offer TaxationThe right of government to tax real property CondemnationThe action of the government in taking private property under the right of eminent domain AddendumAdditional material or supplemental information added to an agreement Voidable ContractIn the eyes of the law, one party is at a disadvantage and can void the agreement - a minor, someone who signed under the influence of alcohol or drugs, someone who signed under duress Littoral rightsThe right to use water from a lake or ocean that borders a property OfferA properly completed form with a price less than, equal to , or more than the seller's asking price and signed by the buyer Involuntary AlienationA transfer of ownership usually through the court as in foreclosure, bankruptcy, condemnation, esheat, adverse possession or inheritance without a will - also a change of ownership through acts of nature Title VII of the Civil Right Act of 1968 Part of the Federal Fair Housing- prohibits discrimination based on race, color, religion or national origins, sex, familial status or handicap Statute of FraudsA law requiring all real estate contracts to be in writing to be enforceable Functional ObsolescenceDepreciation due to factors in the property that do not meet the expectations of buyers American with Disabilities Act- ADAA federal law passed to promote accessibility for those with special needs -it prohibits discrimination against those with disabilities ModuleA unit of prefabricated housing- offsite construction Straight Line MethodDepreciation of equal annual installment amounts Express ContractWritten or spoken Effective Date of a ContractThe date on which the last party signed Escrow AccountAn account set up for the purpose of holding funds- also called trust account, impound and reserve account Municipal Improvement DistrictAn area within a municipality that is taxed for a specific improvement- unlike a special assessment, property owners were permitted to vote for the improvement district to be created

M.A.IMember, Appraisal Institute- a designation earned by a licensed appraisers Non-conforming useA permissible use under former rules that is now prohibited- automatically granted when zoning regulations change Void ContractNo contract at all - one of the key elements is missing- invalid contract Partial PerformanceAn injured party is willing to settle for partial performance of a contract upon default by the other party Time is of the EssenceA clause in a contract that allows each party to hold the other to strict performance on the date specified Buffer ZoneAn area of land separating one land use from another incompatible such as residential from commercial Inverse CondemnationThe action of an individual trying to force the government to buy his property CMACompetitive market analysis- a range of value for a property provided by a licensee to help a seller determine a realistic price - also called comparative market analysis Depreciated ValueOriginal cost less the depreciation Police PowerGovernment right to regulate and control the character and use of property for the health, safety and general welfare of the public ErosionSoil is washed from land causing a change in land boundaries or size PlottageThe increased value resulting from the combining of several parcels of land into one larger tract Suit for Specific PerformanceA lawsuit to hold the defaulting party to his duties under a contract Economic ObsolescenceDepreciation due to factors outside the property also called external obsolescence or environmental obsolescence AvulsionThe change in the direction of a river or stream often resulting in a change of land boundaries Voluntary AlienationAn owner transfers title to another, usually with a written document, such as a deed, will, or power of attorney Option feeAn amount paid to secure an option contract - paid upfront, directly to the seller, and never refundable Real Estate ContractA written to pay, by the buyer, and a written promise to deliver a deed, by the seller Zoninglocal laws to control land use Familial StatusA minor living with a parent or guardian- also called composition AssignmentSubstitution of a new party into an existing agreement- can be used to shield the identity of a buyer who wishes to be anonymous