Modern Real Estate Practice in Illinois - 11th Edition - Terms

Modern Real Estate Practice in Illinois - 11th Edition - Terms Flashcards AccretionThe increase or addition of land by the deposit of sand or soil washed up naturally from a river, lake, or sea.Annual Percentage Rate (APR)The relationship of the total finance charges associated with a loan. This must be disclosed to borrowers by lenders under the Truth in Lending Act.Closing StatementA detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made, and all cash paid out in the transaction.Base LineThe main 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 under the rectangular (government) survey system of legal description.Brokerage AgreementA written or oral agreement between a sponsoring broker and a consumer for licensed activities to be provided to a consumer in return for compensation or the right to receive compensation from another. They may constitute either a bilateral or unilateral agreement between the sponsoring broker and the sponsoring broker's client depending upon the content of the brokerage agreement. All exclusive brokerage agreements must be in writing.CapitalizationA mathematical process for estimating the value of a property using a proper rate of return on the investment and the annual net operating incomes expected to be

produced by the property. The formula is expressed as:

Income ÷ Rate = Value.Building PermitWritten governmental permission for the construction, alteration, or demolition of an improvement, showing compliance with building codes and zoning ordinances.Actual NoticeExpress information or fact; that which is known; direct knowledge.Attorney's opinion of a titleAn abstract of title that an attorney has examined and has certified to be, in the attorney's opinion, an accurate statement of the facts concerning the property's ownership.ClosingThe point at which ownership of a property is transferred in exchange for the selling price.Brownfields LegislationProvides federal funding to states and localities to clean up brownfields sites.AttachmentThe act of taking a person's property into legal custody by writ or other judicial order to hold it available for application

to that person's debt to a creditor

AgencyThe relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions.ChattelItems of personal property, including such tangibles as chairs, tables, clothing, money, bonds, and bank accounts.Chattels include trade fixtures.Bargain and Sale DeedA deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his or her discretion Broker's Price Opinion (BPO)A less-expensive alternative of valuation properties often used by lenders working with home equity lines, refinancing, portfolio management, loss mitigation, and collections. Many BPOs simply consist of a "drive by" that verifies the existence of the property, along with a listing of comparable sales.American Land Titel Association (ALTA) policy A title insurance policy that protects the interest in a collateral property of a mortgage lender who originates a new real estate loan Balloon PaymentA final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.Automatic ExtensionA clause in a listing agreement stating that the agreement will continue automatically for a certain period of time after its expiration date. In many states, use of this clause is discouraged or prohibited.Actual EvictionThe legal process that results in the tenant's being physically removed from the leased premises.Assumption of MortgageAcquiring title to property on which there is an existing mortgage and agreeing to be personally liable for the terms and conditions of the mortgage, including payments.Capitalization RateThe rate of return a property will produce on the owner's investment.AppreciationAn increase in the worth or value of a property due to economic or related causes, which may prove to be either temporary or permanent; opposite of depreciation.Bilateral ContractA contract by which all parties to the instrument are legally bound to act as prescribed.AcknowledgmentA formal declaration made before a duly authorized officer, usually a notary public, by a person who has signed a document.Carbon Monoxide (CO)A colorless, odorless gas that occurs due to incomplete combustion as a by-product of burning such fuels as wood, oil, and natural gas. Improperly ventilated CO can lead to death.

Antitrust LawsLaws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition. Most violations of antitrust laws in the real estate business involve either price-fixing or allocation of customers or markets (real estate companies agreeing to limit their areas of trade or dealing to certain areas or properties) BrownfieldDefunct, derelict, or abandoned commercial or industrial sites; many have toxic wastes.Air LotA designated airspace over a piece of land. An air lot, like surface property, may be transferred.Blanket LoanA mortgage covering more than one parcel of real estate, providing for each parcel's partial release from the mortgage lien upon repayment of a definite portion of the debt.BenchmarkA permanent reference mark or point established for use by surveyors in measuring differences in elevation.Certificate of Reasonable Value (CRV)A form indicating the appraised value of a property being financed with a VA loan.Adverse PossessionThe actual, open, notorious, hostile, and continuous possession of another's land under a claim of title.Possession for a statutory period may be a means of acquiring title.Accrued ItemOn a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.AppurtenanceA right, privilege, or improvement belonging to, and passing with, the land.Americans with Disabilities Act (ADA)Legislation that prohibits discrimination against the physically or mentally impaired as it relates to employment opportunities and public accommodations.ChangeThe appraisal principle that holds that no physical or economic condition remains constant.AmendmentA change to an existing contract CAN-SPAM Act of 2003Establishes requirements for commercial email, spells out penalties for email senders, and gives consumers the right to have emailers stop sending emails to them.ActThe Real Estate License Act of 2000 AnticipationThe appraisal principle holding that value can increase or decrease based on the expectation of some future benefit or detriment produced by the property.AlienationThe act of transferring property to another. See also voluntary alienation and involuntary alienation.ClientA person who is being represented by a licensee; the principal