National Real Estate Vocabulary Flashcards

National Real Estate Vocabulary Flashcards Adjustable-Rate Mortgage (ARM)A loan in which the interest rate is periodically increased or decreased to reflect changes in the cost of money Bilateral ContractA contract in which both parties have reciprocal obligations towards each other.Arbitration ClauseA clause in a contract calling for the decision of a third party in the event of a dispute.Certificate of Reasonable ValueCommonly known as a C.R.V.; this is the appraisal commitment of the Veterans Administration used to fix the value of the property being proposed for purchase by a veteran under the GI bill of rights.AccretionGradual additions to land by deposits of sand or soil by bordering waters through natural causes AssignmentThe method of manner by which a right, specialty, or contract is transferred from one person to another Blanket MortgageOne mortgage covering two or more specific parcels of realty.CC&R'scovenants, conditions and restrictions. The basic rules establishing the rights and obligations of owners (and their successors in interests) of real property within a subdivision or other tract of land in relation to other owners with the same subdivision or tract and relation to an association of owners organized for the purpose of operating and maintaining property commonly owned by the individual owners.Actual FraudAn act intended to deceive another, e.g., making a false statement, making a promise without intending to perform it, suppressing the truth.Acquisition Costs Actual AuthoritySuch authority that a principal intentionally gives his agent AffidavitA statement reduced to writing and sworn to before a notary public or some other authorized officer AssessmentA charge against real estate made by a unit of government to cover the proportionate cost of improvements BeneficiaryA person who receives and benefits from the gifts or acts of another; one who receives the proceeds from a will, insurance policy, or trust.LegacyA gift of personal property, usually money, by will.Action of EjectmentA legal action brought about to regain possession of real property; used when there is no relationship of landlord and tenant, such as re-entry by the actual owner against a claimant under adverse possession

Adjoining OwnerOne whose property is contiguous; to be next to BootUnlike property used to equalize equities in an exchange that will trigger tax on the amount of the boot.Attorney in FactOne who is authorized by another to perform certain acts for another under a power of attorney; power of attorney may be limited to a specific act Air RightsThe rights vested by a grant of an estate in real property to all or any portion of the space above the ground Abutting OwnerAn owner whose land touches a highway or other public place.BlockbustingThe discriminatory practice of encouraging members of one race or creed to move into a neighborhood, and then exploiting the situation by persuading residents to sell their houses at deflated prices becuse of the alleged social deterioration of the neighborhood AmenitiesThose things which are marked by such qualities as pleasantness, comfortableness, and agreeableness. In appraising, the amenities of property are those qualities which increase the pleasure of ownership and are not necessarily related to monetary values Abstract of TitleA condensed history of the title to a parcel of land consisting of a summary of every recorded instrument, together with a statement of liens, charges or encumbrances affecting title to that land Bundle of RightsOwnership concept in real estate which embraces the rights of possession, use, enjoyment, and disposition.Competent PartiesThose who are qualified or mentally competent to enter into a contract AcreA measure of land equal to 60 square rods, 4,840 square yards, or 43,560 square feet Access RightThe right of property owner to have ingress and egress to and from his property Appraisal by CapitalizationDetermining the value of property by dividing new annual income by the capitalization rate. Use on income producing properties ALATA Title PolicyAmerican Land Title Association) A type of title insurance policy issued by title insurance companies which expands the risks normally insured against under the standard policy to include unrecorded mechanic's liens; unrecorded physical easements; facts a physical survey would show; water and mineral rights; and rights of parties in possession, such as tenants and buyers under unrecorded instrument AccessionThe acquisition of title to additional property by its annexation to real estate already owned. This can be the

result of human actions (as in the case of fixtures) or natural processes (such as accretion or reliction)

Cloud on TitleAny condition revealed by a title search which may affect or impair the owner's title to property because of their apparent of probable validity.Bargain and Sale DeedA deed used to convey title to real property, which may or may not include warranties; if any, they are generally limited to an assertion by the grantor that he has possession of the property.Assigns, AssigneesThose to whom property or interests therein shall have been transferred.Adverse PossessionThe means of acquiring title to land against the real owner, where possession has been actual, open, hostile, exclusive, continuous, and under claim of right for the statutory period CollateralMarketable real or personal property which a borrower pledges as security for a loan. In mortgage transactions, specific land is the collateral to secure the performance of a principal agreement (the promissory note).AdministratorA person appointed by the court to administer the estate of a deceased person who died intestate, and left no will BrokerA licensed person who negotiates the purchase and sale of real estate for another Building Codecomprehensive set of laws which control the construction of buildings, including design, materials used, construction, use, and repair. codes are adopted Band of InvestmentUsed to determine a cap rate using a weighted average of select rates.AppurtenantBelonging to or annexed to. For example, the garage is appurtenant to the house. Appurtenant items pass with the land when the property is transferred.Community PropertyProperty accumulated after the marriage (generally) by husband and wife. Community property is owned equally in undivided halves of each.AcknowledgmentA formal declaration made before a notary public or other authorized person, by a person who has executed an instrument, that such execution is his free act and deed

AppraisalAn estimate of value of real estate: the report stating and

supporting the estimated value of realty Absolute OwnershipSee Fee Simple Absolute Balloon PaymentThe final installment payment on a note which is greater than the preceding intallment payments and pays the note in full Caveat EmptorLet the buyer beware; the buyer must examine the goods or property and buy at his own ristk.AssignorA party who assigns or transfers an agreement or contract to another