NY REAL ESTATE EXAM GLOSSARY Flashcards

NY REAL ESTATE EXAM GLOSSARY Flashcards AgencyA relationship of trust created when one person (the principal) gives another person (the agent) the right to represent the principal in dealings with third parties.Agent, Broker'sAn agent who cooperates with a listing agent or a buyer's agent to assist either in locating a property to sell or buy for the listing agent's seller or the buyer agent's buyer. The broker's agent does not have a direct relationship with the client.AccountabilityDuty recognizing that money received in an agency relationship belongs to the principal, not the agent. Agent has the duty to account strictly to the principal for any amount received.Abutting PropertyParcels of land directly contiguous, sharing at least one common boundary. Abstract The report of the chain of title to a piece of land.Ad ValoremA Latin phrase meaning "according to value"; used to refer to taxes assessed on the value of property.Water rights allocated by government permit, according to an appropriation system. It is not necessary to own property beside the body of water in order to apply for an

appropriation permit. Compare: Littoral Rights, Riparian

Rights.Approved Assessing Unit AccretionA gradual addition to dry land by the forces of nature, as when the tide deposits water-borne sediment on shoreline

property. See: Accession; Alluvion.

AcknowledgmentWhen a person who has signed a document formally declares to an authorized official (usually a notary public) that he or she signed voluntarily. The official certifies that

the signature is voluntary and genuine. Compare:

Attestation.Someone who, for a fee, coordinates with a customer and the current owner or occupant of legally occupied real property who wishes to share that housing.Appeal AbandonmentThe failure to occupy and use property, which may result in a loss of rights. Absolute The complete bundle of rights belongs to the owner.AccessionThe acquisition of title to land by its addition to real estate already owned, through human actions or natural

processes. See: Accretion; Annexation; Reliction.

Agent, GeneralAn agent authorized to handle all of the principal's affairs in one or more specified areas.

Agent, SpecialAn agent with limited authority to do a specific thing or conduct a specific transaction, such as a real estate agent.A professional estimate or opinion of the value of a piece of property (parcel of land), as of a certain date, that's supported by objective data.Appraisal Foundation A major department or chain store strategically located within a shopping center to give maximum exposure to smaller satellite stores.Annexation After Tax Cash FlowCash flow from income-producing property, less income taxes, if any, attributable to the property's income. If a tax loss provides a tax savings from the shelter of income earned outside the property, that savings is added to the property's earned cash flow.AccessibilityAlso referred to as ingress/egress; the relative ease with which customers can get to a retail establishment.When one party to a contract informs the other before the time set for performance that he or she does not intend to

perform as agreed. See: Tender.

Antitrust Person who owns an item as personal property and brings it onto real property, making it a part of the real property.Annual Percentage Rate (APR) A preliminary survey identifying the scope, character and amount of work needed to complete the appraisal.Appraiser Professional organization for appraisers, created in 1990 by merger of American Institute of Real Estate Appraisers and Society of Residential Appraisers.Appraisal Plan Accrued ItemsExpense items on a settlement statement for which the cost has been incurred, but the expense has not yet been paid.The process in which a higher court reviews the decision of a lower court or an administrative tribunal.Appellant AgentA person licensed to represent another in a real estate transaction; or a person authorized to represent another (the principal) in dealings with third parties.Adverse PossessionAcquiring title to someone else's real property by possession of it. The possession must be open and notorious, hostile and adverse, exclusive, and continuous,

for statutory period of time. Compare: Prescription.

An economic theory that says value is created by expectation of future benefits.Anticipatory Repudiation AffirmAn appeals court ruling that the lower court's decision was correct, rejecting the appellant's arguments. After-Acquired

Title See: Title, After-Acquired.

AlluvionThe solid material deposited along a shore by accretion.Also called alluvium.

Air RightsThe right to undisturbed use and control of the airspace over a parcel of land (within reasonable limits for air travel); may be transferred separately from the land.An assessing unit that certified by the New York State Board of Real Property Services as having completed a revaluation program and assessing the property at full market value, making it eligible for state aid and eligible to create different tax rates for homestead and non-homestead property.Appurtenance Non-profit organization, created by the nine (now eight) leading appraisal organizations, which is recognized as authority for professional appraisal standards.Appraisal Institute (AI) AffidavitA sworn statement that has been written and acknowledged.Taking private property for public use, through the government's power of eminent domain. Also called condemnation. In relationship to taxes, appropriation is a sum of money that has been allocated for a particular purpose; a formal request for tax funds.Appropriative Rights attached. (This is a non-legal term only referring to physical things.) Arbitration AdministratorA person appointed by the probate court to manage and distribute the estate of a deceased person when no executor is named in the will or there is no will.In an appeal, the party (also called the respondent) who did not file the appeal.Appraisal A table or chart that shows the periodic payments, interest and principal requirements, and unpaid loan balance for each period of the life of a loan.Amortize Determines the effects a proposed building or other structure, or alteration of an existing structure, will have on the desirability, property values, and development of surrounding areas.Area Variance An appurtenant right that does not involve ownership of physical objects, for example, easements (as opposed to mineral rights, which involve tangibles).Appurtenant All Risk PolicyAn insurance policy that covers all direct risk of physical loss unless a peril is specifically excluded. Also called an Open Peril policy.Someone who, for a fee, furnishes information concerning the location and availability of residential rental property.Apartment Sharing Agent AcreA measure of land area that is equal to 43,560 square feet.One square mile contains 640 acres.Administrative ReviewA prerequisite to judicial review and is initiated when a taxpayer files a grievance with the assessing unit.

When a loan a loan balance decreases because of periodic installments that pay principal andinterest.Amortization Schedule Attaching personal property to land so that the law views it

as part of the real property. See: Fixture.

Annexation, Actual Federal laws concerned with maintaining fair competition in private markets by prohibiting any restraint on trade.Apartment Information Vendor Agency, DualWhen a broker or salesperson represents both parties (buyer and seller) in a transaction, AND all management level licensees at a brokerage.Accessory ApartmentAn apartment within a primary residence.Acceptance1. Agreeing to the terms of an offer to enter into a contract, thereby creating a binding contract. 2. Taking delivery of a deed.Accord and SatisfactionAn agreement to accept something different (usually less) than what the original contract required.Alienation ClauseA contract clause that gives the lender certain stated rights when there's a transfer of ownership in the property. Upon sale of, or even a transfer of, significant interest in the property, the lender will often have the right to accelerate the debt (here called a due on sale clause), change the interest rate, or charge a hefty assumption fee (FHA and VA loans cannot have this).A tangible or intangible feature that enhances and adds value to real estate.American Land Title Association (ALTA) Agency RelationshipRelationship between a broker and a seller or a broker and a buyer. Imposes certain duties, obligations, and high standards of good faith and loyalty on the agent, as the representative of the principal.To calculate payments to pay off a debt by periodic installments, with payments going to pay principal and interest.Amortized Loan Acre, Builder'sAn informal unit of measurement, usually 40,000 square feet, that may be used by developers to describe lots for new construction. A builder's acre is not a legal acre.A right that goes along with ownership of real property; usually transferred with the property, but may be sold separately. (This is a legal term referring to both physical and non-physical appurtenances.) Appurtenance, Intangible Agent, SplitA licensee assigned by a broker to represent a buyer or seller in a transaction, usually in an in company dual agency situation.AccelerateTo make something go faster; in finance, making a loan come due faster by having all payments become due immediately.