Pearson VUE Real Estate Vocabulary Flashcards

Pearson VUE Real Estate Vocabulary Flashcards AbatementA legal action to stop a nuisance. Also can be a reduction of a property tax assessment.Abstract of JudgementA condensation of a court judgement. When recorded, the judgement becomes a general lien on the property of the debtor within the county where recorded.Agency by RatificationAn agency created by a principal approving an unauthorized act of another.100% locationThe best retail location within a community.Air LotA described airspace over a property that is subject to being transferred.AlterationModification of a contract or note by one party without the consent of the other. Alteration voids the contract.100% officeOffice where salespersons pay a regular fee to the broker but receive 100% of the commissions they earn.Agency Coupled w/ an InterestAn irrevocable agency under which the agent has an interest in the subject matter of the agency.AccessionObtaining title as a result of attaching or joining property to other property.AdministratorA man appointed by a probate court to administer the estate of a deceased; a female appointee is an administratrix.AgencyA contractual relationship in which one person (an agent) represents another (a principal).AffidavitA statement sworn to under oath or by affirmation before a notary.Advance FeesFees paid in advance of services rendered.AccretionA gradual buildup of soil by action of water or wind.Adjusted BasisAcquisition cost less depreciation plus cost of improvements. The adjusted basis is deducted from the sales price to determine gain or loss.Accord and SatisfactionThea act of accepting a different consideration than agreed; for example, if there is a dispute as to performance and what party accepts less than what was bargained for originally.Agency by EstoppelAn agency created when the principal's words or conduct lead another to believe in the agency and thereby act to the other's detriment.Age-life TablesAppraisal tables that indicate the economic life for various types of structures.Aesthetic ZoningZoning for conformance appearance such as architectural style requirements.

Abstractive MethodA means of obtaining land value by deducting the value of improvements from the total property value.AbstractA history of every recorded document dealing with a property. It is examined to determine whether there is marketable title.Accrued DepreciationDepreciation to date; measured by the difference between the replacement cost new and the present value.AmenitiesFeatures of a property that enhance the satisfaction and use of the property; for example, an extra bath Action in RemA legal action against a person. When recorded, a judgement from such an action is a specific lien against the particular property involved in the action.AffirmationA formal declaration as to the truthfulness of a statement; made by a person whose religious beliefs prohibit swearing under oath.After-acquired InterestAn interest acquired by a grantor after he or she has conveyed property. Under some deeds, after-acquired interest is said to pass to the grantee.AdemptionDisposal of property by a testator before death. It defeats the rights of a specific beneficiary under the will. (the beneficiary is not entitled to the sale proceeds or value).Adverse PossessionA means of obtaining title from another by open, hostile, and continuous use for statutory periods of time. In some states, adverse possession also requires payment of taxes.Accredited Management Organization (AMO) A professional designation awarded to a management company by the Institute of Real Estate Management.AcreA measure of land equal to 43,560 square feet.Action in PersonamA legal action against a person. When recorded, a judgement from such an action is a general lien against all of a debtor's property in a county where recorded.AlluvionSoil added gradually to land by action of water or wind (accretion). the soil belongs to the land it is added to by this accretion process.Accommodation PartyA third person (cosigner) who signs a negotiable instrument agreeing to be personally reliable to the payee.Acceleration ClauseA provision in a note making all payments due on the happening of a certain event (such as missing a payment or selling the property).Adjusted Gross IncomeGross income adjusted for a vacancy factor and collection loss.Affordability IndexAn index of the National Association of REALTORS (R) that measures the median family income ability to support a mortgage for the median price home. An index of 100 means that the median income is equals to the amount necessary to afford the median price home.

Air RightsThe rights of property owners to the reasonable use of the airspace over their property. Air rights are considered to be real property and can be separately leased or conveyed.Affirmative EasementAn easement that allows the easement holder a right of use over the land of another.AcknowledgmentA declaration customarily made before a notary, certifying that the signing of an instrument is the signer's own free act.Adjusted Market PriceThe adjustment of a comparable property's sales price to account for differences in features and amenities of a property under appraisal (using the market comparison approach).Accredited Resident Manager (ARM)A professional designation for resident property managers awarded by the Institute of Real Estate Management.Ad ValoremA tax according to value; real property taxes are considered to be ad valorem taxes.Actual NoticePersonal knowledge of an interest or instrument.Advance CommitteeA lender agreement to provide permanent financing upon completion of a construction project.Adjustable-rate Mortgage (ARM)A mortgage bearing a rate of interest subject to change (based on a particular index) during the term of the loan.ARMs generally have caps on the interest that can be charged.AlienationA transfer of property or property rights.Accelerated DepreciationAny method of depreciation for tax purposes that gives greater initial depreciation than the straight-line method.Accelerated depreciation is no longer allowed.AcceptanceAn act or agreement that forms a contract.AbandonmentVoluntarily giving up possession of property or a claim or right.Absorption RateThe rate at which new or vacant space (such as office space) will become occupied.Amend Escrow InstructionsA change in the escrow instructions after they have been signed. The signatures of both buyer and seller are required to amend the instructions.