Real Estate Terms Flashcards

Real Estate Terms Flashcards American with Disabilities Act (ADA)A federal law intended that prohibits illegal discrimination

against someone with a disabiltiy: employment, access to

sate and local governmental offices, telecommunications, and transportation.AccretionThe increase or addition of land by the deposit of sand or soil washed up naturally from a river, lake, or sea.Air LotA designated airspace over a piece of land. An air lot, like surface property, may be transferred.AgencyThe relationship between a principal and an agent, usually a property owner and a real estate broker.Acceleration ClauseThe clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the borrower defaults on an installment payment or other covenant.Affidavit of TitleA written statement, made under oath by sellers or grantors of real property and acknowledged by a notary public, in which the grantors (1) identify themselves and indicate marital status; (2) certify that since the examination of the title on the date of the contracts no defects have occurred in the title; and (3) certify that they are in possession of the property (if applicable).Actual NoticeExpress information or fact; that which is known; direct knowledge.Agent Coupled with an InterestAn agency relationship in which the agent is given an estate or interest in the subject of the agency (the property).Allodial SystemA system of land ownership in which land is held free and clear of any rent or service due to the government; commonly contrasted to the feudal system. Land is held under the allodial system in the United States.AgriculturalA category of real estate that includes farms, timberland, ranches, and orchards.AddendumA document that was not part of the original contract that may contain additional terms for the contract; also known as a rider.Amortized LoanA loan in which the principal as well as the interest is payable in monthly or other periodic installments over the term of the loan.Actual DamagesMonetary loss that can be documented by the nonbreaching party to a contract.

AgentOne who acts or has the power to act for another. A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a real estate broker to be the agent.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.Adjustable-Rate-Mortgage (ARM)A loan characterized by a fluctuating interest rate, usually one tied to a bank or savings association cost-of-unds index.AlienationThe act of transferring property to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession.Adjusted Sales PriceSales price after costs of sale are deducted.Air RightsThe right to use the open space above a property, usually allowing the surface to be used for another purpose.Abstract of TitleThe condensed history of a title to a particu parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate.Accrued ItemsOn a closing statement, items of expense incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.Adjustment PeriodThe period of time that the interest rate remains constant on an adjustable-rate-mortgage; rate may go up or down with each adjustment period.Ad ValoremLatin phrase meaning "to the value." American Land Title 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.AcknowledgementA formal declaration made before a duly authorized officer, usually a notary public, by a person who has signed a document.AmendmentA change to the original contract.AcessionAcquiring title to additions or improvements to real property as a result of the annexation of fixtures or the accretion of alluvial deposits along the banks and streams.AdministratorPerson appointed to settle estate of someone who dies intestate.Ad Valorem TaxA tax levied according to value, generally used to refer to real estate tax. Also called the general tax.

Alienation ClauseThe clause in a mortgage or deed of trust stating that the balance of the secured debt becomes immediately due and payable at the lender's option if the property is sold by the borrower. In effect, this clause prevents the borrower from assigning the debt without the lender's approval.Actual EvictionThe legal process that results in the tenant's being physically removed from the leased premises.