Real Estate U Final Exam Study Guide Flashcards

Real Estate U Final Exam Study Guide Flashcards Listing AgreementAn employment contract between principal and agent, authorizing theagent to perform services for the principle involving the latter's property.Income ApproachAn appraisal technique whereby the value of an income producing property is estimating by capitalizing its net operating income using an appropriate capitalization rate.Value = Income / Rate.- Commonly used in commercial properties Gross IncomeThe total amount collected from rents and other income producingopportunities.TitleLegal term for a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest.Independent Contractor RelationshipA person that provides services to another underterms specified in a contract or within a verbal agreement. An independent contractor is not anemployee.- The agent does not have to work in a specific location- The broker cannot control the agent's work activities Building CodesRegulations established by state or local governments stating fully that structural requirements for building.- Building codes are enforced by the issuance of permits.BeamA horizontal structural member that supports a floor.Beams are typically wood, cold formed metal framing or steel.Board PackageA series of documents submitted for the review by a cooperative board.Specific LienA lien that only binds to a specific asset or property

(Example: mortgage).

Bond BeamConcrete set in soil Secondary Mortgage MarketThe market where mortgage loans and servicing rights arebought and sold between mortgage originators, mortgage aggregators (securitizers) and investors.Pocket CardA card issued by the Department of State to each licensee which contains thephoto, name and business address of the licensee, and, in the case of a real estatesalesperson, the name and business address of the broker with whom he or she is associatedand shall certify that the person whose name appears thereon is a licensed real estate broker orsalesperson.- Must be carried by the agent at all times when serving as a salesperson.

Habendum ClauseA clause in a deed or lease that defines the type of interest and rights to be enjoyed by the grantee or lessee. Also known as the "to have and to hold'" clause.MortgageLegal agreement by which a bank lends money in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon payment of the debt.Quitclaim DeedA deed which conveys simply the grantor's rights or interest in real estate,without any agreement or covenant as to the nature or extent of that interest, or any other covenants; usually used to remove a cloud from the title.AsbestosisA chronic lung disease caused by inhaling asbestos fibers.Market AllocationAn agreement between members of a trade to refrain from competition in specific market areas.LevyAn assessment of tax.By-lawsThe owner's rights and obligations for a condominium StudVertical framing members found in wall construction.Typically placed 12", 16" or 24" on center.Sales comparison approachValuation method which compares a subject property'scharacteristics with those of comparable properties which have recently sold in similar transactions Holdover TenantA tenant who remains in possession of leased property after the expiration of the lease term.FiduciaryA person who on behalf of or for the benefit of another transacts business orhandles money or property not the person's own; such relationship implies great confidence andtrust.Affirmative Easement AppurtenantParcels without access to a public way may have aneasement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access.Common ChargesMonthly payment by an owner of a condominium.The Office of Receiver of TaxesResponsible for collecting taxes Mortgage Contingency ClauseA clause in a contract that states a mortgage must beobtained in order for the contract to be binding.The Offering PlanA key document provided during the purchase of a cooperative, which includes information required to be disclosed to the purchaser.Planning BoardResponsible for developing and controlling a municipality's comprehensive strategy for growth and development SpecificationsA written document produced by an Architect that describes the quality of construction for a building.Bearing WallsStructural walls that transfer building loads down to the foundation. Joists, beams, and roofs are typically supported

by bearing walls.

Pro-forma StatementAn accounting statement that forecasts income and expenses for aperiod of time, typically five or more years.Delivery and AcceptanceLegal policy mandates that a deed to real property be a matter ofpublic record; therefore, subsequent to delivery and acceptance, a deed must be properly recorded.BlockbustingThe practice of inducing homeowners in a particular neighborhood to sell their homes quickly, often at below market prices, by creating the fear that the entry of a minority group or groups into the neighborhood will cause a precipitous decline in property values.Mandated warranty for new construction according to the NYS General Business Law 36-B 1) 1 year of workmanship2) 6 years for material defects3) 2 years for plumbing, electrical, and HVAC systems Estate for YearsA leasehold estate for any specific period of time. An estate for years is not automatically renewed.Voluntary LienA contractual or consensual lien that is created by an action taken by the debtor, such as a mortgage loan to buy

real estate (Example: mortgage).

Clean Air Act (CAA)Federal law designed to control air pollution on a national level.Riparian RightsThe right of a property owner whose land borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property.This term literally means "riverbank" AmortizationThe process by which a loan principal decreases over the life of a loan.Satisfaction of MortgageA document acknowledging the payment of a mortgage debt.Exclusive AgencyAn agreement of employment of a broker to the exclusion of all otherbrokers; if sale is made by any other broker during term of employment, broker holdingexclusive agency is entitled to commissions in addition to the commissions payable to thebroker who effected the transaction- Made between a broker and a seller Price FixingConspiring to establish fixed fees or prices for services or products.AcreA measure of land equaling 43,560 square feet.Essential Element of a Contract1) Consideration2) Must be in writing3) Must have competent parties Red-liningThe refusal to lend money within a specific area for various reasons. This practice is illegal.PrincipalThe employer of an agent or broker; the broker's or agent's client.EvictionA legal proceeding by a lessor landlord to recover possession of real property.