Tennessee Real Estate Exam Vocabulary Flashcards

Tennessee Real Estate Exam Vocabulary Flashcards Construction LoanA short-term, interim loan for financing the cost of construction. the lender makes payments to the builder periodic interval as the work progresses Balloon MortgageA mortgage that has level monthly payments that will amortize it over a stated term but that provides for a lump sum payment to be due at the end of an earlier specified term Appurtenancerights, benefits, and privileges inherent with and passing with title to land AvulsionThe removal of land from one property to another due to a change of course of a stream or river BrokerageThe business of a broker Comparison ApproachComparison Approach is most often used for single-family properties. It involves the comparison of the subject property to other houses recently sold in the area. The appraiser evaluates the differences in the properties being considered (no two properties are just alike) and makes adjustments for the differences.AcknowledgementA formal declaration by a person who has signed a document made before a duly authorized officer, usually a notary public.AmortizationThe gradual repayment of a mortgage loan by installments AnticipationAn appraisal principle that bases value of property that can rise or fall based on some future benefit or detriment to property AppraiserAn independent person trained to provide an unbiased estimate of value AcceptanceThe expression of the intention of the person receiving an offer (offeree, usually the seller) to be bound by the terms of the offer.Brownfields LegislationLegislation providing funds to states and municipalities for clean up Brownfields AcreA measure mento of land that contains 43,560 square feet Antitrust lawsLaws enacted by both federal and state government that prohibit activities which restrict free trade Air rightsThe right to use the open space above a property but not the pretty itself Constructive NoticeNotice given to the world by occupancy or recording to subsequent purchasers or lien holders of a prior interest in the property

Annual Percentage Rate(APR)The cost of a mortgage stated as a yearly rate.Community Association ManagementA team of property managers and support personnel who mange property Conditional Use PermitSpecial written permission for a use not otherwise allowable under current zoning regulations but which is considered necessary for the common good Condemnation1) Legal action to take private property for public use by the power of eminent domain2) The process of declaring property unfit for use Bilateral contractBoth parties to the contract are obligated to do something AssetAnything of value owned by a person AccessionObtaining 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 of streams.Base LineThe principal east and west surveyor lines established in the government survey method BenchmarksReference points established throughout the United States to aid surveyors in deterring differences in elevation Cold CallA licensee calling members of the public with whom they have not spoken with before.Adverse PossessionThe actual, open, notorious, hostile and continuous possession of of another's land under a claim of title.Caveat emptorThe situation in the offering of real estate where the buyer is offered information about the property's condition.Sometimes denied as "buyer beware".ClosingClosing is the bringing together of the buyer and seller in fulfilling the terms of the sales contract American with Disabilities ActAn act that addresses the rights of individuals with disabilities in employment and public accommodations AnnexationThe process of converting personal property into real property by permanently attaching it ChangeThe appraisal principle that holds that physical and economic changes will occur AccretionThe increase of land by sand and/or soil washing up from a river, lake or sea.Closing CostsExpenses (over and above the price of the property) incurred by buyers and seller in transferring ownership of a property ConformityThe appraisal principle that says the more similar properties are in a given area the better they will hold their property value ComminglingCommingling is mixing personal funds with other people's money and is illegal. If a broker kept excess amounts of personal money in an escrow account and the government froze the broker's accounts then the trust fund would also

be frozen. Or, if a broker died and had excess amounts of personal funds in his or her trust account the entire trust account could wind up in probate.AssumptionThe transfer of the seller's existing mortgage to the buyer CapitalMoney used to create income

Building codeA collection of laws that specify the minimum building standards for the locality or state Capital GainProfit from the sale of a capital asset Ad Valorem TaxA tax levied on real property according to value ComparablesAn abbreviation for "comparable properties"; used for comparative purposes in the appraisal process ClusteringDeveloping neighborhoods where the homes in the area are closer than normal with green areas in order to maintain the density area AppraisalAn expert opinion and report of valuation using established methods ClientA Client is at the person signing the agency contract with the broker ContributionThe appraisal principle that takes the value of parts of a property is what it adds to the property or when absent, what it subtracts from the property Bundle of Legal RightsThe group of rights that compose all benefits inherent in real property ownership Bargain and Sale DeedA deed that implies the grantor has the right to convey good title but does not warranty against encumbrances and liens Cash flowCash flow is the amount of spendable money remaining after all bills have been paid Actual EvictionA legal process that results in tenants being physically removed from leased premises Actual NoticeExpressed information or fact that is known Code of EthicsA written system of standards for ethical conduct AsbestosAn incombustible, chemical resistant, fibrous mineral form of magnesium silicate that can cause respiratory disease and was once used in insulation and other materials Blind AdA blind ad is an ad in which a brokerage firm or listing agent includes just his or her own name, a post office box number, or a telephone number to bait readers into believing the advertised property is offered by a private party. This type of ad is illegal.Competitive Market AnalysisA CMA is an educated guess of a property's market value based on comparing the property with the similar property's market price within the area CompetitionThe appraiser principle that states that excess profits generate competition within the market Conventional LoanA simple interest loan made within the primary mortgage market, which does not require insurance or a guarantee AssemblageCombining more that one parcel into one parcel, usually increasing the value of the land