Texas Real Estate Vocabulary Flashcards

Texas Real Estate Vocabulary Flashcards BasisThe financial interest that Internal Revenue Service attributes to an owner of an investment property for the purpose of determining annual depreciation and gain or loss on the sale of the asset.WasteAn improper use or an abuse of property by a possessor who holds less than fee ownership, such as a tenant, life tenant, mortgagor or vendee. Such a waste generally impairs the value of the land or interest of the person holding the title or the reversionary rights.Air RightsThe right to use the open space above a property, generally allowing the surface to be used for another possession.Business Interruption InsuranceA form of coverage that provides income to a business in the event the premises becomes untenable.Blu Sky LawsCommon name for state and federal laws that regulate the registration and sale of investment securities.AppurtenancesThose rights, privileges and improvements that belong to and pass with the transfer of real property but are not necessarily a part of the property, such as rights of way, ease-ments, water rights and property improvements.AcknowledgementA formal declaration made before a duty authorized officer, usually a notary public, by a person who has signed a document attesting that the instrument was executed by him and that it was his free and voluntary act.Attorney Opinion Of TitleA writing based on the lawyers reading of an abstract of title defects and names the legal titleholders as the lawyers interprets it states whether a seller may convey a good title.AssignmentThe transfer in writing of interest in a bond, mortgage, lease or other instrument.Breach Of ContractViolation of any terms or conditions in a contract without legal excuses for example failure to make a payment when it is due.Branch OfficeA secondary place of business apart from the principal or main office from which real estate business is conducted.BequestThe transfer of personal property to a legatee in accordance with a will.Adjusted Sales PriceFor income tax purpose, the actual sales price reduced by allowable sales expenses.Assumption Of MortgageAcquiring title of property on which there is an existing mortgage and agreeing to be personally liable for the terms and conditions of the terms and conditions of the mortgage,

including payments contracts with subject to mortgage.Abstract Of Title With Lawyers OpinionAn abstract of title that a lawyer has examined and has certified to be, in his or her opinion, an accurate statement

of fact.

Adverse PossessionThe actual, visible, hostile, notorious, exclusive and continuous possession of another's land under a claim of title.Automatic ExtensionA clause in a listing agreement that states that the agreement will continue automatically for a certain period of time after its expiration date illegal in Texas Buyers AgencyAn agency relationship between the broker and buyer, with fiduciary duties owed to the buyer.Wraparound mortgageA method of refinancing in which the new mortgage is placed in a secondary, or subordinate, position; the new mortgage includes both the unpaid principal balance of the first mortgage and whatever additional sums are advanced y the lender. If the lender is the seller, such sum is not "advanced" but rather carried back as a part of the mortgage in which another lender refinances a borrower by lending an amount over the existing first mortgage amount without disturbing the existence of the first mortgage.BootMoney or property given to make up any differences in value or equity between two properties in an exchange.Buyers Representation AgreementA contract which establishes a broker buyer agency relationship.BrokerageFor a commission or fee, bringing together parties interested buying, selling, exchanging or leasing real property.Buy DownA cash payment, usually measured in points, to a lender to reduce the interest rate a borrower must pay.Buy Down MortgageA mortgage on which a cash payment has been made to the lender to reduce the interest rate a borrower must pay usually for the first three years of the loan.BlockbustingThe illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of minority persons into the neighborhood.Accrued ItemsOn a closing statement, items of expenses that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.AssessmentThe imposition of a tax, charge or levy, usually according to established rates.AppreciationAn increase in the worth or value of a property due to economic or related causes, which may prove to be either temporary or permanent opposite of depreciation.Bundle Of Legal RightsThe concept of land ownership that means ownership that means ownership of all legal rights to the land.Allodial SystemA system of land ownership in which land is held free and clear of any rent or service due to the government.