Vocab Crammer - Hondros Real Estate Ohio Flashcards

Vocab Crammer - Hondros Real Estate Ohio Flashcards BeneficiaryPerson designated to receive benefits from a certain act, such as one who benefits from a trust.AgencyA relationship of trust created when one person (the principal) gives another person (the agent) the right to represent the principal in dealings with third parties.As-Is ClauseA statement in a contract that indicates the property is being sold without warranty in its present condition at the time of the contract.CooperativeA type of property ownership under which residents have the right to occupy a unit by purchasing stock shares in the corporation that owns the property.AmortizationOccurs when a loan balance decreases because of periodic installments paid on the principal and interest.Bargain and Sale DeedA type of deed that implies that the grantor owns the property and has the right to convey it, but there are no warranties that go with it.Bill of SaleA document used to transfer ownership of personal property from one person to another.CancellationTermination of a contract without undoing acts that have been performed under it; can be done without going to court.ContributionThe theory that a specific item or feature of a property is worth only what it actually contributes in value to that parcel of real estate.Balloon PaymentA final lump-sum payment at the end of a loan term to pay off the entire remaining balance of principal and interest not covered by payments during the loan term.AccountingIn an agency relationship, the agent's fiduciary duty to the principal to strictly account for all monies received.ConveyanceThe act of transferring interest in property from one person to another.AsbestosA fibrous material that was once very common in many building materials because of its insulating and heat-resistant value; can cause breathing issues and illness.Bundle of RightsAll real property rights that are conferred with ownership, including right of possession, right of quiet enjoyment, right of disposition, right of exclusion, right of control. Also called Bundle of Sticks.BrokerageA business that serves as an intermediary between buyers and sellers and/or lessees and lessors of real estate.

AcreA measure of land equal to 43,560 square feet.Contractual CapacityThe legal ability to enter into a contract.CounterofferA response to an offer to enter into a contract, changing some of the terms of the original offer.Certificate of TitleA document prepared by an attorney stating the attorney's opinion of the status of the title to a piece of property, after performing a title search and reviewing the public records.Also called Opinion of Title.Cooperating AgentAn agent who works with a listing agent to sell property in a real estate transaction; the selling agent who finds a buyer for the listed property. Also called Cooperating Broker.ComminglingOccurs when a licensee mixes client funds with brokerage funds.Conventional LoanA loan made by an institutional lender or a private party with real estate as security for the loan that the government neither guarantees or insures.Certificate of Reasonable Value (CRV)A certificate establishing the current market value of a property based on an approved VA appraisal. Issues by the VA, this certificate places a limit on the amount of a VA guaranteed loan.Broker Price Opinion (BPO)The estimated value of a property as determined by a real estate licensee or other qualified individual. Often done at the request of a lender for non-federally related property transactions.Adverse PossessionThe open, notorious, hostile, adverse, exclusive, and continuous possession of another person's property for a number of years, after which time the adverse possessor may obtain title to the property.Anticipatory RepudiationWhen one party to a contract informs the other before the set time of performance that he or she doesn't intend to perform as agreed. The other party may immediately file a lawsuit for breach of contract without making a tender offer.Also called Anticipatory Breach.Appropriative RightsWater rights allocated by government permit, according to an appropriation system. It is not necessary to own property beside the body of water in order to apply for an appropriation permit.ComparablesRecently sold properties with similar characteristics that are in close proximity to the property being appraised.AssignmentThe transfer of rights or interests under a contract to another party.AgentA licensed broker who represents another (the principal) in a real estate transaction; a person authorized to represent the principal in dealings with third parties (clients or customers).

Ad ValoremLatin phrase meaning "according to value"; used to refer to taxes assessed on the value of property.AppraiserA person who estimates the value of property.BrokerA person who, for a fee, sells, lists, leases, exchanges, negotiates, or otherwise deals in the real estate of others or represents publicly that he or she does so.Chain of TitleThe chain of deeds and other documents transferring title to a piece of property from one owner to the next, as disclosed in the public record.Commercial PropertyProperty zoned and used for business purposes.Actual FraudAn intentional misrepresentation or concealment of a material fact; when a person actively conceals material information, or makes statements that he knows are false or misleading.Common AreasThe land and improvements in a condominium or cooperative that all residents use and own as tenants in common, such as the parking lot, hallways, and recreational facilities.Affidavit of TitleA statement, sworn in front of a notary public or other authorized official, by the seller or grantor of property that identifies the grantor, identifies the grantor's marital status, and certifies that the grantor has no new judgments, liens, divorces, unrecorded deeds, or other potential title defects since the title examination was completed. It also certifies that the grantor is indeed in possession of the property.Blind AdvertisementAny real estate advertisement used by a licensee that does not include the broker's business name. Prohibited in most states.Attachment LienA lien intended to prevent property transfer pending the outcome of litigation.Conditional UseA land use that does not comply with the general zoning rules for the zone in which it is located, but is permitted because it benefits the public, for example, a hospital in a residential neighborhood. Also called Special Exception or Special Use.Civil RightsFundamental rights guaranteed to all persons by the law.The term primarily refers to constitutional and statutory protections against discrimination based on race, religion, sex, or national origin.CorporationAn association organized according to strict regulations, in which individuals purchase ownership shares; regarded by the law as an artificial person, separate from the individual shareholders.Cost of MoneyThe interest rate that people or businesses must pay to use another's money for their own purposes.

BlockbustingThe illegal practice of inducing owners to sell their homes (often at a deflated price) by suggesting the ethnic or racial composition of the neighborhood is changing, with the implication that property values will decline as a result. Also called Panic Selling or Panic Peddling.CoditionProvision in a deed or other document that makes the parties' rights and obligations dependent on the occurrence or non-occurrence of some event.CondominiumA property developed for co-ownership, with each co-owner having a separate interest in an individual unit, combined with an undivided interest in the common areas of the property and air space consisting of the area between the walls, floor and ceiling.Compensatory DamagesA damage award, usually money, intended to compensate the plaintiff for harm caused by the defendant's act or failure to act.AssemblageThe act of combining two or more parcels of land into one larger parcel.Area VarianceEntitles landowners to use land in a way that is typically not allowed by the dimensional or physical requirements of the zoning law.Blanket MortgageA mortgage loan that covers more than one parcel of real estate, usually used to finance entire subdivision developments rather than an individual unit or lot.Actual NoticeActual knowledge of a fact, rather than knowledge imputed or inferred by law.Broker Protection ClauseProvides the broker is still entitled to commission if the property sells during a certain time period under certain circumstances. Also called Carryover Provision or Extender Clause.Annual Percentage Rate (APR)Relationship between the total cost of borrowing and the amount financed, represented as a percentage. Also called Effective Rate of Interest.Capital GainThe taxable profit derived from the sale of a capital asset; the difference between the sales price and the adjusted basis of the property.Alienation ClauseA mortgage clause allowing the lender to demand the full and immediate payment of the mortgage because the owner transferred or pledged to transfer ownership of the property. Also called Due on Sale Clause.AppreciationThe increase in value of an asset over time.Conforming LoanA loan that meets the qualifying standards of Fannie Mae or Freddie Mac, and thus can be sold on the secondary market.