all glossary terms from real
estate textbook
Question Answer
A deliberate agreement between parties; offer and
“Meeting of the minds” acceptance; “meeting of the minds.” A
requirement of a legally enforceable contract.
A phrase in a contract that requires the
performance of a certain act no later than the
“Time is of the essence” stated time or the noncompliant party is in breach
and the contract may be voidable by the opposite
party.
1)no longer exist 2)easement holder becomes
owner 3)release right 4) abandonment 5)non-use
of prescription 6) adverse possession
10 reasons for terminating an easement
7)demolition of a party wall 8)nonrecordation
9)lawsuit(quiet title) 10)residential easement
converted to commercial purposes
1)the promises made in the sales contract are
fulfilled 2)the mortgage loans funds are distributed
3 events in closing
to the buyer for use 3)other settlement costs or
funds are dispersed
3 physical characteristics of real property Immobility, indestructibility, uniqueness
Scarcity, Location, Improvements, & Permanence
4 economic characteristics of real property
of investment. aka SLIP
Residential, Commercial, Industrial, Agricultural,
5 categories of real property
Special purpose.
1) One owner only 2) interest 100% 3) one
signature only when sold unless a married person
5 characteristics of ownership in severalty - spouse signs to extinguish elective share rights
4) marriage of an owner does not automatically
change to tenancy by entireties 5) heir ship rights
a lease is said to have ___ ___ ____
because it is a contract and it conveys an dual legal personality
interest in real property.
Abstract of Title A condensed history of a title.
the clause in a mortgage or deed of trust that can
be enforced to make the entire debt due
acceleration clause
immediately if the borrower defaults on an
installment payment or another covenant.
occurs when the offeree signs the offer without
making any changes to it, thereby evidencing his
acceptance
acceptance and willingness to be bound by and
perform all terms of the offer.
, Acquiring title to additions or improvements to real
property as a result of the annexation of fixtures
Accession
or the accretion of alluvial deposits along the
banks of streams.
Acquiring title to additions or improvements to real
property as a result of the annexation of fixtures
Accretion
or the accretion of alluvial deposits along the
banks of streams.
unpaid items to be prorated such as unpaid
current real estate taxes or interest on an
accrued items
assumed mortgage that are owed by the seller but
will be paid later by the buyer.
A measure of land equal to 43,560 square feet,
Acre 4,840 square yards, 4,047 square meters, 160
square rods, or 0.0408 hectare.
The legal process that results in the tenant’s
Actual eviction being physically removed from the leased
premises; summary ejectment.
General real estate taxes that are levied for the
Ad valorem taxes general support of the government agency
authorized to impose the levy.
a type of mortgage that generally originates at
one rate of interest, with the rate fluctuating up or
adjustable-rate mortgage (ARM)
down during the loan term based on the
movement of a published index.
cost of any physical capital improvements that
adjusted basis add value to the property or prolong its life (added
to the cost basis)
The Open, Continuous, Exclusive, Adverse,
Notorious possession of another's land under a
Adverse Possession claim of title. Possession for a statutory period of
20 years in North Carolina may be a means of
acquiring title.
An area zoned strictly for aesthetic or appearance
Aesthetic Zoning
considerations
The easiest but least precise way to measure
Age Life Method of Depreciation depreciation that uses the effective age of a
building & its economic life.
the fiduciary relationship between the principal
Agency
and the agent.
one who represents the interest of another
Agent
person.
Agricultural farms, timberland, ranches, and orchards.
In North Carolina, a fixture attached to leased
property by a tenant farmer is considered the
Agricultural Fixtures
landowner's real property rather than the tenant's
personal property.
The right to use the open space above a property,
Air Rights usually allowing the surface to be used for
another purpose.
, Transfer of title, act of transferring property to
Alienation
another.
Prevents the borrower from letting someone
Alienation Clause
assume the debt without the lender's approval.
Owner's title insurance policy that protects the
ALTA Policy owner against title defects not found in public
records.
A title insurance policy that protects the interests
American land title association/Alta policy in a collateral property of a mortgage lender that
originates a new real estate loan.
A Federal Act that facilitates accessibility and
Americans with Disabilities Act (ADA) mobility by ramp construction, safety rails, wider
doors, and other accommodations.
A loan in which principal as well as interest is
Amortized Loans payable in periodic installments over the term of
the loan.
the relationship of all finance charges to the loan
annual percentage rate (APR) amount; must be disclosed to borrowers the
Truth-in Lending Act.
When value could increase or decrease based on
Anticipation anticipation of some future benefit or detriment
affecting the property.
laws that prohibit monopolies and contracts,
Antitrust laws combinations, and conspiracies that unreasonable
restrain trade.
Estimate of the quantity, quality or value of
Appraisal
something.
An increase in the worth or value of a property
due to economic or related causes, which may
Appreciation
prove to be either temporary or permanent;
opposite of depreciation.
A right, a privilege, or an improvement belonging
Appurtenance
to , and passing with, the land.
When the property does NOT sell for an unusually
high or low price because of a special relationship
Arms length transaction
between a buyer & a seller; parties are dealing
from equal bargaining positions
Mineral used extensively in insulation; inhaling
fibers can cause sever respiratory diseases;
asbestos
particularly dangerous if friable, i.e., easily
crumbled
An official valuation of property for the purpose of
Assessment
establishing assessed value for tax purpose.
Refers to a transfer of rights or duties under a
assignment
contract to a third party.
Acquiring title to property on which there is an
existing mortgage and agreeing to be personally
Assumption of mortgage
liable for the terms and conditions of the
mortgage, including payments.
, A form of selling property where oral bids are
Auction taken and the property is sold to the highest
bidder.
The sudden tearing away of land, as by
earthquake, flood, volcanic action, or the sudden
Avulsion
change in the course of a stream. The loss of land
may not result in loss of title to the property.
an offer submitted to the property owner with
backup offer knowledge that the owner is already under
contract; a secondary offer.
a mortgage loan that includes a final payment that
balloon payment loan is larger than the required periodic payments
because the loan amount was not fully amortized.
a board around the bottom of a wall perpendicular
baseboards to the floor; covers gap b/w the floor and wall;
decorative
story-high space below the first floor; floor is
basement
usually concrete slab
determines the amount of the gain realized from a
basis
sale of real property
A lender in a deed of trust loan transaction; the
beneficiary
recipient of personal property in a will
A type of contract in which both parties promise to
do or refrain from doing something; one promise
bilateral contract
is exchanged for another. "I will do this and you
will do that"
covers more than one parcel of land and usually
is used to finance subdivision developments,
blanket mortgage
though it can be used to finance the purchase of
improved properties as well
The act of encouraging people to sell or rent their
homes by claiming that the entry of a protected
blockbusting or Panic Peddling
class will have a negative impact on property
values.
money or property given to make up any
boot difference in value or equity between two
properties in a 1031 exchange
A secondary place of business apart from the
principal or main office from which real estate
Branch office business is conducted. A branch office usually
must be run by a broker – in – charge working on
behalf of the broker.
The violation of any terms or conditions in a
Breach of Contract contract without legal excuse; for example, failure
to make a payment when it is due.
A measure of heat used in rating the capacity of
British Thermal Unit (BTU)
heating and cooling systems. (BTU)
Broad Form (HO-2) insurance policy covering buildings and personal
property against loss or damage from fire, lighting,
removal, windstorm, hail, explosion, riot, smoke,
