Georgia Pre-Licensing Flashcards

Real Estate Vocabulary and Concepts

• Abstract of Title: A concise history of property ownership, detailing transfers, grants, liens, and encumbrances.
• Acceleration Clause: Provision in a loan agreement that requires full repayment upon default.
• Accession: Rights over what is produced by owned property, including natural or human additions.
• Accretion: Natural process leading to land area increase through soil deposits.
• Acre: Unit of land measurement equaling 43,560 square feet.
• Actual Eviction: Legal ejection of a tenant from a property.
• Actual Notice: When an individual is directly aware of a fact.
• Ad Valorem Taxes: Taxes based on the assessed value of real estate properties.
• Adjustable-Rate Mortgage (ARM): Mortgage with an interest rate that changes based on market conditions.
• Adverse Possession: Title transfer occurring when an owner neglects a property for a period, allowing another to claim it.
• Agency Agreement: Contract granting authority to act on behalf of another party.
• Agent: State-licensed individual representing another in real estate transactions.
• Air Rights: Rights to use the airspace above a property.
• Alienation: Transfer of property ownership, which can be voluntary or involuntary.
• Americans with Disabilities Act: Law prohibiting discrimination against individuals with disabilities in various public contexts.
• Amortization: Regular payment schedule reducing debt over time.
• Annual Percentage Rate (APR): Annual interest cost for a borrower.
• Antitrust Laws: Laws aimed at preventing anti-competitive practices like price fixing and collusion.
• Appraised Value: Certified estimate of a property's market value as of a given date.
• Appraiser: Licensed professional assessing property value.
• Appreciation: Increase in property value over time.
• Appurtenances: Rights associated with property ownership, typically transferred with the property.
• Asbestos: Hazardous fiber used in construction materials, associated with health risks if inhaled.
• Assemblage: Merging of adjacent properties to increase overall value.
• Assessed Value: Government valuation of property for tax purposes.
• Assessment: Process of determining property value for taxation.
• Asset: Valuable item owned.
• Assignment: Transfer of rights and obligations from one contract party to another.
• Associate Broker: Licensed broker acting as an independent contractor under another broker.
• Avulsion: Sudden loss of land through natural disasters.
• Balloon Payment: Large final loan payment that pays off the remaining balance.
• Bargain and Sale Deed: Deed implying possession, without guarantees against encumbrances.
• Base Line: Imaginary latitude line for land surveying.
• Benchmark: Government-established markers indicating elevation.
• Beneficiary: Entity receiving advantages from trusts, wills, or policies.
• Bilateral Contract: Contract wherein both parties have obligations.
• Binder: Preliminary agreement securing a property sale, contingent on a formal contract.
• Blanket Mortgage: Loan secured by multiple properties.
• Block and Lot System: Legal property description referencing subdivision numbers.
• Blockbusting: Illegal practice inducing sales by inducing fear of neighborhood change.
• Branch Office: Real estate office separate from the main corporate office.
• Bridge Loan: Short-term loan facilitating transitions between mortgage loans.
• Broker: Licensed individual representing parties in real estate transactions for commission.
• Brownfield: Properties needing redevelopment due to contamination.
• Building Code: Regulations governing building structure and safety.
• Bundle of Rights: Legal rights connected to property ownership.
• Buydown: Payment made to lower a loan's interest rate.
• Buyer's Market: Market condition favoring buyers due to excess supply.
• Capital Expenditure: Expense to improve a property.
• Capital Improvement: Upgrade enhancing property value.
• Capitalization Rate (Cap Rate): Percentage of income earned relative to property value.
• Carbon Monoxide: Toxic gas from incomplete fuel combustion.
• Cash Reserve: Funds set aside for variable expenses.
• CERCLA: Superfund law addressing hazardous waste clean-up.
• Certificate of Occupancy (CO): Document allowing occupancy following building inspections.
• Certificate of Title: Legal document confirming property title and ownership history.
• Chain of Title: Complete historical record of property ownership.
• Chlordane: Health-hazardous chemical previously used in pesticides.
• Chlorofluorocarbons (CFCs): Harmful chemical compounds once common in cooling systems.
• Civil Rights Act of 1866: Law prohibiting housing discrimination by race.
• Cloud on Title: Claim affecting property transferability.
• Collateral: Property pledged as loan security.
• Collusion: Unlawful competitive agreement violating fair trade practices.
• Color of Title: Imperfect title transfer unknown to the new owner.
• Commingling: Illegal mixing of personal and client funds.
• Commission: Regulatory body overseeing real estate professionals.
• Common Elements: Shared property areas in ownership structures.
• Common Law: Legal precedents established through court decisions.
• Community Association Manager: Licensed individual managing community associations.
• Community Property: Co-ownership system for married couples.
• Comparable (Comp): Property used for market value comparisons based on similar features.
• Comparative Market Analysis (CMA): Report estimating property value by comparing nearby sold/listed properties.
• Condominium: Mixed ownership property where owners have their own units in common areas.
• Consideration: Value exchanged in contracts as proof of agreement.
• Construction Mortgage: Temporary loan for financing construction projects.
• Constructive Eviction: Termination of lease due to landlord's failure to maintain property usability.
• Constructive Notice: Ownership records publicly available for knowledge of property details.
• Contingency: Contract provision dependent on specific conditions.
• Contract: Legally binding agreement with exchanged promises.
• Contract for Deed: Installment sales contract where title is held by the seller until full payment.
• Contribution: Value added to property by improvements.
• Conventional Life Estate: Property interest lasting for the lifetime of the owner.
• Conventional Loan: Non-government insured or guaranteed loans.
• Conversion: Changing property type from real to personal and vice-versa.
• Conveyance: Instrument transferring interest in real property.
• Cooperating Brokerage: Arrangement where two brokerages work together for a transaction.
• Corrective Maintenance: Repairs made after equipment failure.
• Cost Approach: Property value estimation based on replacement costs minus depreciation.
• Counteroffer: Modified proposal in response to an original offer.
• Covenant of Seisin: Assurance by the grantor that they hold the title.
• Covenants, Conditions, and Restrictions (CCRs): Private restrictions governing property use.
• Credit Report: Detailed account of an individual's credit history and status.
• Credits: Money received as part of an agreement.
• Curtesy/Dower: Spousal inheritance rights after the other's death.
• Customer: Individual entitled to fairness but without agency relationships.
• Datum: Reference point used by surveyors for elevation measurements.
• Debits: Money owed.
• Debt Service: Current obligations related to debt repayment.
• Debt Service Coverage Ratio: Metric for assessing income-producing property financial health.

Prepare for your Georgia real estate licensing exam with these helpful flashcards. Each card offers key terms and definitions essential for understanding the field of real estate. Test your knowledge of crucial concepts such as title history and loan clauses.