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.