Real Estate Vocabulary & Definitions PDF

VOCABULARY & DEFINITIONS A. "AS-1S" - Selling the property without warranties as to the condition and / or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection, Thus, AS-IS ABSENTEE BID- Allows Bidder to pa...

VOCABULARY & DEFINITIONS A. "AS-1S" - Selling the property without warranties as to the condition and / or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection, Thus, AS-IS ABSENTEE BID- Allows Bidder to participate in bidding process without being physically present. ABSENTEE BIDDER: A person (or entity) who does not attend the auction, but submits an absentee Bid. ABSOLUTE AUCTION: (AUCTION WITHOUT RESERVE) An auction where property is sold to the highest qualified bidder with NO limiting conditions or amount. The seller may NOT bid personally or through an agent. ( ACCELERATION CLAUSE: Claus in a mortgage, land deal or lease stating that upon default of a payment due; the balance of the obligation should at once be due and paid in full. ACCOUNTING OF A SALE: A report to the seller by the auctioneer about details of the financial aspects of the auction. ACRE: = 160 RODS, or 4840 sq. yards, or43,560 sq. feet. AD VALOREM: A tax according to valuation. ADMINISTRATOR: A person appointed by the court when no will is left. ADVANCE FEE: Down Payment AGENT: A person who represents another individual or entity with their authority to do so. AGREEMENT OF SALE: (CONTRACT) An agreement between two or more people or companies which created or modify a legal (Note: A section of land is 640 acres) relationship. ALIENATION: The transfer of Real Property by one person to another. AMORTIZATION: Paying a mortgage by payments or on an installment basis. ANNUITY: A sum of money or it equivalent that constitutes one of a series of payments. APPRAISAL: 1. The act of estimating value 2. An estimate of quantity, quality, and or value. APPRENTICE AUCTIONEER: An auctioneer who is in training and operating under the supervision of a licensed auctioneer. ASSIGNEE: One with whom the contract or agreement is assigned. AUCTION: A method of selling real or personal property in a public forum through an open and competitive bidding. It is also referred to as an Auction Block Sale, Public Auction, and Auction Sale. AUCTION BLOCK: It is the Podium or raised platform where the Auctioneer stands while conducting the auction. To place something on the auction block means to sell something at the auction. AUCTION LISTING AGREEMENT: (LISTING AGREEMENT) A contract executed by the Auctioneer and the Seller which authorizes the auctioneer to conduct the auction, and sets out the terms of the agreement, rights, and responsibilities of both parties. AUCTION MARKETER: In the case of Real Property; a person who contracts with the Sellers for a auction method of marketing property. VOCABULARY & DEFINITIONS. A. AUCTION MARKETING: It is a method of marketing Real Property utilizing the auction method of sale. AUCTION PLAN: It is a sequence of key tasks to be done by auction contractor or other designated parties on specified dates. AUCTION PRICE: The price of a property obtained through the auction method of marketing. AUCTION SUBJECT TO CONFIRMATION: (Also RESERVE AUCTION or AUCTION WITH RESERVE) An auction in which the Seller or his Agent reserves the right to accept or decline any or all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline the bid within a specified time. . This reserve price is also known as the "upset price" Failure to reach the reserve price or insufficient bidding is called "withdrawal". AUCTION VALUE: It is the price which a particular property brings in open competitive bidding at a public auction. AUCTION WITH RESERVE: (Also RESERVE AUCTION or AUCTION SUBJECT TO CONFIRMATION) An auction in which the Seller or his Agent reserves the right to accept or decline any or all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline the bid within a specified time. This reserve price is also known as the "upset price" Failure to reach the reserve price or insufficient bidding is called "withdrawal". AUCTION WITHOUT RESERVE: (Also ABSOLUTE AUCTION) An auction where property is sold to the highest qualified bidder with NO limiting conditions or amount. The seller may NOT bid personally or through an agent. AUCTIONEER: (ALSO BID CALLER1 The person whom the Seller engages to direct, conduct, or be responsible for a sale by Auction. He may or may not cry the auction. (Or be the Bid Caller) AUCTIONEER SUBCONTRACTOR: An Auctioneer hired by the Principal Auctioneer. B. BALLROOM AUCTION: An Auction of one or more properties conducted in a meeting room facility. BANK LETTER OF CREDIT: A letter from a bank certifying that a named individual is worthy of a given level of credit. Often requested from prospective bidders or buyers who are not paying with currency at auctions. BANKS: Mechanical and Still BID: A prospective buyer's indication or offer of a price, he or she will pay to purchase property at the auction. Bids are usually standardized increments established by the Auctioneer. BID ACKNOWLEDGEMENT: (ALSO MEMORANDUM) A form executed by the high bidder confirming and acknowledging that the bidder's identify the bid price and the description of the property. BID ASSISTANTS ( Also known as RINGMEN, BID CONSUSTANTS, BID SPOTTERS, OR GROUNDS MEN) Individuals who are positioned throughout the attendees at the auction to assist the Auctioneer, spot bidders and assist prospective bidders with information to help them in their buying decisions. BID CALLER: (AUCTIONEER) The person whom the Seller engages to direct, conduct, or be responsible for a sale by Auction. He may or may not cry the auction. VOCABULARY & DEFINITIONS. B. BID RIGGING: The unlawful practice whereby two or more people agree not to bid against one another so as to deflate the value of merchandise. BIDDER NUMBER: The number issued to each person who registers at an auction. BIDDER PACKAGE: (BIDDER PACKET, or DUE DILIGENCE PACKAGE) The package of information and instructions pertaining to the property to be sold at an auction event obtained by prospective bidders at an auction. BIDDERS CHOICE: A method of sale where by the successful high bidder wins the right to choose a property or properties from a grouping of similar or like, kind properties. After the high bidder's selection, the property is deleted from the group, and the second round of bidding commences, with the high bidder in round two choosing a property, which is then deleted from the group and so on, until all properties are sold. BLANKET MORTGAGE: It is a single mortgage which covers more that one piece of Real Estate. BOND: (RECOVERY FUND) 1. Any obligation under seal. 2. An insurance contract in which the agency guarantees payment to an employer in the event of an unforeseen financial loss through the action of an employee. BOOKKEEPER (CLERK) BROKER PARTICIPATION: The person who is responsible for the accounting and paperwork at an auction sale. An arrangement for third party brokers to register potential bidders for properties being sold at an auction for a commission paid by the owner of the property or the auction firm. BUYERS BROKER: A Real Estate Broker who represents the buyer and, as an agent of the buyer, is normally paid for their services. BUYERS PREMIUM: An advertised percentage of the high bid or a flat fee added to the high bid to determine the total contract price to be paid by the buyer. C. CARAVAN AUCTIONS: A series of onsite auctions advertised through a common promotional campaign. CARRYING CHARGES: The costs involved in holding a property which is intended to produce income (either sale or rent) but has not yet done so. CATALOG (OR BROCHURE) CAVEAT EMPTOR: Publication advertising and describing the property (ies) available for sale at the public auction A Latin term meaning "Let the Buyer Beware." A legal maxim stating that the buyer takes the risk regarding quality, or condition of property purchased. I( CHATTEL: Personal property or removable fixtures. CHICKENS: White Plymouth Rocks, Rhode Island Reds, etc. (Look up others) CHINA: Havilland, Nippon, Wedgewood, Bavaris, Limoges, Chelsea, Canton, Bisque CLERK: (BOOK KEEPER): A person employed by the principal Auctioneer or Auction Firm to record what is sold and to whom and for what price. CLOCKS: Beehive, Banjo, Black, Carriage, Conn. Wall, Calendar, Conn. Shelf, Cottage & Girandole, Grandmother, Grandfather, Looking glass, Lyre, Pillar & Scroll Steeple. VOCABULARY & DEFINITIONS C. CLOSING STATEMENT: An accounting of Funds. COLLUSION: The unlawful practice whereby two or more people agree not to bid against one another so as to deflate the value, or...When the auctioneer accepts a fictitious bid on behalf of the seller so as to manipulate or inflate the price of the property. COMMINGLE: To mingle or mix clients funds in your personal account COMMISSION: 1. The fee charged to the seller by the Auctioneer for providing services. 2. Sum due for services. COMMUNITY PROPERTY: Property, joking of husband and wife living together. COMPOUND INTEREST: Interest paid on original principal and also on the accrued and unpaid balance. CONDITION OF SALE: - The legal terms that governs the conduct of an auction. CONTRACT: An agreement between two or more persons or entities which create or modify a legal relationship. COOPERATING BROKER: A Real Estate Broker who registers a prospective buyer with the Auction Company. COWS: (BEEF) Brahma, Angus, Charolaise, Beefalo, Hereford, (MILK) Guernsey, Jersey, Holstein. CRITICAL PATH: Leading to desired goals. D. DEED: Writing by which land and hereditaments are transferred, it is signed, sealed and delivered by the grantor. DUAL AGENCY: The representation of opposing principals (buyers and sellers) at the same time. DUE DILIGENCE: The process or gathering information about the condition and legal status of assets to be sold. DURESS: Unlawful constraint exercised upon a person where he/she is forced to perform some act or sign, against his/her will. E. EARNEST MONEY: 41 " ENCUMBRANCE: Down Payment A claim, hen, charge, or liability attached to and binding upon real property, such as a judgment, unpaid taxes or right or way. EQUITY: The interest or value which an owner has in real estate over and above the mortgage against it. ESCROW: A deed delivered to a third person to be held until the fulfillment of some act or condition. ESTATE: The degree, quantity, nature and extent of interest one has in real property. VOCABULARY & DEFINITIONS E. ESTATE SALE: The sale of property left by a person at his or her death. An estate auction can involve the sale of personal and/or Real Property. EXECUTOR: A person named in a will to carry out its provisions. EXECUTRIX: A female person named in a will to carry out its provisions. F. FURNITURE: Period, Jacobean, Restoration, William & Mary, Queen Ann, Chippendale, Louis XC, Louis XVI, Hepplewhite, Sheraton, American Federal, Late Federal, Regency, Directoire, American Empire, French, Duncan Phyfe, Early Victorian, Wicker, Ethan Allen. G. GLASSWARE: Pattern, Pressed, Cut, DepressiOon, Carnival, Milk, Tiffany, Satin, Mother of Pearl. GRANTEE: A person to whom real estate is conveyed; the buyer GRANTOR: A person who conveys real estate by deed; the seller GROUNDS MAN: BID ASSISTANTS ( Also known as RINGMEN, BID CONSUSTANTS, BID SPOTTERS): Individuals who are positioned throughout the attendees at the auction to assist the Auctioneer, spot bidders and assist prospective bidders with information to help them in their buying decisions. H. HAMMER PRICE: Price established by the last bidder and acknowledged by the Auctioneer before dropping the hammer or gavel. HAND MONEY: (EARNEST MONEY) Down Payment HEREDITAMENTS: The largest classification of property; included lands, tenements, and incorporeal property, such as right-of- ways. HOGS: HORSES: Yorkshire, Duroc, Hampshire, Spotted Poland China, Arabian, Clydesdale, Quarter Horse, Morgan, Palomino, Appaloosa, Paint, Thoroughbred, Standard breed. I. INSTALLMENT CONTRACT: Purchase upon and installment; upon default, payments are forfeited. J. Jr MORTGAGE: A mortgage second in lien to a previous mortgage VOCABULARY & DEFINITIONS. L. LAND CONTRACT: A contract for the purchase of real estate upon and installment basis; upon payment of last installment, deed is delivered to purchaser. LESSEE: A person who rents under a lease LEASER: A person who is the landlord LIFE ESTATE: An estate held during the terms of some certain person's life LISTING AGREEMENT: ( AUCTION LISTING AGREEMENT) A contract executed by the Auctioneer and the Seller which authorizes the auctioneer to conduct the auction, and sets out the terms of the agreement, rights, and responsibilities of both parties. LISTING BROKER: A real estate broker who has a listing on a property and cooperates with the auction company by allowing the auction agreement to supersede his/her listing agreement. M. MARKET VALUE: (1.) The highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale. (2.) The highest price a buyer would pay, and the lowest price a seller would accept. MEMORANDUM: _for BIDDER ACKNOWLEDGEMENT) A form executed by the high bidder confirming and acknowledging that the bidder's identify the bid price and the description of the property. MORTGAGE: A conditional transfer of real property as security for the payment of a debit or the fulfillment of some obligation. o. OPTION: The right to purchase or lease a property at a certain price for a certain designated period, for which right of consideration is paid. P. PACKAGE MORTGAGE: One which included personal property within the lien of the mortgage. PRINCIPAL NOTE: The promissory note which is secured by the mortgage or trust deed. PRINTS: Currier & Ives PROPERTY: The right or interest which an individual has in land and chattels to the exclusion of all others. PURCHASE MONEY MORTGAGE: A mortgage given by a grantee to the grantor in partial payment of the purchase price. QUICK CLAIM DEED: A deed given when the buyer(grantee) has complete or partial title to the premises and the seller (grantor) has a possible interest that would constitute a cloud on the title. R. RESERVE AUCTION: (Also AUCTION SUBJECT TO CONFIRMATION or AUCTION WITH RESERVE) An auction in which the Seller or his Agent reserves the right to accept or decline any or all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline the bid within a specified time. . This reserve price is also known as the "upset price" Failure to reach the reserve price or insufficient bidding is called "withdrawal". VOCABULARY & DEFINITIONS. S. . c:SECTIO-N OF CANDv: 640 Acres SHEEP: Cheviot, and look the others up SILVER: Sheffield, Solid Sterling, Coin, Plated, Rogers STANDARD BREED: Horse STATUTE OF FRAUDS: Required certain contracts relating to real estate such as agreements of sale to be in writing, to be enforceable SUBDIVISION: A tract of land divided into lots suitable for homebuilding purposes. SURVEY: The prices by which a parcel of land is measured and its area ascertained T. TAX DEED: A deed for property sold at public sale by a political subdivision for non-payment of taxes by owner. TAX SALE: It is a Public sale of property at auction by governmental authority. TERMS: The period of time that an agreement is in effect. TERMS AND CONDITION: The printed rules of the auction and certain aspects of the Purchase & Sale Agreement that are read and/or distributed to potential bidders prior to an auction sale. *. Horse When two or more bidders bid exactly the same amount at the same time and must be resolved by the Auctioneer. TOBY: .-TRUSTEE!: TRUSTEE'S SALE: —TRUSTOR: - JUGS, English, America, Occupied Japan A person in whom an estate is vested or granted for the benefit of another person. A sale at auction by a trustee. One who deeds his property to a trustee U. UPSET PRICE: Commonly known as the reserve price V. VENDEE: The buyer, or purchaser VENDOR: The Seller w. WITHDRAWAL: Failure to reach the reserve price or insufficient bidding. WITHOUT RECOURSE: To denote that the endorser will not be liable to a future holder, in event of non-payment.