Real Estate Terms & Definitions PDF

Real Estate Terms and Definitions Acceptance by Ratification: The acceptance of lease terms when a tenant takes possession of the property without signing a lease. Recognized by courts. Accord and Satisfaction: When all parties agree to a change in one or more contract terms. Actual Eviction: Court...

Real Estate Terms and Definitions Acceptance by Ratification: The acceptance of lease terms when a tenant takes possession of the property without signing a lease. Recognized by courts. Accord and Satisfaction: When all parties agree to a change in one or more contract terms. Actual Eviction: Court action by the lessor to remove a tenant from the premises. Administrative Law Judge (ALJ): A judge who hears complaints and evidence regarding Fair Housing Act violations. Agency: The legal relationship created when one person represents another. Air Rights: Rights to use the space above land extending into the sky. Airspace: The space above the land extending infinitely upward. Americans with Disabilities Act (ADA): A law mandating equal access to jobs, public accommodations, government services, and transportation for individuals with disabilities. Assignment: When one party to a contract allows someone else to assume all rights under the contract. Bilateral Contract: A contract where two parties exchange promises. Blockbusting: Inducing property sales or rentals by suggesting the entry of a protected class, also known as "panic peddling." Breach of Contract: When one party violates the terms of an agreement. Brokerage Agreement: The relationship between a sponsoring broker and the public receiving real estate services. Chattel: Personal property not permanently affixed to land. Civil Rights Act of 1866: A law guaranteeing property rights to all citizens regardless of race. Client: A person represented by a real estate licensee. Commingling: Mixing personal funds with escrow funds belonging to others. Compensation: Anything of value given in exchange for real estate services. Compensatory Damages: Money paid to return an injured party to their financial position before a breach of contract. Competent Parties: Individuals who are of legal age, sane, and sober. Concurrent Ownership: Ownership of property by two or more parties. Condemnation Action: Court action allowing the government to take private property under eminent domain. Confidential Information: Details that could harm a client's negotiating position. Consideration: A promise, action, or item of value exchanged in a contract. Constructive Eviction: A tenant's defense to stop rent payments and vacate when premises are uninhabitable. Consumer: A person seeking or receiving real estate services. Contract: A legally binding promise or set of promises. Customer: A consumer not represented by a licensee. Designated Agency: Representation of one party in a transaction, assigned by the broker. Designated Managing Broker: A broker with supervisory responsibilities appointed by the sponsoring broker. Destruction Clause: Lease terms outlining rights if the premises are destroyed. Discharged Contract: A contract where all terms are fulfilled; also called "executed contract." Dual Agency: Representing both buyer and seller in a transaction. Duress: Forcing someone to act against their will. Eminent Domain: Government's power to take private property for public use. Exclusive Brokerage Agreement: A written agreement for exclusive representation between a broker and client. Executed Contract: A contract where all terms are fulfilled. Executory Contract: A contract with terms yet to be completed. Express Contract: A specific oral or written agreement between parties. Fair Housing Act: A law prohibiting housing discrimination based on race, color, religion, sex, disability, familial status, or national origin. Fair Housing Amendments Act of 1988: Expanded Fair Housing Act protections to include families with children and persons with disabilities. Fixture: Personal property that becomes real property when affixed to land. Fraud: Intentional misrepresentation of facts in a contract. Holdover Tenancy: A lease created when a tenant stays beyond the lease term and the landlord accepts rent. IDFPR: Illinois Department of Financial and Professional Regulation. Implied Contract: A contract formed through actions rather than written terms. Improvement Clause: Lease terms outlining rights to make property improvements. Improvements: Man-made attachments to land. Injunction: A court order stopping a specific act. Involuntary Termination: Lease cancellation against the tenant's wishes due to eviction, eminent domain, or foreclosure. Joint Tenancy: Co-ownership where deceased owners' shares pass to surviving owners. Land: Surface, subsurface, airspace, and anything permanently attached. Lease: A contract granting tenant possession in exchange for rent. Leasehold Estate: A tenant's rights to occupy leased property. Legal Purpose: A contract term requiring lawful actions. Lessee: The tenant in a lease. Lessor: The landlord in a lease. Menace: A threat to force someone into an agreement. Misrepresentation: Omission or distortion of facts in a transaction. Monetary Damages: Court-ordered compensation for breach of contract. Novation: Substitution of parties in a contract with agreement from all involved. Offer and Acceptance: Mutual agreement to contract terms. Offeree: The party receiving an offer. Offeror: The party making an offer. Option: A contract holding an offer open for a specific time. Ownership in Severalty: Individual ownership without co-owners. Panic Peddling: Inducing sales by suggesting the entry of a protected class. Parol Evidence Rule: Prohibits oral evidence from changing written contract terms. Periodic Tenancy: A lease without a set end date, renewing periodically. Personal Property: Movable items not affixed to land. Place of Public Accommodation: Facilities covered under the ADA for equal access. Protected Class: Groups safeguarded under Fair Housing laws. Provisions of Law: Legal requirements for fair housing and other rights. Punitive Damages: Money awarded to punish a party breaching a contract. Purchase Option: Lease terms granting the tenant the right to buy the property. Radon: A radioactive gas from soil linked to health risks. Real Estate: Land and all interests or improvements attached to it. Real Property: Land and items permanently attached to it. Realty: Another term for real property. Renewal Option: Lease terms allowing tenants to extend lease duration. Rent: Payment for use of leased property. Repair and Maintenance: Lease terms defining repair responsibilities of lessor and lessee. Rescind: Agreement to cancel a contract and treat it as if it never existed. Security Deposit: Money held by the lessor to cover damages or defaults. Source of Income: Earnings from non-wage sources, such as Social Security. Specific Performance: Court-ordered fulfillment of a breached contract. Statute of Frauds: Law requiring real estate contracts to be in writing. Statute of Limitations: Time limit for bringing legal action on a contract. Steering: Directing buyers or renters to specific areas based on protected characteristics. Stigmatized Property: Property undesirable due to past events, not physical condition. Subagency: Agents working under a listing agent to represent a seller. Sublet: Transfer of part of a lease term to another party. Subsurface: The space and rights below the land surface. Surrender and Acceptance: Mutual agreement to end a lease. Tenancy: A tenant's legal right to occupy property. Tenancy At Sufferance: When a tenant remains after lease expiration without the landlord's consent. Tenancy At Will: A lease with no set duration, terminable at any time. Tenancy For Years: A lease with a defined duration. Tenancy in Common: Co-ownership where shares pass to heirs, not co-owners. Tenant: A lessee in a lease agreement. Termination Clause: Lease terms explaining how and when it can end. Testers: Individuals posing as buyers or renters to uncover discriminatory practices. Trade Fixtures: Personal property used for business, such as equipment. Undue Influence: Using a position of trust to coerce someone into a contract. Unenforceable Clause: Lease terms that are invalid but don't affect the rest of the agreement. Unenforceable Contract: A valid contract that cannot be enforced in court. Unilateral Contract: A contract where one party promises something in exchange for an action. Valid Contract: A contract that meets all legal requirements. Void Contract: A contract without legal effect. Voidable Contract: A contract that one party can enforce or withdraw from. Voluntary Termination: Ending a lease or contract by mutual agreement.