FLASH CARDS PDF

FLASH CARDS Professional, published flash cards are available for purchase in the admission’s office. Should you choose to print your own we have provided them below. There are three definitions per page, cut horizontally along the perforated lines ------...

FLASH CARDS Professional, published flash cards are available for purchase in the admission’s office. Should you choose to print your own we have provided them below. There are three definitions per page, cut horizontally along the perforated lines ------ then fold in half. Vocabulary word is on one side and the definition is on the reverse side.  A summary of the condition of title to real property based on an examination of public records; includes a digest of the deeds or other transfers, encumbrances, and other instruments reflecting Abstract of Title ownership of title or matters which may impair the title. Clause in trust deed or mortgage giving lender right to call all sums to be immediately due and payable upon the happening of a certain event. Acceleration Clause The expression of intent of a person receiving an offer to be bound by the terms of the offer. Acceptance must be communicated to the person making the offer (offeror, such as a Acceptance buyer). The communication need not be in writing – it may be a mere nod of the head – but if the offer is in writing and pertains to real property, the acceptance also must be in writing.  Gaining title when property is added to a property by another or a natural action. Accession The fiduciary duty of an agent to maintain and preserve the property and money of the principal. The agent must keep accurate records of funds and documents received. Accounting An addition to land from natural causes as, for example, from gradual action of the ocean or river waters. Accretion  To recognize as genuine or valid; A formal declaration made before a duly authorized officer, usually a notary public, by a person who has signed a document; also, the document itself. Acknowledgment An acknowledgment is designed to prevent forged and fraudulently induced documents from taking effect. A measure of land equaling 160 square rods, or 4,840 square yards, or 43,560 square feet, or a tract about 208.71 feet square. Acre Those damages that a court of law will recognize and that are a direct result of a wrong. Actual Damage  An act meant to deceive another, such as making a promise without intending to keep it, suppressing the truth, or making a Actual Fraud false statement. Having actual knowledge of a fact, as compared with implied or inferred notice. Actual Notice A Latin phrase meaning, “according to value.” Usually used in connection with real estate taxation. Ad Valorem  Additional material attached to and made part of a document. If there is space insufficient to write all the details of a transaction on the sales contract form, the parties will attach an addendum Addendum or supplement to the document. The sales contract should incorporate the addendum by referring to it as part of the agreement. The addendum should refer to the sales contract and be dated and signed or initialed by all the parties. A broad term for a loan (mortgage or deed of trust) with rates and terms that can change. Both the Comptroller of the Currency, which regulates national banks, and the Office of Adjustable Rate Mortgage (ARM) Thrift Supervision, which governs federal savings and loan associations, have issued guidelines allowing the issuance of real estate loans having provisions to increase or decrease the rate of interest at certain time intervals within a certain range. A fee paid before any services are rendered. Specifically, it is a practice of some brokers to obtain a nonrefundable fee from the seller in advance to cover the advertising of properties or Advance Fee businesses for sale while giving no guarantee that a buyer will be found, which is often held to be improper conduct. Brokers must keep accurate records of expenditures.  Claiming based on the open and notorious possession and occupancy, usually under an evident claim or right, in denial or Adverse Possession opposition to the title of another claimant. A written statement sworn to or affirmed before an officer who is authorized to administer an oath or affirmation. Affidavit A relationship created when one person, the principal, delegates to another, the agent, the right to act on his or her behalf in business transactions and to exercise some degree of discretion Agency while so acting. An agency gives rise to a fiduciary or statutory relationship and imposes on the agent, as the representative of the principal, certain duties, obligations, and high standards of good faith and loyalty.  One authorized to represent and to act on behalf of another person (called the principal). A real estate broker is the agent Agent of the client (seller or buyer) to whom he or she owes a fiduciary or statutory obligation. To consent to as a course of action. Agreeing The rights in real property to use the air space above the surface of the land. Air Rights  The transferring of property to another; the transfer of property and possession of lands, or other things, from one person to Alienation another. A clause in a note or trust deed permitting the payee or beneficiary to declare the entire unpaid balance immediately due Alienation Clause and payable upon a subsequent transfer of the property. Also referred to as a due-on-sale clause. A real property ownership system that can be complete ownership, except for rights held by the government Allodial Tenure  Soil deposited by accretion. Increase of earth on a shore or bank Alluvion of a river. To change or modify for the better, improve, amend the situation, to alter especially in phraseology, to alter formally by Amended modification, deletion, or addition A federal law that became effective in 1992. ADA is designed to eliminate discrimination against individuals with disabilities Americans with Disabilities Act by mandating equal access to jobs, public accommodations, (ADA) government services, public transportation and telecommunications.  The liquidation of a financial obligation on an equal installment basis; also, recovery over a period of cost or value. Amortization The addition to property by adding or attaching other property to Annexation it, such as a fixture; the addition of unincorporated territory in a county to a city or town. The actual cost of credit as determined under the Federal Truth Annual Percentage Rate (APR) in Lending Act.  When one party to a contract informs the other before the time Anticipatory Repudiation set for performance that he or she does not intend to perform as agreed. The process of developing and communicating an opinion about a property’s value. An appraisal is usually required when real property is sold, financed, condemned, taxed, insured or Appraisals partitioned. Note that an appraisal is an estimate, not a determination, of value. An appraisal may be in the form of a lengthy written report, a completed preprinted form, a simple letter or even an oral report. Qualified person to estimate the value of real property for a specific location at a specific time for a specific reason. Appraiser  A temporary or permanent increase in the worth or value of property due to economic causes; the opposite of depreciation Appreciation Water rights allocated by government permit, according to an appropriation system. It is not necessary to own property beside Appropriative Rights the body of water in order to apply for an appropriation permit Something annexed to another thing that may be transferred with it. Your real property is burdened with an easement, water Appurtenance rights, or improvements that a person may use.  The non-judicial submission of a controversy to selected third parties for their determination in a manner provided by Arbitration agreement or by law. Disputes between listing Realtors and cooperating Realtors are often settled by arbitration, with both parties agreeing to comply with the final decision of the arbitrator. Entitles landowners to use land in a way that is typically not Area Variance allowed by the dimensional or physical requirements of the zoning law. Arm’s Length Transaction A transaction in which there is no pre-existing family business relationship (as in a short sale).  A fibrous insulation and construction material that causes Asbestos serious lung problems Words in a contract intended to signify that no guarantees whatsoever are given regarding the subject property and that it is being purchased exactly as it is found. An “as-is” indicator is As-Is Clause intended to be a disclaimer of warranties or representations. The recent trend in the courts to favor consumers tends to prevent sellers from using as-is wording in a contract to shield themselves from possible fraud charges brought on by neglecting to disclose known material defects in the property. The combining of two or more adjoining lots into one large tract. This is usually done to increase the value of the individual lots because a larger building capable of producing a larger net return Assemblage may be erected on the larger parcel. The resulting added value is called plottage value.  Value placed on property as a basis for taxation. Assessed Value To appoint to a post or a duty. An assignment is the transfer of the right, title and interest in the property of one person to Assign another. There are assignments of, among other things, mortgages, sales contracts, contracts for deed, leases and options. In any assignment, the assignee becomes primarily liable, and the assignor remains secondarily liable as surety, unless there is a novation agreement relieving the assignor from liability. The Assignee assignee acquires the same title, right and interest in the particular contract that the assignor had.  The transfer of the right, title and interest in the property of one person, the assignor, to another, the assignee. Assignment A group of people gathered together for a business purpose, sometimes treated as a corporation under tax law. Association A lien on real property obtained prior to judgment in an action for money; obtained by levy of a writ of attachment. Attachment Lien  Monies an attorney charges for his or her legal services. Unless provided for by statute or in a contract, attorney fees usually Attorney Fees cannot be recovered by an aggrieved party. One who is legally appointed to transact business on another's behalf Attorney A form of selling land or personal property whereby oral offers are taken and the property is sold to the highest bidder. Real Auction estate auctions are generally used in mortgage foreclosure sales, tax sales and with hard-to-sell properties.  The act of authorizing Authorization The sudden tearing away or removal of land by action of water Avulsion flowing over or through it. Where the final installment payment on a note is greater than the preceding installment payments and it pays the note in full, such Balloon Payment final installment is termed a balloon payment.  Any deed that recites a consideration and purports to convey the Bargain and Sale Deed real estate. A person who received benefits from the gifts or acts of another, as in the case of one designated to receive the proceeds from a will, insurance policy, or trust; the real owner, as opposed to the Beneficiaries trustee, who holds only legal title. With a trust, the trustee holds the legal title, but the beneficiary enjoys the benefits of ownership. A contract in which a promise is given by both parties; distinguished from a unilateral contract, which calls for an act by Bilateral Contract one party in exchange for a promise by the other.  A written instrument given to pass title of personal property Bill of Sale from vendor to the vendee. A loan that calls for 26 half-month payments a year, resulting in an earlier loan retirement date and lower total interest costs than Biweekly Payment Plan with a typical fully amortized loan with regular monthly payments. Purchaser’s good faith and intention to complete the transaction. A binder is an agreement formed by the receipt of an earnest Binding money deposit for the purchase of real property as evidence of the purchaser’s good faith and intention to complete the transaction  A single mortgage that covers more than one parcel of real estate; A blanket mortgage is often used to secure construction Blanket Mortgage financing for a subdivision or condominium projects. An advertisement placed by a licensee that does not include the Blind Advertisement broker’s name. The practice on the part of unscrupulous speculators or real estate agents of inducing panic selling of homes below market Blockbusting value, especially by exploiting the prejudices of property owners in neighborhoods in which the racial make-up is changing, or appears to be on the verge of changing. It is an actionable wrong.  The breaking of a law, or failure of duty, either by omission or Breach commission. One who acts as an intermediary between parties to a transaction. A real estate broker is a properly licensed party Broker who, for a valuable consideration or promise of consideration, serves as a special agent to others to facilitate the sale or lease of real property. A broker’s written opinion of the value of a particular property, often in the form of a competitive market analysis. Depending on state law, the broker may charge a separate fee for a BPO, Broker Price Opinion (BPO) provided it is not used in connection with originating a federally related loan and is not labeled as an appraisal.  Provides the broker is still entitled to commission if the property sells during a certain time period under certain circumstances. Broker Protection Clause A real estate broker’s business Brokerage One who acts as an intermediary between parties to a transaction. A real estate broker is a properly licensed party who, for a valuable consideration or promise of consideration, Brokers serves as a special agent to others to facilitate the sale or lease of real property. Brokers represent their principals and accept the fiduciary responsibility of exercising care, skill and integrity in carrying out their instructions.  A mortgage with payments set up to cover more than interest and principal reductions. In addition to monthly amortized principal and interest payments, the monthly payments may Budget Mortgage include an amount equal to 1/12 of the year’s property taxes, a pro rata share of the fire insurance premium and any other similar charges that if not paid, could result in a foreclosure. A written governmental permission for the construction of a new building or other improvement, the demolition or substantial repair of an existing structure or the installation of factory-built Building Permits housing. The proposed construction must conform to local zoning and building codes and usually must be inspected and approved upon completion. Beneficial interests or rights attached to the ownership of real property. Bundle of Rights  A business broker is a properly licensed individual, who, for a valuable consideration or promise of consideration, serves as an Business Broker agent to others to facilitate the sale or lease of a business. Party which acquires, or agrees to acquire, ownership (in case of goods), or benefit or usage (in case of services), in exchange for Buyer money or other consideration under a contract of sale. A contract between a broker and a buyer that grants the broker the right to represent the buyer in the purchase or lease of Buyer Agency Agreement property and that makes the buyer responsible for paying commission to the broker. Buyer’s Agent An agent representing the buyer rather than the seller. The conditions which exist when a buyer is in a more Buyer’s Market commanding position as to the price and terms of sale, primarily because real property offered for sale is in plentiful supply compared to demand. As related to condominiums, the regulations, rules or laws adopted by a condominium owners’ association or corporation for the condominium’s management and operation. Bylaws Bylaws cover such matters as the manner and selection of the board of directors and the duties and obligations of the corporation members. These self-imposed rules are a form of private law.  The act or an instance of canceling. A cancellation clause is a clause that may be included in a commercial or industrial lease Cancellation granting the lessor or the lessee the right to terminate the lease term upon the happening of certain stated events or occurrences by the payment from one party to the other of definite amounts of money as consideration. Specific ability of an entity (person or organization) or resource, measured in quantity and level of quality, over an extended Capacity period.. The legal ability of an entity (person or organization) to perform an act such as creating a binding contract. Income from a sale of an asset rather than from the general Capital Gain business activity. Capital gains are generally taxed at a lower rate than ordinary income.  Abbreviation for covenants, conditions, and restrictions. CC&Rs Certificate issued by the government evidencing an individual’s Certificate of Eligibility (COE) eligibility to obtain a Veterans Administration (VA) loan. The federal Veterans Administration appraisal commitment of property value. Certificate of Reasonable Value (CRV)  A certification as to the ownership of land and the condition of Certificate of Title title, based on an examination of the public records A history of conveyances and encumbrances affecting the title Chain of Title from the time the original patent was granted, or as far back as records are available. Goods or every species of property movable or immovable that Chattel are not real property  The first federal fair housing act (applied to race only). Civil Rights Act of 1866 Federal fair housing act that expanded the Civil Rights Act of Civil Rights Act of 1968 1866. The person who employs an agent to perform a service for a fee; also called a principal. The client is owed the duty of care and diligence, fiduciary duties in common-law states and statutory Client duties where the common law has been abrogated. In traditional real estate brokerage, the client is the seller, and the buyer is the prospect or customer. In modern practice, more and more buyers are seeking representation as a client. Dual agency occurs when a broker represents the seller and the buyer as clients.  Process by which all the parties to a real estate transaction conclude the details of a sale or mortgage. The process includes Closing the signing and transfer of documents and distribution of funds. Statement furnished by an escrow holder to the principals at the Closing Statement time of closing an escrow, setting forth the charges and costs. Any conditions revealed by a title search that affect the title to property; usually relatively unimportant items, but which cannot Cloud on the Title be removed without a quitclaim deed or court action.  A set of rules and principles expressing a standard of accepted Code of Ethics conduct for members of a professional group. Property zoned and used for business purposes, such as a store, restaurant or office building; as distinguished from residential, Commercial Property industrial, or agricultural property. Unauthorized mixing of funds of a customer or client with one’s Commingling own personal funds.  Payment, remuneration; The compensation paid to a real estate broker (usually by the seller) for services rendered in connection with the sale or exchange of real property. To collect a Commission commission, the broker must be licensed in the state, have a written employment agreement (listing) with the seller and sell the property and/or execute a valid contract of sale for the property. Land or improvements in a residential or commercial development designated for the use and benefit of all residents, Common Areas property owners, and tenants. Example: Common areas include such amenities as corridors. elevators, parks, playgrounds and parking lots. Sales which have similar characteristics as the subject property and are used for analysis in the appraisal process. Commonly Comparables called comparables, they are recent selling prices of properties similarly situated in a similar market.  A method of determining the approximate market value of a home by comparing the subject property to similar homes that Comparative Market Analysis have sold, are presently for sale, or did not sell in a given area. (CMA) Payment, remuneration; The compensation paid to a real estate broker (usually by the seller) for services rendered in connection with the sale or exchange of real property. To collect a Compensation commission, the broker must be licensed in the state, have a written employment agreement (listing) with the seller and sell the property and/or execute a valid contract of sale for the property. Damages to reimburse an injured party for the actual loss Compensatory Damages suffered.  Legally qualified. Competency The act or process of complying to a desire, demand, proposal, Compliance or regimen or to coercion; conformity in fulfilling official requirements Occurs when a licensee fails to disclose information that is material to a decision to a party to whom the licensee has such a Concealment duty.  The act of taking private property for public use. Also a Condemnation declaration that a structure is unfit for use. A situation where a lender approves a loan under certain stated conditions. Conditional Approval Permitting a use of a parcel of property in contravention of zoning upon a finding that the permitted use is essential or Conditional Use Permit desirable to the public convenience or welfare and is in harmony with the objectives of the master plan.  Contingencies, qualifications or occurrences upon which an estate or property right would be gained or lost. Conditions may Conditions be either precedent or subsequent. A system of individual fee ownership of units in a multi-family structure, combined with joint ownership of common areas of Condominium the structure and the land. Private, secret, containing information whose unauthorized disclosure could be prejudicial to the national interest. Confidential  Containing information whose unauthorized disclosure could be prejudicial to the national interest Confidential information The process of supporting a statement by evidence; A confirmation of sale is a court approval of the sale of property by Confirmation an executor, administrator, guardian, conservator or commissioner in a foreclosure sale A standardized conventional loan written on uniform documents that meets the purchase requirements of Fannie Mae and Freddie Conforming Loan Mac.  Holds that the maximum of value is realized when a reasonable degree of homogeneity of improvement is present. Conformity To give assent or approval. Consent The inducement for entering into a contract; consists of either a benefit to the promisor, or a loss or detriment to the promise. Consideration Anything of value given to induce entering into a contract. It may be money, person services, or, in some cases, even love and affection.  A breach of duty, as by a person in a fiduciary capacity, without an actual fraudulent intent, which gains an advantage to the Constructive Fraud person at fault by misleading another to the other’s prejudice. Any act of omission declared by law to be fraudulent, without respect to actual fraud. Notice given by the public records. Constructive Notice Dependent on or conditioned by something else; happening by chance or unforeseen causes; A contingency is a provision in a Contingent contract that requires the completion of a certain act or the happening of a particular event before that contract is binding.  A legally enforceable agreement between competent parties who agree to perform or refrain from performing certain acts for a consideration. In essence, a contract is an enforceable promise. Contract In real estate, there are many different types of contracts, including contracts for sale, options, mortgages, leases, contracts for deed, escrow agreements and loan commitments. One who contracts or covenants, either with a public body or private parties, to construct works or erect buildings at a certain Contractors price. A contractor is ordinarily understood to be the person who undertakes to supply labor and materials for specific improvements under a contract with an owner or principal. The legal ability to enter into a contract. Contractual Capacity  Holds that maximum real property values are achieved when the improvements on the site produce the highest (net) return Contribution, Principle of commensurate with the investment. Conforms to accepted standards. A conventional loan is a loan made with real estate as security and not involving government Conventional participation in the form of insuring (FHA) or guaranteeing (VA) the loan. The mortgagee can be an institutional lender or a private party. The transfer of title or an interest in real property by means of a Conveying written instrument such as a deed or an assignment of lease.  An agent who works with a listing agent to sell property in a real estate transaction; the selling agent who finds a buyer for the Cooperating Agent listed property. A building owned by a corporation, where the residents are shareholders in the corporation; each shareholder receives a Cooperative proprietary lease on an individual unit and the right to use the common areas. A form of concurrent property ownership in which two or more persons own an undivided interest in the same property. When title to one parcel of real estate is vested in (or owned by) two or Co-Ownership more persons or other entities, such persons or entities are said to be co-owners of the property.  A legal entity created under state law, consisting of an association of one or more individuals but regarded under the Corporation law as having an existence and personality separate from such individuals. One of three methods in the appraisal process. An analysis in which a value estimate of a property is derived by estimating the Cost Approach replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land. The interest rate that people or businesses must pay to use another’s money for their own purposes. Cost of Money  A return offer made by one who has rejected an offer; A new offer made in response to an offer received from an offeror. A Counteroffers counteroffer has the effect of rejecting the original offer, which cannot thereafter be accepted unless revived by the offeror’s repeating it. An officer entrusted with the receipt, care, and disbursement of funds; a governmental officer charged with receiving, keeping, County Treasurer and disbursing public revenues Agreements written into deeds and other instruments promising performance or nonperformance of certain acts or stipulating Covenant certain uses or non-uses of the property.  A bookkeeping entry on the right side of an account, recording the reduction or elimination of an asset or an expense, or the Credit creation of or addition to a liability or item of equity or revenue. A report detailing the credit history of a person or business, used to determine creditworthiness. The financial status of commercial or industrial tenants can be checked by consulting a Credit Report Dun & Bradstreet reference book, a credit reporting agency or a local chamber of commerce or better business bureau. Length X width X depth = cubic feet. Divide cubic feet Cubic Feet by 27 to find cubic yards.  One that purchases a commodity or service Customer A compensation recoverable in a lawsuit by a complainant who sustained an injury, either to their person or property, through an act or default of another. Example: A buyer forfeited his earnest Damages money to the owner of the property as damages for failing to purchase as agreed. Compensation that licensees may accept from a broker with whom they are no longer associated, assuming they were Dangling Commission licensed with that broker at the time the commission was earned and the right to any commission under such circumstances is spelled out in the licensee’s agreement with the broker.  The time period between listing a property and either selling or removing it from the market. Days of Market (DOM) A Certificate of Release or Discharge from Active Duty, or DD- 214, issued by the Department of Defense. The DD 214 identifies the character of service and reason for discharge DD 214 (honorable, dishonorable, etc.). The amount needed to make a periodic payment of principal and Debt Service interest on an amortized loan.  The relationship of a borrower’s total monthly debt to gross monthly income, expressed as a percentage (total debt \ income = ratio %). Debt obligations include housing and long term Debt to Income Ratio debts with more than 10 payments remaining. The legal document that the developer of a condominium must generally file and record in order to create a condominium under state law. The declaration usually contains a precise description Declaration of the land on which the project is located; whether it is fee or leased; a description of the apartments, common elements and limited common elements; a statement indicating the use of the building or buildings and apartments, including restrictive uses; and a statement of other detailed legal requirements, such as service of process and provision for amendment of the declaration. An instrument by which a property owner(grantor) conveys and transfers to a grantee an ownership interest in real property. Deed  Mortgagor gives a quit claim deed to mortgagee. There could be a problem as to junior liens. Deed in Lieu of Foreclosure A legal document in which title to property is transferred to a third-party trustee as security for an obligation owed by the trustor (borrower) to the beneficiary (lender). Also called a trust Deed of Trust deed. A deed of trust is similar to a mortgage – the main difference is that it involves three parties. When a borrower repays the note secured by a deed of trust, the trustee must reconvey title back to the borrower by way of a deed of reconveyance, which is also called a release deed. This is a limitation in the deed to a property that dictates certain uses that may or may not be made of the property. Deed Restriction  The nonperformance of a duty or obligation that is part of a contract. A default is normally a breach of contract, and the non-defaulting party can seek legal remedies to recover any loss. Default Defaults in long-term leases or contracts for deed other than nonpayment might be failure to renew insurance policies, failure to pay real estate taxes, damage to the property and so forth. The clause in a mortgage that gives the mortgagor the right to redeem his/her property upon the payment of his obligations to Defeasance Clause the mortgagee. Sometimes called a base fee or qualified fee. A fee simple absolute interest in land that is capable of being defeated or Defeasible Fee terminated upon the happening of a specified event.  The past due status of a financial obligation such as a promissory Delinquent note. Giving possession of a document, such as a deed, by one party (the grantor) to the other (the grantee) with the intent to convey Delivery title. Money offered by a prospective buyer as an indication of good faith in entering into a contract to purchase; earnest money; security for the buyer’s performance of a contract. An earnest Deposit money deposit is not necessary to create a valid purchase contract because the mutual promises of the parties to buy and to sell are sufficient consideration to enforce the contract.  Loss of value in real property brought about by age, physical deterioration or functional or economic obsolescence. Broadly, Depreciation a loss in value from any cause. A licensee appointed by a broker as the legal agent of a client. Designated Agency One who attempts to put land to its most profitable use through the construction of improvements, such as commercial condominiums or subdivision projects. The developer organizes Developer and supervises the entire project, usually from the acquisition of land all the way through construction and final sales, and sometimes continuing with the maintenance of the project.  A gift of real property by will. Devise A rate of return, stated as a percent, used to derive a value opinion from the anticipated net operating income a property Direct Capitalization Rate could generate. It is used for direct capitalization in the income approach. A physical or mental impairment that substantially limits one or more major life activities, such as walking, seeing, learning and working. Disability includes a record of such impairment or the Disability fact of being regarded as having such impairment.  To reveal, make known. A recognized “risk reduction tool” for real estate brokers. You must disclose major physical defects in a house you are selling such as a leaky roof. Disclose To reveal, make known. A recognized “risk reduction tool” for real estate brokers. You must disclose major physical defects in a house you are selling such as a leaky roof. Disclosure The amount of money the borrower or seller must pay the lender to get a mortgage at a stated rate. This amount is equal to the difference between the principal balance on the note and the Discount Point lesser amount which a purchaser of the note would pay the original lender for it under market conditions. A point equals one percent of the loan.  The act of making a distinction against or in favor of a person on the basis of the group or class to which the person belongs; the failure to treat people equally under the law. The civil Rights Discrimination Act of 1866 prohibits any discrimination based on race. In 1968, this act was upheld by the United States Supreme Court in Jones v. Alfred H. Mayer company, when the court ruled that the 1866 federal law “prohibits all racial discrimination, private and public, in the sale and rental of property.” The process of individuals investing their funds directly instead of placing their savings with banks, savings and loan associations and similar institutions for investment by such Disintermediation institutions. This has a direct influence on the scarcity of mortgage money, in that diverted savings rarely find their way into mortgages. A legal doctrine used in federal discrimination cases to show a violation even when the defendant’s actions have no apparent relationship to a protected class. In a disparate impact case, an Disparate Impact intent to discriminate is not necessary. The doctrine prohibits a neutral restriction that has a statistically greater effect on a protected class than on other classes.  A rule that allows a tenant farmer to re-enter the land to harvest crops that were planted by the tenant farmer even after the land Doctrine of Emblements has been sold to a new owner. A legal doctrine that allows a court to enforce an oral agreement that should have been in writing, when one party has taken irrevocable steps to perform his or her side of the bargain, and Doctrine of Part Performance failure to enforce the contract would result in an unjust benefit for the other party. A person with easement rights on another’s property; either the owner of a dominant tenement, or someone who has an easement Dominant Tenant in gross.  Estate benefited by an easement right of use. Dominant Tenement A lease in which the tenant pays two of the expenses associated with property ownership, in addition to paying the rent. Double Net Lease The legal right or interest recognized in some states that a wife acquires in the property her husband held or acquired any time during their marriage. During the husband’s life, the dower is an Dower expectant, or inchoate, interest that does not actually become a legal estate until the husband’s death.  The amount of cash a purchaser will pay at the time of purchase. Even though down payment usually includes the earnest money Down Payment deposit, the terms are not synonymous. Earnest money is applied toward the total amount of cash down payment due at the closing. A fair, proper and due degree of care and activity. An expressed or implied requirement in certain real estate contracts stating that a person use good-faith efforts to perform obligations under a Due Diligence contract. A buyer who makes an offer contingent on obtaining financing must use due diligence in seeking such financing When an agent (or agency in some states) represents both principals to a transaction, a dual agency exists. In many states, it is unethical and illegal for a broker to represent both buyer and Dual Agents seller in a real estate transaction without written consent. Most license laws provide that a real estate license will be revoked or suspended if a licensee engages in a dual agency without such consent.  A moral or legal obligation. Conduct, service or functions that Duties arise from one’s position. A moral or legal obligation. Conduct, service or functions that Duty arise from one’s position Down payment made by a purchaser of real estate as evidence of Earnest Money good faith.  The cash deposit paid by the prospective buyer of real property as evidence of good-faith intention to complete the transaction. Earnest Money Receipt The amount of earnest money deposited rarely exceeds 10 percent of the purchase price, and its primary purpose is to serve as a source of payment of damages should the buyer default. Created by grant or agreement for a specific purpose, an Easement easement is the right, privilege or interest which one party has in land of another. An easement that benefits a particular piece of property, the Easement Appurtenant dominant tenement.  An easement acquired by prescription. Easement by Prescription An easement that benefits a person instead of a piece of land; there’s a dominant tenant, but no dominant tenement. Easement in Gross An appraisal term to describe a means of measuring the economic activity of a community that enables it to attract Economic Base income from outside its borders; the study of the relationship between basic and non-basic employment patterns as a means of predicting population, income and other variables having an effect on real estate and land use.  The estimated period over which an improved property may be profitably utilized so that it will yield a return over and above Economic Life the economic rent attributable to the land itself; the period during which an improvement has value in excess of its salvage value. The number of years of age that is indicated by the condition of Effective Age the structure, not its actual chronological age. The specific day the conclusion of value applies. Effective Date of Value  Crops produced annually, by labor and industry, as distinguished from crops that grow naturally on the land. Emblement The right of the government to acquire property for necessary public or quasi-public use by condemnation; the owner must be fairly compensated. The right of the government to do this and Eminent Domain the right of the private citizen to get paid is spelled out in the 5th Amendment to the United States Constitution. One who works under the supervision and control of another. Employees For purposes of state licensing law, the real estate salesperson is employed by the broker.  The process of applying a sealant to asbestos-containing material, which penetrates the material’s surface, preventing the Encapsulation release of the dangerous fibers into the air. The building of a structure or construction of any improvements, Encroachment partly or wholly on the property of another. A form of trespass. Any claim, lien, charge or liability attached to and binding on real property that may lessen its value or burden, obstruct or Encumbrances impair the use of a property but not necessarily prevent transfer of title.  The ability to carry out effectively Enforceability To be owned something under the law. That portion of a VA Entitlement guaranteed loan that protects a lender if the veteran defaults. A federal agency created in 1970 by bringing together various federal pollution control activities that had been scattered among Environmental Protection Agency a number of federal departments and agencies. The EPA is (EPA) involved with environmental problems of air and water pollution, solid-waste management, pesticides, radiation and noise.  Federal legislation passed in 1974 to ensure that the financial institutions and other firms engaged in the extension of credit exercise their responsibility to make credit available with Equal Credit Opportunity Act fairness and impartiality and without discrimination on the basis (ECOA) of race, color, religion, national origin, sex or marital status, age, receipt of income from public assistance programs, and ensure good-faith exercise of any right under the Consumer Credit Protection Act. The right which the mortgagor has of redeeming his or her Equitable Right of Redemption property for a limited period of time after a foreclosure sale. Title of the purchaser under a contract of sale. Equitable Title  The interest or value which an owner has in real estate over and above the liens against it; branch of remedial justice by and Equity through which relief is afforded to suitors in courts of equity. The wearing away of land by the action of water, wind or glacial Erosion ice. A clause in a contract or lease providing for the upward or Escalation Clause downward adjustment of payments.  A contract provision relieving a party of liability for failure to perform, as where a stated contingency does not occur Escape Clause The reverting of property to the State when heirs capable of Escheat inheriting are lacking. A settlement procedure conducted by a disinterested third party, Escrow Closing often an escrow agent, where the seller and buyer are not present.  The process by which money and/or documents are held by a disinterested third person until satisfaction of the terms and conditions of the escrow instructions has been achieved. Once Escrows these terms have been satisfied, delivery and transfer of the escrowed funds and documents takes place. Although in some states a real estate broker is authorized to handle escrow functions, the common practice is to employ the services of a licensed escrow company, title company or lending institution. The degree, quantity, nature and extent of ownership interest that a person has in real property. One’s legal interest or rights, not the physical quantity of land. To be an estate, an interest must Estate be one that is possessory and whose ownership is measured in terms of duration. A freehold estate (a fee simple or a life estate) is an interest in land for an uncertain duration. All other interests are less than freehold and include leasehold interests, such as an estate for years or an estate at will. An interest in lands by virtue of a contract for the possession of them for a definite and limited period of time. A lease with a Estate for Years definite termination date may be said to be an estate for years.  A doctrine which bars one from asserting rights which are Estoppel inconsistent with a previous position or representation A system of moral principles, rules and standards of conduct. High ethical standards are more important in real estate than in Ethics certain other transactions where the clients may be more familiar with the services performed. Good ethics is concerned with fidelity, integrity and competency. Physically forcing someone off of property (or preventing them Eviction, Actual from re-entering), or using the legal process to make someone leave.  Conduct by the landlord that so materially disturbs or impairs a tenant’s enjoyment of the leased premises that the tenant is Eviction, Constructive effectively forced to move out and terminate the lease without liability for further rent. When a landlord evicts a tenant in retaliation for requesting repairs, filing a complaint against the landlord, or organizing or Eviction, Retaliatory participating in a tenants’ rights group. When a landlord uses physical force, a lockout, or a utility shutoff to remove a tenant, instead of going through the legal Eviction, Self-help process.  Proof of ownership of property. Common examples of such evidence are a certificate of title, title insurance policy or, with Torrens-registered property, a Torrens certificate of title. A Evidence of Title person who contracts to sell property must furnish the buyer with a marketable title to the property A transaction in which all or part of the consideration for the purchase of real property is the transfer of property of “like kind” (i.e., real estate for real estate). The original attraction of Exchange an exchange was in those cases where it was difficult to produce a cash buyer. Later, however, the exchange became a popular device for deferring capital gains taxes. A written listing agreement giving a sole agent the right to sell a property for a specified time, but reserving to the owner the right to sell the property himself without owing a commission. The Exclusive Agents exclusive agent is entitled to a commission if he or she personally sells the property or if it is sold by anyone other than the seller.  A contract between a buyer and broker in which the broker earns commission only if he is the broker who finds the property the Exclusive Buyer Agency buyer eventually purchases. Agreement A written agreement between owner and agent giving agent the right to collect a commission if the property is sold by anyone Exclusive Right to Sell Listing during the term of his agreement. To carry out fully: put completely into effect. The act of making a document legally valid, such as formalizing a contract by signing, or acknowledging and delivering a deed. In some cases, Execute execution of a document may refer solely to the act of signing; in other cases it may refer to complete performance of the document’s terms.  The act of making a document legally valid, such as formalizing a contract by signing, or acknowledging and delivering a deed. Executed A person named in a will to carry out its provisions as to the disposition of the estate of a person deceased. Executor A contract in which one or both parties have not yet completed Executory Contract performance of their contractual obligations.  Having, involving, or displaying special skill or knowledge Expert derived from training or experience An agreement that’s been expressed in words, either written or Express Contract spoken. In an express manner: explicitly