Basic Principles Of Real Estate

Front 1

Abstract of Title

Back 1

A summarized list of the recorded claims, advances, documents and legal instruments that affect the title to real property, 83, 84

Front 2

ACCELERATION PROVISION

Back 2

A mortgage provision that indicates that if the borrower defaults when the mortgage lender may declare the entire debt be immediately due and payable; non-compliance of this provision by a borrower, who is in default allows lender to proceed toward foreclosure, 76

Front 3

ACCEPTANCE OF THE OFFER

Back 3

Occurs when a offeree agrees to the offer made by the offerer in writing within the defined time limit in the contract, 165

Front 4

ACCESSION

Back 4

The increase of ownership entitled to real property as a result of permanent attachment of improvements or the accretion (build up) of soil by nature, 13

Front 5

ACCRETION

Back 5

The gradual buildup of soil due to the physical elements of wind, water,etc. that affects the ownership of real property, 13

Front 6

ACKNOWLEDGMENT

Back 6

The last part of the tea and other real property documents where notary public or other public official signs in places CCO testing to the fact that a positive identification is established and the party has signed voluntarily, 93-94

Front 7

ACQUISITION COST

Back 7

The total cost to acquire real estate that includes both the purchase price and the settlement cost, 163

Front 8

ACRE

Back 8

A unit of land measurement that contains 43,560 ft.², 37

Front 9

ACT 47 AMENDMENTS TO THE AGENCY ACT

Back 9

A Pennsylvania oral disclosure law that requires real estate agents to inform consumers of their rights by quoting a prepared verbatim statement when ever the initial interview with the consumer does not occur in person, 113, 157-158

Front 10

ACT 112-THE AGENCY ACT

Back 10

A Pennsylvania disclosure law that requires real estate agents to inform consumers of their rights through a "consumer notice" and in listing contracts and buyer agency contracts, 110-112, 152-155

Front 11

ACTUAL NOTICE

Back 11

The information that a person knows about real property as opposed to the information that should be known but may not be known, even though it is available to the public in the county records; the other type of notice is constructive notice, 95

Front 12

ADJUSTABLE RATE MORTGAGE

Back 12

A lone one real property on which the mortgage rate of interest is variable and it just either up or down based on some economic index such as the federal government Treasury Bill rate, 196, 222

Front 13

ADJUSTMENT

Back 13

The resetting of the rate of interest, typically annually, on an adjustable rate mortgage based upon an agreed-upon index, 196

Front 14

Ad Valorem Tax

Back 14

A tax is based on the value of property, nine

Front 15

ADVERSE POSSESSION

Back 15

A way by which a real property owner can lose title to the property when a non-owner follows a suit to quiet title in court after physically occupying the owner's property in an open, visible, continuous manner against the owner's consent for a considerable period of time (21 years in PA.), 85-86

Front 16

AGAINST ENCUMBRANCES

Back 16

One of the covenants and a warranty deed that assures that the property being conveyed is free of encumbrance is accept those already listed in the deed, 89-90

Front 17

AGENCY RELATIONSHIP

Back 17

A relationship in which a broker, or licensees in the employee of that broker, act as fiduciaries rate consumer of real estate services by written authority of that consumer, 225, 253

Front 18

AGENT

Back 18

One who represents another in a business or illegal transaction; one who represents a principle based upon skill, knowledge, experience and/or expertise and usually gets paid a fee for this representation and advice, as in the case of a real estate broker. When listing for sale or real property of a seller, 143, 151

Front 19

AGREEMENT OF SALE

Back 19

A written contract used to create a binding sale of real property. When agreed to by both the buyer and a seller, 63, 163

Front 20

AIRSPACE

Back 20

A legal defined ownership unit in a condominium form of ownership, 60

Front 21

ALIENATION

Back 21

The transfer of title to real property, 84-85

Front 22

ALIENATION PROVISION

Back 22

A mortgage provision that requires that if the real property on which the loan exist is sold, the borrower is required to pay off the mortgage debt in full; also known as the 21 sale clause; is inserted into many mortgages because it prevents a buyer from assuming the seller's mortgage, 76

Front 23

AMERICANS WITH DISABILITY ACT

Back 23

A federal law that went into effect in 1992 to prevent discrimination in the sale or rental of housing for people with disabilities, 176

Front 24

AMORTIZATION

Back 24

The process of paying off alone with regular periodic payments that will completely eliminate the debt by the time of the loan maturity, 73

Front 25

Amortized mortgage

Back 25

A mortgage in which regular, periodic payments (usually monthly) have a portion of the payment that is first applied to pay the loan interest and the remaining portion of the payment is then applied to pay off the loan principal; when the final loan payment is made. The debt is paid in full, 73, 189

Front 26

Annual percentage rate

Back 26

Referred to commonly as APR, it is a single number that reflects the total cost of borrowing money in percentage form. By combining the finance charges of a lone with the rate of interest on the loan. Lenders are required by law to inform borrowers of this rate, to allow borrowers to compare the cost of one loan with the cost of another loan, 199

Front 27

Anticipation

Back 27

The economic principle of value that indicates that the worth of a property can increase or decrease based on the positive or negative expectations. For that property in the future, 129

Front 28

Appraisal

Back 28

A professional estimate of value that is determined by technical analysis, 129

Front 29

Appraisers Certification Act

Back 29

The Pennsylvania law that regulates the appraisal of real estate, 130

Front 30

Appreciation

Back 30

Growth in the value of real estate or other asset, 191-192

Front 31

Arrears

Back 31

At the end of the time.; lenders typically calculate interest on loans at the end of the month, 71

Front 32

Assemblage

Back 32

Consolidating two separate lots into one lot, 120

Front 33

Assignee

Back 33

Antiparty who receives a real property interests through an assignment, 78

Front 34

Assignor

Back 34

A party who transfers a real property interest to another through an assignment, 78

Front 35

Assignment

Back 35

A transfer of an interest in real property from one party to another party, 47, 66, 78

Front 36

Assignment of mortgage

Back 36

The legal arrangement that allows a mortgage to be sold by the primary mortgage market to the secondary mortgage market, 78

Front 37

Associate broker

Back 37

An individual broker who is employed by another broker and is permitted to perform the same real estate activities as a broker with the exception of not being able to engage in business directly as a broker, 99, 146

Front 38

Avulsion

Back 38

The sudden devastation of real property caysed by natural disasters such as earhquakesm, hurricanes, mudslides, volcanoes, floods, tornadoes, etc., 13