Florida Real Estate Exam

Front 1

Abandonment

Back 1

A surrender of rights; point when a broker makes no effort to service or sell listed property; failure to perform.

Front 2

Absentee owner

Back 2

A property holder who does not reside on the property and who usually relies on a property manager to supervise the investment.

Front 3

Abstract of title

Back 3

Condensed history of title to real property consisting of a summary of the links in the "chain of title" extracted from documents bearing on the title status.

Front 4

Acceleration clause

Back 4

Stipulation in a mortgage that the entire unpaid balance of the debt may become due and payable if a default of expressed conditions should occur.

Front 5

Acceptance

Back 5

Voluntary receipt of an item offered by another.

Front 6

Accretion

Back 6

Gradual addition of land caused by natural forces, such as wind, tide, flood, or watercourse deposits.

Front 7

Acknowledgment

Back 7

Formal declaration before an authorized official, by the person who executed the instrument, that it is a free act.

Front 8

Actual notice

Back 8

Information a person has actually learned by reading, seeing, or hearing.

Front 9

Adjudication

Back 9

A judicial or court decision.

Front 10

Adjustable-rate mortgage (ARM)

Back 10

A financing technique in which the lender can raise or lower the interest rate according to a set index.

Front 11

Adjusted basis

Back 11

The owner's original cost plus buying expenses plus capital improvements.

Front 12

Administrative law judge

Back 12

An attorney employed by the Division of Administrative Hearings, Department of Administration, to hear complaints and issue recommended orders.

Front 13

Ad valorem

Back 13

According to the value; in proportion to worth.

Front 14

Advance fees

Back 14

Up-front money collected by a broker for the listing of real property.

Front 15

Adversary

Back 15

Opponent; a person or group that opposes another.

Front 16

Adverse interest

Back 16

A purpose in opposition to the interest of another party (as, for example, with a buyer and a seller).

Front 17

Adverse possession

Back 17

A method of obtaining title to real property by occupying it in an open and hostile manner contrary to the interests of the owner.

Front 18

Affidavit

Back 18

A sworn statement written down before a notary or public official.

Front 19

Agency

Back 19

Express or implied authorization for one person to act for another.

Front 20

Agent

Back 20

A representative; one who is authorized to act on behalf of another.

Front 21

Agricultural

Back 21

Defined in Chapter 475, F.S., to mean property zoned as such, consisting of more than ten acres.

Front 22

Air rights

Back 22

The freedom to use the open space above a property.

Front 23

Alienation

Back 23

The act of transferring ownership, title, or an interest or estate in real property.

Front 24

Allodial system

Back 24

A theory of land ownership that individuals may own land free of the rights of an overlord.

Front 25

Alluvion (alluvium)

Back 25

The increase of land by the gradual and imperceptible action of natural forces (e.g., deposits of sand and mud on a riverbank).

Front 26

Amortized mortgage

Back 26

A loan characterized by payment of a debt by regular installment payments.

Front 27

Anniversary date

Back 27

Recurring each year; the date an insurance policy must be renewed to continue in effect.

Front 28

Annual debt service

Back 28

The amount of money required each year for the payment of all mortgage interest and principal.

Front 29

Annual percentage rate (APR)

Back 29

Total yearly cost of credit.

Front 30

Appeal

Back 30

A request to some authority for a decision or judgment.

Front 31

Applicant

Back 31

A person who applies for something; a candidate.

Front 32

Appraisal

Back 32

Professional service provided by a registered, licensed, or certified appraiser or real estate licensee to produce an estimate of value.

Front 33

Appraisal plant

Back 33

Copies of current statistics and publications kept by appraisers in their library or record room.

Front 34

Appraised value

Back 34

Estimated worth of a property determined by someone qualified in valuation

Front 35

Appraiser, real estate

Back 35

One who is a registered, licensed, or certified by the DBPR and provides an estimate of value.

Front 36

Appreciation

Back 36

An increase in value.

Front 37

Arbitration

Back 37

The act of having a third party render a binding decision in a dispute between two parties.

Front 38

Arrears

Back 38

The state of being behind in the discharge of an obligation; paid at the end of the period for which due (the opposite of in advance).

Front 39

Assemblage

Back 39

The combining of two or more adjoining properties into one tract.

Front 40

Assessed value

Back 40

Worth established for each unit of real property for tax purposes by a county property appraiser.

Front 41

Assessment

Back 41

The imposition of a tax or charge according to a preset rate; the allocation of the proportionate individual share of a common expense in a condo or co-op building.

Front 42

Asset

Back 42

Anything of value.

Front 43

Assignee

Back 43

Person to whom a right or interest is transferred.

Front 44

Assignment

Back 44

Written instrument that serves to transfer the rights or interests of one person to another.

Front 45

Assignment of mortgage

Back 45

A legal instrument that states that the mortgagee assigns (transfers) the mortgage and promissory note to the purchaser.

Front 46

Assignor

Back 46

Person who gives his or her legal rights or interests to another person.

Front 47

Associate

Back 47

Person working for a broker.

Front 48

Association

Back 48

An organization of persons having a common interest.

Front 49

Assumption of mortgage

Back 49

The taking over of an existing mortgage by a buyer.

Front 50

Attachment

Back 50

A legal writ obtained to prevent removal of property that is expected to be used to satisfy a judgment.

Front 51

Attorney-in-fact

Back 51

One who is authorized to perform certain acts for another under a power of attorney.

Front 52

Attorney, power of

Back 52

Designation of another person to act for a principal who may not be present.

Front 53

Automated underwriting

Back 53

A service that enables lenders to obtain a credit risk classification using applications software in the loan underwriting process.

Front 54

Balance sheet

Back 54

A financial report that shows the company's financial position at a stated moment in time.

Front 55

Balloon payment

Back 55

A single, large payment made at maturity of a partially amortized mortgage to pay off the debt in full.

Front 56

Bargain and sale deed

Back 56

A type of deed in which title is transferred and a limited number of warranties are made respecting title to or use of the property.

Front 57

Base industries

Back 57

Businesses that attract outside money into the area; primary.

Front 58

Base lines

Back 58

Imaginary lines running east and west and crossing a principal meridian at a definite point; used by surveyors for reference in locating and describing land under the government survey system.

Front 59

Before-tax cash flow (BTCF; cash throwoff; gross spendable income)

Back 59

The resulting amount when annual debt service is subtracted from net operating income.

Front 60

Biennium (biennial)

Back 60

A period of two years.

Front 61

Bilateral contract

Back 61

An agreement wherein both parties are legally obligated to each other to perform.

Front 62

Binder

Back 62

A memorandum given subject to the writing of a formal contract for sale, usually acknowledging receipt of a portion of the down payment for purchase of real property.

Front 63

Blanket mortgage

Back 63

One debt instrument covering two or more parcels.

Front 64

Blind advertisement

Back 64

An advertisement of a principal's property providing only a telephone number, a post office box, and/or an address without the licensed name of the brokerage firm.

Front 65

Blockbusting

Back 65

The illegal practice of inducing homeowners to sell their property by making misrepresentations regarding the entry or prospective entry of minority persons in order to cause a turnover of properties in the neighborhood; discriminatory acts against sellers.

Front 66

Bona fide

Back 66

Without deceit or fraud; genuine; in good faith.

Front 67

Boot

Back 67

Money or other property that is not like-kind, which is given to make up any difference in value or equity between exchanged properties.

Front 68

Borrower (debtor)

Back 68

The mortgagor; one who gives a mortgage as security for a debt.

Front 69

Branch office

Back 69

A business location other than the real estate broker's principal place of business.

Front 70

Breach

Back 70

Failure to do or perform what has been promised.

Front 71

Broker

Back 71

A licensee who acts as an intermediary between two parties and negotiates contracts between them.

Front 72

Broker associate

Back 72

An individual who is qualified to be issued a broker's license but who operates as a sales associate in the employ of another.

Front 73

Buffer zone

Back 73

A strip of land separating one land use from another.

Front 74

Building codes

Back 74

Government ordinances regulating construction practices and materials.

Front 75

Business brokerage

Back 75

The sale, purchase, or lease of businesses that provide goods and/or services.

Front 76

Business broker

Back 76

Real estate licensees who engage in the sale, purchase, or lease of businesses.

Front 77

Business opportunity brokerage

Back 77

The real estate activity dealing in the sale, purchase, or lease of businesses.

Front 78

Business trust (syndicate)

Back 78

A group of people who associate with each other for the purpose of purchasing shares or units at a specified amount per unit, with the money raised to be used to purchase the real property, often for subdividing and resale.

Front 79

Buydown

Back 79

A financing technique in which points are paid to the lender by the seller or builder that lowers (buys down) the effective interest rate paid by the buyer/borrower, thus reducing the amount of the monthly payment for a set period of time.

Front 80

Buyer brokerage agreement

Back 80

An employment contract with a purchaser.

Front 81

Buyer's market

Back 81

The supply of available properties exceeds the demand.

Front 82

Bylaws

Back 82

Rules that govern the administration of the condominium.

Front 83

Canceled

Back 83

A license ceases to exist, effective as of the date approved by the Commission, and does not involve disciplinary action.

Front 84

Capital

Back 84

The collective wealth (money and property) of a person or business; the investment in a property. (See also Equity.)

Front 85

Capital asset

Back 85

Certain property held by a taxpayer, not including inventory for sale to customers.

Front 86

Capital-deficit area

Back 86

A region where the total amount of local savings is not sufficient to finance economic development already under way in that area.

Front 87

Capital gain

Back 87

The profit from the sale of an asset, including real property.

Front 88

Capitalization rate

Back 88

The relationship between the net income from a real estate investment and the present value.

Front 89

Cash flow (after-tax cash flow)

Back 89

The resulting amount when annual debt service, tax liability, and capital improvement costs are subtracted from net operating income.

Front 90

Caveat emptor

Back 90

Let the buyer beware!

Front 91

Cease and desist order

Back 91

An action by a government agency to require a person or business to stop an illegal or unfair practice.

Front 92

Censure

Back 92

An official act of strong disapproval.

Front 93

Certificate of occupancy

Back 93

An occupancy permit issued by the local government after construction is completed and the final inspection is approved.

Front 94

Certificate of title opinion (opinion of title)

Back 94

A document signed by a title examiner (attorney or title company agent) stating the judgment that, based on an examination of the public records, the seller has good title to the property being conveyed to the buyer (not to be confused with title insurance).

Front 95

Certiorari, writ of

Back 95

An order to bring from a lower court to an appellate court an action or record of proceedings in a case.

Front 96

Chain of title

Back 96

A successive listing of all previous holders of title (owners) back to an acceptable starting point.

Front 97

Chattel

Back 97

Any item of personal property. (See also Personal property.)

Front 98

Check

Back 98

A square measuring 24 miles on each side and representing the largest unit of measure in the government survey system.

Front 99

Circuit breakers

Back 99

Devices that will shut off the flow of electricity if more electrical current is flowing through the wire than the wire can handle.

Front 100

Citations

Back 100

Statements of alleged violations and the penalties to be imposed.

Front 101

Civil Rights Act of 1866

Back 101

A federal act that prohibits any type of discrimination based on race in any real estate transaction (sale or rental) without exception.

Front 102

Clause

Back 102

A distinct provision in a written document.

Front 103

Closing

Back 103

Final settlement between the buyer and seller; the date on which title passes from the seller to the buyer

Front 104

Cloud on title

Back 104

Any defect, valid claim, or encumbrance that serves to impair the title or curtail an owner's rights.

Front 105

Collateral

Back 105

Real or personal property pledged as security on a debt.

Front 106

Collusion

Back 106

Two or more parties jointly attempting to defraud a third party.

Front 107

Color of title

Back 107

A condition in which ownership of real property appears to be good but is not good because of a defect.

Front 108

Commercial

Back 108

A classification of real estate that includes income-producing properties such as office buildings, gasoline stations, restaurants, shopping centers, hotels and motels, and parking lots. Commercial property usually must be zoned for business purposes.

Front 109

Commingle

Back 109

To mix together money or a deposit with personal funds; combine; intermingle.

Front 110

Commission

Back 110

Compensation paid to a broker or sales associate for successfully concluding a real estate transaction; short form for the Florida Real Estate Commission (FREC).

Front 111

Common elements

Back 111

The parts of a multiple-ownership property not included in the units; those parts in which each unit owner holds an undivided interest.

Front 112

Common law

Back 112

A system of law based on accepted customs and traditions.

Front 113

Community property

Back 113

Real property acquired during a marriage. (Florida is not a community property state.)

Front 114

Comparable property (comparable; comp)

Back 114

A recently sold property similar to one being evaluated.

Front 115

Comparative market analysis (CMA)

Back 115

An informal estimate of market value performed by a real estate licensee for the seller to assist in arriving at an appropriate listing price, or if working with the buyer, an informal estimate of market value to assist the buyer in arriving at an appropriate offering price.

Front 116

Compensation

Back 116

Anything of value or a valuable consideration, directly or indirectly paid, promised, or expected to be paid or received.

Front 117

Competent

Back 117

A party to a contract who possesses the legal capacity to enter into a binding contract.

Front 118

Complainant

Back 118

A person who makes an allegation or a charge against another (the respondent). (See also Plaintiff.)

Front 119

Complaint

Back 119

Formal allegation or charge.

Front 120

Comprehensive plan (master plan)

Back 120

A statement of policies for the future physical development of an area (e.g., city, county, region).

Front 121

Concealment

Back 121

The act of keeping from sight or keeping secret.

Front 122

Concurrency

Back 122

A provision in Florida's Growth Management Act that mandates that the infrastructure, such as roads and water and waste treatment facilities needed to support additional population, be in place before new development is allowed.

Front 123

Condemnation

Back 123

The taking of private real property for a public purpose under the right of eminent domain for a fair price.

Front 124

Condominium

Back 124

A multiunit project consisting of individual ownership of a dwelling unit and undivided ownership of common areas.

Front 125

Conflicting demands

Back 125

When different parties each make claims that are inconsistent with one another.

Front 126

Consideration

Back 126

Inducement offered to conclude a contract.

Front 127

Construction lien

Back 127

A claim based on the principle of "unjust enrichment"; favors parties who have performed labor or delivered materials or supplies for the repair or building of an improvement to real property.

Front 128

Constructive notice

Back 128

The recording of a document or an instrument in the public records designed to give adequate notice to all.

Front 129

Consumer Price Index (CPI)

Back 129

A measurement of average price changes of goods and services using a base period.

Front 130

Contract

Back 130

An agreement between two or more competent parties to do, or not do, some legal act for a legal consideration.

Front 131

Contract for deed

Back 131

A financing technique wherein the seller agrees to deliver the deed at some future date and the buyer takes possession while paying the agreed amount (also called land contract, an installment sale contract, and an agreement for deed).

Front 132

Conventional mortgage

Back 132

A real estate loan granted that is neither FHA-insured nor VA-guaranteed.

Front 133

Conversion

Back 133

Unauthorized use or retention of money or property that rightfully belongs to another person.

Front 134

Convertible mortgage

Back 134

A financing instrument allowing a change from an adjustable-rate to a fixed-rate mortgage.

Front 135

Conveyance

Back 135

Written instrument that serves to transfer an interest in real property from one party to another.

Front 136

Cooperative

Back 136

A multiunit project consisting of individual dwelling units owned by the corporation in which the individual apartment tenants own stock rather than owning their respective units.

Front 137

Co-ownership (concurrent or multiple ownership)

Back 137

Title to real property held by two or more persons at the same time.

Front 138

Corner lot

Back 138

A lot bounded with streets on two sides (intersecting).

Front 139

Corporation

Back 139

An artificial or fictitious person formed to conduct specified types of business activities.

Front 140

Corporation not for profit

Back 140

An artificial or fictitious person organized for business purposes and similar to a corporation for profit.

Front 141

Corporation sole

Back 141

An artificial or fictitious person formed by an ecclesiastical body.

Front 142

Cost

Back 142

The amount to produce or acquire something.

Front 143

Cost-depreciation approach

Back 143

A method for estimating the market value of a property based on the cost to buy the site and to construct a new building on the site, less depreciation.

Front 144

Counselors

Back 144

Professionals who analyze existing or potential real estate problems and recommend a course of action.

Front 145

Counteroffer

Back 145

A rejection of the original offer by proposing a new offer, thereby terminating the original offer.

Front 146

Covenant

Back 146

A warranty, guarantee, or promise formally given in a legal document.

Front 147

Credit

Back 147

As a verb, to make an entry on the right or credit side of an account; as a noun, payment or value received.

Front 148

Creditor

Back 148

A lender; person or business entity to whom a debt is owed.

Front 149

Cul-de-sac lot

Back 149

A lot located where a street is open at one end only and the street has a circular turnaround at the other end.

Front 150

Culpable negligence

Back 150

Inadequate attention to duties and obligations by one who knows, or should know, what is required of him or her.

Front 151

Curable

Back 151

When the correction of a defect results in as much added value as the cost to correct the defect.

Front 152

Curbstone operation

Back 152

Conducting business without maintaining an office.

Front 153

Current mailing address

Back 153

Where a licensee receives letters and so forth through the U.S. Postal Service.

Front 154

Customer

Back 154

One with whom the broker or sales associate hopes to be successful in accomplishing the purpose of employment. Per Section 475.01, F.S., a member of the public who is or may be a buyer or seller of real property and may or may not be represented by a real estate licensee in an authorized brokerage relationship.

Front 155

Damages

Back 155

Losses incurred as a result of a breach of contract or some other cause. (See also Liquidated damages and Unliquidated damages.)

Front 156

Debit

Back 156

As a verb, to make an entry on the left or charge side of an account; as a noun, a charge or expense.

Front 157

Decedent

Back 157

A deceased person, usually one who has recently died.

Front 158

Declaration

Back 158

The legal document that the developer of a condominium must file and record in order to create a condominium under state law.

Front 159

Declaration of trust

Back 159

A formal instrument filed by a business trust with the Department of State as a prerequisite for creating the trust.

Front 160

Declaratory judgment

Back 160

A course of action declaring rights claimed under a contract or statute intended to prevent loss or to guide performance by the party or parties affected.

Front 161

Dedication

Back 161

An offer of land for some public use, by an owner, together with acceptance by or on behalf of the public.

Front 162

Deed

Back 162

A type of conveyance; a written instrument to transfer title to real property from one party to another.

Front 163

Deed in lieu of foreclosure

Back 163

A friendly foreclosure (nonjudicial procedure) in which the mortgagor gives title to the mortgagee.

Front 164

Deed restrictions

Back 164

Provision placed in deeds to control future uses of the property.

Front 165

Default

Back 165

Failure to comply with the terms of an agreement or to meet an obligation when due.

Front 166

Defeasance clause

Back 166

A provision in a mortgage that specifies the terms and conditions to be met in order to avoid default and thereby defeat the mortgage.

Front 167

Defendant

Back 167

The person or party being sued or charged.

Front 168

Deficiency decree

Back 168

Judgment brought when a mortgage is foreclosed and the sale proceeds fail to cover the costs of the sale, taxes, and the unpaid mortgage balance.

Front 169

Demand

Back 169

The quantity of goods or services wanted by consumers.

Front 170

Demand deposits

Back 170

Checking accounts; payable on demand by holder.

Front 171

Denial

Back 171

A refusal or rejection.

Front 172

Density

Back 172

The number of homes or lots per acre.

Front 173

Deposit

Back 173

Earnest money or some other valuable consideration given as evidence of good faith to accompany an offer to purchase or rent. (See also Binder and Earnest money.)

Front 174

Deposition

Back 174

Written testimony of a witness under oath.

Front 175

Depreciation

Back 175

A loss in value for any reason; a deduction for tax purposes.

Front 176

Descent

Back 176

The passage of title to real property upon the death of the owner to his or her legal descendants.

Front 177

Designated sales associates

Back 177

Two real estate licensees designated to represent the buyer and the seller as single agents in a nonresidential transaction. The buyer and seller must have assets of $1 million or more and sign disclosures stating their assets meet the required threshold.

Front 178

Development of regional impact (DRI)

Back 178

A large project affecting more than one county.

Front 179

Devise

Back 179

A gift of real property by a will.

Front 180

Devisee

Back 180

One who receives real property under a will.

Front 181

Devisor

Back 181

One who gives real property through a will.

Front 182

Discount points

Back 182

A method for increasing a lender's yield. (See also Point, Mortgage discount.)

Front 183

Discount rate

Back 183

The amount of interest the Federal Reserve charges to lend money to its eligible banks.

Front 184

Disintermediation

Back 184

A disengagement process when depositors withdraw money from savings for direct investment in stocks, money market funds, and other securities.

Front 185

Doc stamps

Back 185

An abbreviated term for documentary stamp tax.

Front 186

Document

Back 186

Any written paper that provides information or evidence.

Front 187

Documentary stamp tax on deeds, state

Back 187

Tax required on all deeds or other documents used as conveyances. The charge is based on the total purchase price.

Front 188

Documentary stamp tax on notes, state

Back 188

Tax required on all promissory notes. The cost is based on the face value of the note.

Front 189

Dormer

Back 189

A projection built out from the slope of a roof, used to house windows on the upper floor and to provide additional light and ventilation.

Front 190

Double-hung

Back 190

A window consisting of two sashes that move up and down in a pair of channels and are held open by tension springs.

Front 191

Down payment

Back 191

A portion of a purchase price paid prior to closing the transaction. Earnest money may be part of or the entire down payment.

Front 192

Draw (installment)

Back 192

Disbursement made by a lender to a builder.

Front 193

Dual agency

Back 193

Representing both principals in a transaction (not a legal agency relationship in Florida).

Front 194

Dual agent

Back 194

A broker who represents both the buyer and the seller of a transaction in a fiduciary capacity.

Front 195

Due-on-sale clause

Back 195

A provision in a conventional mortgage that entitles the lender to require the entire loan balance to be paid in full if the property is sold.

Front 196

Dynamic risk

Back 196

The risk that arises from the continual change in the business environment and therefore dynamic risk cannot be transferred to an insurer.

Front 197

Earnest money deposit

Back 197

A type of money that a broker may handle for others in the ordinary course of business; also referred to as good-faith deposit or binder deposit.

Front 198

Easement

Back 198

A right, privilege, or interest in real property that one individual has in lands belonging to another; a legal right to trespass; right-of-way authorizing access to or over land.

Front 199

Economic base studies

Back 199

An analysis of employment in the primary industries of a region.

Front 200

Economic life

Back 200

The period of time a property may be expected to be profitable or productive; useful life.

Front 201

Effect a sale

Back 201

A provision in a listing contract requiring the broker to obtain a signed contract from a ready, willing, and able buyer on the terms specified.

Front 202

Effective gross income (EGI)

Back 202

The resulting amount when vacancy and collection losses are subtracted from potential gross income. (See also Vacancy and collection losses.)

Front 203

Elective share

Back 203

An estate defined as consisting of 30 percent of the decedent's personal property and Florida real property, except homestead-exempt property and claims.

Front 204

Eminent domain

Back 204

The constitutional right given to a unit of government to take private property involuntarily if taken for public use and a fair price is paid to the owner.

Front 205

Employer

Back 205

The individual who hires the services of another.

Front 206

Empty nester

Back 206

Older parents whose housing needs change after their children have moved away.

Front 207

Encroachment

Back 207

Unauthorized use of another person's property.

Front 208

Encumbrance

Back 208

Any lien, claim, or liability affecting the title or attaching to real property.

Front 209

Encumbrance clause

Back 209

A provision in a deed to real property that warrants that no liens, claims, or liabilities exist on the property being conveyed, except as specified.

Front 210

Equitable title

Back 210

The right of a vendee to obtain absolute ownership of property to which the vendor has legal title; the interest held by a vendee under a sale contract or contract for deed; beneficial interest.

Front 211

Equity

Back 211

The market value of a property less any debt against it; in a business entity, assets minus liabilities equals capital (owner's equity); a system of legal rules administered by a court of chancery.

Front 212

Equity of redemption

Back 212

The right of a mortgagor, before a foreclosure sale, to reclaim forfeited property by paying the entire indebtedness.

Front 213

Erosion

Back 213

Gradual loss of land due to water or other natural causes.

Front 214

Escalator clause

Back 214

A provision in a mortgage permitting the lender to increase the interest rate that is usually tied to an event or a contingency.

Front 215

Escheat

Back 215

Reversion of property to the state when an owner dies without leaving a will or any known heirs.

Front 216

Escrow account

Back 216

An account in a bank, title company, credit union, savings association, or trust company used solely for safekeeping customer funds and not for deposit of personal funds; impound account or trust account.

Front 217

Escrow disbursement order (EDO)

Back 217

A course of action for determining the disposition of a contested deposit.

Front 218

Estate

Back 218

Tenancy; the interest one holds in real property; the total of one's property and possessions.

Front 219

Estate by the entireties

Back 219

A tenancy created by husband and wife jointly owning real property with instant and complete right of survivorship.

Front 220

Estate for years

Back 220

A tenancy measured from a starting date to a termination date (may be for a few days or longer than any natural life; e.g., a leasehold is an estate for years).

Front 221

Estate in reversion

Back 221

An estate that comes back to the original grantor.

Front 222

Estate in sole

Back 222

Real property owned by a corporation sole.

Front 223

Estate of remainder

Back 223

An estate that can become effective only after another estate has terminated.

Front 224

Estoppel

Back 224

A principle of law that prohibits (stops) a person from defending himself or herself against his or her own acts or lack of action.

Front 225

Estoppel certificate

Back 225

A written statement that bars the signer from making a claim inconsistent with the instrument (commonly used with a mortgage assumption).

Front 226

Ethics

Back 226

The moral obligations and duties that a member of a profession or craft owes to the public, to a client, or to other members of the profession or craft.

Front 227

Evidence

Back 227

Any proof that may legally be admitted in settlement of an issue.

Front 228

Exclusion

Back 228

The right of an owner to control entry onto the property.

Front 229

Exclusive-agency listing

Back 229

Employment contract given to one real estate broker as the sole agent for the sale of an owner's property.

Front 230

Exclusive-right-of-sale listing

Back 230

An employment contract given to one real estate broker as the sole agent for the sale of an owner's property, with the commission going to that broker regardless of who actually sells the property during the employment contract period.

Front 231

Exculpatory clause

Back 231

A provision in a mortgage or note in which the lender waives the right to a deficiency judgment against the borrower and the borrower is relieved of personal liability to repay the loan.

Front 232

Executed contract

Back 232

An agreement in which the terms have been fully performed by all parties; a signed document

Front 233

Executive power, FREC

Back 233

Duties related to the education of licensees, the regulating of professional practices, and the publishing of materials.

Front 234

Executory contract

Back 234

An agreement containing some act or condition that remains to be completed.

Front 235

Exempt property

Back 235

Property that has been decreed to be excluded from taxation or claim by others.

Front 236

Express contract

Back 236

An agreement wherein the terms are specifically stated by the parties, either orally, in writing, or by a combination of the two.

Front 237

Facsimile ("fax")

Back 237

An exact copy.

Front 238

Factor market

Back 238

A resource pool representing the four major elements (factors) of production that are bought and sold.

Front 239

Fair Housing Act

Back 239

An act contained in Title VIII of the Civil Rights Act of 1968 that created protected classes of people and prohibits discrimination when selling or renting residential property when based on race, color, religion, sex, national origin, familial status, or handicap status.

Front 240

Familial status

Back 240

As defined in the Fair Housing Act, a situation in which one or more individuals younger than 18 live with a parent or legal guardian. Pregnant women are also specifically covered under the Act.

Front 241

Fannie Mae

Back 241

A private institution in the secondary mortgage market that buys and sells mortgages.

Front 242

Farm area

Back 242

A selected and limited geographical district to which a sales associate devotes special attention and study; to farm an area or neighborhood.

Front 243

Federal Deposit Insurance Corporation (FDIC)

Back 243

A federal agency that insures deposits of member banks and savings associations.

Front 244

Federal Housing Administration (FHA)

Back 244

Insures mortgage loans made by FHA-approved lenders on homes that meet FHA standards in order to make mortgages more desirable investments for lenders.

Front 245

Federal Housing Finance Board (FHFB)

Back 245

Supervises regional Federal Home Loan Banks and oversees their mortgage lending.

Front 246

Federal Reserve System (the Fed)

Back 246

A central banking authority that influences the cost, availability, and supply of money.

Front 247

Federal Trade Commission (FTC)

Back 247

A federal agency that investigates and eliminates unfair and deceptive trade practices.

Front 248

Federally related transaction

Back 248

Any sale transaction that ultimately involves a federal agency in either the primary or secondary mortgage market. Under FIRREA, state-certified or state-licensed appraisers must be used for certain loans in federally related transactions.

Front 249

Fee simple estate

Back 249

The most comprehensive and complete interest one can hold in real property; freehold estate. Also known as fee or fee simple absolute.

Front 250

Fiduciary

Back 250

A person in a position of trust and confidence with respect to another person.

Front 251

Fiduciary relationship

Back 251

An alliance of trust and confidence that creates a moral and legal obligation when extended by one person and accepted by another.

Front 252

Final order

Back 252

A decision rendered by the FREC.

Front 253

Find a purchaser

Back 253

A provision in a listing contract requiring a broker to produce a ready, willing, and able buyer or offer on the terms specified.

Front 254

Fixture

Back 254

An object that was once considered to be personal property but has become real property because of attachment to, or use in, improvements to real property.

Front 255

Flag lot

Back 255

A lot characterized by a long access road or driveway leading back to the main part of the lot.

Front 256

Follow-up

Back 256

What a sales associate does after a sale to maintain customer contact and goodwill.

Front 257

Foreclosure

Back 257

A court process to transfer title to real property used as security for debt as a means of paying the debt by involuntary sale of the property.

Front 258

Formal complaint

Back 258

An outline of the charges against a licensee that must be answered within the statutory time limit.

Front 259

Formal contract

Back 259

Any agreement that contains all the essentials of a contract, including that it is in writing and under seal; a contract dependent on a particular form.

Front 260

Fraud

Back 260

The intent to misrepresent a material fact or to deceive to gain an unfair advantage or to harm another person.

Front 261

Freddie Mac

Back 261

Formerly called the Federal Home Loan Mortgage Corporation (FHLMC). A secondary mortgage market institution that buys and sells conventional, FHA, and VA loans.

Front 262

Free and clear

Back 262

Title to real property that is absolute and unencumbered.

Front 263

Freehold estate

Back 263

A tenancy in real property with no set termination date that can be measured by the lifetime of an individual or can be inherited by heirs.

Front 264

Further assurance

Back 264

A provision in a deed containing a covenant or warranty to perform any further acts the grantee (buyer) might require to perfect title to the property.

Front 265

Gable

Back 265

A roof design that peaks at the center ridge and extends downward on two opposite sides.

Front 266

General agent

Back 266

A representative authorized by the principal to perform only acts related to a business or to employment of a particular nature.

Front 267

General lien

Back 267

A claim that may affect all of the properties of a debtor.

Front 268

General partnership

Back 268

An association of two or more persons for the purpose of jointly conducting a business, each being responsible for all the debts incurred in the conducting of that business.

Front 269

General warranty deed

Back 269

An instrument of conveyance containing the strongest and most comprehensive promises of further assurance possible for a grantor (seller) to convey to a grantee (buyer).

Front 270

Going concern value

Back 270

The worth of a business, including real estate, goodwill, and earning capacity.

Front 271

Good consideration

Back 271

A promise that cannot be measured in terms of money, such as love and affection.

Front 272

Good faith

Back 272

A party's honest intent to transact business, free from any intent to defraud the other party; each party's faithfulness to one's duty or obligations set forth by contract.

Front 273

Goodwill

Back 273

An intangible asset (value) of a business.

Front 274

Government lot

Back 274

Fractional piece of land less than a quarter section resulting from geographical features (e.g., lakes, streams) interfering with land surveying.

Front 275

Government National Mortgage Association (GNMA) ("Ginnie Mae")

Back 275

A federal agency that is part of the Department of Housing and Urban Development (HUD). Ginnie Mae plays an important role in achieving the HUD's goal of providing low-cost mortgage credit to traditionally underserved sectors of the housing market.

Front 276

Government survey system

Back 276

A type of land description, developed by the federal government for subdividing lands utilizing surveying lines.

Front 277

Grantee

Back 277

Party who receives a deed or grant; buyer.

Front 278

Granting clause

Back 278

The provision in a deed that specifies the names of the parties involved, the words of conveyance, and a description of the property.

Front 279

Grantor

Back 279

Party who signs and gives a deed; seller.

Front 280

Green Belt Law, Florida

Back 280

Legislation that authorizes county property appraisers to assess land used for agricultural purposes according to its current value as agricultural land.

Front 281

Gross income multiplier (GIM)

Back 281

A rule of thumb for estimating the market value of commercial and industrial properties; the ratio to convert annual income into market value.

Front 282

Gross lease

Back 282

An agreement for the tenant to pay a fixed (base) rent and the landlord pays all of the expenses associated with the property.

Front 283

Gross rent multiplier (GRM)

Back 283

A rule of thumb for estimating the market value of income-producing residential property; the ratio to convert rental income into market value.

Front 284

Ground lease

Back 284

An agreement for the tenant to lease the land only and erect a building on the land.

Front 285

Group license

Back 285

A right granted a sales associate or broker associate to work various properties owned by affiliated entities under one owner developer.

Front 286

Habendum

Back 286

A provision in a deed to real property that stipulates the estate or interest the grantee is to receive and the type of title conveyed.

Front 287

Handbook

Back 287

Published by the Florida Real Estate Commission for study and guidance of students, applicants, licensees, and members of the general public on Florida Statute 475 and other laws, acts, rules, and regulations. (Available on the DRE's Web site.)

Front 288

Handicap status

Back 288

As defined in the Fair Housing Act, a physical or mental impairment that substantially limits one or more major life activities.

Front 289

Hazard insurance

Back 289

Coverage by contract whereby one party undertakes to guarantee another party against loss resulting from physical damage to real property.

Front 290

Health ordinances

Back 290

Local codes that regulate maintenance and sanitation of public spaces.

Front 291

Hearing

Back 291

A session in which testimony and arguments are presented, especially before an official.

Front 292

Highest and best use

Back 292

A principle of value that focuses on the most profitable legal use to which a property can be put.

Front 293

Hip

Back 293

Pitched roof with sloping sides and ends.

Front 294

Home equity loan

Back 294

A mortgage secured by a personal residence. It provides a line of credit available for draws when needed by the homeowner. It is sometimes used as a home improvement loan.

Front 295

Homestead

Back 295

Term used to describe three separate but related situations: (1) a tax exemption, (2) a tract of land limited in size, and (3) a statutory condition designed to protect the interests of a spouse and lineal descendants.

Front 296

Household

Back 296

One individual, or a group of individuals, living in one dwelling unit.

Front 297

Hypothecation

Back 297

To pledge real or personal property as security for a debt or obligation without giving up possession of the property.

Front 298

Immune

Back 298

Real property that is owned by a unit of government and is not subject to taxation.

Front 299

Implied

Back 299

Expressed indirectly (e.g., an implied contract).

Front 300

Implied contract

Back 300

An agreement wherein the terms are not stated but are inferred from the conduct of the parties.

Front 301

Implied listing

Back 301

An employment contract that arises from the conduct of the broker and seller and may be enforceable even though not clearly spelled out in words.

Front 302

Improvement

Back 302

Addition that increases the value of real property (not repairs).

Front 303

Income

Back 303

Amount earned or gained, not return of capital.

Front 304

Income capitalization approach

Back 304

A method for estimating the market value of a property based on the present and future income the property can be expected to generate.

Front 305

Income statement

Back 305

A summary of all income and expenses of a business for a stated period of time.

Front 306

Incurable

Back 306

When the cost to correct a defect is greater than the value added by the cure.

Front 307

Ineffective

Back 307

Status of a license when it is inactive or has been suspended.

Front 308

Industrial

Back 308

Properties that include (1) sites in industrial parks or subdivisions, (2) redeveloped industrial parcels in central areas, and (3) industrial acreage.

Front 309

Informal hearing

Back 309

A respondent who does not dispute allegations of material fact in the administrative complaint may request an informal hearing before the FREC for final action on the complaint.

Front 310

Injunction

Back 310

A writ or order by a court forbidding a party from doing something.

Front 311

In-migration

Back 311

Movement into a community or region by new residents

Front 312

Instrument

Back 312

Any legal or formal writing, such as a will, option, lease, contract, or deed.

Front 313

Insurance clause

Back 313

A provision in a mortgage that requires the mortgagor to obtain and keep current a hazard insurance policy.

Front 314

Intangible asset

Back 314

Something of value lacking physical substance; existing only in connection with something else (e.g., the goodwill of a business).

Front 315

Intangible tax on mortgages, state

Back 315

Tax required prior to a mortgage being recorded. The cost is based on the face value of the mortgage.

Front 316

Intensity

Back 316

The concentration of activity (pedestrian and vehicular traffic) used as a means of designating land for commercial zones.

Front 317

Interest

Back 317

The price paid for the use of borrowed money; estate.

Front 318

Interest rate

Back 318

The percentage charged for the use of borrowed money.

Front 319

Interior lot

Back 319

A lot that is bounded on either side by another lot (lots in the middle of the block---not on the corner).

Front 320

Intermediation

Back 320

The process whereby financial middlemen consolidate many small savings accounts belonging to individual depositors and invest those funds in large, diversified projects.

Front 321

Intermingle

Back 321

See Commingle

Front 322

Interpleader

Back 322

A course of action when two contesting parties cannot reach an arbitrated agreement; A legal proceeding whereby the broker, having no financial interest in the disputed funds, deposits with the court the disputed escrow deposit so that the court can determine who is the rightful claimant.

Front 323

Interval ownership

Back 323

Fee simple possession, for the limited time purchased (one or more weeks), of a time-share unit, complete with deed, title, and equity.

Front 324

Intestate

Back 324

Without a will.

Front 325

Investment

Back 325

The outlay of money in anticipation of income or profit; the sum risked or the property purchased.

Front 326

Investment contract

Back 326

A type of security using the sale of real property as the investment.

Front 327

Investment value

Back 327

The worth of a property to a particular investor based on his or her desired rate of return, risk tolerance, etc.

Front 328

Involuntarily inactive

Back 328

The license status that results when a license is not renewed at the end of the license period.

Front 329

Involuntary liens

Back 329

Claims imposed against real property without the consent of the owner (e.g., taxes, special assessments).

Front 330

Joint tenancy

Back 330

An estate or interest owned by more than one person, each having equal rights to possession and enjoyment; the interest a deceased tenant conveys to surviving tenants by specific wording in the deed establishing the joint tenancy.

Front 331

Joint venture (joint adventure)

Back 331

Two or more parties in an arrangement confined to only one or a limited number of business deals.

Front 332

Judgment

Back 332

Decree of a court that not only declares that one party owes another party a debt but also fixes the debt amount.

Front 333

Judicial review

Back 333

The power of a court to reexamine statutes or administrative acts and to determine their validity; a rehearing or appeal to a higher court.

Front 334

Just value

Back 334

The fair market value.

Front 335

Key lot

Back 335

A long skinny lot similar to the shaft of a key that is often bounded by as many as five or six lots (the term also refers to a lot that has added value because of its strategic location).

Front 336

Kickback

Back 336

Payment of money from someone other than the buyer or seller associated with real estate business.

Front 337

Laissez-faire

Back 337

Allow to act; noninterference by government in trade, industry, and individual action generally.

Front 338

Land

Back 338

The surface of the earth and everything attached to it by nature.

Front 339

Land description (legal description)

Back 339

A definite and positive written identification of a specific parcel of land and its location without additional oral testimony.

Front 340

Lay member

Back 340

One not belonging to or connected with a particular profession.

Front 341

Lease

Back 341

An estate for years; an agreement that does not convey ownership but does convey possession and use for a period of time and for compensation.

Front 342

Leasehold estate

Back 342

A tenancy in real property held under a lease arrangement for a definite number of years; nonfreehold.

Front 343

Legal description

Back 343

A series of boundary lines on the earth's surface.

Front 344

Legally sufficient

Back 344

A complaint that contains facts indicating that a violation has occurred of a Florida statute, a DBPR rule, or a FREC rule.

Front 345

Lender's policy

Back 345

Title insurance issued for the unpaid mortgage amount to protect the lender against title defects.

Front 346

Lessee

Back 346

A tenant or leaseholder; party given a lease.

Front 347

Lessor

Back 347

The landlord or owner; party granting a lease.

Front 348

Level-payment plan

Back 348

A method for amortizing a mortgage whereby the borrower pays the same amount each month.

Front 349

Leverage

Back 349

The use of borrowed funds to finance the purchase of an asset; the use of another's money to make more money.

Front 350

Liabilities

Back 350

Debts; financial obligations; drawbacks.

Front 351

License

Back 351

A privilege granted by the state to operate as a real estate broker, broker associate, or sales associate; a type of time-share interest.

Front 352

Licensee

Back 352

An individual who has qualified for, and been registered as, a real estate broker, broker associate, or sales associate.

Front 353

Licensure

Back 353

Certification as a licensee; the granting by the state of a license to practice real estate.

Front 354

Lien

Back 354

A claim on property for payment of some obligation or debt.

Front 355

Lienee

Back 355

One whose property is subject to a claim or charge by another.

Front 356

Lienor

Back 356

One who has a claim or charge on the property of another.

Front 357

Lien theory

Back 357

Legal concept that regards a mortgage as a just claim on specific property pledged as security for a mortgage debt.

Front 358

Life estates

Back 358

Tenancies whose durations are limited to the life of some person; freehold.

Front 359

Limited liability company (LLC)

Back 359

An alternative, hybrid business entity with the combined characteristics and benefits of both limited partnerships and S corporations.

Front 360

Limited liability partnership

Back 360

A business entity that features protection from personal liability but with fewer legal restrictions compared with other business entities.

Front 361

Limited partnership

Back 361

A business entity consisting of one or more general partners and one or more limited partners.

Front 362

Lineal

Back 362

Descended in a direct family line; relating to or derived from ancestors

Front 363

Liquidated damages

Back 363

The amount of valuable consideration specified in an agreement as a penalty for default. (See also Damages.)

Front 364

Liquidation

Back 364

The process of determining liabilities and apportioning the assets in order to discharge the indebtedness of a business to be sold.

Front 365

Liquidity

Back 365

The ability to convert noncash assets into cash quickly; refers to a firm's cash position and its ability to meet obligations.

Front 366

Lis pendens

Back 366

A pending legal action.

Front 367

Listing

Back 367

Oral or written employment agreement between a broker (or a sales associate employed by a broker) and the property owner; authorization to sell, rent, or exchange.

Front 368

Litigation

Back 368

A lawsuit; the act of carrying on a lawsuit; a case before a court of law.

Front 369

Littoral rights

Back 369

Legal rights related to land abutting an ocean, sea, or lake, usually extending to the high-water mark.

Front 370

Loan correspondent

Back 370

Generally, a mortgage banker or company that provides services for lending institutions

Front 371

Loan-to-value (LTV) ratio

Back 371

Relationship between amount borrowed and appraised value (or sale price) of a property.

Front 372

Lot and block

Back 372

A type of legal description of land.

Front 373

Majority

Back 373

A person having attained 18 years of age, or having married, or by court order; no longer a minor; a number greater than half the total.

Front 374

Malfeasance

Back 374

The committing of an unlawful act, especially by a public official.

Front 375

Mandamus, writ of

Back 375

An order of a superior court directing a lower court or body to do some specified act.

Front 376

Mandate

Back 376

Directive from a higher authority to a lower body.

Front 377

Marketable title (merchantable title)

Back 377

Rights to real property that are so clear that a buyer may have peaceful and quiet enjoyment of the property free of litigation.

Front 378

Market value

Back 378

The most probable price a property will bring from a fully informed buyer, willing but not compelled to buy, and the lowest price a fully informed seller will accept if not compelled to sell.

Front 379

Master in chancery

Back 379

An appointed assistant to a court

Front 380

Mediation

Back 380

The act of having a third party attempt to reconcile a dispute between two parties.

Front 381

Meeting of the minds

Back 381

The point when two people, thinking of the same thing, reach an agreement through an offer and acceptance.

Front 382

Meridian

Back 382

Any of the imaginary lines of longitude on the earth's surface; in land description, the vertical lines running in a north-south direction parallel to the principal (prime) meridian and separating the various ranges.

Front 383

Metes-and-bounds description

Back 383

A method of legal description that identifies a property by specifying the shape and boundary dimensions of the parcel. A metes-and-bounds description starts at the point of beginning and follows the boundaries of the land by compass direction and linear measurements and returns to the point of beginning.

Front 384

Middleman

Back 384

An intermediary who merely brings two parties together.

Front 385

Mill

Back 385

A unit of money used to specify a property tax rate ($1 for each $1,000 of taxable value).

Front 386

Millage

Back 386

A tax rate, expressed as the number of mills to be applied.

Front 387

Misdemeanor

Back 387

Any crime punishable by fine or imprisonment other than in a penitentiary.

Front 388

Misfeasance

Back 388

A lawful act done in a negligent or unlawful manner.

Front 389

Misrepresentation

Back 389

A false or misleading statement of a material fact; concealment of a material fact.

Front 390

Monetary policy

Back 390

The actions undertaken by the Fed to influence the availability and cost of money and credit.

Front 391

Monument

Back 391

Man-made or natural object used to establish boundaries of land

Front 392

Moral turpitude

Back 392

An act of corruption, vileness, or moral depravity; a disgraceful action or deed.

Front 393

Mortgage

Back 393

A written agreement that pledges property as security for payment of a debt.

Front 394

Mortgage banker

Back 394

An individual (or company) who makes loans with the expectation of reselling them to institutional lenders. (See also Mortgage company.)

Front 395

Mortgage broker

Back 395

One who finds a lender for a potential borrower, and vice versa.

Front 396

Mortgage company

Back 396

A mortgage loan company that originates, services, and sells loans to investors.

Front 397

Mortgagee

Back 397

A lender who holds a mortgage on specific property as security for the money loaned to the borrower.

Front 398

Mortgage insurance premium (MIP)

Back 398

Fee paid by FHA borrowers to obtain a loan (up-front and annual).

Front 399

Mortgagor

Back 399

A borrower who gives a mortgage on his or her property in order to obtain a loan from a lender.

Front 400

Multiple licenses

Back 400

Licenses held by a broker in two or more real estate brokerage firms.

Front 401

Multiple-listing service (MLS)

Back 401

An arrangement among members of a real estate board or exchange that allows each member broker to share listings with other members so that greater exposure is obtained and a greater chance of sale will result.

Front 402

Negative amortization

Back 402

A financing arrangement whereby monthly mortgage payments are less than required to pay both interest and principal. The unpaid amount is added to the loan balance.

Front 403

Net income

Back 403

Profit from property or business after expenses have been deducted; effective gross income less operating expenses.

Front 404

Net lease

Back 404

An agreement for the tenant to pay fixed rent plus property costs such as taxes, insurance, and utilities.

Front 405

Net listing

Back 405

An agreement or contract to sell or rent a property for a specified minimum net amount for the owner.

Front 406

Net operating income (NOI)

Back 406

The resulting amount when all operating expenses are subtracted from effective gross income.

Front 407

Nolo contendere

Back 407

A pleading of no contest by a defendant; a plea in a criminal action not admitting guilt but subjecting the defendant to punishment as if it were a guilty plea.

Front 408

Nonconforming use

Back 408

Continuing land use that is not in compliance with zoning ordinances.

Front 409

Nonfreehold estate (leasehold interest)

Back 409

An estate in real property in which ownership is for a determinable time period, as in a lease.

Front 410

Note

Back 410

Legal evidence of a debt that must accompany a mortgage in Florida; a legally executed pledge to pay a stipulated sum of money. (See also Promissory note.)

Front 411

Notice of noncompliance

Back 411

Issued by the DBPR in the case of a minor rule violation that does not endanger the public health, safety, and welfare.

Front 412

Novation

Back 412

The substitution of a new party and/or new terms to an existing obligation.

Front 413

Obligee

Back 413

A lender or mortgagee.

Front 414

Obligor

Back 414

A borrower or mortgagor.

Front 415

Obsolescence

Back 415

A cause of loss in value.

Front 416

Offer

Back 416

An intentional proposal or promise made by one party to act or perform, provided the other party acts or performs in the manner requested.

Front 417

Offeree

Back 417

One who receives an offer, usually the seller.

Front 418

Offeror

Back 418

One who makes an offer, usually the buyer.

Front 419

Office of Thrift Supervision (OTS)

Back 419

A branch of the U.S. Treasury Department that replaced the Federal Home Loan Bank Board as regulator of the thrift industry.

Front 420

Open-end clause

Back 420

A provision in a mortgage allowing the borrower to increase the loan amount as long as the total debt does not exceed the original mortgage loan amount, with the lender often reserving the right to adjust the interest rate to current market rates; a mortgage for future advances.

Front 421

Open listing

Back 421

An employment contract given to any number of brokers who work simultaneously to sell the owner's property.

Front 422

Open market operations

Back 422

Purchase and sale of U.S. Treasury and federal agency securities.

Front 423

Opinion of title

Back 423

A formal statement by an attorney regarding the status of a title after examination of the chain of title.

Front 424

Opinion of value

Back 424

An estimate of a property's worth given by a licensee for the purpose of a prospective sale.

Front 425

Option contract

Back 425

A right or privilege to purchase or lease real property at a specified price during a designated period based on a sufficient consideration.

Front 426

Optionee

Back 426

The party who takes an option and pays a consideration.

Front 427

Optionor

Back 427

The party who gives an option and receives a consideration.

Front 428

Origination fee, loan

Back 428

A charge by a lender for taking a mortgage in exchange for a loan.

Front 429

Ostensible partnership

Back 429

One or more parties cause a third party to be deceived into believing that a business relationship exists when no such arrangement exists.

Front 430

Overage (secret profit; secret commission)

Back 430

Retaining more than the agreed amount of sales commission, without the express knowledge and consent of the parties involved; a form of fraud.

Front 431

Overall capitalization rate (OAR)

Back 431

The relationship between annual net operating income and the value or sale price of a property.

Front 432

Overimprovement

Back 432

An addition or change to property not in line with its highest and best use, or a betterment that exceeds that justified by local conditions.

Front 433

Owner-developer

Back 433

An unlicensed entity that sells, exchanges, or leases its own property.

Front 434

Owner's policy

Back 434

Title insurance issued for the total purchase price of the property to protect the new owner against unexpected risks.

Front 435

Package mortgage

Back 435

A loan covering both real and personal property.

Front 436

Parol contract

Back 436

An agreement that is not in writing.

Front 437

Partially exempt

Back 437

Property subject to taxation, but the owner is partially relieved of the burden.

Front 438

Partial release clause

Back 438

Stipulates the conditions under which the mortgagee will grant freeing building lots from a mortgage lien upon payment of a certain amount of money.

Front 439

Partnership

Back 439

Two or more competent individuals each of whom agrees to share in the profits and losses of the business.

Front 440

Pass-through securities

Back 440

Certificates pledging a group (pool) of existing government-backed mortgages used for the purpose of channeling funds into housing markets.

Front 441

Penalty clause

Back 441

A provision in a mortgage that requires the borrower to pay a penalty in money if the mortgage payments are made in advance of the normal due date or if the mortgage is paid in full ahead of schedule.

Front 442

Percentage lease

Back 442

An agreement for the tenant to pay rent based on the gross sales received by doing business on the leased property.

Front 443

Per diem

Back 443

By the day; per day; an allowance for daily expenses.

Front 444

Performance

Back 444

Point when a party or parties to a contract fulfill the promises or obligations in the contract.

Front 445

Personal property

Back 445

Tangible and movable property (transferred by bill of sale); property not classified as real property. Also known as personalty or chattel.

Front 446

Personal representative

Back 446

Administrator of a deceased person's estate.

Front 447

Petition for review

Back 447

A request to a court of appeal (appellate court) asking it to examine the record of the proceedings in a specific case. (See also Judicial review.)

Front 448

Pier

Back 448

A type of building foundation that uses columns of masonry to support the structure.

Front 449

Pitch

Back 449

The slope of a roof.

Front 450

Plaintiff

Back 450

The person or party bringing suit or charges; the complaining party; complainant.

Front 451

Planned unit development (PUD)

Back 451

A residential project with mixed land uses and high residential density.

Front 452

Planning

Back 452

Devising ways and means for achieving desired goals.

Front 453

Planning commission (board)

Back 453

An official agency, usually made up of appointed lay citizens, that directs and controls the use, design, and development of land in a city, county, or region.

Front 454

Plat (plat map)

Back 454

Subdivision plat map

Front 455

Plottage

Back 455

The added value as a result of combining two or more properties into one large parcel.

Front 456

Point, mortgage discount

Back 456

A charge of 1 percent of the mortgage value; assessment by a lender to increase the interest yield to compete with the interest yield from other types of investments. (See also Discount points.)

Front 457

Point of beginning (POB)

Back 457

The starting (and ending) place in a land survey using the metes-and-bounds method of property description.

Front 458

Point of contact information

Back 458

Any means by which to contact the brokerage firm or individual licensee including mailing address(es), physical street address(es), e-mail address(es), telephone number(s), or facsimile telephone number(s).

Front 459

Police power

Back 459

The authority of government to protect the property, life, health, and welfare of its citizens.

Front 460

Policy manual

Back 460

The notebook of written rules and regulations that set desired standards and procedures in an office.

Front 461

Potential gross income (PGI)

Back 461

The total annual income a property would produce with 100 percent occupancy and no collection or vacancy losses.

Front 462

Premises section

Back 462

(See Granting clause.)

Front 463

Prepayment clause

Back 463

A provision in a mortgage that allows the mortgagor to pay the mortgage debt ahead of schedule without penalty.

Front 464

Prepayment penalty

Back 464

The amount set by the creditor that the debtor is charged for retiring the debt early.

Front 465

Prescription, easement by

Back 465

A method of acquiring an interest in real property through long and continued use.

Front 466

Present value

Back 466

The worth of all future benefits of an investment in terms of today's dollars.

Front 467

Price

Back 467

The amount paid for something.

Front 468

Prima facie evidence

Back 468

Requiring no further proof; acceptable on the face of.

Front 469

Primary lender

Back 469

Financial institution that makes mortgage loans directly to borrowers (e.g., savings association, bank).

Front 470

Primary market

Back 470

A source for the purchase of a mortgage loan by a borrower.

Front 471

Principal

Back 471

The party employing the services of a real estate broker; amount of money borrowed in a mortgage loan, excluding interest and other charges.

Front 472

Principal meridians

Back 472

Imaginary lines running north and south and crossing a base line at a definite point; used by surveyors for reference in locating and describing land under the government survey system.

Front 473

Private mortgage insurance (PMI)

Back 473

Needed to insure all of the mortgage representing more than 80 percent of appraised value or purchase price.

Front 474

Probable cause

Back 474

Reasonable grounds or justification for prosecuting.

Front 475

Probation

Back 475

A suspended sentence during good behavior, usually under supervision.

Front 476

Procuring cause

Back 476

The person whose efforts are the cause of an executed sale contract, regardless of who actually writes the contract.

Front 477

Professional Association (PA)

Back 477

A business corporation consisting of one or more individuals engaged in a primary business that provides a professional service (e.g., lawyer, doctor).

Front 478

Profit

Back 478

The amount one makes over and above one's cost.

Front 479

Pro forma statement

Back 479

An estimate of the economic results of a proposed project; a projected income statement.

Front 480

Progression

Back 480

The principle that states that the value of an inferior property is enhanced by its association with superior properties of the same type.

Front 481

Promissory note

Back 481

A written promise to pay a specific amount.

Front 482

Property

Back 482

A bundle of legal rights.

Front 483

Property management

Back 483

The leasing, managing, marketing, and overall maintenance of property for others.

Front 484

Proprietary lease

Back 484

A written agreement between the owner-corporation and the tenant-stockholder in a cooperative apartment.

Front 485

Prorate

Back 485

To divide or assess proportionate shares of charges and credits between the buyer and the seller according to their individual period of ownership.

Front 486

Puffing

Back 486

Comments or opinions not made as representations of fact and thus not grounds for misrepresentation.

Front 487

Purchase-money mortgage (PMM)

Back 487

Any new mortgage taken as part of the purchase price of real property by the seller.

Front 488

Quadrant

Back 488

Quarter; any of the four quarters into which something is divided.

Front 489

Qualification

Back 489

The process of reviewing prior to approval (of a buyer's housing needs and financial abilities, of a borrower's mortgage loan application, or of an application for licensure). (See also Underwriting.)

Front 490

Quasi

Back 490

As if; of a similar nature; seemingly.

Front 491

Quasi-legislative

Back 491

Powers delegated to the FREC to enact rules and regulations, decide questions of practice, and validate records (imprint with FREC's seal).

Front 492

Quasi-judicial

Back 492

Powers delegated to the FREC to discipline real estate licensees for violations of real estate license law and FREC administrative rules.

Front 493

Quiet enjoyment

Back 493

A provision in a deed guaranteeing that the buyer may enjoy possession of the property in peace and without disturbance by reason of other claims on the title by the seller or anyone else.

Front 494

Quiet title

Back 494

A suit or action in a court to remove a defect, cloud, or claim against the title to real property.

Front 495

Quitclaim deed

Back 495

A type of deed that will effectively convey any present interest, claim, or title to real property that the seller (grantor) may own.

Front 496

Quorum

Back 496

The minimum number of persons who may lawfully transact the business of a meeting (51 percent or four of the members of the Florida Real Estate Commission).

Front 497

Range

Back 497

In the government survey system of land description, a vertical strip of land six miles wide located between two consecutive submeridians or range lines.

Front 498

Range lines (submeridians)

Back 498

The surveyed north-south lines running every six miles east and west of the principal meridian.

Front 499

Ratio

Back 499

The relationship in quantity, size, or amount between two things; proportion.

Front 500

Ready, willing, and able?

Back 500

Ready" indicates the buyer is in a position and of a mind to complete the transaction; "willing" implies that the buyer desires to do so at the price and terms agreed; "able" refers to the buyer's financial ability to produce the required money when necessary.

Front 501

Real estate

Back 501

Land, including the air above and the earth below, plus any permanent improvements affecting the utility of the land; real property; property that is not personal property.

Front 502

Real estate business

Back 502

A commercial activity in which the sale, purchase, leasing, rental, exchange, or management of real property is conducted by qualified and licensed parties acting either for themselves or for others for compensation.

Front 503

Real estate profession

Back 503

A profession requiring knowledge of real estate values, experience in dealing with the public, plus exceptional personal integrity and character as qualifications to act as advisors and agents for members of the public.

Front 504

Real estate services

Back 504

Real estate activities involving compensation for performing the activities for another.

Front 505

Real property

Back 505

Any interest or estate in land, including leaseholds, subleaseholds, business opportunities and enterprises, and mineral rights; real estate.

Front 506

REALTOR®

Back 506

A real estate broker who is a member of a local board of REALTORS® and is affiliated with the state association (Florida Association of REALTORS®) and the National Association of REALTORS® (not synonymous with "real estate agent").

Front 507

Realty

Back 507

A synonym for real estate and real property.

Front 508

Reasonable time

Back 508

A variable period of time, which may be affected by market conditions, desires of the owner, supply and demand, fluctuations of values, or an official decision.

Front 509

Receiver

Back 509

An independent party appointed by a court to impartially preserve and manage property that is involved in litigation, pending final disposition of the matter before the court.

Front 510

Receivership clause

Back 510

A provision in a mortgage, related to income-producing property, that is designed to require that income derived shall be used to make mortgage payments in the event the mortgagor (borrower) defaults.

Front 511

Recommended order

Back 511

A determination by an administrative law judge that includes findings and conclusions as well as other information required by law or agency rule to be in a final order.

Front 512

Reconciliation

Back 512

The process of weighting the estimates of value derived from the sales comparison, cost, and income approaches to arrive at a final estimate of market value.

Front 513

Record

Back 513

To place any document or instrument affecting title or an interest in real property in the public records of the county in which the property is located.

Front 514

Recovery fund (Real Estate Recovery Fund)

Back 514

A state-regulated account to cover claims of aggrieved parties who have suffered monetary losses from licensee's actions.

Front 515

Recovery period

Back 515

The assigned time over which property is depreciated for tax purposes.

Front 516

Rectangular method

Back 516

(See Government survey system.)

Front 517

Redemption

Back 517

To repurchase, to buy back, to recover property used as security for a mortgage by paying the debt. (See also Equity of redemption.)

Front 518

Redlining

Back 518

Discriminatory financing by a lending institution.

Front 519

Registration

Back 519

Authorization by the state to place an applicant on the register (record) of officially recognized individuals and businesses.

Front 520

Regression

Back 520

The principle that states that the value of a superior property is adversely affected by its association with an inferior property of the same type.

Front 521

REIT

Back 521

A method of pooling investment money using the trust form of ownership.

Front 522

Release clause

Back 522

A provision in a blanket mortgage covering more than one unit of real property that provides for the mortgagor to obtain freedom from the mortgage for each unit when a designated amount has been paid to the mortgagee for each unit.

Front 523

Reliction

Back 523

Gradual receding of water and resulting permanent increase in land once covered.

Front 524

Remainderman

Back 524

The party designated to receive an estate at the end of a life estate.

Front 525

Renunciation

Back 525

To abandon an acquired right without transferring that right to another.

Front 526

Replacement cost

Back 526

The expenditure of constructing a building with current materials and techniques that has the same functional utility as the structure being appraised.

Front 527

Replacement reserves (reserve for replacements)

Back 527

A portion of the annual income set aside for covering the cost of major components (e.g., air-conditioning) that wear out faster than the building itself.

Front 528

Reprimand

Back 528

An official act of oral and/or written criticism with a formal warning included.

Front 529

Reproduction cost

Back 529

Amount required to duplicate the property exactly.

Front 530

Rescind

Back 530

To annul, cancel, repeal, or terminate.

Front 531

Reserve requirements

Back 531

The amount of funds that an institution must hold in reserve against deposit liabilities.

Front 532

Residential sale

Back 532

The sale of improved residential property of four or fewer units, the sale of unimproved residential property intended for use as four or fewer units, or the sale of agricultural property of ten or fewer acres.

Front 533

Respondent

Back 533

A person who answers to an informal complaint proceeding prior to being adjudged innocent or being named as a defendant.

Front 534

Restriction

Back 534

Any device or action that controls or limits the use of real property.

Front 535

Restrictive covenants

Back 535

Conditions placed by developers that affect how the land can be used in an entire subdivision.

Front 536

Reversion

Back 536

That portion of the net proceeds from the sale of property that represents the return of the investor's capital.

Front 537

Revocation

Back 537

To cancel, rescind, annul, or make void; the permanent cancellation of a person's license.

Front 538

Right of survivorship

Back 538

A situation by which the remaining joint tenant succeeds to all right, title, and interest of the deceased joint tenant without the need for probate proceedings.

Front 539

Right-to-use

Back 539

A leasehold interest in a time-share unit based on the limited time (one or more weeks) specified in the agreement.

Front 540

Riparian rights

Back 540

Private ownership rights extending to the normal high-water mark along a river or stream and including access rights to water, boating, bathing, and dockage in accordance with state and federal statutes.

Front 541

Risk

Back 541

The chance of loss of all or a part of an investment; the uncertainty of financial loss.

Front 542

Rural Housing Services Administration

Back 542

An agency of the Department of Agriculture that offers assistance to rural residents and communities.

Front 543

R-value

Back 543

A special rating or method of judging the insulating effectiveness of insulation products.

Front 544

Sale and leaseback

Back 544

A financing arrangement in which an investor buys property owned and used by a business accompanied by a simultaneous leasing back of the property to the business by the buyer-investor.

Front 545

Sale contract (deposit receipt contract; purchase agreement; contract for sale and purchase)

Back 545

An agreement whereby one party agrees to sell and the other party agrees to buy according to the terms set forth.

Front 546

Sales associate

Back 546

A licensed individual who, for compensation, is employed by a broker or owner- developer.

Front 547

Sales comparison approach

Back 547

A method for estimating the market value of a property by comparing similar properties to the subject property.

Front 548

Satisfaction of mortgage

Back 548

A certificate issued by the lender when the debt obligation is paid in full.

Front 549

Savings Association Insurance Fund (SAIF)

Back 549

A federal agency that insures deposits of member savings associations.

Front 550

Seal

Back 550

A mark, emblem, or impression on a document used to authenticate the document or a signature.

Front 551

Secondary lender

Back 551

Agency or financial institution that buys mortgage loans previously made by primary lenders.

Front 552

Secondary market

Back 552

A source for the purchase and sale of existing mortgages.

Front 553

Second mortgage (secondary financing)

Back 553

A loan that is junior or subordinate to a first mortgage, normally taken out when the borrower needs more money.

Front 554

Section

Back 554

One of the primary units of measurement in the government survey system of land description. A section is one mile square and contains 640 acres.

Front 555

Security

Back 555

Evidence of a debt or of ownership.

Front 556

Seisin (seizin)

Back 556

A covenant in a deed that warrants that the grantor (seller) holds the property by virtue of a fee simple title and has a complete right to dispose of same. Also known as seizin clause.

Front 557

Seller's market

Back 557

The demand for available properties exceeds the supply.

Front 558

Separate property

Back 558

Real property owned by a husband or wife prior to the marriage with the spouse having no present rights in such property; property owned individually.

Front 559

Service industries

Back 559

Businesses that attract local money (e.g., grocery stores, retail shops).

Front 560

Setback

Back 560

Restrictions established by zoning or deed on the space required between lot lines and building lines.

Front 561

Severalty

Back 561

Sole ownership of real property ("severed" from all others).

Front 562

Severance

Back 562

The act of removing something attached to the land (e.g., fruit, timber, fence).

Front 563

Single agent

Back 563

Per Section 475.01, F.S., a broker who represents, as a fiduciary, either the buyer or seller but not both in the same transaction.

Front 564

Single-hung

Back 564

A window characterized by a movable lower sash.

Front 565

Site plan

Back 565

A document that indicates the improvement details for a project of greater-than-average size.

Front 566

Situs

Back 566

Relationships and influences created by location of a property that affect value (e.g., accessibility, personal preference).

Front 567

Slab-on-grade

Back 567

Concrete foundation poured directly on the ground.

Front 568

Sole proprietorship

Back 568

Dealing as an individual in business.

Front 569

Special agent

Back 569

One authorized by a principal to perform a particular act or transaction, without contemplation of continuity of service as with a general agent.

Front 570

Special assessments

Back 570

Taxes levied against properties to pay for all, or part of, improvements that will benefit the properties being assessed.

Front 571

Special exception

Back 571

An individual ruling in which a property owner is granted the right to a use otherwise contrary to law.

Front 572

Specific liens

Back 572

Claims that affect only the property designated in the lien instruments or agreements.

Front 573

Specific performance

Back 573

A remedy for an injured party obtained through a court of equity, which requires specific accomplishment of the contract terms by a defendant.

Front 574

State-certified appraiser

Back 574

A person verified by the DBPR as qualified to issue state-certified real property appraisals.

Front 575

Static risk

Back 575

Risk that can be transferred to an insurer such as the risk of vandalism, fire, and so forth.

Front 576

Statute

Back 576

An established rule or law passed by a legislative body.

Front 577

Statute of frauds

Back 577

An act that requires that certain real estate instruments and contracts affecting title to real property be in writing in order to be enforceable.

Front 578

Statute of limitations

Back 578

An act that prescribes specific time restrictions for enforcement of rights by action of law.

Front 579

Stay

Back 579

Delay temporarily; stop for a limited time.

Front 580

Steering

Back 580

Discriminatory acts against buyers.

Front 581

Stock

Back 581

The ownership element in a corporation usually divided into shares and represented by transferable certificates (may be divided into two or more classes of differing rights and stated values).

Front 582

Subbaselines

Back 582

(See Township lines.)

Front 583

Subdivide

Back 583

To segment large, acquired tracts of real property in order to create small tracts for the purpose of resale.

Front 584

Subdivision plat map

Back 584

A plan of a tract of land subdivided into lots and showing required or planned amenities.

Front 585

Subject property

Back 585

The real property under discussion or appraisal.

Front 586

Subject to the mortgage

Back 586

A buyer makes regular periodic payments on the mortgage but does not assume responsibility for the mortgage.

Front 587

Sublease

Back 587

A lessee leasing a property to a third party for a period of time less than the original lease (also referred to as subletting).

Front 588

Submeridians

Back 588

(See Range lines.)

Front 589

Subordination

Back 589

Made subject to or subservient to; assignment to a lesser role or position.

Front 590

Subordination clause

Back 590

A provision in a mortgage in which the lender voluntarily permits a prior or subsequent mortgage to take priority over the lender's otherwise superior mortgage; the act of yielding priority.

Front 591

Subpoena

Back 591

A writ or order commanding the person named to appear and testify in a legal proceeding.

Front 592

Subrogation

Back 592

Made subject to or subservient to; assignment to a lesser role or position.

Front 593

Substitution, principle of

Back 593

An economic law of value: no prudent buyer will pay more for a property than the cost of an equally desirable replacement property.

Front 594

Suit

Back 594

An act of suing; an action in a court of law for the recovery of a right or claim.

Front 595

Summary suspension

Back 595

Emergency or immediate action against a license to protect the public.

Front 596

Supersedeas, writ of

Back 596

A stay of enforcement; temporary stop in a legal proceeding; restraining order.

Front 597

Supply

Back 597

The quantity of goods or services offered for sale to consumers.

Front 598

Survey

Back 598

The procedure used to measure and describe a specific tract of real property for the purpose of determining exact boundaries and the area contained therein.

Front 599

Survivorship, right of

Back 599

A legal concept whereby the surviving owners of a joint interest in real property are entitled to the interest formerly owned by one or more deceased owners.

Front 600

Suspension

Back 600

To cause to cease operating for a period of time; the temporary withholding of a person's license rendering it ineffective; a period of enforced inactivity.

Front 601

Tangible asset

Back 601

Anything of substance; personal and real property (e.g., cash, building, equipment, land).

Front 602

Tax

Back 602

Compulsory payment paid by a citizen to a unit of government.

Front 603

Taxable income

Back 603

Gross income minus tax deductions; net operating income plus reserve for replacements minus financing costs and allowable depreciation.

Front 604

Taxable value

Back 604

The assessed value less allowable exemptions resulting in an amount to which the tax rate is applied to determine property taxes due.

Front 605

Tax certificate

Back 605

A document sold by a local tax authority granting the certificate buyer the right to receive delinquent taxes plus interest when paid by the legal property owner.

Front 606

Tax clause

Back 606

A provision in a mortgage that requires the borrower to pay all legitimate property taxes.

Front 607

Tax deed

Back 607

A type of deed used to convey title after real property is sold at auction by public authority for nonpayment of taxes.

Front 608

Tax district

Back 608

An authority, such as a city, county, school board, or special levy area (e.g., water district), with the power to assess property owners annually in order to meet its expenditures for the public good.

Front 609

Tax lien

Back 609

A claim against real property arising out of nonpayment of the property taxes.

Front 610

Tax rate

Back 610

The percentage of value that is used to determine the amount of tax to be levied against each individual unit of property; ad valorem (according to the value).

Front 611

Tax shelter

Back 611

An investment that shields items of income or gain from payment of income taxes; a term used to describe some tax advantages of owning real property (or other investments), including postponement or even elimination of certain taxes.

Front 612

Telephone solicitation

Back 612

The initiation of a telephone call for the purpose of encouraging the purchase of, or investment in, property, goods, or services.

Front 613

Tenancy

Back 613

The estate or rights of a tenant. (See also Estate.)

Front 614

Tenancy at sufferance

Back 614

An estate lawfully acquired for a temporary period of time but retained after a period of lawful possession has expired; nonfreehold estate.

Front 615

Tenancy at will

Back 615

An estate that may be terminated by either party at any time upon proper notice; nonfreehold estate.

Front 616

Tenancy by the entireties

Back 616

An estate created by husband and wife jointly owning real property with instant and complete right of survivorship.

Front 617

Tenancy in common

Back 617

A form of ownership by two or more persons each having an equal or unequal interest and passing the interest to heirs, not to surviving tenants.

Front 618

Tenant

Back 618

A person or party with rights of occupancy or possession of real property.

Front 619

Term mortgage

Back 619

A nonamortizing loan that normally calls for repayment of the principal in full at the end of the loan term.

Front 620

Testate

Back 620

Having left a will.

Front 621

Testator (testatrix)

Back 621

A person who makes a will.

Front 622

Third party

Back 622

Generally, a member of the public; not the principal or agent in a transaction.

Front 623

Tier

Back 623

An east-west row of townships (as used in the government survey method of land description).

Front 624

Time is of the essence

Back 624

A phrase in a contract making failure to perform by a specified date a breach or violation of the agreement.

Front 625

Time-share

Back 625

An individual interest in a real property unit together with a right of exclusive use for a specified number of days or weeks per year.

Front 626

T-intersection lot

Back 626

An interior lot that suffers from its location at the end of a T-intersection (a street ends in front of the lot).

Front 627

Title

Back 627

The group of rights that represent ownership of real property and the quality of the estate owned; evidence of ownership of property; legal title.

Front 628

Title insurance

Back 628

A policy of insurance that protects the holder from any loss resulting from defects in the title.

Front 629

Title plant

Back 629

Copies of recorded documents from the public records kept by title insurance companies; record room.

Front 630

Title search

Back 630

An examination of all of the public records to determine whether any defects exist in the chain of title.

Front 631

Title theory

Back 631

Legal concept that vests title to mortgaged property in the mortgagee (lender) or a third party.

Front 632

Topography

Back 632

Surface features (natural and manufactured) of land (e.g., lakes, mountains, roads).

Front 633

Township

Back 633

A square tract of land measuring six miles on each side and including 36 sections (formed by the crossing of range and township lines).

Front 634

Township lines (subbaselines)

Back 634

The east-west survey lines located every six miles north and south of the primary base line.

Front 635

Trade fixture

Back 635

An article that is attached by a commercial tenant as a necessary part of the tenant's business and is personal property.

Front 636

Trade name

Back 636

Any adopted or fictitious name used to designate a business concern.

Front 637

Transaction broker

Back 637

A broker who provides limited representation to a buyer, a seller, or both in a real estate transaction, but does not represent either in a fiduciary capacity or as a single agent.

Front 638

Triggering terms

Back 638

The Truth-in-Lending Act requires creditors to disclose certain information if certain credit terms, called triggering terms, are included in the advertisement. Triggering terms include the amount or percentage of down payment, number of payments, period (term) of repayment, amount of any payment, and the amount of any finance charges.

Front 639

Trust

Back 639

A right of property, either real or personal, held by one party for the benefit of another.

Front 640

Trust account

Back 640

A person or party, either appointed or required by law to administer or manage another's property.

Front 641

Trustee (escrow agent)

Back 641

A person or party, either appointed or required by law to administer or manage another's property.

Front 642

Underwriting (loan qualification; risk analysis)

Back 642

The analysis of the extent of risk assumed by a lender in connection with a proposed mortgage loan.

Front 643

Unenforceable

Back 643

A contract that was valid when made but either cannot be proved or will not be upheld by a court.

Front 644

Unilateral contract

Back 644

An agreement in which only one party promises to perform without receiving a reciprocal promise to perform from the other party.

Front 645

Unincorporated association

Back 645

A group of people associated together for some common, noncommercial purpose.

Front 646

Unities (four unities)

Back 646

Individual prerequisites required to constitute a single joint tenancy.

Front 647

Universal agent

Back 647

A representative authorized by the principal to perform all acts that the principal can personally perform and that may be lawfully delegated to another.

Front 648

Unliquidated damages

Back 648

The amount of valuable consideration awarded by a court to an injured party as a result of default. (See also Damages.)

Front 649

Usury

Back 649

Charging a rate of interest greater than the legal one; unlawful interest.

Front 650

Vacancy and collection losses

Back 650

A deduction from potential gross income for (1) current or expected future space not rented due to tenant turnover and (2) loss from uncollected rent due from delinquent tenants.

Front 651

Vacancy rate

Back 651

The percentage of rental units that are not occupied.

Front 652

Vacate

Back 652

To set aside, cancel, or annul; to leave empty.

Front 653

Valid

Back 653

Sufficient to be legally binding; enforceable.

Front 654

Valid contract

Back 654

An agreement binding on both parties and legally enforceable against all parties to the agreement.

Front 655

Valuable consideration

Back 655

The money or a promise of something that can be measured in terms of money.

Front 656

Value

Back 656

The worth of something.

Front 657

Variable lease

Back 657

An agreement for the tenant to pay specified rent increases based on a predetermined index (CPI) at set future dates.

Front 658

Variance

Back 658

An exception to zoning regulations or ordinances granted to relieve a hardship.

Front 659

Vendee

Back 659

The buyer or purchaser of real property under an agreement of sale.

Front 660

Vendor

Back 660

The seller of real property in an agreement of sale.

Front 661

Vendor's lien

Back 661

A claim against property giving the seller the right to hold the property as security for any unpaid purchase money.

Front 662

Veterans Affairs, Department of (VA)

Back 662

Guarantees mortgage loans to encourage private lending agencies to give liberal mortgages to veterans and their spouses.

Front 663

Void

Back 663

Invalid; without force; no longer effective.

Front 664

Voidable

Back 664

A contract that because of the manner or method in which it was brought about, one of the parties is allowed to avoid his or her contractual duties

Front 665

Voluntarily inactive

Back 665

The license status that results when a licensee has met all of the requirements for licensure, yet the licensee chooses not to engage in the real estate business, and has requested his or her license be placed in this status.

Front 666

Voluntary liens

Back 666

Claims imposed against real property with the consent of the owner.

Front 667

Warrant

Back 667

A guarantee or covenant, as in a warranty deed.

Front 668

Warranty forever

Back 668

A provision in a deed guaranteeing that the seller will for all time defend the title and possession for the buyer.

Front 669

Waste

Back 669

An improper use or abuse of property by one who holds less than the fee simple ownership of it.

Front 670

Will

Back 670

A written document legally executed by which an individual disposes of his or her estate, effective after death.

Front 671

Witness

Back 671

A person who gives testimony; one who observes and attests to the signing or executing of a document.

Front 672

Wraparound mortgage

Back 672

A financing technique in which the payment of the existing mortgage is continued (by the seller) and a new, higher interest rate mortgage, which is larger than the existing mortgage, is paid by the buyer-borrower.

Front 673

Writ

Back 673

A court order directing a party to do a specific act, usually to appear in, or report to, a court of law.

Front 674

Yield

Back 674

The rate of return; the return on an investment or the amount of profit stated as a percentage of the amount invested; the ratio of the annual net income from a property to the cost or market value of the property.

Front 675

Zoning ordinances

Back 675

Classification of real property for various purposes; the government power to control and supervise the utilization of privately owned real property (actually, the exercise of police powers).