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91 Cards in this Set

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Absolute delivery
A grantor's hand delivery of a deed to the grantee.
Abstract of title
A condensed history of all conveyances; liens; encumbrances; judgments; and other court decisions affecting the property.
Acceleration clause
Mortgage loan provision which permits the lender to demand the entire loan balance be immediately paid in full in the event of default.
Acceptable buyer
A buyer whose offer is acceptable to the seller; though different from the terms in the broker's listing agreement.
Accession
The acquisition of either title to land attaching to property as a result of the process of accretion or title to improvements attaching to property as a result of the annexation of fixtures by tenants or trespassers.
Accretion
The gradual addition to land resulting from some natural force; such as the action of water or wind. The two processes of accretion are allusion and dereliction.
Accrual for depreciation
A process for recovery of investment in a building; also called return of investment.
Accrued depreciation
Past depreciation; the actual depreciation in a property that has already occurred as of a given date.
Acknowledgment
A formal declaration made by the grantor in the presence of an authorized official; usually a notary public; that the deed was signed voluntarily. The purpose is to prevent forgery and the fraudulent inducement of a conveyance. Required in most states for recording but has no effect on validity.
Acre
A measure of land area equal to 43;560 square feet.
Action to quiet title
A court action to settle a title dispute or clear a title of defects.
Active license
Status of an individual who has met all qualifications to practice real estate as a broker; associate broker; or salesperson; and such license is held by a broker; rather than by the Commission.
Actual age
The number of years a building has been in existence.
Actual agency
An agency established by agreement; either written or verbal.
Actual communication
Oral or written communication to the offeror that the offeree has accepted the offer.
Actual eviction
A legal process to remove a tenant who holds over after the right of possession has ended; usually resulting from failure to pay rent.
Actual fraud
A deliberate misrepresentation of a material fact; made with the intent of inducing the other party to act upon it to one's detriment can be done by words or silence.
Actual notice
Knowledge that one acquires from what is heard; read; or observed.
Ad valorem tax
A tax based upon the value of real property. At the rendering of the tax bill for the current year; it becomes a specific lien against the property on which it was levied until paid. Revenue from such taxes is used to pay for the general operational expenses of the taxing authority.
Addendum
A page added to a form contract for the purpose of including essential terms or to provide supporting documentation; such as plats or a power of attorney. The addendum should be incorporated into the contract by reference; then initialed and dated by the parties. Also called an Exhibit.
Adjustable rate mortgage
Mortgage loan which allows the lender to periodically adjust the interest rate; up or down; to reflect changes in market rates. Changes are tied to an index; such as Treasury Bill rates; which measures market reactions to economic pressures on interest rates.
Adjusted sales price
The price put on a comparable property after adjustments have been made for differences between it and the subject property.
Administrator
A person appointed by a probate court to oversee distribution of property and to satisfy all debts out of the assets of the estate of a person who died without leaving a valid will or did not name an executor.
Administrator's deed
A deed executed by an administrator to convey title to real property owned by a person who died intestate or did not name an executor.
Adverse possession
A method of acquiring title to real property by the unauthorized occupation of another person's land. The adverse claimant's possession must be actual; hostile; open; notorious; exclusive; and continuous for a period of time required by state law.
After acquired title; Doctrine of
A principle of law which enables a prior grantee to automatically acquire title to real estate after a grantor has attempted to convey title but; in fact; did not have good title.
Age-life
A method of estimating accrued depreciation; also; called straight-line depreciation.
Agency
The relationship created when a principal authorizes an agent to represent him/her in dealing with third parties.
Agency BRRETA
"Agency as defined under ""BRRETA"" means every relationship in which a real estate broker acts for or represents another by that person's express authority in a real estate transaction."
Agency coupled with an interest
An agency in which the agent has a legal interest in the property of the principal. Cannot be revoked by the principal.
Agent
A person authorized to act on behalf of another.
Allodial system
A system of landownership which recognizes the right of individuals to own land independently of political superiors; but allows the government to retain the rights of eminent domain; police power; taxation; and escheat.
None
Air lot
A designated air space over a parcel of land. In condominiums; each individual unit occupies a separate air lot.
Air rights
The right to use and enjoy the air space above a parcel of land. Such rights may be leased or sold separately from the land.
Alienation clause
Mortgage loan provision which allows the lender to demand the entire loan balance due if the property is sold; or the lender can allow the loan to be assumed by a credit worthy buyer and with an interest rate increase. Also known as due-on-sale clause.
All inclusive mortgage
See wraparound mortgage.
Allusion
A form of accretion whereby soil is gradually accumulated on land bounded by a river; lake; or other body of water as a result of action of the water.
Alluvium
Soil accumulated by the process of allusion.
ALTA
American Land Title Association. An organization of title insurance companies; title attorneys; and others interested in land titles whose purpose is to promote professional standards and ethics throughout its industry.
Amenities
Intangible benefits to be derived from property ownership; such as a pleasant view; i.e.; conditions that are pleasant and agreeable for enjoyable living and a beneficial influence arising from a property's location.
Amortized Loan
"See ""fully amortized mortgage""."
Annual percentage rate
The total annual cost of credit; including interest; loan discount; and all other finance charges for obtaining the loan; expressed as a percent.
Anticipation; principle of
Holds that value is based upon the future benefits to be derived from property ownership.
Appraisal
An estimate or opinion of value; made by a qualified person.
Appraisal process
Systematic procedures used by an appraiser to gather and analyze data in order to arrive at a final conclusion of value.
Appraiser
A person qualified by experience; education; and licensing to make estimates of value.
Appreciation
An increase in property value.
Appropriation
The formal legislative enactment of how a taxing authority intends to acquire funds through taxation; along with a detailed account of how the money is intended to be used.
Appurtenance
Anything that may be used with the land for its benefit and goes to the new owner when ownership of the land is transferred. Mineral rights; air rights; water rights; easements; improvements; and natural attachments are appurtenant to the land.
Arbitration
The process of settling disputes whereby the disagreeing parties submit their differences to a neutral third party and agree to be bound by his/her judgment.
As is
A term used to describe property offered for sale in its present condition with no warranty provided by the owner. It does not confer immunity from liability of fraud.
Assemblage
The process of combining several individually owned adjoining (contiguous) lots into one large tract owned by one person.
Assessed value
An amount used for tax purposes and arrived at by multiplying a fixed percentage times the property's fair market value. The percentage is predetermined by the taxing authority and in some cases by state law.
Assessment
See assessed value.
Assessment rate
Percentage which; when multiplied times market value; determines assessed value.
Assessment roll
A record of all taxable properties in a taxing jurisdiction; along with their assessed value. Also called tax base.
Assignee
The person to whom a right or legal interest is transferred; one to whom an assignment is made.
Assignment
A legal transfer of one's rights under a contract to a third party.
Assignment (lease)
Relative to a lease; an assignment is a complete transfer of the tenant's remaining leasehold estate. The original tenant remains liable to the landlord for the unpaid rent should the new tenant default.
Assignor
One who transfers a right or legal interest to another.
Associate broker
A person who has met all qualifications to be licensed as a broker but who elects to act on behalf of another broker in performing any act authorized by law to be performed by a broker.
Assume and agree to pay
When a purchaser assumes and agrees to pay an existing loan; he/she becomes primarily liable for repayment. Should he/she default and not have sufficient assets to satisfy a deficiency judgment; the seller is still secondarily liable to the lender. If the seller is required to pay off any deficiency; he/she may in turn sue the purchaser for the amount paid to the lender.
Attachment lien
An encumbrance created against land when the court is granted custody of the property to prevent the owner from conveying title while a suit for damages is being decided. By attaching the property the person seeking damages is assured that the property will be available to satisfy a judgment if it is awarded by the court.
Attestation
The act of witnessing a person's signing a document; such as a deed or will; and then signing the document as a witness.
Attorney general
Legal counsel for the state. Whenever the Commission believes a serious violation of the License Law has occurred; the Attorney General may bring an action in the name of the state to enforce compliance.
Attorney-in-fact
A person who is authorized by power-of-attorney to act for another. Persons acting as attorneys-in-fact are not required to have a license.
Automatic renewal clause
A provision in a listing agreement which allows the listing to automatically renew indefinitely until the property is either sold; or the agreement is canceled by the owner. Such provisions are not allowed in most states.
Avulsion
The loss of land caused by a sudden or violent change in the course of a river; stream; or other body of water.
Balloon payment
A lump sum pay off of the unpaid balance of a loan; usually at the end of the loan term.
Bargain and sale deed
A deed which contains neither expressed nor implied warranties of title.
Bench mark
A permanent reference point of known location used by surveyors. A bench mark may be a point established by a government survey team or a fixed monument such as a road right of-way.
Beneficiary
The lender when a trust deed is used in lieu of a mortgage.
Bequest
Personal property received by will.
Bilateral contract
A contract in which the parties mutually exchange promises; binding both to perform.
Bill of sale
A document which conveys ownership to personal property.
Blanket mortgage
A mortgage loan arrangement where several parcels of land are pledged as security; used primarily with subdivision financing.
Blind ad
An advertisement which does not indicate the party offering to buy or offering to sell is licensed by the Commission. Such ads are prohibited. Every ad or sign must contain the name of the brokerage firm as registered with the Commission.
Blockbusting
The illegal practice of inducing homeowners in a neighborhood to sell their property by calling attention to the possibility that minority families may be moving in; resulting in a lessening of property values; a decline in the quality of education; and an increase in crime.
Board of equalization
A state authority whose function is to apply equalization factors to assessed values of properties located in counties which use different assessment rates. The purpose of this procedure is to assure fair and equitable treatment of taxpayers required to pay a state ad valorem tax.
Bond
See promissory note.
Breach of contract
Failure without legal excuse to perform one's obligations under a contract. Failure to fulfill a duty.
Broker
An individual or legal entity (corporation or partnership) licensed to act as the agent of another in buying; selling; exchanging; renting; leasing; managing; or auctioning real estate for another.
Broker BRRETA
"The term under ""BRRETA"" means any individual or entity that has been issued a real estate license under the authority of the Georgia Real Estate Commission and includes; for the purpose of this section; any affiliated licensees. (Salespeople or Associate Brokers)"
Brokerage
"Under ""BRRETA"" a brokerage is defined under Georgia Law as anyone who is authorized to buy; sell; rent; manage; exchange or auction real property for another in return for a fee. Simply stated; the brokerage business is the occupation of a real estate broker."
Brokerage engagement
"Under ""BRRETA;"" a brokerage engagement is an expressed contract (written or oral) where the client (principal) agrees to give to the real estate broker valuable consideration upon the broker producing a seller; buyer; tenant; or landlord ready; willing and able to sell; buy or rent the property (e.g.; Listing Contracts; Buyer Representation Agreements; Management Contracts and Lease Contracts)."
Brokerage relationship
"Under ""BRRETA;"" the brokerage relationship is the relationship that is formed as a result of the parties entering into a brokerage engagement."
Budget mortgage
Mortgage loan in which monthly payments include not only principal and interest but also one-twelfth (1/12) of the annual cost for taxes and insurance.
Buffer zone
A parcel of land which separates other land used for different purposes. For instance; a playground may be used as a buffer zone to separate residential property from commercially used land.
Building codes
Regulations; either local or state; which set construction standards for materials; methods; and safety procedures.
Building lines
See setback.
Bundle or rights
All of the rights a person can have in real property. Included in the bundle are the rights of possession; control; enjoyment; and disposition.