Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/111

Click to flip

111 Cards in this Set

  • Front
  • Back
Capitalization
The process of converting future income into present value; the income approach to value; considering net income and percentage of reasonable yield on the investment.
Capitalization rate
The rate of return an investor will demand from the investment in a property; increases with risk involved in a property.
Caveat emptor
Let the buyer beware.
Censure
Disciplinary power of the Commission whereby it reprimands a licensee; usually for technical violations occurring for the first time.
Certificate of eligibility
The VA's official statement regarding the exact amount of a mortgage loan it will guarantee for a particular veteran.
Certificate of no defense
See estoppel certificate.
Certificate of occupancy
Authorization from a building inspector that construction has been completed in compliance with building codes and is ready for occupancy.
Certificate of Reasonable Value (CRV)
An official VA appraisal of a specific property.
Certificate of sale
Issued to the successful bidder at a foreclosure sale if the state provides a statutory period of redemption to the defaulting owner.
Certificate of title
A title examiner's written opinion of the current condition of a property title based on a search of the public records dating back for a specified number of years.
Certified Property Manager (CPM)
A professional designation for one who has met all of the educational and experience requirements of the Institute of Real Estate Management.
Chain of title
The recorded history of conveyances affecting a property's title beginning with the original patent or grant from the government and continuing to the current owner.
Chapel
Personal property.
Chattel mortgage
See security agreement.
Civil Rights Act of 1866
The first federal legislation intended to prohibit racial discrimination in the sale or rental of all types of property.
Client
The person who authorizes the agent (broker) to act on his/her behalf. In real estate transactions; the client may be the seller. Also called the principal.
Client BRRETA
"Under ""BRRETA;"" the client is the person or entity who has entered into a contractual relationship (brokerage engagement) with the broker."
Closed mortgage
One which does not allow the borrower to pay off the loan before maturity.
Closing
The act of finalizing a transaction; in which title is conveyed to the purchaser. Also called settlement.
Closing Costs
Prorated charges by the lender including costs of making the loan and a service charge can be paid by buyer or seller.
Cloud on the title
Any claim; lien; or encumbrance that impairs title to real estate.
Co-broker
A broker who assists the listing broker in securing a buyer. Subagent.
Co-brokering
Participation of more than one broker in a real estate transaction.
Codicil
A written instrument executed for the purpose of amending an existing will.
Collateral
Property pledged to a lender as security for a loan.
Color of title
A title condition which appears to be good but in fact is not valid due to a certain defect; such as a forged deed.
Commercial easement in gross
A right to use the land of another. It does not benefit any particular property. The right is transferable and freely inheritable. Typical examples include utility easements; railroad rights-of-way; and billboard easements.
Commingling
An illegal practice whereby a broker mixes trust funds with his/her own or uses any part of those funds; before the sale is closed or otherwise terminated.
Commission
A broker's compensation for rendering a service to the principal as negotiated with the principal.
Commission (GREC)
The Georgia Real Estate Commission; the state licensing authority charged with the enforcement of the Real Estate License Law.
Comparables
Properties with similar characteristics to the subject property used for analysis in the market date approach.
Competency
See legal capacity.
Condemnation
A legal proceeding to exercise the power of eminent domain to take private property for public use.
Condemnation clause
A lease provision which specifies that proceeds be paid to the landlord in the event the leased premises are acquired by the government through condemnation.
Condition
A provision in a deed which subjects the ownership of land to certain restrictions. The party creating the condition (the grantor) reserves a future right in the property. Upon the occurrence or nonoccurrence of a stated condition; either the title automatically reverts to the grantor; or the grantor has the right to sue for possession and terminate the estate.
Conditional commitment
An official FHA appraisal of a specific property. Referred to as cost of acquisition. It is used to determine the amount of loan the FHA will insure.
Consideration
Anything of monetary value to induce another to enter into a contract.
Constant mortgage plan
See fully amortized mortgage.
Construction loan
A short-term interim loan to finance the cost of labor and materials necessary to complete construction of a building or other project.
Constructive communication
Communication by operation of law. When an offer is made through a courier; such as the mail; the offeree's acceptance is effectively communicated to the offeror when the acceptance is sent; not when it is received by the offeror.
Constructive eviction
Occurs when the landlord's actions or omissions allow the leased premises to become uninhabitable for its intended use; usually a violation of the implied warranty of habitability or the implied covenant of quiet enjoyment.
Constructive fraud
The misrepresentation of material facts; without intending to deceive or mislead but involving a breach of duty; such as negligence or carelessness. The broker is also liable for damages and license sanction. For example; a broker is negligent in the duty to discover the truth about zoning and unintentionally misleads a prospective purchaser.
Constructive notice
Knowledge that one is presumed by law to have; even though there is no actual knowledge of the fact. Constructive notice may be given by recording an instrument in the public records or by taking possession.
Constructive severance
The transfer to someone other than the owner of the land the rights to remove attachments such as timber; or buildings; or the right to remove minerals.
Consummate dower
A wife's right in her husband's estate after his death.
Contiguous
Adjoining; next to; in actual contact with.
Contingent remainder
A nonpossessory estate created when a fee simple owner grants a lesser estate and designates another person to take possession of the fee simple estate upon termination of the lesser estate and the occurrence of a stated condition.
Contour
The shape of the earth's surface.
Contour map
See topography map.
Contract
An agreement to do or not to do a particular act or thing which is enforceable by law. For the agreement to be valid and enforceable it must contain the following elements: legally competent parties; mutual assent; genuine assent; consideration; lawful purpose; and be in writing when required by law.
Contract for deed
See land contract.
Contract for sale
See sales contract.
Contract rent
The amount of rent stated in a lease agreement.
Conventional life estate
See life estate.
Conventional loan
One that is neither insured nor guaranteed by the government.
Conveyance
The document used to transfer interest in real property. Such as deeds; leases; mortgages; etc.
Corporation
A legal entity created under authority of the state. It offers limited liability to its owners. A resolution of the board of directors authorizing certain officers to sign a contract is required in order to bind a corporation.
Correction deed
See deed of reformation.
Correlation
See reconciliation.
Correlative rights
A doctrine of law which allows riparian owners in certain states to use only a reasonable share of water during periods of drought.
Cost
A historical record of past expenditures necessary to bring a property into being.
Cost approach
One of the three approaches to value; it involves estimating the current cost of replacing all improvements; from which the amount of estimated accrued depreciation is deducted; and an estimated value of the land is added.
Cost-to-cure
A method of estimating accrued depreciation by calculating the cost to correct all curable depreciation; also called observed condition.
Counter-offer
A proposal by an offeree to an offeror made in response to an offer; a counter offer terminates the original offer. Sometimes called qualified acceptance.
Covenant
A restriction in a lease or deed which specifies that the property will or will not be used in a certain manner. An example of a covenant is a subdivision restriction. Covenants must be enforced by seeking an injunction or damages. Covenants have a time limit after which they are no longer effective.
Covenant against encumbrances
A deed provision which assures the grantee that title to the property is free from any and all encumbrances not excepted in the deed or visible on the premises; or recorded in the public records.
Covenant of further assurances
A deed provision in which the grantor promises to perform any acts necessary to produce whatever documents are required to perfect title in the grantee.
Covenant of quiet enjoyment
A deed provision in which the grantor promises that the grantee shall be free of interference from the acts or claims of others having a superior title to the property.
Covenant of seizin
A deed provision in which the grantor promises that at the time of conveyance; he/she owns the property and has the right to convey title to it.
Covenant of warranty forever
A deed provision in which the grantor promises to compensate the grantee for any loss suffered while defending the title against persons asserting a genuine claim to the property from any time in the past.
Covenants of title
Either expressed or implied deed provisions in which the grantor promises that certain conditions of title exist. If it is later proven that those conditions do not exist; the grantor is obligated to compensate the grantee for any actual damages which result.
Credit report
A written report detailing the credit history of a prospective borrower; used by a lender to help determine credit worthiness.
Curable depreciation
Items of physical deterioration and functional obsolescence within the owner's control; which are economically feasible to repair or replace.
Curtesy
A husband's life estate in the real property owned by his wife and conveyed to him by law upon her death.
Customer
A third party; usually the buyer; with whom an agent deals on behalf of the principal.
"Customer under ""BRRETA"" "
"A customer is someone who is working with a broker concerning real estate matters but has not entered into a brokerage engagement with the broker. In a situation where the broker works with a ""customer;"" this law allows the broker to perform ""Ministerial Acts"" for the customer while working with them in a specific real estate transaction."
Damages
Loss or injury to a person or property caused by breach of contract. Also; the compensation paid for such loss.
Datum
A point of surface of known location from which heights and depths are measured. The basic point from which vertical land (air rights and mineral rights) is described.
Debt service
Mortgage payments including principal and interest.
Decedent
A deceased person.
Declaration of restrictions
An instrument which contains all the restrictive covenants affecting the lots in a subdivision. By recording the instrument; the subdivision restrictions are incorporated by reference into the deeds to each individual lot.
Declaratory ruling
An official statement from the Commission which is intended to clarify the position and intent relating to a particular rule or part of the License Law.
Dedication
The act of giving to a government real property which is designated for public use.
Deed
A written instrument which; when properly executed and delivered by the grantor during the grantor's lifetime; conveys the grantor's interest to the person who accepts it; known as a grantee.
Deed in foreclosure
See sheriff's deed.
Deed in lieu of foreclosure
A deed given to a lender by a defaulting borrower who wishes to avoid foreclosure proceedings. The lender may or may not accept the deed.
Deed in partition
A deed issued by the court when property is sold at a partition sale for the purpose of dividing a joint tenancy or tenancy in common ownership.
Deed of reformation
A deed which corrects an error in another deed.
Deed of trust
A deed used in many states in lieu of a mortgage. Title is held by a trustee on behalf of a lender (beneficiary) until the borrower (trustor) repays the loan.
Deed to secure debt
See security deed.
Default
See breach of contract.
Defeasance clause
A mortgage provision which allows the borrower to defeat the mortgage by repaying the loan according to the terms of the note. When the debt is paid; this provision causes the mortgage to become null and void; allowing the borrower to regain full rights of ownership.
Deficiency judgment
A judgment ordered by the court against the borrower when the proceeds from a foreclosure sale are insufficient to satisfy the debt. The defaulting borrower's other assets may be sold to satisfy the judgment.
Demand deposits
A bank's deposits which are available to the depositor with no advance withdrawal notice required.
Depreciation
Loss in value due to physical deterioration; functional obsolescence; or economic obsolescence.
Depth tables
Method of estimating the value of the added depth of a lot; as compared to a standard size lot.
Dereliction
A process of accretion whereby usable land is gradually exposed when a body of water recedes and remains below its normal waterline.
Deterioration
See physical deterioration.
Devise
A gift of real property by will.
Deviser
A person who disposes of real property by will.
Devises
A person named to receive real property by will.
Discount points
The percentage of a loan which determines the amount paid to the lender to increase the yield. One discount point is equal to one percent of the loan amount. See loan discount.
Discount rate
The rate of interest the Federal Reserve System charges member banks to borrow money. By controlling the discount rate; the Federal Reserve controls the money available for credit.
Disintermediation
Occurs when withdrawals exceed deposits from savings and loan associations or other similar institutions because alternative investments offer a more attractive return.
Dominant estate
The land parcel which benefits from an easement appurtenant. When title to the land is conveyed; the easement is automatically transferred to the new owner.
Dower
A wife's life estate in the real property owned by her husband and conveyed to her by law upon his death.
Dual agency
Representation by the same agent of more than one party in the same transaction. This practice constitutes a violation of the License Law; unless both parties give their written consent.
"Dual agent under ""BRRETA"" "
A dual agent is a broker who has entered into a brokerage engagement with both seller and buyer or landlord and tenant in the same transaction.
Dual contracts
See falsifying contracts.
Due-on-sale clause
See alienation clause.
Duress
The use of force to compel a person to enter into a contract.