Real Estate

Front 1

Absorption

Back 1

The consumption of available vacant property in a building or market.

Hint 1

Available in a building or market

Front 2

Accretion

Back 2

An increase in land caused by natural phenomena, for example a deposit of sand on a beachfront property due to a tropical storm.

Hint 2

Increase of land

Front 3

Agency

Back 3

A fiduciary relationship between an agent and a principal where respective rights & duties are prescribed by laws of agency & by the agency agreement executed by the two parties.

Hint 3

Universal, limited, & fiduciary agency.

Front 4

Agent

Back 4

The party in an agency relationship who is hired by the principal to perform certain ditties. In so doing, the agent must also uphold fiduciary duties owed the principal.

Front 5

Air Rights

Back 5

Rights in real property as they apply to the properties airspace, or all space above the surface within the parcel's legal boundaries.

Hint 5

Rights

Front 6

Air Space

Back 6

The air portion of real property. In a condominium unit, the freehold space enclosed enclosed by the unit's outer walls, floor, & ceiling.

Hint 6

Condo air property

Front 7

Allocation of Markets

Back 7

An act of collusion where two or more competitors agree to limit competitive activity in portions of the market in exchange for reciprocal restrictions from the others.

Hint 7

Collusion

Front 8

Assemblage

Back 8

A combining of contiguous parcels of real estate into a single tract, performed with the expectation that increased value will result.

Hint 8

Combining contiguous parcels

Front 9

Asset

Back 9

A tangible or intangible item of value

Hint 9

Item of value

Front 10

Asset Sale

Back 10

A sale of a business involving the transfer of assets as opposed to the liabilities or stock.

Hint 10

Aka: Stock sale

Front 11

Assignment

Back 11

A transfer of one's entire interest in an item of real or personal property. The assignor transfers the interest to the assignee.

Front 12

Base line

Back 12

An imaginary latitude line within the rectangular survey system that is designated in relation to a principal meridian for purposes of identifying townships.

Hint 12

Aka: parallel

Front 13

Beginning Basis

Back 13

The original cost or market value of an acquired asset

Front 14

Benchmark

Back 14

A registered marker denoting an official elevation above sea level; used by surveyors to identify other elevations in the area

Hint 14

Marker

Front 15

Beneficiary

Back 15

A party named to benefit from the yield or disposition of an asset identified in a trust, insurance policy, or will.

Hint 15

Benefit from yield or disposition

Front 16

Bilateral Contract

Back 16

A contract where both parties promise to perform in exchange for performance by the other party.

Hint 16

2 parties

Front 17

Binder

Back 17

A temporary agreement to buy a property evidenced by a valuable deposit. Receipt of the deposit binds the seller to a good-faith agreement to sell a property, provided a complete sale contract is executed within a certain period.

Hint 17

Temp agreement w/ deposit

Front 18

Blind Ad

Back 18

An advertisement that does not contain the identity of the advertiser.

Hint 18

No advertiser

Front 19

Blockbusting

Back 19

Inducing property owners to sell or rent their holdings due to an impending downturn in their property values, often owing to a change in the area's ethnic or social composition.

Hint 19

Scaring into selling

Front 20

Broker

Back 20

A direct agent of the principal who is hired for compensation to perform a stated service such as procuring a customer.

Hint 20

Direct agent

Front 21

Brokerage

Back 21

The business of procuring customers on behalf of clients for the purpose of completing a real estate transaction.

Hint 21

Business

Front 22

Bundle of Rights

Back 22

A set of rights associated with ownership of property, including the rights to possess, use, transfer, encumber & exclude.

Hint 22

Associated set of rights

Front 23

Buyer Representation Agreement

Back 23

A broker's listing with a buyer to locate a suitable property for purchase or lease.

Front 24

Buyers Market

Back 24

A market characterized by an excess of sellers over buyers

Hint 24

Surplus of sellers

Front 25

Capital Improvement

Back 25

An upgrading of improved property having sufficient magnitude to constitute an addition to the property's basis. Contrasts with repair or maintenance.

Front 26

Certificate of Occupancy

Back 26

A document confirming that a newly constructed or renovated property had fully complied with all building codes & is ready for occupancy & use.

Front 27

Chattel

Back 27

An item of personal property

Front 28

Co-Brokerage

Back 28

A brokerage practice where agents and brokers outside of the listing broker's agency assist ad subagents in procuring a customer in exchange for portions of the commission.

Front 29

Commingling

Back 29

An unlawful practice of mixing escrow funds with the agency's operating funds.

Front 30

Common Elements

Back 30

1.) Portions of a condominium property that are owned by all unit owners, for example the grounds, parking, lobby, elevators.

2.) Portions of a commercial property used by all occupants ad well as the public, for which the tenants may have to share in the repair & maintenance costs.

Front 31

Concurrency

Back 31

A local, county, or regional planing policy that requires developers to correct foreseen negative impacts of a development during the construction period of the project itself rather than afterwards. Exmp: widening a road during construction to accommodate a future increase in traffic.

Front 32

Condominium Estate

Back 32

An estate distinguished by fee simple ownership of the airspace of a unit plus an undivided interests with other unit owners in the common areas/elements.

Front 33

Cooperative Estates

Back 33

Ownership of shares in a cooperative association which acquires a multi-unit dwelling as its primary asset. Shareholders also receive a proprietary lease on a unit for the duration of their share ownership.

Front 34

Curtesy

Back 34

A widower's life estate claim to portions of his deceased spouse's real property.

Hint 34

Opposite of dower

Front 35

Customer

Back 35

In agency law, a party outside of the fiduciary relationship of a client & agent. If an agent treats a customer as a client, an implied agency may result.

Front 36

Datum

Back 36

A standard elevation reference point used by surveyors to measure elevations of property in an area.

Front 37

Deed in Lieu of Foreclosure

Back 37

An instrument used to convey mortgaged property bank to the lender rather than having the lender foreclose on the property.

Front 38

Defeasable Fee

Back 38

A fee estate where ownership is perpetual, provided that usage restrictions or other conditions stated in the deed are upheld. If not, the fee reverts to the grantor either automatically (determinable fee) or by the grantor's actions (confessional subsequent)

Front 39

Demand

Back 39

A quantity of a product or service that is desired for purchase, lease, or trade at any given time.

Front 40

Dominant Tentement

Back 40

The property that benefits from the existence of an easement appurtenant. The holder of the easement is the dominant tenant.

Front 41

Dower

Back 41

A widow's life estate interest in portions of her deceased spouse's real property.

Front 42

Dual Agency

Back 42

Representing both principal parties in a transaction.

Front 43

Earnest Money Escrow

Back 43

An impound account used for the safekeeping of a buyer's earnest money deposit; accompanied by specific instructions to the escrow agent for holding & disbursing the funds.

Front 44

Easement

Back 44

An interest in real property giving the interest holder the right to use defined portions of another's property. May or may not attach to the estate.

Front 45

Emblements

Back 45

Plants & crops considered personal property, since human labor is required for planting & harvesting.

Front 46

Equilibrium

Back 46

A theoretical market state in which the forces of supply & demand are in balance.

Front 47

Estate

Back 47

1.) A set of rights to real property that include possession.

2.) The totality of one's personal and real property ownership.

Front 48

Estate in Hand

Back 48

An estate

Front 49

Ethics

Back 49

Standards governing proper & professional business practices.

Front 50

Exclusion

Back 50

One of the bundle of legal rights to real property enabling the owner to prevent others from entry or use.

Front 51

Exclusive Agency

Back 51

A listing agreement which pays the broker a commission if anyone other than the property owner pedicures a customer.

Hint 51

Anyone but the owner

Front 52

Exclusive Right to Sell

Back 52

A listing agreement which pays the listing broker a domain of anyone at all procures a customer.

Hint 52

Anyone

Front 53

Facilitator

Back 53

A transaction broker who assists principal parties in completing a transaction without acting as a fiduciary agent of either party

Hint 53

No fiduciary agency

Front 54

Fee Simple

Back 54

An estate representing the highest form of legal ownership of real property, particularly the fee simple absolute estate.

Front 55

Fiduciary

Back 55

The agent in an agency relationship; receives the trust & confidence of the principal & owed fiduciary duties to the principal.

Front 56

Fiduciary Duties

Back 56

Ditties of an agent to the principal in an agency relationship, including skill, care, diligence, loyalty, obedience, confidentiality, disclosure, & accounting.

Front 57

Fixture

Back 57

An item permanently attached to land so as to be defined as real property.

Front 58

Freehold Estate

Back 58

An ownership estate of indeterminable duration; contrasts with a leasehold estate.

Front 59

Functional Obsolescence

Back 59

A loss of value in an improved property because of design flaws or failure of the property to meet current standards. May be curable or incurable.

Front 60

General Agency

Back 60

A fiduciary relationship which authorizes the agent to conduct a broad range of activities for the principal in a particular business enterprise may or may not include authority to enter into contracts.

Front 61

General Partnership

Back 61

A for-profit business where two or more co-owners agree to share management responsibilities and profits. Does not involve silent partners, as in a limited partnership.

Front 62

Goodwill

Back 62

An intangible business asset valued at the difference between the sale price & the value of all other assets of the business.

Front 63

Gross Easement

Back 63

A personal right to use another's property, granted by the owner; does not attach to the estate, & there are no dominant or servient tenements.

Front 64

Highest and Best Use

Back 64

A theoretical use of a property that is legally permissible, physically possible, financially feasible, & maximally productive, usually in terms of net income generation.

Front 65

Implied Agency

Back 65

An agency relationship that arises by implication from the actions and representation of either agent or principal.

**Implied Listing

Front 66

Implied Contract

Back 66

An unstated or unintentional agreement that may be deemed to exist by implication because of acts or statements by any of the parties to the agreement.

Front 67

Improvement

Back 67

Amy manmade structure or item affixed to land

Front 68

Independent Contractor

Back 68

A sales agent who works for a broker but is not legally an employee. The employer exerts only limited control over the contractor's actions, does not provide employee benefits, & doesn't withhold any taxes from their pay.

Front 69

Interest

Back 69

1.) A right to real property

2.) A lender's charge for the use of the principal amount of a loan.

Front 70

Land

Back 70

The surface area of the earth, all natural things permanently attached to the earth, & everything beneath the surface to the earth's center & above the surface extending upward to infinity.

Front 71

Landlocked

Back 71

A parcel of property lacking legal access to a public thoroughfare; requires a court-ordered easement by necessity to relieve the condition.

Front 72

Law of Agency

Back 72

A biddy of law defining roles, duties & responsibilities of an agent & a principal. Laws also set forth standards of conduct agent & principal owe to a customer.

Front 73

Legal Title

Back 73

Full legal ownership of property & the bundle of rights as they apply to it. Contrasts with equitable title.

Front 74

Legal Description

Back 74

A description of a parcel of property which accurately locates & identifies the boundaries of the subject parcel to a degree acceptable by local courts of law.

Front 75

Liability

Back 75

An accounting entry representing a claim against the assets of a business by a creditor.

A condition of vulnerability to lawsuits seeking redress for potentially wrongful acts or statements.

Front 76

License

Back 76

Legal authorization to conduct business

An individual's personal right to use the property of another for a specific purpose. Revocable at any time at the owners discretion. Does not attach to the property & terminates upon the death of either party.

Front 77

Lien Theory State

Back 77

A state whose laws give a lender on a mortgaged property equitable title rather than legal title. The mortgagor in a lien theory state retains legal title.

Front 78

Limited Agency

Back 78

An agency relationship which restricts the agent's authorizations to a specific set of duties. The relationship usually terminates on performance of these duties, as in a real estate broker's listing agreement. Also called special agency.

Front 79

Liquidity

Back 79

The degree to which an investment is readily marketable, or convertible to another form of asset. If immediately stable, an investment is liquid; the longer it takes to sell, the more illiquid in comparison with other types of investment.

Front 80

Listing

Back 80

A legal contract that establishes and controls the dynamics of the agency relationship between principal & agent. The principal to the listing may be buyer, seller, or tenant.

Front 81

Lot & Block System

Back 81

A method for legally describing property on a subdivision where lots are identified by block & number. A recorded metes & bounds or rectangular survey description of the subdivision underlies the lot & bock system.

Front 82

Market

Back 82

Buyers and sellers exchanging good & services. Total interactions of supply and demand to a specific item/service in a certain area.

Front 83

Marketing Plan

Back 83

An agent's design/plan for procuring a customer for a client.

Front 84

Master Plan

Back 84

Community plan with local opinion, including research. Acting blueprint for subsequent zoning & rulings.

Front 85

Meridian

Back 85

A north-south line used in the rectangular survey system of legal descriptions.

Front 86

Metes & Bounds

Back 86

Method of legally describing the property using physical boundary markers & compass directions to describe property boundaries.

Front 87

Monument

Back 87

Fixed artificial or natural landmark used as a reference point (metes and bounds)

Front 88

Net Listing

Back 88

Listing that states a minimum sale or lease price with excess going to broker. Professionally discouraged if not ILLEGAL.