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145 Cards in this Set
- Front
- Back
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ALTA Title Policy
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A title insurance policy issued by title insurance companies that expands the risks insured against under the standard type of policy to include unrecorded physical easements, facts a physical survey would show, water and mineral rights, and rights of parties in possession (such as tenants and buyers under unrecorded instruments).
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ABATEMENT OF JUDGMENT
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A document containing a condensation of the essential provisions of a court judgment.
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Abatement of Nuisance
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The act of ending or teminating a nuisance; a type of legal action brought to end a nuisance.
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Abstract of Judgement
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A summary of money judgment. The summary is usually prepared so that it may be recorded, thereby creating a (judgement) lien on real estate owned by the judgment debtor.
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Abstract of Title
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A summary of the instruments affecting title to a parcel of real property as shown by the public records.
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Accelerate
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To make a note all due and payable at one time.
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Acceleration Clause
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A clause in a deed of trust or mortagage giving the lender the right to call all sums owing him or her to be immediately due and payable upon the occurrence of a certain event. It is also a clause that permits a debtor to pay off a loan before the due date.
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Acceleration Clause b
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A clause in a promissory note, deed of trust, or mortgage that provides that upon default of a payment or some other stated event, the entire unpaid balance becomes immediately due and payable.
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Acceptance
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An essential element of every contract, it is the consent to be bound by the offer. In deeds, it is the consent to accept a grant of real property.
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Access Right
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The right of an owner to go into and out of his or her property.
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Accommodation Party
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A person who, without receiving value, signs a promissory note to help another person borrow money or get credit.
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Accord and Satisfaction
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The discharge of an existing contract by accepting the performance under a substitute contract. Generally, consideration under the new contract is different from and of lesser value than under the original contract, and satisfaction is the performance of that contract; the combinationn discharges the original contract.
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Accretion
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A gradual addition to land from natural causes; for example, from gradual action of ocean or river waters.
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Accrued Depreciation
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1. The difference between the cost of replacement new as of the date of the appraisal and the present appraised value.
2. The accumulated losss in value that has affected the improvements on real property |
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Acknowledgement
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A formal declaration before an officer duly authorized as a notary public by a person who has executed an instrument,?stating that the execution is his or her act and deed. A formal statement (usually before a notary public) by the person signing a deed or document that the instrument was actually and freely signed.
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Acoustical Tile
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Blocks of fiber, mineral, or metal with small holes or a rough-textured surface to absorb sound, used as covering for interior walls and ceilings.
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Acquisition
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The act or process by which a person procures property. ACRE A measure of land equaling 160 square rods, 4840 square yards, 43,560 square feet, or a tract about 208.71 feet square.
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Ad Valorem
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According to value.
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ADA
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Refers to the Americans With Disabilities Act. The ADA applies to equal access to employment, public services, public accomodations, public transportation and telecommunications. ADA Refers to the Americans With Disabilities Act. The ADA applies to equal access to employment, public services, public accomodations, public transportation and telecommunications.
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Adjacent
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Located next to or near an object or parcel of property.
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Adjoining
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Located so as to touch an object or share a common property line.
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Adjusted Cost Basis
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For tax purposes it is the cost of the property plus improvements and minus depreciation, amortization, and depletion.
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Administrator
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A person appointed by the probate court to administer the estate of a deceased person. His or her duties include making an inventory of the assets, managing the property, paying the debts and expenses, filing necessary reports and tax returns, and distributing the assests as ordered by the probate court.
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Adult
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Any person 18 years of age and older.
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Adverse Possession
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A method of acquiring property based on open and notorious possession, under a claim of right, color of title, continuous use for five years, and the payment of taxes. A method of acquiring property through continuous use of that property while paying taxes on it.
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Affadavit
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A statement or declaration reduced to writing, sworn to or affirmed before some officer who has authority to administer an oath or affirmation, such as a notary public or a commanding officer in the service.
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Affirm
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To confirm, swear, ratifying, verity.
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Agency Relationship
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A special relationship of trust by which one person (agent) is authorized to conduct business, sign papers, or otherwise act?on behalf of another person (principal). This relatoinship may be created by expressed agreement, ratification, or estoppel.
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Agent
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One who represents another called a principal and has authority to act for the principal in dealing with third parties. The relationship is referred to as an agency. Someone authorized to act for another (called the principal) in business matters.
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Agreement
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A mutual understanding or compact between parties. Althought often used a synonymous with contract, technically it denotes mutual promises that fail as a contract for lack of consideration.
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Agreement of Sale
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1. A written contract between a buyer and seller setting out the terms of sale.
2. An installment sales contract covering real property, especially a long-term contract |
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AIDS
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The seller of real property, his agents or his sub agents do not have to disclose that somebody died of AIDS or had AIDS in said property.
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Alienation
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The transferring of property to another. Conveyance or transfer of title to real estate from one person to another person.
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Alienation Clause
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In a deed of trust or mortgage, a provision that if the secured property is sold or transferred, the lender has the option of accelerating the loan and declaring the entire unpaid balance immediately due and payable. Also called a "due-on-sale" clause.
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Alligator
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Purchasing lower priced properties will limit the appetite of the alligator. The alligator is an expensive piece of property that gobbles up all the profits. Negative cash flow on a keeper property is reffered to as an alligator.
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All Inclusive Deed of Trust
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A financing device whereby a lender makes payments on the existing trust deeds of a borrower and takes from the borrower a junior trust deed with a face value in an amount equal to the amount outstanding on the old trust deeds and the additional amount of money borrowed.
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Alluvion
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Soil that has been deposited by accretion on the shore of a river or body of water and that increases the real property.
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ALTA Policy
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The title insurance policy issued to institutional lenders. The initials stand for American Land Title Association, an organization that regulates and standardizes the provisions within title policies.
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Alter Ego
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A doctrine which holds that a corporation is really owned by shareholders as their own property, and therefore it should not be considered as a separate entity. Usually used to try to hold shareholders liable for corporate debts.
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Ambulatory
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Capable of being changed or revoked. In wills, it refers to the concept that a will may be revoked or modified at any time up to the testator's death.
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Ameliorating Waste
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Improvements to property that, while not damaging the value of the property, technically qualify as waste. For example, an apartment building constructed on property designated only for single-family structures is considered ameliorating waste.
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Amenities
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As used in the real estate business, the features that make a piece of real property, especially a home, enjoyable.
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Amortization
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1. The liquidation of a financial obligation on an installment basis, which includes both principal and interest.
2. Recovery of cost or value over a period of time. The method or plan for the payment of a debt, bond, deed of trust, etc., by installments or sinking fund. |
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Annual Percentage Rate
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The cost of credit as determined in accordance with Regulation Z of the Board of Governors of the Federal Reserve System for implementing the Federal Truth in Lending Act.
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Annuity
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A sum of money received or paid yearly or at other fixed periods.
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Anticipation
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Affirms that value is created by the anticipated benefits to be derived in the future.
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Anticipatory Breach
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Advance notice of intention to violate the terms of a contract.
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Appeal
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The review or rehearing by a higher court of a low (inferior) court's decision.
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Appellant
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The party appealing a court decision. Either party may appeal; hence, the appellant could have been either the plaintiff or the defendant in the trial court.
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Appraisal
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An estimate and opinion of value. An opinion or estimate of the fair market value of a property.
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Appraiser
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One qualified by education, training, and experience, who is hired to estimate the value of real and personal property on the basis of experience, judgment, facts, and use of formal appraisal processes.
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Appurtenant
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Attached to or considered part of land, because of being considered necessary and incidental to the use of that land. Commonly applied to easements that are considered part of property.
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Assessed Value
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Value placed on property as a basis for taxation. A value used by the tax assessor before July 1978. It represented 25 percent of the assessor's fair market value. After deducting any exemptions from assessed value, one applied the tax rate to the net figure to determine annual property taxes.
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Assessment
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The valuation of property for the purpose of levying a tax, or the amount of tax levied.
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Assessor
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The official who has the responsibility of determining the assessed values.
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Assignee
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One to whom property is assigned or transferred.
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Assignment
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A transfer to another of any property or right. The transfer of one's entire interest in property. Generally, the term is limited to intangible personal property (that is, stocks, bonds, promissory notes) and to leasehold estates.
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Assignment of Rents Clause
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A clause in a deed of trust or mortgage, providing that in the event of default, all rents and income from the secured property will be paid to the lender to help reduce the outstanding loan balance.
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Assignment of Rent
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An assignment of future rents form property as security for a debt.
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Assignor
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One who assigns or transfers property.
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Assumption
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Acceptance of personal liability for another's debt or obligation. In the case of the sale of real estate, the buyer personally accepts and promises to pay off the existing deed of trust.
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Assumption of Agreement
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A contract by which a person agrees to pay a debt or obligation owed by someone else.
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Assumption of Mortgage or Deed of Trust
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The taking of title to property by a grantee in which he or she assumes liability for payment of existing note secured by a mortgage or deed of trust against the property.
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Attachment
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Seizure of property by court order before judgment, usually done to have it available in the event a judgment is obtained in a pending law suit. The actual or constructive seizure of property by court order during a lawsuit. The usual purpose is to hold the assests as security for the satisfaction of a judgment.
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Attachment Lien
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A lien on property arising because of an attachment of that property.
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Attest
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1. To affirm to be true or genuine.
2. An official act establishing authenticity. |
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Attorney-in-Fact
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An agent authorized to perform certain acts for another under a power of attorney. (See Power of Attorney.)
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Avulsion
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The sudden tearing away or removal of land by the action of water flowing over or through it.
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Backfill
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The replacement of excavated earth in a hole or against the side of a structure.
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Balance Sheet
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A financial statement showing a person's assets, liabilities, and net worth.
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Balloon Payment
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When the final payment on a note is greater than the preceding normal installments, the final installment is termed a balloon payment. An installment promissory note providing for the last payment to be much larger than any previous payment. By statute, any payment more than twice the smallest payment is a balloon payment, although in practice generally the term refers only to the last payment.
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Bankruptcy
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Will not eliminate all loans secured by real property.
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Base and Meridian
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Imaginary lines used by surveyors from which they find, measure, and describe the location of lands.
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Base Moulding
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Molding used at the top of the baseboard.
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Baseshow
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Molding used at junction of baseboard and floor, sometimes called a carpet strip.
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Baseboard
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A board that goes around the room against the wall and next to the floor.
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Batten
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Narrow strips of wood or metal used to cover joints on the interior or exterior of a building; they are also used for decorative effect.
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Blockbusting
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The illegal practice of trying to lower property values.
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Beam
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A horizontal structural member supporting a load.
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Bearing Wall or Partition
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A wall or partition that supports any vertical load, in addition to its own weight.
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Benchmarks
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A location indicated on a permanent marker by surveyors.
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Beneficiary
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1. One entitled to benefit from a trust.
2. The lender on the security of a note and deed of trust. The creditor (lender) under a deed of trust |
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Bequeath
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To leave by will.
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Bequest
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Personal property that is given by the terms of a will. A gift of personal property by will.
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Betterment
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An improvement on real property that increases the value and is considered a capital asset.
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Bilateral Contract
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A contract in which the consideration given by each party is a promise: that is , a promise for a promise.
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Bill of Sale
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A written instrument given by the seller to the buyer to pass title to personal property.
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Binder
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A written statement that binds the parties to an agreement until formal contracts can be drawn; an agreement to cover a down payment as evidence of good faith.
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Blacktop
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Asphalt paving used in streets and driveways.
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Blanket Deed of Trust
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A deed of trust binding more than one parcel of property as security. It is frequently encountered in subdivisions, where every lot in the subdivision is bound by the same deed of trust. As the lots are sold, they are released from the deed of trust by a partial release provision.
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Blanket Mortgage
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One mortgage or deed of trust that covers more than one piece?of real property.
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Blighted Area
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An area in which real property is declining in value because of destructive economic forces.
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Board Foot
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A unit of measurement for lumber: one foot wide, one foot long, one inch thick (144 cubic inches).
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Bona Fide
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Good faith.
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Bona Fide Purchaser
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A purchaser who pays fair value for property in good faith, and without notice of adverse claims.
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Bond
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An obligation under seal. Real estate bonds are isssued on the security of a mortgage or deed of trust. A certificate representing a contract for the payment of money, often used to repay certain loans or held as security to ensure the performance of a stated act.
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Book Value
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An accounting term which is the difference between cost and the total amount of depreciation that has been taken.
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Bracing
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Frame lumber nailed at an angle in order to provide stability to the structure.
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Breach
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The breaking of or failure of duty, either by an act or omission. The violation of or failure to perform an obligation.
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Breezeway
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A covered porch or passage, open on two ends, that connects the house and garage, or two parts of the house.
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Bridging
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Wood or metal pieces used to brace floor joists.
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Broker
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An agent who earns income by arranging sales and other contracts. A real estate broker is an individual licensed by the state of California to arrange the sale or transfer of interests in real property for compensation.
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Broker's Trust Fund Account
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Withdrawals from this account may be made only by the broker.
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BTU
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British Thermal Unit; the quantity of heat required to raise the temperature of one pound of water one degree Fahrenheit.
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Broker
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one who is licensed to represent a party in real estate transaction for compensation
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Independent Contractor
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self-employed paid on job not hours worked
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MLS
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Multiple Listing Service - listing service whereby local member brokers share listing and agree to share commissions on properties sold jointly
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Real Estate Licensee
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a person licensed to practice real estate in Ohio
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Realist
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any real estate licensee who is a member of the National Association of Real Estate Brokers
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REALTOR
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any real estate licensee that is a member of the National Association of Realtors
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Salesperson
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any licensed agent associated with a broker, and as such can conduct some acts on behalf of the broker
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Limited RE Broker/Agent
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engage exclusively in the sale of cemetery interment rights for a fee
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Foreign RE broker/agent
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deal with real estate outside of Ohio
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Sales Associates
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self-appointed and usually refers to any licensed salesperson but may also be used by one who's not actively using his or her broker license
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Residential
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single family homes, multi-family, condominiums and cooperatives
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Multi-Family property
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(residential) double or duples up to a large apartment complex
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Condominium and Cooperatives
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residential properties
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Commercial
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offices, stores, hotels and other buildings (operated by a Property Manager)
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Industrial
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land and structure involved in the production, distribution, and storage of tangible economic goods
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NAR
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National Association of Realtors - members voluntarily agree to follow a Code of Ethics
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License Inactive
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license status of any salesperson whose license is returned to the Division of Real Estate by a broker who does not want to maintain sponsorship of a licensee or by a salesperson
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License on Deposit
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special license status which is available to brokers who wish to return their broker's license to the Div of Real Estate in order to reactivate their sales license; also can be referenced when a broker or salesperson enters the military
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Revocation
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Real Estate Commission permanently withdraws a RE license
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Suspension
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RE license is temporarily withdrawn - has a set period of time with reactivation automatic on day suspension is lifted
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5 Exceptions to RE Ohio License requirements
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1) persons dealing with their own property
2) fuduciaries 3) public officials acting in an official capacity (ie sheriff) 4) Attorneys at law 5) persons selling manufactured homes or mobile homes provided the sale does not include the property on which it sits |
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How many members on the Ohio Real Estate Commission?
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5 total
4- licensed RE Brokers with at least ten years experience 1- non-licensee who represents the public interest |
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Who appoints the members of the Ohio Real Estate Commission?
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governor with consent of the Ohio Senate
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How long do Ohio Real Estate Commission members serve?
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5 years with no more than 3 members belonging to the same political party
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The Ohio Real Estate Commission duties
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issues, suspends, and revokes licenses; reviews any order issued bu the Superintendant of the Div of RE
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Who runs Ohio Division of RE?
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Superintendent
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How is the Superintendent appointed to the OH Division of RE?
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by the Director of Commerce
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Ohio Division of Real Estate Duties
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administers license laws, issues orders to enact license law, investigates written complaints against licensees
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Real Estate Recovery Special Account
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used to satisfy unpaid judgment against real estate licensees for activities in violation of the license law which caused financial loss to the claimant - ceiling is at $40,000
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Post licensing Requirements
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10 hr post-licensing course
proof sent to Div of RE complete 30 hrs of CE every 3 yrs |
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Cost of Money
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the interest rate that people or businesses must pay to use another's money for their own purposes
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Economic Base
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the main business or industry in an area which a community uses to support and sustain itself
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Eminent Domain
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govt's constitutional right to take (appropriate/condemn) private property for public use, as long as the owner is justly compensated
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Escheat
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when property reverts to the state after a person dies without a valid will and without heirs
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Immobility
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physical characteristics of real estate referring to fact that real estate can't move from one place to another
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Inflation
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an increase in the cost of goods or services or too much money chasing too few goods
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Land Use Controls
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public or private restrictions on how land may be used (eg zoning)
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Police Power
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constitutional power of state (and local) governments to enact and enforce laws that protect the public's health, safety and morals and general welfare
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Taxation
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process of a govt levying a charge upon people or things
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4 Factors that influence RE
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1) economic
2) governmental 3) social 4) physical |
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business cycles (real estate cycles)
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general swings in the business activities resulting in expanding and contracting activity during different phases of the cycle (can be specifically referred to real estate business)
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