Real Estate Vocab

Front 1

Fictitious

Back 1

of, pertaining to, or consisting of fiction; imaginatively produced orset forth; created by the imagination:

Example: John is his real name. But he is signing under his company name (a fictitious name) such as "Brookfield Homes."

Front 2

How many square feet are there in an acre?

Back 2

43,560 square feet in an acre.

4,840 square yards in an acre.

Front 3

Rescission

Back 3

The act to rescind. To abrogate; annul; revoke; repeal.

Front 4

Detainer

Back 4

the wrongful detaining or withholding of what belongs to another.

Front 5

Grantor Vs Grantee

Back 5

Grantor: A person or organization that makes a grant

Grantee: The receiver of a grant

Front 6

Trustor Vs Trustee & Beneficiary

Back 6

Trustor: A person who creates a trust

Trustee: a person, usually one of a body of persons, appointed to administer the affairs of a company, institution, etc.

a person who holds the title to property for the benefit of another.

Beneficiary: A person or group that receives the benefits, profits or advantages

Front 7

Lessor

Back 7

A person or group who grants a lease.

Example: A Landlord

Front 8

What is a percolation test?

Back 8

A test to determine the absorption rate of the soil for a septic drain field or a "leach field"

Front 9

What is a leach field?

Back 9

Final destination where water released from your toilets. Like a septic tank.

Front 10

What is a Grant Deed and what does it contain?

Back 10

A legal document used to transfer ownership of real property. A grant deed contains the name of the person or entity transferring the property (the grantor); the legal description of the property being transferred (i.e., lot number, tract number, city, county and state); and the name of the person or entity that the property is being transferred to (the grantee). The grant deed shows that the title has not already been granted to another person.

Front 11

Sublease

Back 11

a lease granted by one who is already a lessee of a property, as anapartment.

If you rented an apartment for a year. But you were traveling 4 months out of that year. You could sublease your apartment to a friend or some other person to use for those 4 months away. They pay for your rent.

Front 12

Fiduciary

Back 12

A person to whom property or power is entrusted for the benefitof another.

Like a trustee

Front 13

Ratification

Back 13

the act of ratifying; confirmation; sanction.

Front 14

What is a bar?

Back 14

anything that obstructs, hinders, or impedes; obstacle; barrier:

Front 15

Estoppel

Back 15

a bar or impediment preventing a party from asserting a fact or aclaim inconsistent with a position that party previously took.

When a party reasonably relies on the promise of another party, and because of the reliance is injured or damaged.

Front 16

Litigant

Back 16

a person engaged in a lawsuit.

Front 17

Ostensible

Back 17

outwardly appearing as such; professed; pretended:

apparent, evident, or conspicuous

Front 18

Novation

Back 18

the substitution of a new obligation for an old one, usually by the substitution of a new debtor or of a new creditor.

The act of either: replacing an obligation to perform with a new obligation; or adding an obligation to perform; or replacing a party to an agreement with a new party

Front 19

Subrogation

Back 19

To put into the place of another; substitute for another.

Front 20

Hypothecation

Back 20

The established practice of a borrower pledging an asset as collateral for a loan while retaining ownership of the assets and enjoying the benefits therefrom.

Basically a personal guarantee on something. If you don't make the payments back. You lose it.

Front 21

Duress

Back 21

compulsion by threat or force; coercion; constraint.

Front 22

What is a "Rider"

Back 22

A provision of an insurance policy that is purchased separately from the basic policy and that provides additional benefits at additional cost. Standard policies usually leave little room for modification or customization, beyond choosing deductibles and coverage amounts.

Front 23

Tender

Back 23

To invite bids for a project, or to accept a formal offer such as a takeover bid.

Front 24

Emancipated

Back 24

not constrained or restricted by custom, tradition, superstition, etc.

freed, as from slavery or bondage.

Front 25

Escrow

Back 25

a contract, deed, bond, or other written agreement deposited with athird person, by whom it is to be delivered to the grantee or promiseeon the fulfillment of some condition.

Front 26

Economic obsolescence

Back 26

as a form of depreciation, or an incurable loss in value, caused by unfavorable conditions external to the property, such as the local economy, economics of the industry, availability of financing, encroachment of objectionable enterprises, loss of material and labor sources.

Front 27

Financial obsolescence

Back 27

Financially insecure.

Front 28

Functional obsolescence

Back 28

A loss of value from all factors within a property except for physical deterioration.This may include a poor floor plan,the lack of a garage,high ceilings that dramatically increaseheating costs, or the lack of central air conditioning in the South. Contrast with economic obsolescence (factors outside the property that depress its value) and physicalobsolescence (deterioration).

Front 29

Capitalization

Back 29

to authorize a certain amount of stocks and bonds in the corporate charter of

divide the expected annual net profit on the property by the current market value of the property

Front 30

Gross Multiplier

Back 30

A rough measure of the value of an investment property that is obtained by dividing the property's sale price by its gross annual rental income. GIM is used in valuing commercial real estate, such as shopping centers and apartment complexes, but is limited in that it does not consider the cost of factors such as utilities, taxes, maintenance and vacancies. Other, more detailed methods commonly used to value commercial properties include capitalization rate (cap rate) and the discounted cash flow method.

Front 31

Appreciation

Back 31

An increase in the value of an asset over time. The increase can occur for a number of reasons including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which is a decrease over time.

Front 32

Inflation

Back 32

An increase in the market value of items.