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

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


Play button


Play button




Click to flip

197 Cards in this Set

  • Front
  • Back
recovery fund
state-regulated fund used to pay purchases of real estsate who have suffered a loss due to actions or inactions of licensee
civil rights act of 1866
act that prohibits discrimination against race and color incertain real estate transactions
federal fair housing act
act that prohibits discrimination against race, color, religion, national origin, gender, familial status and handicap in certain real estate transactioncs
sherman antitrust act
act of 1890 which ensures fairness in the marketplace
real estate settlement procedures act (respa)
act which requires full disclosure of all cost involved in obtaining financing and closing ona property
blind ads
ads placed by a sales agent that do not include the employing broker's name
uniform residential landlord and tenant act of 1973
created for regulating the relationship between landlord and tenant in residential leases
contract between lessor and lessee that transfers the right to exclusive possession and use of a propoerty for a specified period of time in exchange for rent
transferring part of a lessee's interest to another for a portion of the term of th elease
actual eviction
the legal process that results in tenant being physically removed from leased premises
constructive eviction
actions of a landlord that distrub or impair a tenant's enjoyment of leasesd premises and causes him to leave
when right an dinterest in a property is transferred to another for the entire term
landlord's legal right to seize tenant's belongings for damages or rents in arrears under court order
public accomodation
privatedly owned entity that privides services or accomodations to the public
reversionary rights
right to take back possession of property if lease ends
one who performs real estate activities while employed by or associated with a licensed real estate broker
designated broker
one who supervises all activities of sales agents and is liable for their actions
employing broker
firm name or entity not a person
associate broker
a real estate broker working for a designated broker
referring broker
real estate broker who receives referral fee
broker or salesperson
temporary broker
when designated broker becomes ill or dies, broker that steps in to manage agents
cooperating broker
broker who assists another broker in a real estate transaction
real property
land and anything permanently attached to it
personal property changed to real property by permanently attaching it to the real estate
personal property
movable items not attached to real estate
touching at any point
trade fixture
personal property used in a business or trade that is attached to real estate
butting against each other
government check
in a 24 squaire mile parcel, there are 16 townships
plat map
map that shows lot locations and size
any claim attached to real property that may lessen its value or impair its use
claim against one property owner as security for debt
mechanic's lien
lien placed on your property for labor and/or material rendered in the improvement of a property
easement appurtenant
easement that is attached to the land and passes with the land
dominant estate
estate that benefits from easement
servient estate
estate that is giver of easement
party wall
common wall between properties
not an interest in land, but merly permission to use the land of another for osme limited purpose
unauthorized intrusion of real property reducing its value
ability to exit a property
ability to enter property
when brokers direct buyers away or to some of their listings to change or keep the character of an area the same
illegal practice of lending intitutions denying loans based on ethnicity instead of financial reasons
practice whereby a broker hopes to profit through persuading owners to enter into a real estate transaction by telling them that a change may occur in the neighborhood in regards to race, sex, religion, color, handicap or familial status
to pledge proeprty as security for a loan without giving up posession
property that is pledged as security for a debt
value over and above whatever is not debt
promissory note
unconditional promise made in writing to repay debt
written instrument to secure repayment of a debt for real property
buyer in a mortgage
lender in a mortgage
when mortgage is sold or assigned to another lender
trust deed
legal document in which the title to the property is transferred by borrower to third party as secuirty for beneficiary or lender
borrower in deed of trust
impartial third party in deed of trust
lender in deed of trust
power of sale
permits trustee to sell property if borrower defaults whitout a court of law
charge for using another's money
when lender charges a rate of interest above that allowed by law
orignation fee
fee charged by lender for making loan
discount point
fee charged by lender to get lower interset rate for borrower
when buyer assues current loan under same terms and conditions of original borrower
substituting new obligation for old one or for new parties to existing obligation
estoppel certificate
legal instrument verifying the exact loan amount, the current rate of interest, and date to which interest is paid
loan to value ratio
ratio of mortgate principal to the property appraised value or its sales price
conforming loan
standardized conventional loan that meets requirements of fannie mae and freddie mac
non-conforming loan
loan that fails to meet requirements
fha escape clause
borrower must be shown appraisal and if not, may withdraw from sale penalty free
police power
government's right to enact legislation for healthy, safety, and general welfare of public
eminent domain
right of the government to take privated property for "necessary public use" in exchange for compensation
process by which government takes property by eminent domain
inverse condemnation
when owner requessts that his property be condemned because of damages caused by government actions
severence damages
partial taking of property through eminent domain
consequential damages
damage that occurs due to something off subject property but that causes a loss of value
right of the government to tax private property to pay for the costs of government and area improvements
ad valorem
according to value
the reversion of property to state or county
assessment taxes
specific levy for definite purpose such as adding curbs or sewers in a neighborhood
prior appropriation
landowner's right to use available water based on governmetn administered permit system
active management areas (ama)
areas where water supply is limited and where water management programs are most needed
littoral rights
rights associated with navigable waterways
riparian rights
rights associated with non-navigable waterways
amount of space required between lot line and building line
non-conforming use
permitted use of real property that no longer conforms to current zoning laws
permit deviations from existing zoning laws
buffer zone
strip of land separating one land use from another
subdivided land
land with 6 or more parcels under 36 acres each
unsubdivided land
land with 6 or more parcels of 36 acres, but less than 160 acres
master planned community
area of 2 or more platted subdivisions with same CC&Rs
regulation that governs structurs on a property and use of land withing a particular area
principal (client)
in a real estate transaction, person represented
in real estate transaction, person representing
when original agent delegates authority to another agent
general agent
one authorized to act on behalf of another
dual agency
when agent represents both buyer and seller
exprfessed agency
agency whtehr written or oral that is clearly stated in words
implied agency
agency with someone who apperats to act on behalf of a principal with no formal listing agreement
agency by ratification
to later cknowledge or restate a previously implied relationship
esstopel agency
when principal creates agency because he fails to "esstop" someone from acting like his agent
legal relationsihp when person acts on behalf of anotehr in busness
attorney in fact
competent and disinterested perosn who is authorized by another person to act in his place
prospective buyer of real estate
relationship that implies a position of trust
special agent
authorized by principal to perform a particular act
dual agent
one authorized to act on behalf of buyer and seller with written consent
listing contract
written agreement authorizing a real estate broekr to find a buyer for a peroperty owner
seller property disclosure statement (spds)
statement to teh best of seller's knowledge identifying condition of property being soled
false, unintentional statement by which one party gains advantage
negligent representation
false statement that broker should have knowd about a fact
intentional, false statement of material fact by which one party tries to gain advantage
exaggerated or superlative comment or opinion
caveat emptor
buyer beware
caveat venditor
seller beware
nickname for act which focuses on cleaning up waste and hazardous material on property and identifying responsible parties
legally enforcable agreement for consideration between competent parties to perform or not perform an act
doctrine to bar legal claim due to delay or failure to assert
blue sky laws
laws which regulate registration and sale of investment securities
giver of offer
receiver of offer
expressed promise made by one party to act or perform in specified manner
mixing of brker's operating money with trust funds
when broker spends trust money
rescission agreement
mutual agreement signed by seller and buyer to cancel contract, stating disposition of earnest money
breach of contract
violation of any terms in a contract without legal excuse
liquidated damages
compensation amount predetermined and paid to injured party should there be a breach
specific performance
legal action to compel a party to carry out terms of contract
agreement kept open to buy or lease owner's property at fixed price within a stated period of time
right to ownership
estate (tenancy)
extent of interst a person has in real estate
qmathod of taking title
estate that lasts for a fixed period of time (rent or lease)
estate in real property that oculd last an indefinite duration
interest of ownership that wife has in real esatate of her deceased husband
specific performance
legal action to compel a party to carry out terms of contract
agreement kept open to buy or lease owner's property at fixed price within a stated period of time
right to ownership
estate (tenancy)
extent of interst a person has in real estate
method of taking title
an estate that lasts for a fixed period of time (rent or lease)
estate in real proerty that could last an indefinite duration
interest of ownership that a wife has in the real estate of her deceased husband
interst of ownershi that a husband has in real estate of deceased wife
life estate in real estate occupied as family home
pur autre vie
life estate contingent on life of someone orther than the grantee
dies with no will
`judicial partition
when court divides property due to dispute regarding use or sale of property
separate property
real and personal property owned solely by either spouse before marriage
community property
property attained after marriage
right of survivorship
when interst of property is equally divided between surviving owners or remaining owner
inter vivos trust
living trust
testamentary trust
trust that becomes effective after person dies
when seller delivers title to buyer in exchanged for purchase price
arrangement in which money and or documents are then transferred by escrow agent, according to purchase and sale agreement
affadavit of legal value
recorded document indicating sale price of property and signed by buyer and seller for tax purposes
dividing all costs propertionally between buyer and seller
chane of title
ownership history of a property from creation
title evidence
proof in form of documents that seller conveys legal title
astract of title
history of all recorded instruments that has affected title to property
acknowledged deed
formal declaration made before a notarypublic or duly authoriszed aofficer, by the person who has signed the document itself
when person dies with a will
when a person dies without a will
when court determiens validity of willor order of descent if there is no weill
transfer of real property by will
person who receives property by will
descent or intestate succession
real estate distributed by descent statues after deceased owner died intestate
interpleader action
when title company turns earnest money over to court due to dispute between buyer and seller
person who is named inwill to carry out deceased person's wishes
adverse possession
acutal, open, notorious, hostile and continuous possession of another's land
written instrument transferringownership of real property from one person to another
valuable or good
act of converying ownershp
formal declaration made before an authorized officer to confirm a person has signed a document not under duress
constructive notice
knowledge that is implied by law or legal notice
actual notice
express information or fact attained in transaction
estamte or opinion of value of piece of property as of certain date
one who estimates value of real or personal property
when appraiser arrives at final estimate of value after examining each appraisal approach
seller's market
real estate market where the demand for homes is greater than the supply
buyer's market
real estate market where supply of homes is in excess compared to demand
subject property
property being appraised
comparable property
recently sold property being used as means of comparison
reproduction cost
construct cst at current prices of exact duplicate of subject property
replacement cost
construction cost at current prices of proeprty that serves the same purpose or fuciont as original
physcial deterioration
decay, disintegration or wear and tear
functional obsolescense
loss of value off subject property
to convert future income to present value
combining parces for greeater value
combining two or more adjacent lots to increase value