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88 Cards in this Set
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Absorption |
The consumption of available vacant property in a building or market. |
Available in a building or market |
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Accretion |
An increase in land caused by natural phenomena, for example a deposit of sand on a beachfront property due to a tropical storm. |
Increase of land |
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Agency |
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. |
Universal, limited, & fiduciary agency. |
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Agent |
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. |
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Air Rights |
Rights in real property as they apply to the properties airspace, or all space above the surface within the parcel's legal boundaries. |
Rights |
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Air Space |
The air portion of real property. In a condominium unit, the freehold space enclosed enclosed by the unit's outer walls, floor, & ceiling. |
Condo air property |
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Allocation of Markets |
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. |
Collusion |
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Assemblage |
A combining of contiguous parcels of real estate into a single tract, performed with the expectation that increased value will result. |
Combining contiguous parcels |
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Asset |
A tangible or intangible item of value |
Item of value |
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Asset Sale |
A sale of a business involving the transfer of assets as opposed to the liabilities or stock. |
Aka: Stock sale |
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Assignment |
A transfer of one's entire interest in an item of real or personal property. The assignor transfers the interest to the assignee. |
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Base line |
An imaginary latitude line within the rectangular survey system that is designated in relation to a principal meridian for purposes of identifying townships. |
Aka: parallel |
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Beginning Basis |
The original cost or market value of an acquired asset |
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Benchmark |
A registered marker denoting an official elevation above sea level; used by surveyors to identify other elevations in the area |
Marker |
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Beneficiary |
A party named to benefit from the yield or disposition of an asset identified in a trust, insurance policy, or will. |
Benefit from yield or disposition |
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Bilateral Contract |
A contract where both parties promise to perform in exchange for performance by the other party. |
2 parties |
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Binder |
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. |
Temp agreement w/ deposit |
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Blind Ad |
An advertisement that does not contain the identity of the advertiser. |
No advertiser |
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Blockbusting |
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. |
Scaring into selling |
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Broker |
A direct agent of the principal who is hired for compensation to perform a stated service such as procuring a customer. |
Direct agent |
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Brokerage |
The business of procuring customers on behalf of clients for the purpose of completing a real estate transaction. |
Business |
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Bundle of Rights |
A set of rights associated with ownership of property, including the rights to possess, use, transfer, encumber & exclude. |
Associated set of rights |
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Buyer Representation Agreement |
A broker's listing with a buyer to locate a suitable property for purchase or lease. |
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Buyers Market |
A market characterized by an excess of sellers over buyers |
Surplus of sellers |
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Capital Improvement |
An upgrading of improved property having sufficient magnitude to constitute an addition to the property's basis. Contrasts with repair or maintenance. |
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Certificate of Occupancy |
A document confirming that a newly constructed or renovated property had fully complied with all building codes & is ready for occupancy & use. |
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Chattel |
An item of personal property |
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Co-Brokerage |
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. |
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Commingling |
An unlawful practice of mixing escrow funds with the agency's operating funds. |
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Common Elements |
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. |
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Concurrency |
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. |
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Condominium Estate |
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. |
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Cooperative Estates |
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. |
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Curtesy |
A widower's life estate claim to portions of his deceased spouse's real property. |
Opposite of dower |
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Customer |
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. |
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Datum |
A standard elevation reference point used by surveyors to measure elevations of property in an area. |
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Deed in Lieu of Foreclosure |
An instrument used to convey mortgaged property bank to the lender rather than having the lender foreclose on the property. |
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Defeasable Fee |
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) |
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Demand |
A quantity of a product or service that is desired for purchase, lease, or trade at any given time. |
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Dominant Tentement |
The property that benefits from the existence of an easement appurtenant. The holder of the easement is the dominant tenant. |
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Dower |
A widow's life estate interest in portions of her deceased spouse's real property. |
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Dual Agency |
Representing both principal parties in a transaction. |
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Earnest Money Escrow |
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. |
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Easement |
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. |
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Emblements |
Plants & crops considered personal property, since human labor is required for planting & harvesting. |
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Equilibrium |
A theoretical market state in which the forces of supply & demand are in balance. |
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Estate |
1.) A set of rights to real property that include possession. 2.) The totality of one's personal and real property ownership. |
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Estate in Hand |
An estate |
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Ethics |
Standards governing proper & professional business practices. |
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Exclusion |
One of the bundle of legal rights to real property enabling the owner to prevent others from entry or use. |
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Exclusive Agency |
A listing agreement which pays the broker a commission if anyone other than the property owner pedicures a customer. |
Anyone but the owner |
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Exclusive Right to Sell |
A listing agreement which pays the listing broker a domain of anyone at all procures a customer. |
Anyone |
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Facilitator |
A transaction broker who assists principal parties in completing a transaction without acting as a fiduciary agent of either party |
No fiduciary agency |
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Fee Simple |
An estate representing the highest form of legal ownership of real property, particularly the fee simple absolute estate. |
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Fiduciary |
The agent in an agency relationship; receives the trust & confidence of the principal & owed fiduciary duties to the principal. |
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Fiduciary Duties |
Ditties of an agent to the principal in an agency relationship, including skill, care, diligence, loyalty, obedience, confidentiality, disclosure, & accounting. |
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Fixture |
An item permanently attached to land so as to be defined as real property. |
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Freehold Estate |
An ownership estate of indeterminable duration; contrasts with a leasehold estate. |
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Functional Obsolescence |
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. |
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General Agency |
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. |
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General Partnership |
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. |
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Goodwill |
An intangible business asset valued at the difference between the sale price & the value of all other assets of the business. |
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Gross Easement |
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. |
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Highest and Best Use |
A theoretical use of a property that is legally permissible, physically possible, financially feasible, & maximally productive, usually in terms of net income generation. |
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Implied Agency |
An agency relationship that arises by implication from the actions and representation of either agent or principal. **Implied Listing |
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Implied Contract |
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. |
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Improvement |
Amy manmade structure or item affixed to land |
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Independent Contractor |
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. |
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Interest |
1.) A right to real property 2.) A lender's charge for the use of the principal amount of a loan. |
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Land |
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. |
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Landlocked |
A parcel of property lacking legal access to a public thoroughfare; requires a court-ordered easement by necessity to relieve the condition. |
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Law of Agency |
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. |
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Legal Title |
Full legal ownership of property & the bundle of rights as they apply to it. Contrasts with equitable title. |
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Legal Description |
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. |
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Liability |
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. |
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License |
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. |
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Lien Theory State |
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. |
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Limited Agency |
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. |
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Liquidity |
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. |
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Listing |
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. |
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Lot & Block System |
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. |
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Market |
Buyers and sellers exchanging good & services. Total interactions of supply and demand to a specific item/service in a certain area. |
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Marketing Plan |
An agent's design/plan for procuring a customer for a client. |
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Master Plan |
Community plan with local opinion, including research. Acting blueprint for subsequent zoning & rulings. |
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Meridian |
A north-south line used in the rectangular survey system of legal descriptions. |
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Metes & Bounds |
Method of legally describing the property using physical boundary markers & compass directions to describe property boundaries. |
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Monument |
Fixed artificial or natural landmark used as a reference point (metes and bounds) |
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Net Listing |
Listing that states a minimum sale or lease price with excess going to broker. Professionally discouraged if not ILLEGAL. |
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