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MA Real Estate
FTRS book vocabulary ABC
| Term | Definition |
|---|---|
| Abandonment | lessee leaves without consent of lessor before lease expires; does not break lease or relieve lessee obligations |
| Abatement | a reduction in property taxes; must file taxes before requesting |
| Abstract of Title | a condensed history of legal title, summarizing all instruments in chain of ownership; provided by lender's attorney and paid by borrower |
| Abutting | neighboring land with a common boundary |
| Acceleration Clause | a clause in a note protecting lender; upon default, balance of debt becomes due immediately instead of maturity date; prelude to foreclosure |
| Acceptance | indication by signature of offeree that he is willing to be bound by terms of offer from offeror |
| Accretion | increase of property by gradual natural additions, as of land by alluvion |
| Accrued depreciation | difference between cost of replacing property new as of date of appraisal and present value |
| Acknowledgement | an act of executing a legal instrument such as a deed, mortgage or discharge before a lawyer or other officer of state such as a notary public; this act declares signing to be free and voluntary; this is necessary before recording at registry |
| Acre | 43560 square feet |
| Actual Eviction | legal action originated by lessor whereby lessee in default is physically ousted pursuant to a court order (unlawful detainer) |
| Adjacent | nearby or abutting |
| Adjoining | touching and contiguous |
| Adjustments | rents, insurance, fuel, taxes, etc. apportioned or prorated between buyer and seller at closing of title (passing of papers) |
| Administrator/Administratrix | person appointed by court to probate or prove and settle estate of person leaving no will |
| Ad Valorem | tax assessment based on actual value |
| Adverse possession | occupant's right to acquire legal title to private property held by title holder by deed if occupant holds land openly, notoriously, adversely and without permission for 20 years; also known as squatter's right |
| Affidavit | a sworn statement; written oath such as acknowledgement |
| Affirmation | a solemn declaration; non-religious oath |
| Agency | a contract by which one party undertakes to represent another in certain business situations, such as realty brokerage |
| Agent | a person (natural), corporation, society, association or partnership (legal persons) acting by authority of a principal in a realty transaction for compensation |
| Agreement of sale | a bilateral contract whereby buyer promises to buy and seller promises to sell by execution and delivery of deed; also known as Purchase and Sale Agreement (P&S); Agreement means the same as Contract |
| Air rights | ownership or lease or air space over a specific parcel of realty, such as building over a turnpike |
| Alienation | voluntary transfer of realty |
| Alienation clause | clause in mortgage giving lender right to accept or reject new owner of take-over mortgage |
| Alluvion | increasing of land are along a shore by deposited alluvium or by the recession of water |
| Alluvium | clay, silt, sand, gravel, or similar detrital material deposited by running water |
| Amenities | features of property making it desirable and thus adding value, such as scenic views, convenient shopping, etc. |
| Amortization | paying indebtedness by equal and periodic payments; each payment is equal but ratio of principal and interest changes with an increasingly larger portion credited to reducing debt |
| Appraisal | an estimate of value |
| Appreciation | increase in value resulting from market forces such as demand stronger than supply |
| Approaches to value | three methods used by appraiser to form an estimate of value such as cost, market and income approaches |
| Appurtenance | a right belonging to and passing with a property such as having a right of way through adjoining property |
| Arm's length transaction | sale without duress on either party resulting in fair market value; an open and willing sale |
| Assemblage | the act or process of combining two or more lots under single ownership |
| Assessed valuation | value given to realty by assessor's office for property taxation purposes; also called assessment; actual collection of tax comes from Tax Collector or Treasurer |
| Assets | all real and personal property one owns; assets minus liabilities such as mortgages, equal net worth (equity) transfer of title or interest in writing; assignor gives and assignee receives |
| Associate broker | a broker who chooses to work as a salesperson for another broker (the employing broker) |
| Assumption of mortgage | taking of title to property by grantee who assumes existing loan; however original mortgagor is not released and in event of foreclosure and deficiency, mortgagee can look to either original mortgagor or new grantee or both |
| Attachment | a writ issued, beginning or during a legal action commanding sheriff to attach("seize") property, rights and effects of defendant to satisfy possible credit demands of plaintiff if judgement comes out in plaintiff's favor |
| Attest | affirmation that something is true or authentic |
| Attestation | testimony or evidence given under oath |
| Attorney-at-law | a lawyer employed by a party to manage a cause |
| Attorney-in-fact | someone holding a written power of attorney |
| Auction | public sale of property to highest bidder |
| Balloon mortgage | principal loan amount paid off in lump sum at end of term as opposed to amortized direct reduction method |
| Benchmark | mark on stone or cement permanently fixed to ground; used as measuring point by surveyors |
| Bequeath | to give personal property by will; bequest |
| Betterments | improvements adding to value of realty, done by local government and paid for by gainers of value; sidewalks, streets, etc. Results in a special assessment |
| Bilateral contract | one person's promise in exchange for another person's promise such as purchase and saleagreement |
| Bill of sale | a written instrument that is the evidence of transfer of one person's right in personal property to another |
| Binder | deposit or earnest money given as evidence of good faith by buyer to secure property until sale is consummated; it can also refer to a temporary memorandum outline a real estate deal, similar to a letter of intent. |
| Blanket mortgage | a single mortgage instrument securing more than one parcel of property as security for the loan |
| Blockbusting | employing fear tactics to induce panic selling or panic peddling in a neighborhood: illegal |
| Board of Registration of Real Estate Brokers and Salespersons | licensing authority in Massachusetts under the Division of Public Licensure. Issues real estate licenses |
| Bona Fide | in good faith and without fraud |
| Bond | guarantee by third party that it will make good any loss, up to a certain amount, incurred by a party dealing with a broker not acting in good faith; bonding company is Surety and obligor and State is oblige. Broker bond is made payable to State |
| Breach | default or violation of terms of contract |
| Building code | regulations established by government setting forth minimum structural requirement; a police power |
| Building line | line drawn certain distance from lot lines; no building can be erected between building line and lot lines |
| Bundle of rights | all rights that go with ownership of realty |
| Capital expenditures | investments of cash for improvements to remain competitive in a business |
| Capitalization | process of computing current value from expected future income by dividing annual net income by selected rate of return desired for that type of property; the cap rate |
| Capitalization rate | profit expressed as a percentage that an investor expects from an investment on a yearly basis. A rate of return |
| Carrying charges | expenses necessary for holding property such as vacant land pending development or zoning changes |
| Cash flow | profit after principal and interest are deducted from net operating income (NOI) |
| Certificate of reasonable value (CRV) | instrument issued by V.A. denoting maximum value for V.A. guaranteed loan |
| Certificate of title | a written opinion by an attorney or title company that certifies condition of title |
| Chain of title | history of conveyances and encumbrances affecting a title |
| Chattel | an article of personal property |
| Clear title | title free of encumbrances |
| Client | principal who hires an agent; CUSTOMER is the unrepresented party |
| Closing costs | costs of seller and buyer at conveyance of realty |
| Closing statement | a written accounting of funds to seller and buyer at passing papers |
| Cloud on title | outstanding claim or encumbrance which if proved to be valid, would impair title and marketability of property |
| Collateral | a security, such as a mortgage, given to protect debt |
| Collusion | agreement between parties to defraud another |
| Color of title | someone has instrument which appears to provide good title, but actually does not |
| Commingling | the mixing of funds held for the benefit of others with the broker's personal or business funds |
| Commission | money or other valuable considerations given to broker by principal for services rendered; amount is by agreement |
| Condemnation | the taking of private property by law of eminent domain |
| Conditional sales contract | a contract in which owner retains title until buyer has met all terms and conditions; Buyer acquires "equitable title" until final payment; after delivery of deed, buyer has "legal title" |
| Condominium | multi-unit structure made up of individually-owned units with separate deeds and shared ownership of common areas |
| Consideration | something of value exchanged between parties of a contract; money, services, goods or promises |
| Construction loan | progressive payments to builder during stipulated stages in erection of building |
| Contract | a legal instrument between two parties to do or not to do something; in realty, it must be in writing to be enforceable |
| Convey | to transfer and grant; to convey as a transfer of legal title in land by an instrument in writing such as deed |
| Corporation | a legal person created by state law owned by one or more people; corporation must be licensed and bonded; at least one officer of corporation must be licensed as broker but all members involved or engaged in realty must be licensed also |
| Cost of reproduction | cost of exact duplication of property using similar materials |
| Counter offer | voids first offer and creates new offer |
| Covenant | a promise or guarantee usually found in a deed |
| Covert | hidden or concealed defect in the title |
| Cubage or cubic content | length x width x height of interior |
| Cul de sac | a road with one outlet usually ending in a circle |
| Curtesy | right of husband to share in wife's realty upon her death only. Dower is rights of wife to share in husband's realty upon his death; both these rights are life interests only |
Created by:
vele
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